RALEIGH, N.C., Oct. 21 /PRNewswire/ -- CLOSURE Medical Corporation
(Nasdaq: CLSR), a medical tissue cohesive products company, today announced
that total revenues for the third quarter ended September 30, 1998 were
$4,210,000, consisting of product sales of $2,710,000 and license and product
development revenues of $1,500,000, compared to product sales of $591,000 for
the quarter ended September 30, 1997. Net income for the 1998 quarter was
$494,000, or $.04 per basic and diluted share, compared to a net loss of
$1.6 million, or ($.12) per basic and diluted share in the corresponding 1997
period.
Revenues for the nine months ended September 30, 1998 were $6,322,000,
including license and product development revenues of $1,500,000, compared to
$939,000 in the corresponding 1997 period. For the nine months ended
September 30, 1998, the Company reported a net loss of $3.8 million, or
($.29) per basic and diluted share, compared to a net loss of $4.8 million, or
($.37) per basic and diluted share for the same period of 1997.
"The FDA approval and launch of DERMABOND* Topical Skin Adhesive in the
United States during the third quarter signals the beginning of a revolution
in topical wound closure," stated Robert V. Toni, President and Chief
Executive Officer.
Cash and cash equivalents and total investments were $19.3 million at
September 30, 1998 compared to $24.5 million at December 31, 1997.
CLOSURE also announced the commencement of a clinical study of 150
patients designed to demonstrate the effectiveness of Soothe-n-Seal(TM)
Protective Sealant for the treatment of oral ulcers (canker sores). The
Company chose investigators at Brigham & Women's Hospital in Boston, Mass.,
The University of North Carolina-Chapel Hill, located in Chapel Hill, N.C. and
Forsyth Dental Center, also in Boston, Mass. to conduct the study.
CLOSURE Medical Corporation, headquartered in Raleigh, N.C., develops,
manufactures and commercializes medical tissue cohesive products based on its
proprietary cyanoacrylate technology. CLOSURE's nonabsorbable tissue cohesive
products may be used to replace sutures and staples for certain topical wound
closure applications, while its absorbable tissue cohesive products can
potentially be used as tissue cohesives for internal wound closure and
management. Currently marketed nonabsorbable tissue cohesive products include
DERMABOND* topical skin cohesive, which is used to replace sutures and staples
for closure of certain lacerations and incisions, OCTYLDENT* cohesive, which
is used as an adjunct in the treatment of adult periodontal disease; and the
NEXABAND* line of topical cohesives, which are used in veterinary wound
closure and management.
* DERMABOND is a trademark of Ethicon, Inc.; OCTYLDENT and NEXABAND are
registered Trademarks of CLOSURE Medical Corporation.
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 need for regulatory approval and effects of governmental
regulation; technological uncertainties; dependence on market acceptance and
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, 1997 filed with the Securities and Exchange Commission.
CLOSURE Medical Corporation
Statement of Operations
(Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Product sales $2,710 $591 $4,822 $939
License and product
development revenues 1,500 - 1,500 -
Total revenues 4,210 591 6,322 939
Cost of products sold 1,063 461 2,448 883
Gross profit and license
and product development
revenues 3,147 130 3,874 56
Research, development and
regulatory affairs
expenses 1,502 870 4,410 2,366
Selling and administrative
expenses 1,339 1,266 3,889 3,548
Total operating expenses 2,841 2,136 8,299 5,914
Income (loss) from operations 306 (2,006) (4,425) (5,858)
Interest expense (100) (18) (291) (26)
Investment and interest income 288 397 934 1,062
Net income (loss) $494 $(1,627) $ (3,782) $(4,822)
Shares used in computation of
net income (loss) per
share:
Basic 13,278 13,212 13,264 12,873
Diluted 13,656 13,212 13,264 12,873
Net income (loss) per share:
Basic $0.04 $(0.12) $(0.29) $(0.37)
Diluted $0.04 $(0.12) $(0.29) $(0.37)
CLOSURE Medical Corporation
Balance Sheet
(In thousands, except for share data)
September 30, December 31,
1998 1997
Assets (Unaudited)
Current assets:
Cash and cash equivalents $3,682 $7,277
Short-term investments 12,715 14,417
Accounts receivable 742 1,226
Inventories 626 347
Prepaid expenses 210 367
Total current assets 17,975 23,634
Furniture, fixtures and equipment, net 6,722 3,694
Restricted investments 1,582 1,517
Long-term investments 1,362 1,298
Intangible assets, net 385 276
Total assets $28,026 $30,419
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 955 $ 478
Accrued expenses 1,597 2,598
Deferred revenue 2,340 2,019
Capital lease obligations 240 155
Current portion of long-term debt 350 350
Total current liabilities 5,482 5,600
Capital lease obligations 998 1,250
Long-term debt less current portion 2,450 1,150
Total liabilities 8,930 8,000
Stockholders' Equity:
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 13,280 and 13,242 shares,
respectively 133 132
Additional paid-in capital 46,289 46,058
Accumulated deficit (26,857) (23,075)
Deferred compensation on stock options (469) (696)
Total stockholders' equity 19,096 22,419
Total liabilities and stockholders' equity $28,026 $30,419
SOURCE CLOSURE Medical Corporation
 back to top
CONTACT:
Robert V. Toni, President & CEO or J. Blount
Swain, CFO of CLOSURE, 919-876-7800; or general, Paul G. Henning,
analysts, Brian Gill, or media, Deanne Eagle, all of The
Financial Relations Board, 212-661-8030
NOTE TO EDITORS: To receive CLOSURE's latest news release and
other corporate documents via FAX -- at no cost -- dial
1-800-PRO-INFO. Use Company's ticker - CLSR
|
