Micro Therapeutics (NASDAQ:MTIX)
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Micro Therapeutics Reports 2004 Third Quarter Financial Results
- Conference Call Scheduled for Today at 8:00 a.m. PST; Simultaneous Webcast at
www.1mti.com -
IRVINE, Calif., Nov. 4 /PRNewswire-FirstCall/ -- Micro Therapeutics, Inc.
(MTI) (NASDAQ:MTIX) today reported financial results for the third quarter
ended September 30, 2004.
For the 2004 third quarter, net sales were $8.2 million, a 57% increase over
net sales of $5.2 million in the third quarter of last year. Revenues from
MTI's neuro embolic products, comprising the Sapphire and NXT families of
detachable coils, and Onyx(R), the company's proprietary liquid embolic
material, increased 69% to $2.9 million, compared with $1.7 million in the 2003
third quarter. Neuro access and delivery products, which include the company's
portfolio of micro catheters, guidewires and balloons, rose 61% to $4.7
million, compared with $2.9 million in the 2003 third quarter.
For the first nine months of 2004, net sales grew 56% to $24.8 million from
$15.9 million in 2003. Neuro embolic product revenues were $8.4 million,
representing a 58% increase from revenues of $5.3 million for the corresponding
period in 2003. Neuro access and delivery products increased 69% to $14.3
million, compared with $8.4 million in 2003.
Net sales in the U.S. increased 65% to $3.1 million for the 2004 third quarter
and 60%, or $8.8 million, for the first nine months of 2004. International net
sales in 2004 were $5.1 million for the third quarter and $16.1 million for the
first nine months, representing growth rates over comparable prior periods of
52% and 53%, respectively.
Gross margin for the third quarter of 2004 was 62%, versus 61% in the same
period last year. For the first nine months of 2004, gross margin decreased to
59% from 62% in the comparable period of 2003, reflecting production costs
associated with the 2004 first quarter introduction of the new NXT coil
platform, and expansion of embolic coil manufacturing capacity, including the
initiation of coil production in the U.S.
Operating expenses increased in the 2004 third quarter to $11.3 million,
compared with $9.5 million in the prior year. For the first nine months of
2004, operating expenses were $32.9 million, compared to $31.0 million in the
comparable period of 2003. Included in operating expenses were costs
associated with intellectual property litigation amounting to $1.6 million for
the 2004 third quarter and $0.9 million for the 2003 third quarter. For the
first nine months of 2004 and 2003, litigation-related costs were $6.1 million
and $2.7 million, respectively.
Net loss for the 2004 third quarter was $15.5 million, or $0.34 per share,
compared with net loss of $6.3 million, or $0.18 per share, in 2003. Included
in the 2004 third quarter financial results was a $9.1 million non-cash charge
related to the value ascribed to the exchange feature of promissory notes sold
by MTI in a June 2004 private placement that raised $21 million.
Net loss for the first nine months of 2004 was $31.9 million, or $0.76 per
share, compared to net loss of $7.1 million, or $0.22 per share, in the 2003
period. Included in the 2004 nine-month financial results was the $9.1 million
non-cash charge described above, a $6.3 million non-cash charge recorded in the
first quarter related to the exchange feature of promissory notes sold by MTI
in December 2003 and exchanged for MTI common stock in January 2004, and a gain
of $1.7 million from the receipt in the second quarter of previously escrowed
funds related to the company's sale of its minority interest in Enteric Medical
Technologies in 2002. Financial results for the first nine months of 2003
include a gain of $14.6 million related to milestone payments received in 2003
in connection with the Enteric transaction.
Weighted average shares outstanding for the third quarters of 2004 and 2003
were 45.0 million and 35.0 million, respectively, and weighted average shares
outstanding for the first nine months of 2004 and 2003 were 42.0 million and
33.0 million, respectively.
Conference Call Information
The company will host a conference call today with interested parties beginning
at 8:00 a.m. PST to review the results of operations for the third quarter of
2004 and other recent events. Discussions during the conference call may
include forward-looking statements regarding such topics as, but not limited
to, the company's revenues, margins, operating expenses, distribution
arrangements, clinical studies, regulatory status, and financial position, and
comments the company may make about its future in response to questions from
participants on the conference call. Any interested party may listen to the
conference call through a live audio Internet broadcast at
http://www.1mti.com/. For those unable to listen to the live broadcast, a
playback of the webcast will be available at http://www.1mti.com/ for
approximately one year.
About Micro Therapeutics, Inc.
MTI develops, manufactures and markets minimally invasive medical devices for
the diagnosis and treatment of vascular disorders. The company's primary focus
is on catheter based technologies and products for the interventional
neuroradiology market. Micro Therapeutics' products include the Sapphire(R)
and NXT lines of embolic coils, the ONYX(R) liquid embolic system, and a broad
line of micro catheters, guidewires, and occlusion balloons that are utilized
in the treatment of cerebral vascular disorders.
