Aspira Women's Health Inc (AWH) 2004 Q2 法說會逐字稿

Good morning. My name is and I will be your conference facilitator. At this time, I would like to welcome everyone to Ciphergen Biosystems' Second Quarter Earnings Release Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer period. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, press star then the number two on your telephone keypad. Thank you. Ms. Carruthers, you may begin your conference.

Thank you. Good morning, ladies and gentlemen. With me today are William Rich, President and CEO; Matt Hogan, CFO; Gail Page, President of the Diagnostics Division; and Martin Verhoef, President of the Biosystems Division and others who may participate in the Q&A. Copies of the earnings press release were distributed last night and are available on our Web site. I would like to remind everyone that this call is for information purposes only. This call is being recorded and is copyrighted and therefore please note that it cannot be recorded, transcribed or re-broadcast without Ciphergen's permission. Your participation implies confidence to our recording this call. If you do not agree with these terms, please lock off the line. Our discussion today contains some forward-looking statements including Ciphergen's expectations of future strategic plans and operational results. Various risks may cause Ciphergen's actual results to differ materially from these expectations. For a list on description of some of these risks and uncertainties, please see the reports filed by Ciphergen with the Securities and Exchange Commission. The information in this conference call related to projections or other forward-looking statements may be relied upon subject to the previous Safe Harbor statements as of the date of this call and may continue to be used while the call is maintained on our Web site. I would now like to introduce you to Matt Hogan.

Okay, thanks Sue. I am going to begin with the discussion of our financials and then I will turn the call over to Bill for a review of a review of other corporate highlights. Ciphergen reported second quarter 2004 revenue of $10.8m, a 25% decrease over the same quarter of 2003. This decrease was mainly due to a shortfall in system sales and a decrease in BioSepra sorbent's revenue partially offset by increases in array sales and service revenue. As covered during our pre-announcement webcast, we attribute this shortfall to number one, overall spending on proteomics appears to us to be more constrained than we anticipated. Number two, there is a lot more noise in the field of Biomarker proteomics causing a lengthening of the sale cycle. Number three, centralized core lab groups are contributing to the Biomarket noise as they promote other proteomics strategies or misperceptions in the marketplace are pattern-based proteomics. The proteomics of course is pioneered by Ciphergen and finally criticism of SELDI instrumentation and arrays. Bill Rich will cover on greater detail our response to these issues and particularly the major new product introduction and of this quarter and marketing programs associated with it.

During the quarter, we shipped 26 systems and recorded revenue from the sale of 20 systems. Asia was solid but the US and Europe were well below our expectations. Instrument sales, which include upgrades in accessories, generated around 37% of total revenue in the second quarter with $4m in sales compared to $7.3m in the second quarter of 2003. Total consumable revenue which consist of our ProteinChip ready sales and Chromatographic sorbent was $4.6m in the second quarter or 43% of total revenue. Of this, $2.2m represented array revenue which is an increase of 12% in the second quarter compared to the second quarter of last year. Our BioSepra process proteomics business unit generated $2.4m of sorbents revenue which compares to $3.1m in the second quarter last year. This business is always a little lumpy since orders can be as large as $0.5m to $1.5m and Q2 is roughly in line with our expectations going into the quarter. We believe we have stronger sorbent sales in the second half of 2004 than in the first half of 2004. Q3 sales will probably be about the same as Q2. But our Q4 sales should be substantially higher. Therefore, our overall second half BioSepra revenue will be greater than the first half. There are several reasons for believing us. One, we have customers evaluating our products in over a 110 processes, the majority of which are using our new MEP sorbent. We have over 30 situations in which our sorbents are being tested at large scale for drug development in Phase I to Phase III clinical trials. We recently launched a complimentary mixed mode sorbent for direct capture of antibodies called MBI HyperCel and there is also strong interest in ProteinChip sales into this market to improve protein production in the north. Remainder of revenue was related to service activity.

For the quarter, total service revenue grew to $2.2m as compared to $1.9m in the second quarter of last year. Collaborative service projects accounted for about $272,000 from the total in second quarter with the remainder coming from providing maintenance services to our customers in paid-training activities. We've begun to de-emphasize the use of our biomarker discovery centers to perform fees for service projects in favor of using these resources for our internal projects starting with the discovery and development of diagnostics. That emphasis is going to continue in the second half. Our gross margin situation requires some explaining. A number of factors have caused our gross margins that fluctuate significantly with respect to the second quarter of both 2003 and 2004. And the product launch of the Series 4000 will impact gross margin in the next several quarters. Our gross profit for the second quarter of 2004 was $5.5m, which represents a 51% gross margin.

