Third-Quarter Revenues Grow 21% to Record Levels;
HPV ASR Revenues Highest for New Reagent Product;
Outlook Confirmed for 2001
TUCSON, Ariz., Oct. 19 /PRNewswire/ -- Ventana Medical Systems, Inc.
(Nasdaq: VMSI), a leading supplier of automated instrument reagent systems to
histology and drug discovery labs worldwide, today reported sales of
$21.7 million for the quarter ending September 30, 2001, a 21% increase over
the third quarter of 2000, and 26% after adjusting for the discontinuation of
the electron microscopy product line in 2000. Net income for the third
quarter was $290,000 compared with a net loss of $241,000 for the same period
in 2000. For the third quarter, diluted earnings per share were $0.02,
compared with a $0.02 loss per share in the third quarter of 2000.
THIRD-QUARTER 2001
"Our third-quarter revenues set a record for Ventana and provide further
evidence that we are executing against our growth objectives," commented
Christopher Gleeson, Ventana's President and Chief Executive Officer.
"Reagent revenues grew 28% versus last year's third quarter. The reagent
growth was fueled by the customer's on-going enthusiastic response to our new
systems and expanded reagent product line, particularly our new HPV DNA ASR
probes, which recorded the highest first-quarter sales ever for a reagent
product launched Ventana. We are also pleased with our continued
profitability while significantly increasing our investment in R&D and the
sales and marketing organizations."
Gross margin reached 70.1% in the quarter, the highest level since the
second quarter of 1999. R&D investment increased 55% versus third-quarter
2000 and 7% sequentially. This increase was driven by the Company's
commitment to developing additional systems in the histology area and
molecular discovery businesses. Investment in the sales and marketing
organizations increased by 13% versus the third-quarter 2000.
The Company demonstrated continued balance sheet progress with day's sales
outstanding (DSO) at 69, compared with 90 in the third-quarter 2000. Day's
sales in inventory (DSI) were 146 versus 106 in third-quarter 2000. DSI was
higher in the short term in anticipation of the reagent production move to a
new manufacturing facility, which is on track to be completed by the end of
the month. During the quarter the Company successfully relocated all
instrument-manufacturing operations without any disruption to customer
service.
YEAR-TO-DATE 2001
Net sales for the nine months ended September 30, 2001 increased to a
record $62.3 million from $53.7 million for the same period in 2000. The
overall 16% increase was paced by 23% year-over-year reagent revenue growth.
After adjusting for discontinuation of the electron microscopy line business,
net sales improved 20% over the first nine months of 2000. R&D spending
increased by 39%. The $822,000 net loss resulted in a $0.05 loss per share
compared with a $24.8 million net loss and a $1.70 loss per share for the same
period in 2000.
CALENDAR-YEAR 2001 OUTLOOK
Ventana confirmed its 2001 full-year guidance of revenues in a range of
$87 million to $90 million and earnings per share consistent with the current
range. "We are pleased with our year-to-date momentum coming out of the third
quarter and are broadly maintaining our existing guidance for the full year,"
commented Gleeson.
CONFERENCE CALL
Ventana will hold a conference call to discuss third-quarter 2001 results
and the outlook for the remainder of the year at 10:00 a.m. EDT on Friday,
October 19, 2001. The call can be accessed live and will be available for
replay over the Internet via http://www.vcall.com .
Ventana develops, manufactures and markets instrument/reagent systems that
automate tissue preparation and slide staining in clinical histology and drug
discovery laboratories worldwide. Ventana's clinical systems are important
tools used in the diagnosis and treatment of cancer and infectious diseases.
Ventana's drug discovery systems are used to accelerate the discovery of new
drug targets and evaluate the safety of new drug compounds.
This news release contains certain "forward-looking" statements and
information within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements, by their very nature, include risks and uncertainties.
Accordingly, the company's actual results could differ materially from those
discussed in this release. A wide variety of factors could cause or contribute
to such differences and could adversely impact revenues profitability, cash
flow and capital needs. Such factors, many of which are beyond the control of
the company, include the following: market acceptance of new automated
histology products, continued success in asset management, continued
improvements in our manufacturing efficiencies, on-schedule launches of our
new products, currency exchange rate variability, competition and competitive
pressures on pricing and general economic conditions in the United States and
in the regions served by the company. A more complete listing of cautionary
statements and risk factors is contained in the company's report on Form 10-K
for the year ended Dec. 31, 2000, filed with the Securities and Exchange
Commission.
Visit the Ventana Medical Systems, Inc. website at http://www.ventanamed.com
The Molecular Discovery Systems Division has its own website
at http://www.ventanadiscovery.com
Ventana Medical Systems, Inc.
