- Record consolidated revenues of $13.5 million - up 26% over 2007 - Record revenues from minimally invasive products - $4.9 million - up 65% - Record number of minimally invasive procedures performed in 92 U.S.
centers - Release of Coolrail(TM) linear ablation device and ORLab(TM) mapping
WEST CHESTER, Ohio, May 6 /PRNewswire-FirstCall/ -- AtriCure, Inc. (Nasdaq: ATRC), a medical device company and a leader in cardiac surgical ablation systems, today announced record first quarter 2008 revenues of $13.5 million and record revenues from minimally invasive products of $4.9 million, a 65.3% increase over the first quarter of 2007.
"We are pleased with our first quarter financial results. Adoption of our minimally invasive platform is growing rapidly, evidenced by increased physician adoption and a record 92 U.S. medical centers performing procedures during the first quarter. Minimally invasive results for the quarter confirm the power of our strategy and our capacity to quickly develop and commercialize innovative cardiac ablation systems," said David Drachman, President and Chief Executive Officer. "Moving forward, we believe that our recently released Coolrail(TM) linear ablation device and ORLab(TM) mapping system, when used with our other leading minimally invasive products, will accelerate the adoption and growth of our minimally invasive business."
First Quarter 2008 Financial Results
Revenues for the first quarter of 2008 were a record $13.5 million, a 25.9% increase over the first quarter of 2007 and a sequential increase of 2.9% over the fourth quarter of 2007. Revenues from domestic open-heart products were $7.0 million, a 6.1% increase over first quarter 2007 revenues of $6.6 million and a $0.3 million sequential decrease. Revenues from domestic minimally invasive products were a record $4.9 million, representing a 65.3% increase over first quarter 2007 revenues of $3.0 million and a sequential increase of $1.0 million, or 26.5%. International revenues were $1.7 million for the first quarter of 2008, a 35.6% increase over first quarter 2007 revenues of $1.2 million and a sequential decrease of $0.3 million.
Gross profit for the first quarter of 2008 was $10.3 million and gross margin was 76.1%, compared to gross profit of $8.5 million and gross margin of 79.4% for the first quarter of 2007. The decrease in gross margin was due primarily to the introduction of new products. Operating expenses were $14.2 million for the first quarter of 2008, a 5.8% increase over first quarter 2007 operating expenses of $13.4 million. The increase in operating expenses as compared with the first quarter of 2007 was primarily driven by an increase in selling expenses.
The net loss for the first quarter of 2008 was $3.6 million as compared to a $4.3 million net loss for the first quarter of 2007, an improvement of 16.2%. Net loss per share was $0.25, an improvement of 28.6%, or $0.10 per share, as compared to the first quarter 2007 net loss per share of $0.35. The improvement in the net loss per share for the first quarter of 2008 as compared with the first quarter of 2007 was primarily due to increased net income and an increase in shares outstanding, due primarily to the issuance of 1.8 million shares of our common stock in a May 2007 private placement transaction.
Cash, cash equivalents and investments at March 31, 2008 were $14.9 million.
The Company is confirming its full year 2008 guidance of $58 to $60 million for revenues and an expected net loss per share between $0.55 and $0.70.
AtriCure will host a conference call at 10:00 a.m. ET on Tuesday, May 6, 2008 to discuss first quarter 2008 results. A live web cast of the conference call will be available online from the investor relations page of AtriCure's corporate web site at http://www.atricure.com.
Pre-registration is available for this call at the following URL:
Pre-registering is not mandatory but is recommended, as it will provide you immediate entry into the call and will facilitate the timely start of the conference. Pre-registration only takes a few moments, and you may pre- register at any time, including up to and after the call start time. Alternatively, if you prefer being placed into the call by an operator, please call (888) 713-4215 for domestic callers and (617) 213-4867 for international callers at least 15 minutes prior to the call start time and use reservation number 74210586.
The web cast will remain available on AtriCure's web site through June 6, 2008. A telephonic replay of the call will also be available until June 6, 2008. The replay dial-in numbers are (888) 286-8010 for domestic callers and (617) 801-6888 for international callers. Please use reservation code 90053061.
About AtriCure, Inc.
AtriCure, Inc. is a medical device company and a leader in developing, manufacturing and selling innovative cardiac surgical ablation systems designed to create precise lesions, or scars, in cardiac, or heart, tissue. Medical journals have described the adoption by leading cardiothoracic surgeons of the AtriCure Isolator(R) bipolar ablation system as a treatment alternative during open-heart surgical procedures to create lesions in cardiac tissue to block the abnormal electrical impulses that cause atrial fibrillation, or AF, a rapid, irregular quivering of the upper chambers of the heart. Additionally, medical journals and leading cardiothoracic surgeons have described the AtriCure Isolator(R) system as a promising treatment alternative for patients who may be candidates for sole-therapy minimally invasive procedures. AF affects more than 5.5 million people worldwide and predisposes them to a five-fold increased risk of stroke.
