Third quarter revenues increase 65 percent versus third quarter last year
Conference Call at 4:30 p.m. Eastern Time Today
IRVINE, Calif., Nov. 6 /PRNewswire-FirstCall/ -- Alsius Corporation (Nasdaq: ALUS), the worldwide leader in intravascular temperature management (IVTM(TM)) therapies for critically ill patients, today reported on its financial results and business progress for the third quarter and nine months ended September 30, 2008.
Revenue for the third quarter of 2008 improved 65 percent to $3.1 million, compared with $1.9 million in the third quarter of 2007. The net loss for the third quarter of 2008 improved to $4.9 million, or $0.23 per share, from $5.3 million, or $0.29 per share, for the third quarter of 2007.
Cash and cash equivalents were $9.9 million at September 30, 2008, compared with $13.3 million at June 30, 2008, and $24.4 million at December 31, 2007. Cash used for operating activities during the third quarter of 2008 was $2.4 million. In addition, the company repaid $2.4 million of debt during the first nine months of 2008.
"We are proud to report the strongest quarter and nine months in Alsius history and to achieve back to back quarters of greater than $3 million of revenue. This progress is a direct result of our team's outstanding execution in bringing our leading IVTM solutions to patients and physicians," said Bill Worthen, President and CEO of Alsius. "We continue to manage our resources prudently while we are investing in the long-term for our business."
Recent Highlights and Accomplishments
"Continued U.S. growth during the third quarter, despite a difficult
capital spending environment, coupled with a rebound in Europe, contributed
to our results. We believe that both the growth in disposable revenue and
the expansion of our U.S. pipeline of leads - the largest we have ever had
- bode well for continued progress and reflects increasing awareness among
critical care specialists of the importance and need for our IVTM
solution," commented Mr. Worthen.
-- AHA Recognizes Use of IVTM Technology
-- The American Heart Association (AHA) and the International Liaison
Committee on Resuscitation (ILCOR) published an updated consensus
statement reiterating that therapeutic hypothermia should be part of
the standardized treatment strategy for comatose survivors of
cardiac arrest and, for the first time, cited intravascular
temperature management as a standard method for inducing
hypothermia. The statement appeared in the peer-reviewed journal
Circulation on October 28.
-- Regulatory Progress
-- Received clearance from the U.S. Food and Drug Administration to
market the Solex(TM) heat exchange catheter, which offers clinicians
maximum heat exchange power from a standard neck insertion, while
providing triple lumen central venous access.
-- Sales and Marketing Achievements
-- Increased the cumulative number of systems installed worldwide, with
more than 725 Alsius IVTM systems currently installed in
approximately 365 hospitals.
-- U.S. adoption of the newest IVTM system in Alsius' product line, the
Thermogard XP(TM), represented over 75 percent of systems sold
worldwide in the third quarter of 2008.
-- Revenue from European sales more than doubled during the third
quarter, compared to the same period last year.
-- Increased the percentage of revenues from sales of disposables.
-- Expanded customer financing options by providing short and long term
rental opportunities through an agreement with Universal Hospital
Services, Inc., a leading medical equipment lifecycle services
company. This agreement allows customers a bridge to capital
purchase of Alsius IVTM systems, while also providing for temporary
use of additional systems during peak periods.
-- Medical Meetings and Clinical Presentations
-- A leading peer-reviewed, intensive care journal published the
results of a 49-patient study comparing the efficacy of IVTM and
external cooling. The study investigators found that patients
cooled with IVTM reached target temperature significantly faster,
were controlled more effectively and had reduced intensive care unit
length of stay compared with the external method studied.
-- The use of the Thermogard XP in therapeutic warming during
challenging cardiac surgery cases was highlighted in four
presentations at the annual meeting of the American Society of
-- Attended medical conferences worldwide highlighting clinical
presentations using Alsius IVTM for therapeutic cooling and
re-warming , including the European Society of Intensive Care
Medicine, Therapeutic Temperature Management Conference, the Society
of Neurocritical Care Medicine and the Emergency Nurses Association.
Additional Third Quarter 2008 Financial Results
In the third quarter of 2008, gross profit was $0.5 million, compared with $0.6 million in the third quarter of 2007. Gross profit includes a non-cash $0.4 million charge to increase inventory reserves to reflect results of a physical inventory. Gross profit was $0.9 million before recording this charge. Total operating expenses in the third quarter of 2008 decreased to $5.3 million, compared with $5.8 million for the third quarter of 2007.
