CUPERTINO, Calif., Oct. 21 /PRNewswire/ -- CardioThoracic Systems, Inc.
(CTS) (Nasdaq: CTSI) today reported financial results for the third quarter
and nine months ended September 26, 1997.
For the third quarter, net revenues were $1.6 million. The company
reported no revenues in the third quarter of 1996. Net loss for the quarter
was $5.9 million, or $0.44 per share on 13.5 million weighted average shares
outstanding compared to a net loss of $4.3 million, or $0.33 per share on
13.0 million weighted average shares outstanding in the third quarter of 1996.
For the first nine months of 1997, CTS reported net revenues of
$6.6 million compared with no revenues for the first nine months of 1996. Net
loss for the nine month period was $15.4 million, or $1.15 per share on
13.5 million weighted average shares outstanding, versus a net loss
$11.2 million, or $0.98 per share on 11.4 million weighted average shares
outstanding, in the prior year period.
As of September 26, 1997, CTS had cash, cash equivalents and
available-for-sale securities of $64.8 million.
"At the end of the third quarter, we began shipping our second generation
product, the ACCESS MV(TM) System. This system is an important addition to
our product line as it now provides surgeons with the tools to perform
multiple vessel bypass surgery on a beating heart," said Richard Ferrari, CTS
president and chief executive officer. "We are encouraged by the positive
response we have already seen from surgeons and are currently developing a
specialized training program to focus on the use of the ACCESS MV System in
multiple vessel bypass surgery."
Dr. Albert Pfister, Senior Cardiac Surgeon at Washington Hospital Center,
commented, "The new CTS ACCESS MV System is the best stabilization system on
the market. The ability to do multi-vessel revascularization with this system
is a significant recent technological advance in beating heart surgery."
During the quarter, CTS announced the launch of its POEM (Patency,
Outcomes and Economics of MIDCAB) Study, the first multi-center controlled
study in the industry comparing minimally invasive direct coronary artery
bypass (MIDCAB) procedures with traditional coronary artery bypass graft
(CABG) procedures. The POEM Study will track and compare procedural efficacy,
patient outcomes, recovery times and hospitalization costs. Patient
enrollment is underway.
"The POEM Study represents a critical step in validating the MIDCAB
concept and should serve as a bridge to future important clinical trials,
undoubtedly leading to a much broader application of the MIDCAB approach in
patients with complex coronary artery disease," said Dr. Martin B. Leon,
Director of Cardiovascular Research and Education at Washington Hospital
Center.
CardioThoracic Systems, Inc., Cupertino, Calif., is a leading developer of
proprietary technologies in minimally invasive cardiothoracic surgery. The
company's current products are designed to enable cardiothoracic surgeons to
perform minimally invasive bypass surgery on a beating heart. CTS is also
developing technologies in the areas of minimally invasive valve repair and
replacement and saphenous vein harvesting. The company's stock is traded on
the Nasdaq Stock Market under the symbol CTSI.
This news release contains forward-looking information that involves risks
and uncertainties, including risks relating to the demand for CTS products,
availability and market acceptance of the company's new products and programs,
uncertainties associated with the results and effects of the POEM Study, the
results of clinical trials and competitive products and procedures. Actual
results may differ significantly from the results discussed in the forward-
looking statements as a result of those and other factors, including factors
set forth in the company's annual report on Form 10-K filed with the
Securities and Exchange Commission on March 31, 1997 and the company's
quarterly report on Form 10-Q filed with the Securities and Exchange
Commission on August 8, 1997. Copies of the annual report on Form 10-K and
the amended quarterly report on Form 10-Q are available by calling the
company's investor relations department at 408-342-1700.
For more information on CardioThoracic Systems, Inc. via fax at no cost,
dial 800-PRO-INFO (908-544-2850 outside the U.S.), ticker symbol: CTSI.
CARDIOTHORACIC SYSTEMS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands)
Three Months Ended Nine Months Ended
Sept. 26, Sept. 30, Sept. 26, Sept. 30,
1997 1996 1997 1996
Net sales $ 1,629 -- $ 6,577 --
Cost of sales $ 1,115 $ 213 $ 4,331 $ 213
Gross profit 514 (213) 2,246 (213)
Operating expenses:
Research and development 2,832 3,131 7,279 8,280
Sales, marketing, general,
and administrative 4,499 2,071 13,305 4,659
Total operating expenses 7,331 5,202 20,584 12,939
Loss from operations (6,817) (5,415) (18,338) (13,152)
Interest income, net 920 1,097 2,922 1,989
Net loss $ (5,897) $ (4,318) $(15,416) $(11,163)
Net loss per share $ (0.44) $ (0.33) $( 1.15) $ (0.98)
Shares used in computing
net loss per share 13,528 12,966 13,456 11,419
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
September 26, December 31,
1997 1996
(unaudited)
Cash, cash equivalents and
available-for-sale securities $ 64,780 $ 78,457
Total current assets 41,024 49,330
Property and equipment, net 3,459 2,494
Total assets 73,344 83,691
Total current liabilities 4,429 3,310
Total stockholders' equity $ 66,080 $ 79,253
SOURCE CardioThoracic Systems, Inc.
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CONTACT:
Richard M. Ferrari, CEO, or Steve Van Dick,
CFO of CardioThoracic Systems, Inc., 408-342-1700; or general
information, Ann Trunko, or analysts, Kate Rajeck of The
Financial Relations Board, 415-986-1591, for CardioThoracic
Systems
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