Revenues Grow 16%; Outlook Confirmed For 2001
TUCSON, Ariz., April 20 /PRNewswire Interactive News Release/ -- Ventana
Medical Systems, Inc. (Nasdaq: VMSI), a leading supplier of automated
instrument reagent systems to histology and drug discovery labs worldwide,
today reported sales of $19.3 million for the quarter ending March 31, 2001, a
13 percent increase over the first quarter of 2000 and a 16 percent increase
over that same quarter after adjusting for the discontinuation of the electron
microscopy product line in 2000. Ventana also reported a net loss of
$1.1 million, or a loss of $0.07 per share, compared with a net loss of
$1.6 million, or a loss of $0.11 per share, in the first quarter of 2000.
FIRST QUARTER 2001
"Our first-quarter results indicate we are ahead of schedule in re-
establishing our growth objectives," commented Christopher Gleeson, Ventana's
president and chief executive officer. "Reagent revenues grew 14 percent
versus last year's first quarter and 10 percent on a sequential basis from
fourth quarter 2000. The reagent growth was fueled by our customers'
enthusiastic response to our award-winning BenchMark System launched in the
fourth quarter of 2000, and the continued success of our Special Stains
System."
Ventana reported a gross margin for the first quarter of 68 percent
compared with 65 percent in last year's first quarter. Research and
development investment increased 67 percent versus first quarter 2000,
indicating the company's commitment to additional systems in the histology
area and our molecular discovery business. During the first quarter, the
company launched ISH probe tests for Her-2/neu and the human papiloma virus
(HPV) on the BenchMark platform.
Ventana demonstrated continued progress on receivables with days sales
outstanding at 65, compared with 87 in the fourth quarter 2000 and 112 in the
first quarter 2000. Days sales in inventory were 129 versus 126 in fourth
quarter 2000, reflecting inventory build in advance of relocating
manufacturing operations later this year, and compared with 214 at the end of
the first quarter last year.
CALENDAR-YEAR 2001 OUTLOOK
Ventana confirmed the 2001 full-year guidance it gave in its February 8,
2001 press release and conference call. "We are off to a solid start in
quarter one and we are maintaining our existing guidance for the full year,"
commented Gleeson.
CONFERENCE CALL
Ventana will hold a conference call to discuss first quarter 2001 results
and the outlook for the remainder of the year at 9:00 a.m. EDT on Friday,
April 20, 2001. The call can be accessed live and will be available for
replay over the Internet via http://www.vcall.com .
Ventana develops, manufactures and markets instrument/reagent systems that
automate tissue preparation and slide staining in clinical histology and drug
discovery laboratories worldwide. Ventana's clinical systems are important
tools used in the diagnosis and treatment of cancer and infectious diseases.
Ventana's drug discovery systems are used to accelerate the discovery of new
drug targets and evaluate the safety of new drug compounds.
This news release contains certain "forward-looking" statements and
information within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements, by their very nature, include risks and uncertainties.
Accordingly, the company's actual results could differ materially from those
discussed in this release. A wide variety of factors could cause or contribute
to such differences and could adversely impact revenues profitability, cash
flow and capital needs. Such factors, many of which are beyond the control of
the company, include the following: market acceptance of new automated
histology products, continued success in asset management, continued
improvements in our manufacturing efficiencies, on-schedule launches of our
new products, currency exchange rate variability, competition and competitive
pressures on pricing and general economic conditions in the United States and
in the regions served by the company. A more complete listing of cautionary
statements and risk factors is contained in the company's report on Form 10-K
for the year ended Dec. 31, 2000, filed with the Securities and Exchange
Commission.
For more information on Ventana Medical Systems, Inc. via facsimile at no
additional cost, Simply dial 1-800-PRO-INFO and enter the stock symbol "VMSI."
Visit the Ventana Medical Systems, Inc. website at http://www.ventanamed.com
The Molecular Discovery Systems Division has its own website
at http://www.ventanadiscovery.com
Ventana Medical Systems, Inc.
Consolidated Statements of Operations
(in thousands except per share data)
(Unaudited)
Three Months Ended:
March 31
2001 2000
Sales:
Reagents and other $13,764 $12,001
Instruments 5,516 5,125
Total net sales 19,280 17,126
Cost of goods sold 6,175 5,970
Gross profit 13,105 11,156
Operating expenses:
Research and development 3,306 1,984
Selling, general and administrative 10,759 7,960
Amortization of intangibles 372 278
(Loss) income from operations (1,332) 934
Other income (expense) 339 (48)
(Loss) income before taxes and
cumulative effect of accounting change $(993) $886
Provision for income tax 134 350
(Loss) income before cumulative
effect of accounting change (1,127) 536
Cumulative effect of accounting
change, net of tax - (2,154)
Net loss $(1,127) $(1,618)
Loss per share $(0.07) $(0.11)
Outstanding Shares: 15,575 14,305
Ventana Medical Systems, Inc.
Consolidated Balance Sheet
(in thousands except share data)
(Unaudited)
March 31, Dec. 31,
ASSETS 2001 2000
Current assets:
Cash and cash equivalents $34,443 $38,512
Accounts receivable 13,855 16,682
Inventories 8,723 8,100
Prepaid expenses 294 460
Deferred tax benefit, current
portion 4,817 4,817
Other current assets 525 492
Total current assets 62,657 69,063
Property and equipment, net 25,618 22,329
Intangibles, net 11,491 11,887
Other assets 2,561 2,318
Deferred tax benefit, long term
portion 3,985 3,985
Total assets $106,312 $109,582
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $5,139 $5,943
Other current liabilities 9,360 13,143
Total current liabilities 14,499 19,086
Long-term debt 3,002 3,408
Stockholders' equity:
Common stock - $.001 par value;
50,000,000 shares authorized;
15,945,142 and 15,444,122 shares
issued and outstanding at March 31, 2001
and December 31, 2000, respectively 16 15
Additional paid-in capital 138,028 134,862
Accumulated deficit (47,763) (46,636)
Cumulative foreign currency
translation adjustment (870) (553)
Treasury stock - 40,000 shares, at
cost (600) (600)
Total stockholders' equity 88,811 87,088
Total liabilities and stockholders'
equity $106,312 $109,582
Ventana Medical Systems, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three Months Ended
March 31
2001 2000
Operating activities:
Net (loss) $(1,127) $(1,618)
Adjustments to reconcile net income
to cash provided by operating activities:
Cumulative effect of accounting
change - 2,154
Depreciation and amortization 1,124 1,286
Benefit from deferred taxes - (1,255)
Changes in operating assets and
liabilities, net (2,711) (2,759)
Net cash used in operating activities (2,714) (2,192)
Investing activities:
Purchase of property and equipment,
net (3,823) (1,024)
Purchase of intangible assets, net 24 (1,250)
Net cash used in investing activities (3,799) (2,274)
Financing activities:
Net proceeds from private placement - 46,847
Repayment of debt (406) (256)
Issuance of stock - net 3,167 2,627
Net cash provided by financing
activities 2,761 49,218
Effect of exchange rate change on
cash (317) 30
Net (decrease) increase in cash and
cash equivalents (4,069) 44,782
Cash and cash equivalents, beginning
of period 38,512 1,787
Cash and cash equivalents, end of
period $34,443 $46,569
SOURCE Ventana Medical Systems, Inc.
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Related links:
http://www.ventanamed.com
CONTACT:
Christopher Gleeson, President and CEO,
520-690-3557, or Nick Malden, Vice President and CFO,
520-690-2794, both of Ventana Medical Systems
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