Closure Medical (NASDAQ:CLSR)
Historical Stock Chart
From Jun 2019 to Jun 2024
CLOSURE Medical Reports 33 Percent Increase in Revenues and 52
Percent Increase in Net Income for Second Quarter 2004
RALEIGH, N.C., July 22 /PRNewswire-FirstCall/ -- CLOSURE Medical Corporation
(NASDAQ:CLSR), a global leader in biomaterial-based medical devices, today
announced results for the second quarter and six months ended June 30, 2004.
Second-quarter 2004 revenues increased 33 percent to $11.3 million from $8.5
million during the same period of 2003. For the six months ended June 30,
2004, revenues were $21.7 million compared to $16.6 million in the same period
of 2003, representing an increase of 31 percent.
Net income for the second quarter of 2004 increased 52 percent to $2.5 million,
or $0.17 per diluted share, compared to $1.7 million, or $0.12 per diluted
share in the prior year period. For the six months ended June 30, 2004, net
income was $5.1 million, or $0.32 per diluted share, increasing from $3.6
million, or $0.26 per diluted share, in the same period of 2003.
Daniel A. Pelak, President and CEO, commented, "Our operational growth through
the first half of 2004 has met our expectations. The DERMABOND products have
increased their penetration into the wound closure market and contributed the
majority of our revenue and earnings during the first six months of this year.
We are encouraged by the acceptance rate of the new DERMABOND ProPen which was
launched by our marketing partner, ETHICON, Inc., a Johnson & Johnson Company,
in the first quarter of this year."
Pelak continued, "As expected, we initiated patient enrollment in our vascular
sealant clinical study during the quarter. We are encouraged by the clinical
performance of our sealant and we expect to complete enrollment by the end of
this year. Planning is currently underway for the launch of the product in
Europe during the first half of 2005."
The Company's operating margin continued to increase to 34 and 35 percent for
the three and six month periods ended June 30, 2004, respectively, compared to
30 and 33 percent in the 2003 periods, respectively. Consistent with the prior
year, second-quarter R&D and regulatory expenses were 24 percent of revenues
primarily to support the continued progress of the vascular sealant study,
while general and administrative expenses decreased from 20 to 15 percent of
revenues. As anticipated, gross margin, 72 percent during the current quarter,
decreased as a result of start-up costs and inefficiencies associated with
manufacturing the ProPen product in-house beginning in April. With the current
increased volumes and efficiencies in the ProPen manufacturing process, the
Company expects overall gross margin to reach approximately 75 percent by the
end of 2004.
Benny Ward, Vice President of Finance and CFO, commented, "Inefficiencies are
inherent with new manufacturing processes. However, we are focused on and
dedicated to improving our gross margin by the end of the year. We are also
pleased with our progress during the quarter as our margin improved during June
and expect that to continue during the balance of the year."
At June 30, 2004, the Company had cash and investments of $42.5 million and net
working capital of $45.7 million. Total assets were $63.1 million and
stockholders' equity was $56.0 million. The Company had no outstanding debt
and a $3.0 million available line of credit.
The Company expects third quarter revenues to be in the range of $9.5 to $10.5
million and earnings per diluted share to be in the range of $0.12 to $0.15.
These expectations include reduced BAND-AID(R) Brand Liquid Bandage revenues
due to the recent introduction of a new, lower-priced competitive product in
the U.S. marketplace. The Company's marketing partner for the liquid bandage
product has launched promotional initiatives to respond to this new product and
changing market conditions. The results of these initiatives will be available
at the end of the third quarter. For the full year, the Company feels the
previously provided 2004 guidance is still appropriate, which includes revenues
in the range of $45.0 to $47.0 million and earnings per diluted share from
$0.65 to $0.70, respectively.
About CLOSURE Medical Corporation
CLOSURE Medical Corporation is a global leader in the development and
manufacture of innovative biomaterial-based medical devices that fulfill the
needs of healthcare practitioners, patients and consumers.
For additional information on CLOSURE Medical visit its website at
http://www.closuremed.com/ or visit the "Clients" section of the Allen & Caron
website at http://www.allencaron.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's products; the ability of the Company to increase the efficiencies in
its manufacturing processes; the effectiveness of initiatives launched in
response to the Company's competitors' product introductions; the progress and
success of its research and development programs for future products; the
success of its clinical study for its vascular sealant product and future
clinical studies; the successful enrollment of current and future clinical
studies; the need for regulatory approval and effects of governmental
regulation; technological uncertainties; the Company's success in securing
marketing partners for future products; the satisfactory conclusion of
negotiations with, and 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, 2003, filed with the
Securities and Exchange Commission. Although the Company believes that the
expectations in the forward-looking statements are reasonable, the Company
cannot guarantee such results. The Company undertakes no obligation to
publicly revise these forward-looking statements to reflect events or
circumstances that arise after the date hereof.
TABLES FOLLOW
CLOSURE Medical Corporation
Statements of Operations
(In thousands, except per share data)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2004 2003 2004 2003
Product sales $11,220 $8,217 $21,424 $16,116
License and product
development revenue 59 264 322 526
Total revenues 11,279 8,481 21,746 16,642
Cost of products sold 3,161 2,048 5,828 3,941
Gross profit 8,118 6,433 15,918 12,701
Research, development
and regulatory
affairs expenses 2,656 2,158 4,963 3,988
General and
administrative
expenses 1,638 1,693 3,300 3,220
Total operating
expenses 4,294 3,851 8,263 7,208
Income from operations 3,824 2,582 7,655 5,493
Interest income, net 124 69 233 147
Income before income
taxes 3,948 2,651 7,888 5,640
Provision for income
taxes 1,410 980 2,820 2,050
Net income $2,538 $1,671 $5,068 $3,590
Shares used in
computation of
net income per
common share:
Basic 14,265 13,665 14,241 13,635
Diluted 15,304 14,129 15,620 13,819
Net income per
common share:
Basic $0.18 $0.12 $0.36 $0.26
Diluted $0.17 $0.12 $0.32 $0.26
CLOSURE Medical Corporation
Balance Sheet Data
(In thousands)
June 30, December 31,
2004 2003
Cash, cash equivalents and investments $42,456 $33,427
Working capital $45,656 $30,974
Total assets $63,130 $53,768
Total debt obligations $-- $--
Total stockholders' equity $56,020 $47,428
Total shares outstanding 14,295 14,127
DATASOURCE: CLOSURE Medical Corporation
CONTACT: investors, Joe Allen, +1-212-691-8087, , or
media, Len Hall, +1-949-474-4300, , both of Allen & Caron
Inc for CLOSURE Medical Corporation; or Benny Ward, CFO of CLOSURE Medical
Corporation, +1-919-876-7800
Web site: http://www.allencaron.com/
Web site: http://www.closuremed.com/