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XenoPort Inc. Reports Operating Results (10-Q)

May 10, 2010 | About:
Barel Karsan

10qk

18 followers
XenoPort Inc. (XNPT) filed Quarterly Report for the period ended 2010-03-31.

Xenoport Inc. has a market cap of $313.47 million; its shares were traded at around $10.3 with and P/S ratio of 9.15. XNPT is in the portfolios of Lee Ainslie of Maverick Capital.

Highlight of Business Operations:

The decrease in net revenue from unconsolidated joint operating activities for the three months ended March 31, 2010 compared to the same period in 2009 was primarily due to the receipt and recognition of a significant portion of the $20.0 million milestone payment from GSK related to the FDAs acceptance for review of the Horizant NDA in the three months ended March 31, 2009 and, to a lesser extent, the recognition of our $0.3 million share of pre-launch operating losses of Horizant. As a result of the Complete Response letter, we revised the estimated period of performance over which we recognize milestones paid for clinical trial and pre-clinical activities and the up-front payment.

As a result of the implementation of our restructuring plan, we recorded a restructuring charge of $5.3 million in the three months ended March 31, 2010, consisting primarily of $3.9 million of leave of absence pay, severance and healthcare benefits, $0.9 million of non-cash stock-based compensation and $0.4 million of property and equipment write-offs. This charge excludes any facility-related charges. We are still assessing whether we will continue to use, vacate and/or sublease our office space in a building at 3400 Central Expressway, Santa Clara, California and expect to finalize our plans in the second quarter of 2010. We do not expect to incur additional charges except for facility-related charges, and we expect to complete the restructuring in September 2010.

Net cash used in operating activities was $19.1 million and $8.9 million in the three months ended March 31, 2010 and 2009, respectively. The net cash used in operating activities in the three months ended March 31, 2010 primarily reflected our net loss, partially offset by non-cash stock-based compensation. We recorded a restructuring charge of $5.3 million in the three months ended March 31, 2010, which includes approximately $4.0 million of cash expenditures, and, of this amount, $1.0 million was paid in the three months ended March 31, 2010. The net cash used in operating activities in the three months ended March 31, 2009 primarily reflected the non-cash changes in operating assets and liabilities and, to a lesser extent, our net loss, partially offset by non-cash stock-based compensation.

Net cash used in investing activities was $4.4 million and $8.9 million in the three months ended March 31, 2010 and 2009, respectively. The net cash used in investing activities for the three months ended March 31, 2010 and 2009 was primarily related to the purchases of investments, partially offset by proceeds from maturities of investments.

Net cash provided by (used in) financing activities was $(0.4) million and $0.4 million in the three months ended March 31, 2010 and 2009, respectively. The net cash provided by (used in) financing activities for the three months ended March 31, 2010 and 2009 primarily reflected net proceeds provided by (used in) the issuance of common stock and exercise of stock options.

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