In the second quarter of 2003, Ciphergen recorded approximately $7.3m as a non-recurring expense in cost of revenue related to the settlement of a litigation matter. We have provided a pro forma table in the press release, so investors can easily back out that non-recurring event. Subsequent to that time, Ciphergen has been recording approximately $300,000 per quarter in additional cost of revenue due to the settlement terms of that litigation. Depending on our revenue for the quarter, that $300,000 figure translates into a varying percentage impact on gross margin. So, on our Q2 revenues this year, that item decreased gross margin by about 3%. In July 2004, we announced the launch of our next generation ProteinChip System, the Series 4000. Principally as a result of this major new product introduction, we increased our inventory reserve in the second quarter by a total of about $800,000. This increase and other expenses related to contracted raw material purchases that couldn't be cancelled, negatively impacted gross margin by about 8% in the second quarter. Also services, which traditionally have a lower gross margin for us than projects, were higher as a proportion of our total sales, so the mix of revenue in the quarter also negatively impacted gross margins. Looking forward for the next several quarters however, gross margin from sales of the ProteinChip System, Series 4000, will benefit from the fact that about $1.5m in materials costs have already been expensed in previous periods to research and development, during that period when the Series 4000 was being developed. Sales and marketing expense, excluding deferred compensation, was $8.3m in the second quarter of 2004 versus $6m in the second quarter of 2003. This increase was driven by the growth of our sales and marketing organization and promotional activities.

Deferred compensation of sales and marketing was $31,000 in the second quarter. Research and development expense, excluding deferred compensation was $6m in the second quarter of 2004, as compared to $6.9m in the second quarter of 2003. Deferred compensation attributable to R&D was $13,000 in the second quarter. G&A expense, excluding deferred comp, was $3.6m in the second quarter of 2004 versus $4m in the second quarter of 2003. Deferred compensation attributable to G&A was $102,000 in the second quarter. Our operating loss was $12.8m in the second quarter and our net loss was $13.1m. At the end of the quarter, we've $29.8m in cash and investments, which compares to $39.6m at the end of the first quarter. Looking ahead for a minute, the forward-looking statements I'm about to make are subject to risks and uncertainties, as described at the beginning of this call. We do not intend to update these comments or forecasts, prior to our next quarterly conference call. Based on the launch of the Series 4000, the associated marketing programs, and the belief that BioSepra will have a stronger second half than first half, although heavily weighted towards the fourth quarter, we're currently expecting Q3 revenue of approximately $11m to $13m, which would represent sequential quarterly growth. We anticipate by the fourth quarter, we'll be back to a positive year-over-year growth rate, as the true impact of our new product launch will start to be felt, because our BioSepra backlog is fourth quarter weighted. I would also like to mention that we took action in July to reduce our operating expenses. These actions targeted the research tool side, although our investments and diagnostics was unaffected. Because there is lag effect associated with some of our actions, the full effect of these steps won't be felt until the fourth quarter, in which time we expect that their operating expenses reduced by about $8m on an annualized basis as compared to our second quarter run rate. That equals about 10% to 12% reduction in operating expenses. Now I'd like to turn the call over to Bill Rich for additional comments.

Thanks Matt. I want to cover two main topics, one, is our exciting product launch of the next generation ProteinChip System and associated marketing programs, second, progress by the Diagnostics division. First of all the Series 4000, under the leadership Martin Verhoef, now the President of our Biosystems division, we've been continually improving our ProteinChip Systems over the last few years, but the launch of the Series 4000 represents a quantum leap forward across the board for all system capabilities, features and specifications, for optimizing the process of pattern-based Biomarker Discovery to Biomarker Assays done on a single platform including Biomarker Purification and ID. The optimization of this process, which we newly termed Pattern Track, had resulted from the years of experience in pioneering this concept with our previous ProteinChip Systems, the PBS I & II series and accessories resulting in many important scientific publications by our own Biomarker Discovery Centers as well as users in the field of Biomarker discovery. We have integrated what we have learned over the past five to seven years pioneering this novel Biomarker to Assay process with powerful new engineering designs to the enhance performance, specification, and features, which improve the Pattern Track process, speed, ease of use, and performance.

