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ATS Medical Announces Third Quarter Results
Date:11/3/2008

new products. Gross margins declined sequentially from 60.9% in the second quarter of 2008 as a result of seasonality in markets where the Company sells direct, principally in the U.S. and Western Europe, and an increase in revenue from distributors, as a percentage of total revenue.

The operating loss for the third quarter of 2008 was $2.8 million compared with an operating loss of $3.6 million in the third quarter of 2007. The net loss for the third quarter of 2008 was $3.7 million, or $0.06 per share, compared with $3.3 million, or $0.06 per share in the third quarter of 2007.

"Our strong third quarter revenue growth continues to demonstrate the strength of demand across the ATS product portfolio," said Michael Dale, Chairman, President and Chief Executive Officer. "Notably, we achieved double digit mechanical valve growth both domestically and internationally, demonstrating the continued strength and acceptance of the ATS Open Pivot(R) valve as the new mechanical heart valve standard of care in the world."

Recent and Upcoming New Product Highlights

Surgical Arrhythmias

-- ATS CryoMaze surgical ablation clamp: The Company launched a next generation ablation clamp in the third quarter. The ATS CryoMaze clamp enables the surgeon to ablate the pulmonary veins and then remove the ablation probe and complete the Maze procedure with one product, unlike competitive offerings which require one device for vein isolation and another for linear lesions. Because the ATS CryoMaze clamp was launched late in the third quarter, revenue contribution is expected to become meaningful in the fourth quarter.

Tissue Heart Valves

-- ATS 3f(R) Aortic Bioprosthesis: As announced previously, during October 2008 the Food and Drug Administration (FDA) approved the PMA for the Company's first tissue valve, the ATS 3f Aortic Bioprosthesis. The Company plans to launch this valve in the United States during the first quarter of 2009.

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SOURCE ATS Medical, Inc.
Copyright©2008 PR Newswire.
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