TUCSON, Ariz., July 22, /PRNewswire/ -- Ventana Medical Systems, Inc.
(Nasdaq: VMSI), the global leader in providing automated instrument-reagent
systems to histology labs, today reported strong revenue and earnings growth
for the second quarter ended June 30, 1999. Management also reported
that the Company continues to make sound progress in reducing its
days-sales-outstanding of accounts receivable.
"Second quarter revenues were up 41% compared to the same prior year
quarter reflecting continuing momentum in our IHC business and good initial
market acceptance to our new special stain and tissue processing systems,"
commented Chris Gleeson, President & CEO. "Consumable revenues were
particularly strong, up 50% compared to the prior year reflecting the
contribution special stains is making to our consumable annuity," added
Gleeson. "However, instrument revenues were up a disappointing 23% due to
difficulty in converting a number of special stain systems to capital,"
Gleeson commented. "We expect to get our instrument revenue growth numbers
back on track during the second half of the calendar year as we put some of
the launch difficulties we faced with the introduction of the special stains
new instrument reagent system behind us."
Net sales for the three months ended June 30, 1999 increased to a record
$16.3 million from $11.6 million for the same period in 1998. Net income for
the second quarter was $1.6 million, up 56% from the $1.0 million recorded in
the prior year comparable quarter. Earnings per diluted share of $0.11
increased 57% from the $0.07 per share reported in the second quarter of 1998.
Gleeson further commented, "Our overall gross margin strengthened in the
quarter to 71% from 68% reported in the quarter ending March 31, 1999 due to a
strong reagent mix in our reported revenues. In addition, we continued to
make progress in managing our balance sheet. Accounts receivable as of June
30 were $15.3 million, down 3% from the $15.8 million reported on March 31
despite an increase in revenues. Our days-sales-outstanding of receivables
declined to 85 days as of June 30, down from 104 days as of December 31, 1998
and 91 days on March 31, 1999."
Ventana also noted that it does not expect to incur any tax liabilities
for 1999 and has reversed the tax accrual of $138,000 it made during the first
quarter ending March 31, 1999.
Net sales for the six months ended June 30, 1999 increased to a record of
$32.0 million from $21.9 million for the same period in 1998, a 46% increase.
Net income for the 6 months ending June 30 was up 36% to $2.9 million for
1999 compared to $2.1 million in 1998. Diluted earnings per share of
$0.20 for the first half of the year compares with $0.14 for the comparable
prior year period, a 43% increase.
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 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:
June 30 '99/'98
1999 1998 % Change
Sales:
Instruments $4,726 $3,827 23%
Reagents and other 11,589 7,755 49%
Total net sales 16,315 11,582 41%
Cost of goods sold 4,765 3,477 37%
Gross profit 11,550 8,105 43%
Operating expenses:
Research and development 1,908 1,391 37%
Selling, general and
administrative 7,875 5,547 42%
Nonrecurring expenses -- --
Amortization of intangibles 258 127 103%
Income from operations 1,509 1,040 45%
Other income (22) 262 --
Pretax income $1,487 $1,302 14%
Provision for income tax (138) -- --
Net income $1,625 $1,302 25%
Basic earnings per share $0.12 $0.10 23%
Diluted earnings per share $0.11 $0.09 23%
Ventana Medical Systems, Inc.
Consolidated Statements of Operations
(in thousands except per share data)
(Unaudited)
Six Months Ended:
June 30 99/'98
1999 1998 % Change
Sales:
Instruments $9,846 $7,422 33%
Reagents and other 22,101 14,515 52%
Total net sales 31,947 21,937 46%
Cost of goods sold 9,753 6,930 41%
Gross profit 22,194 15,007 48%
Operating expenses:
Research and development 3,537 2,591 37%
Selling, general and
administrative 15,274 10,521 45%
Nonrecurring expenses -- -- --
Amortization of intangibles 511 254 101%
Income from operations 2,872 1,641 75%
Other income 2 472 -100%
Pretax income $2,874 $2,113 36%
Provision for income tax -- -- --
Net income $2,874 $2,113 36%
Basic earnings per share $0.21 $0.16 34%
Diluted earnings per share $0.20 $0.14 36%
Ventana Medical Systems, Inc.
Consolidated Balance Sheet
(in thousands except share data)
June 30, December 31,
ASSETS 1999 1998 Inc/(Dec)
(Unaudited) (Note) $Amt %
Current assets:
Cash and cash
equivalents $2,463 $2,424 39 2%
Accounts receivable 15,338 16,531 -1,193 -7%
Inventories 12,162 11,009 1,153 10%
Prepaid expenses 907 645 262 41%
Other current assets 1,601 1,142 459 40%
Total current assets 32,471 31,751 720 2%
Property and equipment
, net 13,928 9,937 3,991 40%
Intangibles, net $14,559 14,592 -33 0%
Total assets 60,958 $56,280 4,678 8%
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $3,102 $3,536 -434 -12%
Other current
liabilities 6,387 5,053 1,334 26%
Total current
liabilities 9,489 8,589 900 10%
Long term debt 1,809 1,907 -98 -5%
Stockholders' equity:
Common stock - $.001
par value; 50,000,000 shares
authorized; 13,538,593
and 13,421,819 shares
issued and outstanding at
June 30, 1999 and
December 31, 1998,
respectively 13 13 0 0%
Additional Paid-In
Capital 79,718 78,716 1,002 1%
Accumulated deficit (29,278) (32,152) 2,874 -9%
Cumulative foreign
currency translation
adjustment (193) (193) 0 0%
Treasury stock -
40,000 shares, at cost (600) (600) 0 0%
Total stockholders'
equity 49,660 45,784 3,876 8%
Total liabilities
and stockholders'
equity $60,958 $56,280 4,678 8%
Note: The consolidated balance sheet at December 31, 1998 has been
derived from the audited financial statements at that date but does not
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.
Ventana Medical Systems, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Six Months Ended
June 30,
1999 1998
Operating activities:
Net income $2,874 $2,113
Adjustments to reconcile net
income to cash provided
by operating activities:
Depreciation and amortization 893 1,189
Changes in operating assets
and liabilities, net 68 (3,325)
Net cash provided by operating activities 3,835 (23)
Investing activities:
Purchase of property and equipment, net (4,629) (1,173)
Purchase of intangible assets, net (106) --
Net cash used in investing activities (4,735) (1,173)
Financing activities:
Repayment of debt (64) 1,508
Issuance of stock 1,002 --
Net cash provided by financing activities 938 1,508
Effect of exchange rate change on cash -- (36)
Net (decrease) increase in cash
and cash equivalents 38 276
Cash and cash equivalents,
beginning of period 2,424 18,902
Cash and cash equivalents,
end of period $2,462 $19,178
SOURCE Ventana Medical Systems, Inc.
 back to top
CONTACT:
Christopher Gleeson, President and Chief
Executive Officer of Ventana Medical Systems, Inc., 520-887-2155;
or Analysts, Kathy Brunson, or Media, Joyce Hanson, of the
Financial Relations Board, 312-266-7800
|