2008 Nine Months Financial Results
Revenue for the nine months ended September 30, 2008 increased 35 percent to $8.6 million, compared to $6.4 million for the same period in 2007. In the first nine months of 2008, gross profit was $2.1 million, compared to $1.0 million for the same period in 2007. Total operating expenses in the first nine months of 2008 were $16.9 million compared to $14.2 million for the same period in 2007. The net loss for the first nine months of 2008 decreased to $15.1 million, or $0.72 per share, from $16.6 million, or $1.21 per share, for the same period in 2007.
Conference Call Information
Alsius will hold a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the Company's third quarter results and provide a corporate update. To participate in the live call by telephone, please dial 800-762-8779 from the U.S. or +1-480-629-9031. In addition, the live conference call is being webcast and can be accessed via the "Investor Relations" section of the Company's website at http://www.alsius.com. Beginning 90 minutes after the conference call concludes, a replay will be available on Alsius' website or by 800-406-7325 from the U.S. or +1-303-590-3030 internationally, and entering passcode 3938382 when prompted. The telephone replay will be available through November 14, 2008.
Alsius, headquartered in Irvine, Calif., is a medical device company that develops, manufactures and sells proprietary products to precisely control patient temperature in hospital critical care settings. Controlling body temperature, through cooling and warming, is becoming the standard of care for patients in select critical conditions and those undergoing a variety of surgical procedures. Alsius markets a comprehensive suite of catheter-based intravascular temperature management products that address the need for effective, accurate, easy-to-use and cost-effective control of body temperature in critical care patients. For more information, visit http://www.alsius.com.
This press release may contain statements regarding plans and
expectations for the future that constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
All statements other than statements of historical fact are
forward-looking. Such forward looking statements, based upon the current
beliefs and expectations of Alsius' management, are subject to risks and
uncertainties, which could cause actual results to differ materially from
those described in the forward-looking statements. The information set
forth herein should be read in light of such risks. Additional information
concerning such risks and uncertainties are contained in Alsius' filings
with the Securities and Exchange Commission, which can be accessed
electronically on the Securities and Exchange Commission website at
http://www.sec.gov or on the Investor Relations section of Alsius' website
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except share and per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
Revenue $ 3,096 $ 1,880 $ 8,621 $ 6,405
Cost of revenue 2,574 1,272 6,550 5,386
Gross margin 522 608 2,071 1,019
development 1,176 1,002 3,355 2,595
Sales and marketing 2,892 2,723 9,441 7,755
administrative 1,209 2,104 4,065 3,825
expenses 5,277 5,829 16,861 14,175
Loss from operations (4,755) (5,221) (14,790) (13,156)
Interest income 43 385 230 438
Interest expense (150) (418) (533) (3,773)
Other income (expense) - 2 - (79)
Net loss $ (4,862) $ (5,252) $ (15,093) $ (16,570)
Net loss per share-
basic and diluted $ (0.23) $ (0.29) $ (0.72) $ (1.21)
basic and diluted 21,076,134 18,297,232 20,859,801 13,735,009
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except share data)
September 30, December 31,
Cash and cash equivalents $ 9,909 $ 24,427
Accounts receivable, net of
allowances of $58 and $44 1,921 2,162
Inventories 5,390 6,680
Prepaid expenses 279 284
Total current assets 17,499 33,553
Property and equipment, net 1,128 1,034
Evaluation equipment, net 1,112 673
Other assets 250 342
TOTAL $ 19,989 $ 35,602
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $ 1,058 $ 2,732
Accrued liabilities 2,040 1,916
Current portion of long-term debt 3,216 3,200
Current portion of capital lease
obligations 27 25
Total current liabilities 6,341 7,873
Long-term debt -less current portion 1,288 3,569
Capital lease obligations 62 82
Other liabilities 49 66
Total liabilities 7,740 11,590
Commitments and Contingencies
Preferred stock, $0.0001 par
value -- 1,000,000 shares authorized;
no shares issued or outstanding - -
Common stock, $0.0001 par value --
75,000,000 shares authorized;
21,076,134 and 18,253,500 shares issued
and outstanding at September 30, 2008
and December 31, 2007, respectively 2 2
Additional paid-in capital 125,567 122,237
Accumulated deficit (113,320) (98,227)
Total shareholders' equity 12,249 24,012
TOTAL $ 19,989 $ 35,602
|SOURCE Alsius Corporation|
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