- Margins Improve by 10 Percentage Points -
CUPERTINO, Calif., July 21 /PRNewswire/ -- CardioThoracic Systems, Inc.
(CTS) (Nasdaq: CTSI), a leading developer of minimally invasive cardiac
surgery devices, today reported record financial results for the quarter and
six months ended July 2, 1999.
For the second quarter of 1999, CTS reported sales of $7.3 million, a
92% increase over 1998 second quarter revenues of $3.8 million. Also for the
second quarter of 1999, CTS reported a net loss of $2.2 million, or $0.15 per
share on 14.4 million weighted average shares outstanding, compared to a net
loss of $5.8 million, or a net loss per share of $0.42 on 13.9 million
weighted average shares outstanding, for the second quarter of 1998.
For the first half of 1999, CTS reported net revenues of $13.7 million,
compared with net revenues of $6.8 million for the first half of 1998. Net
loss for the first half of 1999 was $6.0 million, or $0.42 per share on
14.4 million weighted average shares outstanding, compared to a net loss of
$11.6 million, or $0.84 per share on 13.8 million average weighted shares
outstanding, for the first half of 1998.
As of July 2, 1999, CTS had cash, cash equivalents and available-for-sale
securities of $30.8 million.
"In addition to 92 percent revenue growth, we are pleased that this
quarter's net losses came in at 15 cents per share, 29 percent ahead of
analysts' consensus estimates of 21 cents per share," stated Richard Ferrari,
CTS president and chief executive officer. "The 10-percentage point
improvement in gross margins to 65 percent this quarter from 55 percent in the
second quarter of 1998 was another financial milestone for CTS. As the
clinical and economic benefits of our proprietary products become more widely
recognized, we anticipate continued revenue growth and improved margins."
Ferrari added, "A key factor in achieving significant revenue growth for
the second quarter and the first half of 1999 was the increased adoption of
CTS' portfolio of products, coupled with the company's service marketing
programs. The introduction of the CTS(R) Access Ultima(TM) System in March
contributed significantly to our growth by enabling more patients to become
candidates for off-pump bypass surgery. In addition, the company continues to
educate surgeons on the benefits of off-pump beating heart surgery through the
CTS(R) CORriculum(R) Institute of Education. During the quarter, CTS hosted a
CORriculum training in Milwaukee, Wisconsin, which was attended by nearly
70 surgeons from around the globe. Our leadership in both product and service
development continues to be a driving force in the minimally invasive cardiac
surgery market."
CardioThoracic Systems, Inc., located in Cupertino, Calif., is a leading
developer of proprietary technologies for use in minimally invasive cardiac
surgery. CTS introduced its first generation system for minimally invasive
beating heart bypass surgery in January 1997. Since that time, CTS has
shipped over 37,000 beating heart bypass systems.
The statements in this news release, including statements relating to the
company's revenue growth and margins and the company's product and service
development efforts, contain forward-looking information. Actual results may
differ significantly from the results discussed in the forward-looking
statements as a result of risks and uncertainties associated with the success
of the company's development efforts, the company's financial results, the
acceptance of the company's products and systems, the capabilities and
benefits of the CTS instrumentation and methods, the size of the market for
the Company's products, and the coverage and benefits of the company's patents
as well as other factors, including factors set forth in the company's annual
report on Form 10-K filed with the SEC on March 30, 1999 and the company's
most recent quarterly report on Form 10-Q filed with the SEC on May 13, 1999.
Copies of the Annual Report on Form 10-K and the most recent quarterly report
on form 10-Q are available by calling the company's investor relations
department at 408-342-1700.
To learn more about CardioThoracic Systems, Inc., visit the company's
website at http://www.cardioth.com .
CARDIOTHORACIC SYSTEMS, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(unaudited)
(in thousands)
Three Months Ended Six Months Ended
July 2, July 3, July 2, July 3,
1999 1998 1999 1998
Net Sales $7,331 $3,817 $13,662 $6,779
Cost of sales 2,569 1,699 4,907 3,302
Gross profit 4,762 2,118 8,755 3,477
Operating expenses:
Research & development 2,489 2,675 5,146 5,352
Sales, marketing, general,
& administrative 4,809 5,867 10,439 10,997
Total operating expenses 7,298 8,542 15,585 16,349
Loss from operations (2,536) (6,424) (6,830) (12,872)
Interest income, net 360 594 819 1,292
Net loss ($2,176) ($5,830) ($6,011) ($11,580)
Net loss per common share
and per common share -
assuming dilution ($0.15) ($0.42) ($0.42) ($0.84)
Shares used in computing net
loss per common share and
per common share -
assuming dilution 14,417 13,890 14,362 13,829
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
July 2, 1999 January 1, 1999
(unaudited)
Cash, cash equivalents and
available-for-sale securities $30,811 $40,253
Total current assets 35,238 34,142
Property and equipment, net 2,967 3,374
Total assets 43,877 49,766
Total current liabilities 7,447 8,392
Total stockholders' equity 35,288 39,963
SOURCE CardioThoracic Systems, Inc.
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Related links:
http://www.cardioth.com
CONTACT:
Richard M. Ferrari, CEO, or Steve Van Dick,
CFO, of CardioThoracic Systems, Inc., 408-342-1700; or general
information, Traci McCarty, or analysts, Janet Nelson, of The
Financial Relations Board, 415-986-1591
NOTE TO EDITORS: For more information on CardioThoracic Systems,
Inc. via fax at no cost, dial 800-PRO-INFO, or 908-544-2850
outside the U.S., Ticker symbol: CTSI
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