RALEIGH, N.C., Jan. 11 /PRNewswire/ -- CLOSURE Medical Corporation
(Nasdaq: CLSR) today hosted a conference call with analysts and investors to
discuss the Company's expectations for key financial metrics for fourth
quarter 2000 and fiscal year 2001, including the effects of adopting SAB 101.
Fourth Quarter 2000 Excluding Effects of SAB 101
Fourth quarter 2000 results, before the adoption of SAB 101, is expected
to be consistent with the guidance provided during the third quarter 2000
earnings conference call held on October 26, 2000. Total revenues for the
fourth quarter are expected to be in the range of $3.7 to $3.8 million.
Fourth quarter earnings per basic and diluted common share is expected to be a
net loss of ($0.01) to breakeven.
Fourth Quarter 2000 Including Effects of SAB 101
Total revenues for fourth quarter 2000, including $625,000 related to
SAB 101, are expected to be in the range of $4.3 to $4.4 million. The net
loss for fourth quarter 2000, including the effects of adopting SAB 101, is
expected to be approximately $2.2 million or ($0.15) to ($0.16) per basic and
diluted common share.
The adoption of SAB 101 reflects the reversal of licenses fees and product
development revenues that had been recognized in prior years related to a
licensing and marketing agreement with Ethicon, Inc., signed in March 1996.
Under the new accounting method, applied retroactively to January 1, 2000,
these payments are recognized ratably over the remaining agreement term,
through March 2004. The effect of applying this change in accounting
principle, as of the beginning of the year, is a cumulative charge of
$2.6 million or ($0.20) per basic and diluted common share.
2001 Projections
For fiscal 2001, full year earnings per basic and diluted common share
are expected to be in the range of $0.15 to $0.20 on revenues of $18.0 to
$20.0 million. Comparing 2000 and 2001, these expectations represent growth
in the range of 45%-50% for revenues and improves forecasted basic and diluted
earnings per common share from a loss of ($0.12) to ($0.13) in fiscal 2000 to
income of $0.15 to $0.20 in fiscal 2001.
The 2001 quarterly breakdown for basic and diluted earnings per common
share is as follows: Q1 of ($0.01) to $0.01, Q2 of $0.00 to $0.02, Q3 of
$0.05 to $0.07 and Q4 of $0.09 to $0.11.
CLOSURE Medical Corporation, headquartered in Raleigh, North Carolina,
develops, manufactures and commercializes medical tissue adhesive products
based on its proprietary cyanoacrylate technology. CLOSURE's nonabsorbable
tissue adhesive products may be used to replace sutures and staples for
certain topical wound closure applications, while its internal tissue adhesive
products can potentially be used for internal wound closure and management.
Currently marketed nonabsorbable tissue adhesive products include
DERMABOND(R)* Topical Skin Adhesive, which is used to replace sutures and
staples for closure of certain lacerations and incisions; OCTYLDENT(R)*
adhesive, which is used as an adjunct in the treatment of adult periodontal
disease; and the NEXABAND(R)* line of topical adhesives, which are used in
veterinary wound closure and management.
* DERMABOND(R) adhesive is a trademark of Ethicon, Inc.; SOOTHE-N-SEAL(TM)
canker sore relief and LIQUIDERM(TM) adhesive are trademarks of CLOSURE
Medical Corporation. OCTYLDENT(R) adhesive and NEXABAND(R) adhesives are
federally registered trademarks of CLOSURE Medical Corporation.
To receive CLOSURE's latest news release and other corporate documents via
fax, at no cost, call 1-800-PRO-INFO, use the Company's symbol CLSR. Or visit
the Financial Relations Board's website at http://www.frbinc.com .
This release contains certain forward-looking statements which involve
known and unknown risks, delays, uncertainties or other factors not under the
Company's control which may cause actual results, performance or achievements
of the Company to be materially different from the results, performance, or
other expectations implied by these forward-looking statements. These factors
include, but are not limited to the early stage of commercialization of the
Company products; the progress of its research and development programs for
future products; the need for regulatory approval and effects of governmental
regulation; technological uncertainties; the satisfactory conclusion of
negotiations with, and dependence on marketing partners, and dependence on
patents and trade secrets, as well as those detailed in the Company's Annual
Report on Form 10-K for the year ended December 31, 1999 filed with the
Securities and Exchange Commission.
SOURCE CLOSURE Medical Corporation
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Related links:
http://www.frbinc.com
CONTACT:
Robert V. Toni, President & CEO, or Benny
Ward, CFO, both of CLOSURE Medical, 919-876-7800, or General
Info, Stuart Z. Levine, Ph.D., Analyst Info, Cecelia Heer, or
Media Info, Deanne Eagle, all of The Financial Relations Board,
212-661-8030
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