In summary the Series4000 features the Pattern Track biomarker discovery-to-assay process and integrates Ciphergen's proprietary ProteinChip Arrays, SELDI-TOF-MS detection, and Biomarker Patterns software in a single system to enable rapid biomarker discovery and development of predictive, high throughput SELDI-based assays. It provides improved system sensitivity, resolving power, and reproducibility for Biomarker Discovery. Pattern recognition software to select the optimal combination of biomarkers from hundreds of biomarker candidates, automated singe or multi-marker assay optimization and validation, rapid purification and identification of biomarkers and automated high throughput SELDI-based chromatographic or immunoassays, all again on a single system. The Series 4000 is an easy to use benchtop system that has a lower cost of goods allowing a lower price point than previous systems and consistent with our often stated strategy of promoting decentralized proteomix by enabling researchers and about 50,000 research labs to perform their own work rapidly and with higher performance. The lower price points, $125,000 for the Personal version and a $185,000 for the automated Enterprise version should address some of the funding issues alluded to earlier. The Series 4000 provides four Biomarker sub-systems in one, including discovery, purification, ID, and assay modes which are each optimized to provide maximum speed, easy to use, and performance for implementing the Pattern Track process or for general biology research applications.

The Series 4000 is designed with innovative engineering features, which enable both high performance and automation for Pattern Track process implementation yet maintains its versatile, easy to use benchtop format for raking research work by biologists and clinical researchers. New design features include, one, novel laser spot rastering, automatic laser energy setting, innovative 104 linear dynamic range detection and improved array manufacturing of which result in a superior assay quantitation and reproducibility. Secondly, new ion source, flight tube design and novel detector blanking features, which improve ion efficiency and reduce noise, enabling enhanced biomarker sensitivity. Three, improved system linear dynamic mass range up to 380,000 daltons in one experiment when combined with our MultiSelect column-based Expression Difference Mapping capabilities give the system a serum peak-resolution per analysis is over 3,000. Four, automated sample handling allows unattended runs of up to 168 arrays for large-scale clinical studies. Lastly, CiphergenExpress 3.0 operating system and database manager provides system control, automation and database management with a state-of-the- art features for automated Pattern Track process implementation, including Biomarker pattern software.

I also want to mention new bioseparations accessory tools further enhance the discovery and assay power of the Series 4000 and include, first, our new Deep Proteome tools including new Protein Equalizer beads. with collaboration with American Red Cross, this powerful, combinatorial chemistry based bead technology allows a deeper search into the proteomes of biological fluids such as serum to detect low abundance proteins when used with the Series 4000 and new MultiSelect expression profiling tools. Secondly, Biomarker pathways tools including protein interaction discovering mapping kits and protocols and able improved Series 4000 capabilities, to discover novel protein interactions and build quantitative SELDI-based immunoassays to study biological pathways function and drug development processes. Switching from the product to sale to marketing programs, we launched the Series 4000.

This quarter we began our worldwide introduction of the 4000 Series of the 9th Worldwide Conference on Alzheimer's disease in Philadelphia. Worldwide advertising and seminars series will begin in August as well as the number of other meetings throughout the fall. Initial customer reaction to the product has been very positive. Next, we believe our parent-based approach to Biomarker proteomics combined with well engineered system features and specifications that optimize pattern based proteomics which have been designed into our new Series 4000 product will be a significant interest to the Core Proteomics labs offering them a complimentary approach to their now current top-down and bottom-up Biomarker proteomics methods. We planned to expand our marketing program to the Core Proteomics labs with a new product D-proteome and Biomarker pathway tools, we believe will provide expanded applications of interest to the Core Proteomics groups. Finally, we expect the upcoming market launch events will assist us in regaining market momentum along with increased efficacy of our technology, our scientific modulators and due to their success with products and with this new product. For example, total of 10 papers using our technology represented at the Alzheimer's meeting that took place in Philadelphia, Prof. Kaj Blennow gave the tender election in front of the several thousand researchers and talked about his successful work with SELDI and multimarker assays to diagnose Alzheimer's disease from other dimensions.

