Revenues and Operating Income Increase 14% and 8%,
Respectively, Over First Quarter 1999 Figures
TUCSON, Ariz., April 24 /PRNewswire/ -- Ventana Medical Systems, Inc.
(Nasdaq: VMSI); the leading company in supplying automated instrument-reagent
systems to histology labs, today reported a 14% increase in sales for the
quarter ending March 31, 2000 compared to the same quarter last year, an 8%
increase in operating income and diluted earnings per share of $0.06.
Net sales for the 3 months ended March 31, 2000 increased to $17.8 million
from $15.6 million for the same period in 1999. Gross margins for the first
quarter came in at 66%, R&D expenses at 11% of sales and SG&A expenses at
45% of sales. Operating earnings for the quarter increased to $1.5 million
over the $1.4 million reported in the same quarter of 1999. Net income for
the first quarter declined to $969,000 from $1.2 million in the first quarter
of 1999 due to higher tax accrual rate. The income tax accrual rate for the
first quarter of 2000 was 32% compared to 10% in the same quarter of 1999.
Reported diluted earnings per share for the first quarter were $0.06 compared
to $0.09 in the same quarter of 1999 due to both lower net income and an
increase in the number of diluted shares outstanding.
"Our first quarter results were in line with expectations and came after
an exceptionally strong fourth quarter of 1999," commented Chris Gleeson,
Ventana's President and Chief Executive Officer. "We are on track to report
revenue growth for the calendar year that should be at least a 30% increase
over 1999," Gleeson noted. "A sales force realignment and training programs
impacted our North American revenues in the first quarter while our
international operations continued to grow rapidly. We expect the investments
we have made in our North American organization to result in more rapid
revenue growth for the balance of the year."
Looking forward to the balance of the year 2000, Gleeson noted, "Momentum
in our core histology business will continue to build with at least three
major product introductions planned over the next 12 months. We are expecting
Food and Drug Administration pre-market approval during the second half of the
year of our CB11 antibody that physicians could use in deciding whether
metastatic breast cancer patients should receive Herceptin(R). In addition,
the market launch of our clinical in-situ hybridization system is on track for
the fourth quarter. We also expect to launch an automated imaging system for
quantitating IHC stains in the first quarter of next year. Further, the
market opportunity for our Discovery system in the drug discovery (genomics)
market continues to expand. We plan to formally launch the system in North
America in the second quarter and continue to enjoy strong interest in the
product in Japan."
Safe Harbor Statement: Statements in this press release which are not
strictly historical are "forward-looking" statements that are made pursuant to
the Safe Harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements involve known and unknown risks, which may
cause the company's actual results in the future to differ materially from the
expected results. The risks and uncertainties that may affect the results of
the company's business may include general economic conditions, market
acceptance of new automated histology products, continued success in asset
management and other factors that are described in the company's specific
filings with the Securities and Exchange Commission.
Ventana develops, manufactures and markets instrument/reagent systems that
automate tissue preparation and slide staining in histology laboratories
worldwide. Ventana's systems are important tools used in the diagnosis and
treatment of cancer and infectious diseases.
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."
Ventana Medical Systems, Inc.
Consolidated Statements of Operations
(in thousands except per share data)
(Unaudited)
Three Months Ended:
March 31 '00/'99
2000 1999 B/(W) % Change
Sales:
Instruments $ 5,828 $ 5,120 $ 708 14%
Reagents and other 12,001 10,512 1,489 14%
Total net sales 17,829 15,632 2,197 14%
Cost of goods sold 6,134 4,988 1,146 23%
Gross profit 11,695 10,644 1,051 10%
Operating expenses:
Research and development 1,984 1,629 (355) 22%
Selling, general
and administrative 7,960 7,399 (561) 8%
Amortization of intangibles 278 253 (25) 10%
Income from operations 1,473 1,363 110 8%
Other income (expense) (48) 24 (72) -300%
Pretax income $ 1,425 $ 1,387 $ 38 3%
Provision for income tax 456 138 (318) 230%
Net income $ 969 $ 1,249 $ (280) -22%
Per Share Data:
Basic earnings per share $ 0.07 $ 0.09 $ (0.02) -22%
Diluted earnings per share $ 0.06 $ 0.09 $ (0.03) -33%
Outstanding Shares:
Basic 14,305 13,404
Diluted 16,467 14,578
Ventana Medical Systems, Inc.
Consolidated Balance Sheet
(in thousands except share data)
(Unaudited)
March 31, December 31, Inc/(Dec)
ASSETS 2000 1999 $ Amt %
Current assets:
Cash and cash equivalents $ 46,569 $ 1,787 44,782 2506%
Accounts receivable 21,147 20,776 371 2%
Inventories 14,072 13,474 598 4%
Prepaid expenses 802 574 228 40%
Deferred tax benefit,
current portion 1,434 1,692 (258) -15%
Other current assets 439 722 (283) -39%
Total current assets 84,463 39,025 45,438 116%
Property and equipment, net 14,346 14,441 (95) -1%
Intangibles, net 15,148 14,178 970 7%
Other Assets 2,688 1,084 1,604 148%
Deferred tax benefit,
long term portion 4,433 4,433 - -
Total assets $ 121,078 $ 73,161 $ 47,917 65%
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 2,782 $ 4,017 (1,235) -31%
Other current liabilities 5,660 6,600 (940) -14%
Total current liabilities 8,442 10,617 (2,175) -20%
Long term debt 1,823 2,044 (221) -11%
Stockholders' equity:
Common stock - $.001 par
value; 50,000,000 shares
authorized; 15,060,017 and
13,593,640 shares issued
and outstanding at
March 31, 2000 and
December 31, 1999,
respectively 15 14 1 7%
Additional
Paid-In Capital 129,855 80,542 49,313 61%
Accumulated deficit (18,372) (19,341) 969 -5%
Cumulative foreign currency
translation adjustment (85) (115) 30 -26%
Treasury stock - 40,000
shares, at cost (600) (600) - -
Total stockholders' equity 110,813 60,500 50,313 83%
Total liabilities and
stockholders' equity $ 121,078 $ 73,161 $ 47,917 65%
Ventana Medical Systems, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three Months Ended
March 31
2000 1999
Operating activities:
Net income $ 969 $ 1,249
Adjustments to reconcile net income
to cash provided by operating activities:
Change in deferred tax benefit, net 258 -
Depreciation and amortization 1,286 893
Changes in operating assets and liabilities, net (4,545) 61
Net cash provided by operating activities (2,032) 2,203
Investing activities:
Purchase of property and equipment, net (1,024) (2,885)
Purchase of intangible assets, net (1,250) (45)
Net cash used in investing activities (2,274) (2,930)
Financing activities:
Repayment of debt - net (256) (64)
Issuance of stock - net 49,314 480
Net cash provided by financing activities 49,058 416
Effect of exchange rate change on cash 30 -
Net (decrease) increase in cash and cash equivalents 44,782 (311)
Cash and cash equivalents, beginning of period 1,787 2,424
Cash and cash equivalents, end of period $ 46,569 $ 2,113
SOURCE Ventana Medical Systems, Inc.
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CONTACT:
Christopher Gleeson, President and Chief
Executive Officer of Ventana Medical Systems, 520-887-2155,
Analysts, Kathy Brunson, or Media, Darcy Bretz, both of The
Financial Relations Board, 312-266-7800
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