Consolidated Statements of Operations
(in thousands except per share data)
(Unaudited)
Three Months Ended:
September 30
2001 2000
Sales:
Reagents and other $15,735 $12,703
Instruments 5,922 5,196
Total net sales 21,657 17,899
Cost of goods sold 6,472 5,786
Gross profit 15,185 12,113
Operating expenses:
Research and development 4,137 2,665
Selling, general and administrative 10,440 9,816
Nonrecurring expenses - -
Amortization of intangibles 381 381
Income (loss) from operations 227 (749)
Other income 135 508
Pretax income (loss) 362 (241)
Provision for income tax 72 -
Net income (loss) $290 $(241)
Earnings per share - basic $0.02 $(0.02)
Earnings per share - diluted $0.02 $(0.02)
Outstanding Shares - basic 16,031 15,186
Outstanding Shares - diluted 16,784 15,186
Ventana Medical Systems, Inc.
Consolidated Statements of Operations
(in thousands except per share data)
(Unaudited)
Nine Months Ended:
September 30
2001 2000
Sales:
Reagents and other $44,642 $37,008
Instruments 17,633 16,740
Total net sales 62,275 53,748
Cost of goods sold 19,698 30,538
Gross profit 42,577 23,210
Operating expenses:
Research and development 11,293 8,110
Selling, general and administrative 31,420 32,706
Nonrecurring expenses - 4,519
Amortization of intangibles 1,135 1,050
Loss from operations (1,271) (23,175)
Other income 760 912
Loss before taxes and cumulative
effect of accounting change (511) (22,263)
Provision for income tax 311 350
Loss before cumulative effect of
accounting change (822) (22,613)
Cumulative effect of accounting
change, net of tax - (2,154)
Net loss $(822) $(24,767)
Earnings per share $(0.05) $(1.70)
Outstanding Shares - basic 15,832 14,559
Ventana Medical Systems, Inc.
Consolidated Balance Sheet
(in thousands except share data)
(Unaudited)
September 30, December 31,
ASSETS 2001 2000
Current assets:
Cash and cash equivalents $20,767 $38,512
Accounts receivable 16,482 16,682
Inventories 10,364 8,100
Prepaid expenses 293 460
Deferred tax benefit, current
portion 4,817 4,817
Other current assets 631 492
Total current assets 53,354 69,063
Property and equipment, net 37,055 22,329
Intangibles, net 10,677 11,887
Other assets 2,797 2,318
Deferred tax benefit, long-term
portion 3,985 3,985
Total assets $107,868 $109,582
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $5,340 $5,943
Other current liabilities 7,932 13,143
Total current liabilities 13,272 19,086
Long-term debt 3,028 3,408
Stockholders' equity:
Common stock - $.001 par value;
50,000,000 shares authorized;
16,076,323 and 15,444,122 shares
issued and outstanding at September
30, 2001 and December 31, 2000,
respectively 16 15
Additional paid-in capital 140,042 134,862
Accumulated deficit (47,458) (46,636)
Cumulative foreign currency
translation adjustment (432) (553)
Treasury stock - 40,000 shares, at
cost (600) (600)
Total stockholders' equity 91,568 87,088
Total liabilities and stockholders'
equity $107,868 $109,582
Ventana Medical Systems, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Nine Months Ended
September
2001 2000
Operating activities:
Net (loss) $(822) $(24,767)
Adjustments to reconcile net income to
cash provided by operating activities:
Cumulative effect of accounting
change - 2,154
Depreciation and amortization 5,011 4,098
Benefit from deferred taxes - 1,255
Non-cash intangibles and property
and equipment charges - 7,914
Changes in operating assets and
liabilities, net (8,677) 7,623
Net cash used in operating activities (4,488) (1,723)
Investing activities:
Purchase of property and equipment,
net (18,179) (10,798)
Purchase of intangible assets, net - (2,393)
Net cash used in investing activities (18,179) (13,191)
Financing activities:
Net proceeds from private placement - 46,847
(Repayment) borrowings of debt (380) 1,888
Issuance of stock - net 5,181 6,687
Net cash provided by financing
activities 4,801 55,422
Effect of exchange rate change on cash 121 (266)
Net (decrease) increase in cash and
cash equivalents (17,745) 40,242
Cash and cash equivalents, beginning
of period 38,512 1,787
Cash and cash equivalents, end of
period $20,767 $42,029
SOURCE Ventana Medical Systems, Inc.
 back to top
Related links:
http://www.ventanadiscovery.com
CONTACT:
Christopher Gleeson, President and CEO,
+1-520-690-3557, or Nick Malden, Vice President and CFO,
+1-520-690-2794, both of Ventana Medical Systems
|