As you know, we have a burgeoning list of publications based on the technology now over 250 strong, demonstrating scientific progress and able biotechnology. In the coming quarters, look to see even more high-level scientific publications using SELDI. For example, an Ovarian Cancer paper that describes our 500 sample multislide study by John Hopkins, MD Anderson and others will come out on Cancer research in August. This should help to further validate pattern track as I described a regular study design and promising diagnostic results. Also, work done by the Early Detection Research Network or EDRN from the NCI has recently been accepted for publication by our major clinical journal. This work highlights the reproducibility of our ProteinChip system across six institutions and a Prostate Cancer clinical validation study. Reproducibility being one of those criteria required in any diagnostic platform, which expect this allocation to come out in the form.

Now let me move on to diagnostics. Our diagnostics division under the leadership of Gail Paige, continues to make sound progress in advancing our discovery programs in working towards potential commercialization of our Ovarian Cancer assay and in working towards potential collaborations with Reference labs and individual diagnostic companies. First overview, Ovarian Cancer initiative, our follow-on study employing 1500 samples from two additional sites is currently being conducted to answer three clinical issues, early detection, late-stage detection and treatment monitoring for recurrence. As I also say that we are assisting our customer's NCI clinical reference lab preparing their own Ovarian Cancer pattern based study using SELDI, their mandate us together the data support a future pattern based diagnostic application to the FDA. Next, Kidney transplantation rejection assay, on May 16, researchers from the John Hopkins University school of Medicine provided a special invited lecturers of the American transplant Congress in Boston in which they reported a promising study in kidney transplantation enabled by Ciphergen SELDI ProteinChip system. The methodology employed by the research group was used to develop the basis of a simple urine test that identifies impending kidney failure or rejection following transplant surgery. Potential alternative to kidney biopsies for renal transplant patient monitoring.

Next, Alzheimer's disease. As I mentioned we have exciting results in Alzheimer's disease. In approximately four months scientific team from Ciphergen diagnostics Biomarker discovery center and laboratories in Copenhagen discovered 44 Biomarkers, which either increased or decreased in AD or Alzheimer's disease, relativity control non-AD samples. Over 20 of these Biomarkers have been sequenced and characterized using the ProteinChip system. The marker is characterized in the study are linked with many different aspects of AD neuropathology. The research team applied Cipehergen's Biomarker pattern's software to select critical combinations of Biomarkers to discriminate early stage 80 from control individuals. A resulting multibiomarker assay yield a diagnostic performance of approximately 86% in detecting early stage Alzheimer's disease. Such assays, once confirmed in validation space may prove useful to physicians in differentiating AD from other forms of dementia, as well as biopharmaceutical companies for therapeutic monitoring assays in both preclinical and clinical development. Follow-on studies are underway in cerebral spinal fluid and serum samples of pathology confirmed cases. Other programs, I'll just briefly touch on two other diagnostic programs, breast cancer. At Hopkins, we ran an initial breast cancer study that was published in clinical chemistry. It related to a serum-based multi-marker assay that maybe used for the early detection of breast cancer. That study using 169 samples produced a multi-marker assay with sensitivity of 93% and specificity at 91%. We've now completed an intermediate 176 patient validation study in which two of our previous biomarkers were validated. This validation study including the identity of these biomarkers is now in publication. We're now running a 400 patient multi-site validation study that we expect to complete by the end of this quarter.

Prostate cancer, again at Hopkins, we have two prostate cancer efforts underway. The widespread press from the recent New England Journal of Medicine Paper in which the current cut off of four nanograms per meal for PSA has been questioned how actually the real clinical need in the field of prostate cancer markers that tell to physicians how aggressive a cancer is. We have an excellent 1,100 sample serum set that was originally collected from seven sites. We're undertaking two clinical issues, the first being to attempt to stratify PSA levels and add to the ability to detect prostate cancer through a multi-biomarker panel. And the second being to study recurrence using serial sets of samples. Again, to get up the aggressiveness of the cancer based on a multi-biomarker assay. We expect to start to see the results of these studies at the end of this quarter. We've a number of other programs underway, but I will stop here for now.

Now, let me finish up with a few more remarks and then we will take questions. First, we're disappointed by the second quarter financial results, but are taking concrete steps that we believe will allow us to regain momentum on the research tools side. These steps include major new product launches in the Series 4000, upcoming events in publication as it validates the power of SELDI in the Pattern Track process, and cost control steps. Our Diagnostics Division is unaffected by the cost control steps and we are not altering our plans there at all and continue to make progress in our discovery and development programs. We're also optimistic about our prospects for entering into a collaboration with a reference lab and/or an in vitro diagnostic partner later this year. I think, I will stop there and take questions. Operator?

