Company Records First Profitable Quarter with Sequential
Revenue Increase of 45 Percent
MENLO PARK, Calif., July 23 /PRNewswire/ -- Perclose, Inc. (Nasdaq: PERC)
today reported record quarterly results for the first fiscal quarter ended
June 30, 1998. For the June quarter, revenues were $8.4 million, an increase
of 45 percent from revenues of $5.8 million in the March 1998 quarter and up
seven-fold from the $1.2 million reported in the same quarter a year ago.
Product launches in the United States following Food and Drug Administration
(FDA) approvals in the last nine months accounted for the higher sales
performance in the year over year period.
Net income in the June quarter was $283,000, marking the first profitable
quarter in the company's history. This net income compares with a net loss of
$1.3 million for the March 1998 quarter and a net loss of $4.0 million for the
same period of the prior year.
The company reported diluted earnings per common share of $0.02 in the
June 1998 quarter compared with a loss of $0.15 per common share in the March
1998 quarter and a loss of $0.42 per common share in the June 1997 quarter.
Shares used in calculating diluted earnings/loss per share were 11.4 million
in the June 1998 quarter, 10.0 million in the March 1998 quarter and
9.6 million in the year ago quarter. At June 30, 1998, Perclose had cash,
cash equivalents and short-term investments of $30.3 million.
Hank Plain, Perclose's president and chief executive officer, commented,
"We are pleased with the United States launch of the Prostar(R) XL and
Techstar(R) XL and the reception and usage patterns of cardiologists and
radiologists. We continue to focus our sales strategy on achieving higher
penetration rates and training more doctors in each of our accounts. Our goal
is to bring the clinical and economic benefits of Perclose technology to a
broader base of patients and hospitals. In addition, the growth in our
international business is exceeding our internal plan."
Mr. Plain continued, "Our financial performance is also improving rapidly.
In addition to delivering a net profit for the first time, revenue growth
remained strong and gross margins continued to improve from the last quarter.
Since our initial FDA approval four quarters ago, revenue has grown at a
compounded rate of 62 percent per quarter. In addition, our balance sheet is
strong with $30 million in the bank, no long term debt and modest cash needs
for the foreseeable future."
Perclose, based in Menlo Park, Calif., designs, manufactures and markets
less invasive medical devices that automate the surgical closure or connection
of blood vessels. The Prostar(R) and Techstar(R) products, marketed in the
U.S. and internationally, surgically close the arterial access site in the
femoral artery following catheterization procedures such as angioplasty,
stenting, atherectomy and diagnostic angiography. The patented, proprietary
Prostar and Techstar products offer superior clinical treatment, more rapid
recovery and a more cost-effective alternative to the standard method of
closing arterial access sites. The Heartflo(TM) System, which automates the
surgical connection of blood vessels during conventional and minimally
invasive coronary artery bypass surgery, is in product development. Perclose
common stock is traded on the Nasdaq National Market under the symbol PERC.
Except for the historical information contained herein, the matters
discussed in this news release are forward looking statements that involve
risk and uncertainties, including the availability and market acceptance of
new products, risks of adverse determinations in litigation relating to
patents and intellectual property rights, risks associated with manufacturing
scale-up and increases in production volumes, risks associated with product
recalls, receipt and timing of regulatory approvals and the management of
growth. For further information, refer to the risk factors in the most recent
periodic filings with the Securities and Exchange Commission.
PERCLOSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)
(unaudited)
Three Months Ended June 30,
1998 1997
Net revenues $8,364 $1,170
Cost of goods sold 3,190 1,453
Gross profit (loss) 5,174 (283)
Operating expenses:
Research and development 1,629 1,234
Marketing, general and administrative 3,633 2,846
Loss from operations (88) (4,363)
Interest income, net 386 355
Income (loss) before income taxes 298 (4,008)
Provision for income taxes 15 --
Net income (loss) $283 $(4,008)
Basic earnings (loss)
per common share $0.03 $(0.42)
Diluted earnings (loss)
per common share $0.02 $(0.42)
Weighted average common
shares outstanding 10,752 9,572
Weighted average shares
outstanding assuming dilution 11,425 9,572
PERCLOSE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, March 31,
1998 1998*
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $30,339 $31,581
Accounts receivable, net 4,149 3,455
Inventories 2,126 1,619
Prepaid expenses 524 628
Total current assets 37,138 37,283
Equipment and leasehold
improvements, net 2,514 2,277
Other assets 1,280 891
Total assets $40,932 $40,451
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $3,409 $3,509
Total stockholders' equity 37,523 36,942
Total liabilities and
stockholders' equity $40,932 $40,451
* Derived from audited financial statements.
SOURCE Perclose, Inc.
 back to top
CONTACT:
Ken Ludlum, Chief Financial Officer, of
Perclose, Inc., 650-473-3100 ext. 278; or Ann Trunko, general
information, or Kate Rajeck, analyst contact, 415-986-1591, both
of The Financial Relations Board
NOTE TO EDITORS: For more information on Perclose via fax at no
cost, call 800-PRO-INFO (732-544-2850 outside the U.S.), ticker
symbol PERC.
|