The FDA has cleared the AtriCure Isolator(R) system, including its Isolator Synergy(TM) ablation clamps, and AtriCure's multifunctional pen and Coolrail(TM) linear ablation device, for the ablation, or destruction, of cardiac tissue during surgical procedures. Additionally, the FDA has cleared AtriCure's multifunctional pen for temporary pacing, sensing, stimulating and recording during the evaluation of cardiac arrhythmias. To date, the FDA has not cleared or approved AtriCure's products for the treatment of AF. AtriCure's left atrial appendage clip system has not been approved for commercial use. It is currently being used in clinical evaluations in Europe.
This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements include statements that address activities, events or
developments that AtriCure expects, believes or anticipates will or may
occur in the future, such as earnings estimates, other predictions of
financial performance, launches by AtriCure of new products and market
acceptance of AtriCure's products. Forward-looking statements are based on
AtriCure's experience and perception of current conditions, trends,
expected future developments and other factors it believes are appropriate
under the circumstances and are subject to numerous risks and
uncertainties, many of which are beyond AtriCure's control. These risks and
uncertainties include the rate and degree of market acceptance of
AtriCure's products, AtriCure's ability to develop and market new and
enhanced products, the timing of and ability to obtain and maintain
regulatory clearances and approvals for its products, the timing of and
ability to obtain reimbursement of procedures utilizing AtriCure's
products, competition from existing and new products and procedures or
AtriCure's ability to effectively react to other risks and uncertainties
described from time to time in AtriCure's SEC filings, such as fluctuation
of quarterly financial results, reliance on third party manufacturers and
suppliers, litigation (including the purported class action lawsuit) or
other proceedings, government regulation and stock price volatility.
AtriCure does not guarantee any forward-looking statement, and actual
results may differ materially from those projected. AtriCure undertakes no
obligation to publicly update any forward-looking statement, whether as a
result of new information, future events or otherwise.
Julie A. Piton
Vice President and Chief Financial Officer
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
Revenues $13,530,145 $10,750,770
Cost of revenues 3,230,880 2,210,495
Gross profit 10,299,265 8,540,275
Research and development expenses 2,433,154 3,129,278
Selling, general and
administrative expenses 11,762,426 10,283,187
Total operating expenses 14,195,580 13,412,465
Loss from operations (3,896,315) (4,872,190)
Other income 290,880 569,769
Net loss available to common
stockholders $(3,605,435) $(4,302,421)
Basic and diluted loss per share $(0.25) $(0.35)
Weighted average shares outstanding:
Basic and diluted 14,149,963 12,298,424
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
Cash and cash equivalents $13,014,579 $13,000,652
Short-term investments 1,903,904 7,006,041
Accounts receivable, net 8,552,666 7,189,512
Inventories, net 6,305,013 5,266,155
Other current assets 1,418,648 1,400,163
Total current assets 31,194,810 33,862,523
Property and equipment, net 4,764,364 4,466,060
Intangible assets 780,278 850,653
Goodwill 6,763,259 6,763,259
Other assets 117,270 129,001
Total Assets $43,619,981 $46,071,496
Liabilities and stockholders' equity
Accounts payable and accrued
liabilities $9,220,499 $8,413,656
Current maturities of debt,
capital lease obligations and
long-term debt 443,338 825,146
Total current liabilities 9,663,837 9,238,802
Long-term debt and capital lease
obligations 243,417 282,475
Other liabilities 313,816 313,717
Total liabilities 10,221,070 9,834,994
Common stock 14,175 14,132
Additional paid-in capital 104,202,347 103,524,814
Other comprehensive income 95,554 5,286
Accumulated deficit (70,913,165) (67,307,730)
Total stockholders' equity 33,398,911 36,236,502
Total Liabilities and
stockholders' equity $43,619,981 $46,071,496
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31,
Cash flows from operating activities:
Net loss $(3,605,435) $(4,302,421)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 738,111 502,585
Loss on disposal of equipment - 3,856
Provision for (benefit from) losses in
accounts receivable 42,872 (66,624)
Share-based compensation expense 565,877 641,940
Changes in assets and liabilities,
excluding effects of acquired business:
Accounts receivable (1,311,112) 364,504
Inventories, net (1,007,321) (726,258)
Other current assets 32,162 (123,837)
Accounts payable and accrued liabilities 729,777 506,264
Other non-current assets and liabilities (13,413) 241,421
Net cash used in operating activities (3,828,482) (2,958,570)
Cash flows from investing activities:
Purchases of property & equipment, net (832,031) (526,071)
Purchases of available-for-sale securities (1,535) (6,761)
Maturities of available-for-sale securities 5,100,000 1,808,000
Net cash provided by investing activities 4,266,434 1,275,168
Cash flows from financing activities:
Payments on long-term debt and capital lease
obligations (523,063) (94,936)
Proceeds from stock option exercises 111,699 126,241
Net cash (used in) provided by financing
activities (411,364) 31,305
Effect of exchange rate changes on cash (12,661) (52,145)
Net change in cash and cash equivalents 13,927 (1,704,242)
Cash and cash equivalents - beginning of
period 13,000,652 14,890,383
Cash and cash equivalents - end of period $13,014,579 $13,186,141
|SOURCE AtriCure, Inc.|
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