At this time, I will like to remind everyone, in order to ask a question, please press star then the number one on your telephone keypad. We will pause for just a moment to compile the Q&A roster. Your first question comes form the line of Eric Schmidt with SG Cowen.

Good morning. Just a couple of housekeeping questions, first I think you mentioned that you shipped 26 systems in the quarter but booked 20 in revenue?

Correct.

And what was the discrepancy.

Well, in this world of revenue recognition there are lots of ways you can find that you can't take into revenue something where you have gotten and shipped. So, they were all little revenue recognition issues associated with six orders. I think the corollary to that that means we carry-over an unusually large number of orders into the next quarter and that's far more than we ever got, normally.

What's difficult?

Couple.

In the past, when you've talked about some shift that's chipped in and revenue recognized --

Yes, typically I have never given really what shift I just said here is what we recognize for revenue. So, we go into the next quarter with far more than we normally would.

Okay. Could you give us some additional guidance on where the cuts are coming from, sales, marketing, R&D, you already mentioned the biomarker?

It's not on a diagnostics; it's a combination of all the operating income items. So, some G&A, a lot of tools, R&D, research tools R&D. And also on the sales and marketing side, we've done something to reduce costs there.

Okay. Are we still expecting the publication of the ovarian cancer diagnostics, that 1,500 patient study this year or what's the update there?

Carr?

We're making some great progress there that's going to grow right on track. We are very comfortable and what we have decided is that we will present the preliminary data around the 1st of October at the meeting in the fall.

Okay thanks, and then sort of a final big picture question either for Martin or for Bill. It looks like the five reasons that you've given for the weakness in the quarter, a lot of them have to do at least preferably with competitive noise, either noise from the core labs or noise from people selling Biomarker Systems or there is perceptions toward the performance of your instrument, and sale being general, have you thought about a co-promote partnership that might counter act multiple of these -- the reasons for the weakness and discussions be there?

Martin.

We've already started to do that with the product biosystems, we have joined -- we've had joined we will actually compete through that international to follow.

Great, thank you very much.

Okay, you're welcome.

Your next question comes from the line of Ted Tenthoff with Piper Jaffray.

Great thanks, can you hear me okay?

Yes.

Quick questions, in particular relating to the margin side, I understand that the 2Q appeared to be, sort of one-time rate, could you give guidance either for the second half or where you think that margins might follow up by year-end?

71%, 72%.

For the year that is or for the second half --.

No.

For the second half, yes.

And the main reason for that being that, as I kind of indicated, we've already expensed in R&D, a lot of this material costs associated with the Series 4000. So, as we ship those units here in the second half and into the first quarter, actually in next year, you're shipping something that has almost no material cost associated with it, so that wont go on forever, but probably for the next three quarters will benefit from that, So the $2m and about a million in .

Right, okay, thank you very much.

Your next question comes from the line of Thomas McKenna with .

Okay guys, can you hear me okay.

Yes.

Just wanted to clarify something about the gross -- you had said that the launch of the 4000, impact gross margins -- is that because -- I just want to verify, is that because you're selling at a lower price or does it do with the expenses of launching and I wasn't --?

For the most part of -- we anticipate that in most parts of the world, people are going to predominantly buy the Series 4000, rather than the -- PBF Series is a number two, PBF II. We're going to continue to sell the PBF II in China, for probably a year because its got medical device certification as you may know. But, what that means is, we have to go back and look at the inventory we have of finished goods, and work in progress, and raw materials associated with the old model and make some kind of a reserve against that, sort of an obsolescence reserve, so that's what happened Q2.

Okay great, and then could you comment on the state of the market in Asia in general of the --?

Remains very strong for us, and I know Martin wants that more, but, we're doing extremely well in Japan and also in China. And, if you want to add anything to that, Martin?

No. stay there.

And how many of those people are you up to now and do you plan to add?

I actually don't have the figure right at my finger tips, I guess I will make a comment that, we increased our head counts on the sales force in the first quarter, and now we have reduced it back to a previous level, but I'll have to get back to you with the actual number.

