Revenues Increase 92% Over the June 1998 Quarter,
Diluted Earnings Per Share Up 11 Times
REDWOOD CITY, Calif., July 29 /PRNewswire/ -- Perclose, Inc.
(Nasdaq: PERC) today reported record quarterly results for the first fiscal
quarter ended June 30, 1999. For the June quarter, revenues were
$16.0 million, an increase of 92 percent from revenues of $8.4 million in the
same quarter a year ago. Continued acceptance of the company's products
introduced two years ago accounted for the increase in sales. Net income in
the June quarter was $2.9 million compared with $283,000 for the same period
of the prior year. Diluted earnings per common share was $0.24 in the June
1999 quarter compared with $0.02 per common share in the June 1998 quarter.
Hank Plain, Perclose's president and chief executive officer, commented,
"We are pleased with the reception and usage patterns of the Prostar(R) XL and
Techstar(R) XL with cardiologists and radiologists over the past quarter. Our
goal continues to be bringing the clinical and economic benefits of Perclose
technology to a broader base of patients and hospitals. We are looking
forward to working with Abbott Laboratories to expand on our past successes."
On July 8 Perclose and Abbott Laboratories, Inc. announced the companies
had entered into a definitive agreement for Abbott to acquire Perclose in a
stock-for-stock merger at $54 per share. The merger is intended to be
accounted for as a pooling of interests, be tax-free to Perclose shareholders,
and is expected to close in the fourth quarter of 1999. In early July
Perclose also announced a voluntary, lot specific recall of the Techstar 6XL
product. Activities associated with the recall are proceeding according to
plan. In addition, in early July the Perclose Board of Directors voted to
terminate the open market share repurchase program initiated in September
1998. No shares have been repurchased since October 1998.
Perclose, based in Redwood City, California, was founded in 1992 and
designs, manufactures and markets less invasive medical devices that automate
the surgical closure or connection of blood vessels. The Prostar and Techstar
products use a platform technology that allows hand held devices to remotely,
automatically and precisely deploy needles and sutures for vascular repair or
connection. The surgical approach that the Prostar and Techstar products use
distinguishes them from the limited number of competitors in the femoral
artery closure device product category.
The Prostar 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, and atherectomy. The Techstar
products, also marketed worldwide, surgically close the arterial access site
in the femoral artery following diagnostic angiography procedures. These
patented, proprietary products offer superior clinical treatment, more rapid
recovery, earlier hospital discharge and a lower treatment cost alternative to
the standard method of closing arterial access sites. The Heartflo(TM)
System, which is designed to automate the surgical connection of blood vessels
during conventional and minimally invasive coronary artery bypass surgery, is
in development. Perclose common stock is traded on the Nasdaq National Market
under the symbol PERC.
Certain statements in this news release, including statements relating to
the Company's growth, profitability and financial results and the Company's
product development efforts, contain forward looking information. The
Company's actual results may differ from those anticipated by such
forward-looking statements due to risks and uncertainties, including the risk
that new products may not prove to be safe or effective in clinical trials,
risks associated with receipt and timing of regulatory approvals, including
approvals to conduct clinical trials and to market products commercially,
market acceptance of the Company's products, risk 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 and the management of growth and other
risks, including those set forth in the Company's periodic filings with the
Securities and Exchange Commission.
For more information on Perclose via fax at no cost, call 1-800-PRO-INFO,
ticker symbol PERC.
PERCLOSE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)
Three Months Ended
June 30,
1999 1998
Net revenues $16,045 $8,364
Cost of goods sold 4,246 3,190
Gross profit 11,799 5,174
Operating expenses:
Research and development 2,959 1,629
Selling, general and administrative 5,937 3,633
Income (loss) from operations 2,903 (88)
Other income (expense), net 312 386
Income before income taxes 3,215 298
Provision for income taxes 322 15
Net income $2,893 $283
Basic earnings per common share $0.26 $0.03
Diluted earnings per common share $0.24 $0.02
Shares used in computing basic earnings per share 11,118 10,752
Shares used in computing diluted earnings per share 12,256 11,425
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
June 30, March 31,
1999 1999
ASSETS
Current assets:
Cash, cash equivalents and short-term investments $31,041 $30,197
Accounts receivable, net 9,937 7,762
Inventories 3,701 2,549
Prepaid expenses 874 689
Total current assets 45,553 41,197
Equipment and leasehold improvements, net 6,259 5,767
Other assets 2,602 2,626
Total assets $54,414 $49,590
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $4,912 $4,675
Total long-term liabilities 82 --
Total stockholders' equity 49,420 44,915
Total liabilities and stockholders' equity $54,414 $49,590
SOURCE Perclose, Inc.
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CONTACT:
Ken Ludlum, Chief Financial Officer of
Perclose, Inc., 650-473-3100; or general information, Traci
McCarty, analysts, Janet Nelson, or media inquiries, C. Scott
Marx, all of The Financial Relations Board, 415-986-1591
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