Forward-Looking Statements
Statements contained in this press release that are not historical information
are forward-looking statements as defined within the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ materially
from those projected or implied. Such potential risks and uncertainties
relate, but are not limited, to, in no particular order: product demand and
market acceptance, the impact of competitive products and pricing,
effectiveness and pace of current and future product development, success of
clinical testing, the impact of intellectual property litigation and regulatory
approval. More detailed information on these and additional factors which
could affect Micro Therapeutics, Inc.'s operating and financial results are
described in the company's Forms 10-QSB, 10-KSB, and other reports, filed or to
be filed with the Securities and Exchange Commission. Micro Therapeutics, Inc.
urges all interested parties to read these reports to gain a better
understanding of the many business and other risks that the company faces.
Additionally, Micro Therapeutics, Inc. undertakes no obligation to publicly
release the results of any revisions to these forward-looking statements, which
may be made to reflect events or circumstances occurring after the date hereof
or to reflect the occurrence of unanticipated events.
FINANCIAL TABLES FOLLOW
MICRO THERAPEUTICS, INC.
Statement of Operations Data
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
Net sales $8,171,000 $5,208,000 $24,847,000 $15,943,000
Cost of sales 3,144,000 2,033,000 10,125,000 6,018,000
Gross profit 5,027,000 3,175,000 14,722,000 9,925,000
Operating expenses
Research &
development,
clinical &
regulatory 3,607,000 4,071,000 10,962,000 14,017,000
Selling, general &
administrative 7,117,000 5,393,000 21,179,000 17,017,000
Distributor
termination 554,000 -- 769,000 --
Total operating
expenses 11,278,000 9,464,000 32,910,000 31,034,000
Loss from
operations (6,251,000) (6,289,000) (18,188,000) (21,109,000)
Other income
(expense)
Gain on sale of
investment -- -- 1,728,000 14,647,000
Stock issuance
expenses -- -- -- (600,000)
Amortization of
exchange feature
of notes payable (9,148,000) -- (15,436,000) --
Other (54,000) (36,000) (22,000) (67,000)
Total other
income
(expense) (9,202,000) (36,000) (13,730,000) 13,980,000
Loss before
taxes (15,453,000) (6,325,000) (31,918,000) (7,129,000)
Income tax
expense -- -- 2,000 2,000
Net loss (15,453,000) (6,325,000) (31,920,000) (7,131,000)
Other comprehensive
income (loss)
Foreign currency
translation gain
(loss) 3,000 (20,000) (7,000) (161,000)
Total other
comprehensive
gain (loss) 3,000 (20,000) (7,000) (161,000)
Comprehensive
loss ($15,450,000) ($6,345,000) ($31,927,000) ($7,292,000)
Per share
information
Net loss
available
to common
stockholders ($15,453,000) ($6,325,000) ($31,920,000) ($7,131,000)
Net loss per
share (basic and
diluted) ($0.34) ($0.18) ($0.76) ($0.22)
Shares used in
computation of
net loss per
share 45,045,000 35,004,000 41,958,000 33,001,000
MICRO THERAPEUTICS, INC.
Selected Balance Sheet Data
(unaudited)
September 30,
2004 2003
Cash and cash equivalents $15,520,000 $4,783,000
Working capital $20,067,000 $10,879,000
Total assets $65,892,000 $46,706,000
Accumulated deficit ($140,684,000) ($103,107,000)
Total stockholders' equity $53,691,000 $37,867,000
MICRO THERAPEUTICS, INC.
Revenues by Segment
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
Product Segments
Embolic products $2,905,000 $1,715,000 $8,422,000 $5,330,000
Neuro access
and delivery
products 4,651,000 2,889,000 14,269,000 8,428,000
Peripheral
vascular and
other products 615,000 604,000 2,156,000 2,185,000
Total net sales $8,171,000 $5,208,000 $24,847,000 $15,943,000
Geographic Segments
United States $3,076,000 $1,863,000 $8,772,000 $5,470,000
International 5,095,000 3,345,000 16,075,000 10,473,000
Total net sales $8,171,000 $5,208,000 $24,847,000 $15,943,000
DATASOURCE: Micro Therapeutics, Inc.
CONTACT: Harold A. Hurwitz of Micro Therapeutics, Inc., +1-949-837-3700;
or Rob Whetstone or Robert Jaffe, both of PondelWilkinson Inc.,
+1-310-279-5963, for Micro Therapeutics, Inc.
Web site: http://www.microtherapeutics.com/