Okay then one final one. Could you kind of give you me as the -- what the exact services revenue was for --?

Total services in the quarter were $2.2m.

Per year?

I'm sorry.

What is the exact figure?

.

Okay, thanks a lot guys.

At this time, I would again like to remind everyone, in order ask a question, press star one on your telephone keypad. Your next question comes from the line of Adam Chazan with Pacific Growth Equity.

Hi, guys, a couple of quick questions. Can you just get back to geography for a second, I recall you just saying earlier that Europe and Asia, were they weak?

No, Asia was strong, US and Europe were weak.

US and Europe were week, okay. Switching to BioSepra, the feel for going into the second half of the year. Can you just comment on what percent of the sales going into the second half might be covered by some kind of contractual obligation or actually you might have some feel for the order level, and yes, just in terms of what's taken to that number?

Martin?

Yes, let me comment here. I think what you refer to is the way that these bookings are done. That's with regards to the fourth quarter there is a lot of contracts already in place for that rapid new number that we are sort of aiming at and seems actually true for quarter three. And you typically do have a one to two quarter insight in what the next two quarters are going to look like because new bookings come in way in advance.

Okay, and then lastly I mean any feel for what the mix might be in terms of sales of the 4000, high-end versus low-end?

The -- earlier in the cases are that's the high-end to the under par system is probably going to do very well. The first orders that we've taken, we've actually going in with the personal additional the count low-end system and Christmas, we actually decided to upgrade that to the enterprise version.

Now they are doing that primarily on the cost, what's driving them to take one over the other?

The capabilities, if they really want to really want to produce this or take advantage of this Pattern Track process then the enterprise version does gets backed up throughput and backed up software tools and people seem to really value that.

Thanks.

You have a follow-up question from the line of Ted Tenthoff with Piper Jaffray.

Great, thanks. Can you hear me okay?

Yes.

Two other quick questions, maybe following up on Adam's question here with respect to the new system launch, you've talked about the sales cycle being sort of extended here. Can you add maybe a little bit more color especially as that relates to the new system launch? How long is it taking customers to sort of evaluate the new system? And then second question, it might be early, but can you give us some color on when the combination of the resumption of sales growth and the cost cutting initiative could result in profitability?

Okay. Matt, let me take the first one, and you can take the second one then. And right now that there is a certain level of positive unpredictability and what will happen with the sales stock. What we have seen right now with our first sales activities and this is very young. We've only been active now for two weeks effectively in the market with this new product. But we've already seen some impact, we've taken the first orders and just going out and showing the new products, its features and its advantages for the Pattern Track process. The reception has been extremely positive. So, we do expect that it will have an impact on the sales cycle both for orders that were sort of delayed out of previous quarters because of the noise that is out there, and as Matt and Bill referred to. But also Christmas, it has been sensed that there were some sort of, wait let me see what was going to happen in the bio-market field. From both talks we are not exulted of Christmas or very excited about this product launch.

To your second question Ted, I think understandably we are a little bit shy at the moment in giving a whole lot of projections without going out there a long period of time, till we get a better sense for sort of what the uptake will be on the Series 4000, and I think even more importantly what's really difficult for us to model right now is that what kind of revenues to expect out of the Diagnostics Division, where a lot is going to depend on the form and structure and what kind of collaborations we make that up, whether those are front-end loaded, back-end loaded. It's just difficult to put that into some kind of a model at this point in time. So, I don't have a -- I don't think we as a Company have a position on, here is one quarter we are going to breakeven. We just believe that as we get the topline growing again we are going to maintain a lot of discipline on the growth in the operating expenses, and we will maintain a very high growth margin in the high sixties and as a result of that we believe that next year we can start to bring the losses down fairly attractively and fairly aggressively. And then the swing factor is how the Diagnostics part of the equation comes into play. And, that's just really difficult for us to have visibility into right now.

Understood, and I can certainly appreciate that. Thank you.

Thank you. At this time, there are no further questions I would like to thank everyone for participating in today's Ciphergen Biosystems second quarter earnings release conference call. This call will be available for replay beginning at 11:30 AM Eastern Standard Time today through 11:59 PM Eastern Standard Time on Friday, August 13, 2004. The conference ID number for the replay is 9008232. Again the conference ID number for the replay is 9008232, the number to dial for the replay is 1-800-642-1687 or 706-645-9291. Thank you again for your participation.