MENLO PARK, Calif., Jan. 20 /PRNewswire/ -- Perclose, Inc. (Nasdaq: PERC)
reported record results for the third fiscal quarter and nine months ended
December 31, 1998. For the December quarter, revenues were $11.6 million, up
27 percent from $9.1 million in the September 1998 quarter and up over
four-fold from the $2.4 million reported in the same quarter a year ago. The
year over year revenue growth was driven by the successful U.S. launch of the
Techstar(R) XL, which received market clearance from the Food and Drug
Administration (FDA) in November 1997.
Net income in the December quarter was $1.7 million, an increase of 124
percent over net income of $755,000 in the previous quarter and compared with
a net loss of $3.8 million in the year ago quarter. Diluted earnings were
$0.14 per common share in the December 1998 quarter versus diluted earnings of
$0.07 per common share in the September 1998 quarter and a loss of $0.38 per
common share in the year ago quarter. Shares used in calculating diluted
earnings/loss per share were 11.8 million in the December 1998 quarter,
11.3 million in the September 1998 quarter and 10.0 million in the year ago
quarter. The increase in shares outstanding during the December 1998 quarter
was primarily due to the November 1997 one million share common stock
offering, which was fully included in the most recent quarter but only
partially weighted in the December 1997 share calculation. In addition,
outstanding stock options had a material effect on the December quarter share
calculation due to the large increase in the stock price during the most
recent quarter.
For the nine months ended December 31, 1998, revenues were $29.1 million,
up from $4.8 million reported in the same period a year ago. Net income
in the nine month period was $2.7 million compared with a net loss of
$12.2 million for the nine months ended December 31, 1997. Diluted earnings
per common share were $0.24 for the nine month period ended December 31, 1998
versus a loss of $1.25 per common share in the year ago nine month period.
Shares used in calculating diluted earnings/loss per share were 11.5 million
in the December 1998 nine month period versus 9.7 million in the year ago nine
month period.
Hank Plain, Perclose president and chief executive officer, commented, "We
are pleased with our continued improvement in financial performance.
Increasing adoption of Perclose products fueled the 27 percent sequential
sales growth in the December 1998 quarter, which was more than four times the
December 1997 level. The significant growth in units produced and the
management of manufacturing efficiencies increased our gross margin to over 71
percent for the quarter. We were pleased to see net income and earnings per
share both double from the previous quarter, given that we are still in the
market creation phase for our products."
Mr. Plain continued, "During the quarter, we initiated clinical testing of
a new generation of closure devices and an automatic knot tier, which should
reduce operator time to one or two minutes. We also received FDA approval for
non-physician allied healthcare professionals to use the Prostar and Techstar
products and we continued the ongoing, successful human clinical evaluation of
the Heartflo(TM) anastomosis system."
Perclose, based in Menlo Park, Calif., designs, manufactures and markets
less invasive medical devices that automate the surgical closure or connection
of blood vessels. The Prostar(R) and Techstar(R) products, marketed in the
U.S. and internationally, surgically close the arterial access site in the
femoral artery following catheterization procedures such as angioplasty,
stenting, atherectomy and diagnostic angiography. The patented, proprietary
Prostar and Techstar products offer superior clinical treatment, more rapid
recovery and a more cost-effective alternative to the standard method of
closing arterial access sites. The Heartflo(TM) System, which automates the
surgical connection of blood vessels during conventional and minimally
invasive coronary artery bypass surgery, is in human clinical testing.
Perclose common stock is traded on the Nasdaq National Market under the symbol
PERC.
Except for the historical information contained herein, the matters
discussed in this news release are forward looking statements that involve
risk and uncertainties, including the risk that new products may not prove to
be safe or effective in clinical trials, risks associated with receipt and
timing of regulatory approvals, including approvals to conduct clinical trials
and to commercially market products, market acceptance of new products, risks
of adverse determinations in litigation relating to patents and intellectual
property rights, risks associated with manufacturing scale-up and increases in
production volumes, risks associated with product recalls and the management
of growth. For further information, refer to the risk factors in the most
recent periodic filings with the Securities and Exchange Commission.
PERCLOSE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31,
1998 1997 1998 1997
Net revenues $ 11,564 $2,412 $ 29,051 $4,792
Cost of goods sold 3,334 2,133 9,794 5,383
Gross margin 8,230 279 19,257 (591)
Operating expenses:
Research and development 2,125 1,377 5,637 3,902
Selling, general and
administrative 4,684 3,025 11,946 8,606
Income (loss) from operations 1,421 (4,123) 1,674 (13,099)
Other income (expense), net 359 296 1,198 909
Income (loss) before income taxes1,780 (3,827) 2,872 (12,190)
Provision for income taxes 89 -- 143 --
Net income (loss) $1,691 $(3,827) $2,729 $(12,190)
Basic earnings (loss) per
common share $0.16 $(0.38) $0.25 $(1.25)
Diluted earnings (loss) per
common share $0.14 $(0.38) $0.24 $(1.25)
Shares used in computing
basic earnings (loss) per share10,810 9,980 10,793 9,726
Shares used in computing
diluted earnings (loss)
per share 11,761 9,980 11,487 9,726
CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, March 31,
1998 1998(a)
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $ 27,748 $ 31,581
Accounts receivable, net 5,947 3,455
Inventories 2,131 1,619
Prepaid expenses 799 628
Total current assets 36,625 37,283
Equipment and leasehold improvements, net 4,095 2,277
Other assets 2,986 891
Total assets $ 43,706 $ 40,451
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $3,776 $3,509
Total stockholders' equity 39,930 36,942
Total liabilities and stockholders' equity $ 43,706 $ 40,451
(a) Derived from audited financial statements.
SOURCE Perclose, Inc.
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CONTACT:
Ken Ludlum, Chief Financial Officer of
Perclose, 650-473-3100, ext. 278; General Information, Ann
Trunko, or Analyst Information, Kate Rajeck, both of The
Financial Relations Board, 415-986-1591
NOTE TO EDITORS: For more information on Perclose via fax at no
cost, call 1-800-PRO-INFO, or 908-544-2850 outside the U.S.,
ticker symbol PERC
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