RALEIGH, N.C., July 25 /PRNewswire/ -- CLOSURE Medical Corporation
(Nasdaq: CLSR), a medical device company engaged in developing, manufacturing
and commercializing tissue adhesive products, today announced financial
results for the second quarter and six months ended June 30, 2000.
Revenues for the second quarter of 2000 were $3,072,000, down from
$4,277,000 in second quarter of 1999, albeit up from $2,666,000 previously
reported for the first quarter of this year. Correspondingly, revenues for
the first six months of 2000 were $5,738,000 compared to $8,094,000 in the
first half of 1999.
The net loss for the second quarter of 2000 was $644,000, or ($0.05) per
basic and diluted common share, compared to a net income of $15,000, or $0.00
per basic and diluted common share in the second quarter of 1999. For the
first six months of 2000, the net loss was $1,263,000, or ($0.09) per basic
and diluted share, compared to a net loss of $550,000, or ($0.04) per basic
and diluted share for the same period of 1999.
As of June 30, 2000, cash, cash equivalents, and total investments were
$11.2 million compared to $12.6 million at December 31, 1999.
The Company said the year-to-year decline in second-quarter and first-half
2000 revenues reflected pipeline fill in the comparable periods of 1999 of its
DERMABOND(R) Topical Skin Adhesive by its marketing partner, Ethicon Inc. The
Company also noted that additional progress was made by Ethicon during the
second quarter of this year with regard to working down DERMABOND(R) adhesive
inventory. Moreover, supported by the detailing efforts of the Ethicon field
reps, the market adoption rate for DERMABOND(R) adhesive continues to
increase.
"Several important and positive developments were realized during the
second quarter of this year," commented Robert V. Toni, Closure's President
and Chief Executive Officer. "We completed ahead of schedule both patient
enrollment and follow-up studies for LIQUIDERM(TM) liquid adhesive bandage,
and expect to file the 510(k) premarket notification with the Food and Drug
Administration in the near term. All of us at Closure are excited about
LIQUIDERM(TM) adhesive's prospects given its unique characteristics and
comparatively large market for adhesive bandages."
He concluded by saying, "We have remained highly focused and committed to
the efficiency of our operations. To this end, we held operating expenses
down and our cash position remained strong and essentially unchanged at the
end of the second quarter of 2000. This was accomplished concurrently with
continued support of research and product development plus funding the
LIQUIDERM(TM) adhesive clinical trial."
CLOSURE Medical Corporation, headquartered in Raleigh, North Carolina,
develops, manufactures and commercializes medical tissue adhesive products
based on its proprietary cyanoacrylate technology. CLOSURE's nonabsorbable
tissue adhesive products may be used to replace sutures and staples for
certain topical wound closure applications, while its internal tissue adhesive
products can potentially be used for internal wound closure and management.
Currently marketed nonabsorbable tissue adhesive products include
DERMABOND(R)* Topical Skin Adhesive, which is used to replace sutures and
staples for closure of certain lacerations and incisions, OCTYLDENT(R)*
adhesive, which is used as an adjunct in the treatment of adult periodontal
disease; and the NEXABAND(R)* line of topical adhesives, which are used in
veterinary wound closure and management.
* DERMABOND(R) adhesive is a trademark of Ethicon, Inc.; SOOTHE-N-SEAL(TM)
canker sore relief and LIQUIDERM(TM) adhesive are trademarks of CLOSURE
Medical Corporation. OCTYLDENT(R) adhesive and NEXABAND(R) adhesives are
federally registered trademarks of CLOSURE Medical Corporation.
To receive CLOSURE's latest news release and other corporate documents via
fax, at no cost, call 1-800-PRO-INFO, use the Company's symbol CLSR. Or visit
the Financial Relations Board's website at http://www.frbinc.com .
This release contains certain forward-looking statements which involve
known and unknown risks, delays, uncertainties or other factors not under the
Company's control which may cause actual results, performance or achievements
of the Company to be materially different from the results, performance, or
other expectations implied by these forward-looking statements. These factors
include, but are not limited to the early stage of commercialization of the
Company products; the progress of its research and development programs for
future products; the need for regulatory approval and effects of governmental
regulation; technological uncertainties; dependence on marketing partners, and
dependence on patents and trade secrets, as well as those detailed in the
Company's Annual Report on Form 10-K for the year ended December 31, 1999
filed with the Securities and Exchange Commission.
CLOSURE Medical Corporation
Balance Sheets
(In thousands, except per share data)
June 30, December 31,
2000 1999
(Unaudited)
Assets
Cash and cash equivalents $204 $ 508
Short-term investments 8,095 9,299
Restricted investments 1,561 1,515
Accounts receivable, net 1,189 732
Inventories 693 591
Prepaid expenses 214 326
Total current assets 11,956 12,971
Restricted investments 1,298 1,292
Furniture, fixtures and equipment, net 7,058 7,351
Intangible assets, net 1,096 897
Total assets $21,408 $22,511
Liabilities and Stockholders' Equity
Accounts payable $1,251 $1,110
Accrued expenses 1,062 794
Deferred revenue 206 443
Capital lease obligations 300 279
Current portion of long-term debt 600 600
Total current liabilities 3,419 3,226
Deferred revenue 505 505
Capital lease obligations less current
portion 499 655
Long-term debt less current portion 1,187 1,500
Total liabilities 5,610 5,886
Commitments and Contingencies - -
Preferred Stock, $.01 par value.
Authorized 2,000 shares; none issued
or outstanding - -
Common Stock, $.01 par value.
Authorized 35,000 shares;
issued and outstanding 13,396 and 13,347
shares, respectively 134 133
Additional paid-in capital 47,302 46,940
Accumulated deficit (31,638) (30,375)
Deferred compensation on stock options - (73)
Total stockholders' equity 15,798 16,625
Total liabilities and stockholders' equity $21,408 $22,511
Closure Medical Corporation
Statements of Operations
(Unaudited)
(In Thousands, Except Per Share Data)
Three Months Six Months
Ended Ended
June 30, June 30,
2000 1999 2000 1999
Product sales $3,072 $4,277 $5,738 $8,094
Cost of products sold 981 1,520 1,797 2,697
Gross Profit 2,091 2,757 3,941 5,397
Research, development and
regulatory affairs expenses 1,600 1,588 3,067 3,450
General and administrative expenses 1,257 1,270 2,381 2,758
Total operating expenses 2,857 2,858 5,448 6,208
Income (loss) from operations (766) (101) (1,507) (811)
Interest expense (62) (94) (120) (185)
Investment and interest income 184 210 364 446
Net income (loss) $(644) $15 $(1,263) $(550)
Shares used in computation of net income
(loss) per common share:
Basic 13,380 13,315 13,367 13,309
Diluted 13,380 13,884 13,367 13,309
Net income (loss) per common share:
Basic $(0.05) $0.00 $(0.09) $(0.04)
Diluted $(0.05) $0.00 $(0.09) $(0.04)
SOURCE CLOSURE Medical Corporation
 back to top
Related links:
http://www.frbinc.com
CONTACT:
Robert V. Toni, President & CEO, Benny Ward,
CFO, of CLOSURE Medical Corporation, 919-876-7800, or General
Info., Stuart Levine, Analyst Info., Cecelia Heer, Media Info.,
Deanne Eagle, of The Financial Relations Board, 212-661-8030
|
