Company Raises EPS Estimate for Full Year 2006
BURLINGTON, N.C., Jan. 11 /PRNewswire-FirstCall/ -- TriPath Imaging, Inc.
(Nasdaq: TPTH) today announced that it has raised its estimate for earnings
per share (EPS) for full year 2006 to $0.19 to $0.22.
The updated financial guidance for 2006, as well as preliminary results
for the fourth quarter and full year 2005, will be discussed later today by
Paul R. Sohmer, M.D., TriPath Imaging's Chairman, President and CEO in a
presentation that he will make at the Eighth Annual Needham Growth Conference
at the New York Palace Hotel in New York City. An audio web cast of the
presentation will be available live online at 4:00 p.m. EST via TriPath
Imaging's Web site at http://www.tripathimaging.com and will be archived for
at least two weeks.
The Company has increased its estimate for EPS for full year 2006 as it
now anticipates that reductions in research and development costs associated
with the completion of a number of development related activities will
partially offset increased expenses related to initiation of clinical trials
for its new molecular products for breast cancer staging and cervical cancer
screening. The Company also estimates that operating income generated from its
Commercial Operations operating segment, which reflects its cytology business,
will range from approximately $28 million to $30 million for the full year
2006, an approximately 30 to 40% increase from that generated in 2005.
In providing updated guidance for 2006, the Company also affirmed its
previous guidance for the full year 2005 and indicated that it expects
revenues of approximately $86 million and EPS of approximately $0.15 to $0.17
for the full year ending on December 31, 2005. The Company indicated that it
anticipates revenues of approximately $102 million to $105 million for full
year 2006, an approximately 20% increase in revenues from 2005.
The Company plans to release its 2005 results before the market opens on
January 31, 2006 following which it will host a conference call to discuss
these results as well as details regarding its expectations for 2006.
The estimated financial results contained in this announcement for the
Company's full year 2005 and 2006 guidance are preliminary, and are subject to
the final closing of its financial books and the completion of customary
quarter-end review procedures, as well as other factors discussed herein
relating to forward-looking statements. Final financial results may vary.
Also, the Company's guidance for 2006 does not incorporate the impact of
expensing stock-based compensation under FAS 123(R), which the Company adopted
beginning January 1, 2006, because the Company at this time cannot predict
with certainty the impact of equity-based compensation expense for 2006.
TriPath Imaging, Inc., headquartered in Burlington, North Carolina,
develops, manufactures, markets and sells innovative solutions to improve the
clinical management of cancer, including detection, diagnosis, staging and
treatment. TriPath Oncology, a wholly owned subsidiary of TriPath Imaging,
develops and manages the market introduction of molecular diagnostic and
pharmacogenomic products and services for malignant melanoma and cancers of
the cervix, breast, ovary and prostate.
Investors are cautioned that statements in this press release that are not
strictly historical statements constitute forward-looking statements which
involve risks and uncertainties that could cause actual results and outcomes
to differ materially from what is expressed in those forward-looking
statements. Such forward-looking statements include, without limitation,
those regarding forecasted full year 2005 and 2006 results. Important factors
that may affect such forward-looking statements specifically and TriPath
Imaging's operating results generally include, without limitation: TriPath's
expected fourth quarter and year end results could differ from amounts
anticipated after the final closing of the financial books and completion of
customary year end audit procedures; TriPath Imaging may not receive revenues
when or in the amounts anticipated; TriPath Imaging may be unable to increase
sales and revenues at its historical rates; may be unable to increase its
penetration of the large commercial laboratory segment to the extent it
expects, and may not achieve revenues to the degree expected from the sale of
reagents and instrument systems derived from its molecular oncology
development program; the impact on profitability of expensing stock based
compensation under FAS 123(R) may be material; TriPath Imaging's expanding
sales and marketing presence may not have the expected impact; expenses may
exceed expectations and TriPath Imaging may not maintain profitability;
TriPath Imaging's results and profitability in any particular period may be
impacted by the timing of certain non-cash sales discounts that TriPath
Imaging will record in connection with the vesting of certain warrants;
changes in general economic conditions or the healthcare industry may occur
that adversely affect TriPath Imaging's customers' purchasing plans; TriPath
Oncology may be unable to successfully develop and commercialize products and
services when anticipated; TriPath Imaging's products may not achieve or
maintain market acceptance to the degree anticipated; competition and
competitive pricing pressures may limit TriPath Imaging's flexibility with
respect to the pricing of its products; TriPath Imaging may need to obtain
additional financing in the future; TriPath Imaging may not be able to develop
and to protect adequately its proprietary technology; TriPath Imaging and
TriPath Oncology's products may not receive FDA or other required regulatory
approval when expected, if at all; and other risks detailed in TriPath
Imaging's filings with the Securities and Exchange Commission, including those
described in TriPath Imaging's Annual Report on Form 10-K for the year ended
December 31, 2004.
Contact:
Stephen P. Hall
Chief Financial Officer
336-290-8721
SOURCE TriPath Imaging, Inc.
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Related links:
http://www.tripathimaging.com
CONTACT:
Stephen P. Hall of TriPath Imaging, Inc.,
+1-336-290-8721
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