RALEIGH, N.C., Feb. 10 /PRNewswire/ -- CLOSURE Medical Corporation
(Nasdaq: CLSR), a medical tissue cohesive products company, today announced
that total revenues for the three months ended December 31, 1998 were
$3,257,000 compared to $612,000 in the 1997 corresponding period. The net
loss for the 1998 quarter was $991,000, or ($.07) per basic and diluted share,
compared to a net loss of $2.0 million, or ($.15) per basic and diluted share
in the corresponding 1997 period.
Revenues for the year ended December 31, 1998, were $9,579,000, including
license and product development revenues of $1,500,000, compared to $1,551,000
in the corresponding 1997 period. For the year ended December 31, 1998, the
Company reported a net loss of $4.8 million, or ($.36) per basic and diluted
share, compared to a net loss of $6.8 million or ($.53) per basic and diluted
share, for the same period of 1997.
Cash and cash equivalents and total investments were $16.7 million at
December 31, 1998 compared to $24.5 million at December 31, 1997.
"Looking back, 1998 was a landmark period for CLOSURE Medical," commented
Robert V. Toni, CLOSURE's President and Chief Executive Officer. "In a
relatively short period of time, we achieved significant milestones toward our
goal to be the leader of tissue cohesives, including the FDA approval of
DERMABOND and the U.S. and international launch by Ethicon of DERMABOND. We
were pleased by the attention given to DERMABOND in industry, consumer and
professional publications and in the media. Further, we made steady progress
with our proprietary technology toward the development of future consumer
products for the treatment of oral ulcers and for minor cuts and abrasions."
CLOSURE Medical Corporation, headquartered in Raleigh, N.C., develops,
manufactures and commercializes medical tissue cohesive products based on its
proprietary cyanoacrylate technology. CLOSURE's nonabsorbable tissue cohesive
products may be used to replace sutures and staples for certain topical wound
closure applications, while its absorbable tissue cohesive products can
potentially be used as tissue cohesives for internal wound closure and
management. Currently marketed nonabsorbable tissue cohesive products include
DERMABOND* topical skin adhesive, which is used to replace sutures and staples
for closure of certain lacerations and incisions, OCTYLDENT* cohesive, which
is used as an adjunct in the treatment of adult periodontal disease; and the
NEXABAND* line of topical cohesives, which are used in veterinary wound
closure and management.
* DERMABOND is a trademark of Ethicon, Inc.; OCTYLDENT and NEXABAND are
registered Trademarks of CLOSURE Medical Corporation.
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 need for regulatory approval and effects of governmental
regulation; technological uncertainties; 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, 1997
filed with the Securities and Exchange Commission.
CLOSURE Medical Corporation
Statement of Operations
(Unaudited)
(In thousands, except per share data)
Fourth Quarter Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1998 1997 1998 1997
Product sales $3,257 $612 $8,079 $1,551
License and product development
revenues -- -- 1,500 --
Total revenues 3,257 612 9,579 1,551
Cost of products sold 1,032 515 3,480 1,398
Gross profit and license and
product development revenues 2,225 97 6,099 153
Research, development and
regulatory affairs expenses 1,887 1,228 6,297 3,594
Selling and administrative expenses 1,518 1,204 5,407 4,752
Total operating expenses 3,405 2,432 11,704 8,346
Income (loss) from operations (1,180) (2,335) (5,605) (8,193)
Interest expense (92) (46) (383) (72)
Investment and interest income 281 374 1,215 1,436
Net income (loss) $(991) $(2,007) $(4,773) $(6,829)
Shares used in computation of net
income (loss) per share:
Basic 13,286 13,242 13,270 12,966
Diluted 13,286 13,242 13,270 12,966
Net income (loss) per share:
Basic $(0.07) $(0.15) $(0.36) $(0.53)
Diluted $(0.07) $(0.15) $(0.36) $(0.53)
CLOSURE Medical Corporation
Balance Sheet
(In thousands, except for per share data)
December 31, December 31,
1998 1997
Assets
Current assets:
Cash and cash equivalents $824 $7,277
Short-term investments 14,275 14,417
Restricted investments 1,603 --
Accounts receivable 1,191 1,226
Inventories 1,008 347
Prepaid expenses 286 367
Total current assets 19,187 23,634
Furniture, fixtures and equipment, net 7,707 3,694
Restricted investments -- 1,517
Long-term investments -- 1,298
Intangible assets, net 526 276
Total assets $27,420 $30,419
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $1,721 $478
Accrued expenses 1,705 2,598
Deferred revenue 1,245 349
Capital lease obligations 245 155
Current portion of long-term debt 2,650 350
Total current liabilities 7,566 3,930
Deferred revenue 670 1,670
Capital lease obligations 934 1,250
Long-term debt less current portion -- 1,150
Total liabilities 9,170 8,000
Stockholders' equity:
Preferred Stock, $.01 par value. Authorized
2,000 shares; none issued or outstanding. -- --
Common Stock, $.01 par value. Authorized 35,000
shares; issued and outstanding 13,290 and
13,242 shares, respectively. 133 132
Additional paid-in capital 46,358 46,058
Accumulated deficit (27,848) (23,075)
Deferred compensation on stock options (393) (696)
Total stockholders' equity 18,250 22,419
Total liabilities and stockholders' equity $27,420 $30,419
SOURCE CLOSURE Medical Corporation
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CONTACT:
Robert V. Toni, President & CEO, or J. Blount
Swain, CFO, both of CLOSURE Medical Corporation, 919-876-7800; or
General Info, Paul G. Henning, Analyst Info, Nicole Salas, Media
Info, Deanne Eagle, all of The Financial Relations Board,
212-661-8030
NOTE TO EDITORS: 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 ticker, CLSR. Or visit The
Financial Relations Board's website at http://www.frbinc.com
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