Navigation Links
CryoCath Announces Fiscal 2008 First Quarter Results
Date:2/14/2008

http://www.cryocath.com Toronto Stock Exchange Symbol: CYT

MONTREAL, Feb. 14 /PRNewswire-FirstCall/ - CryoCath(R) Technologies Inc., the global leader in cryotherapy products to treat cardiac arrhythmias, today announced financial results for the first quarter, ended December 31, 2007.

Selected First Quarter Financial and Operational Highlights:

- EP Revenue for Q1 2008 was $8.7 million or a strong 32.2% increase

over Q1 2007. All regions around the world showed healthy revenue

growth.

- Rapid expansion in the number of active Arctic Front(R) sites in

Europe - from 23 at the end of Q4'07 to 34 sites at the end of Q1. As

well, we see rapid ongoing expansion in the number of installed

consoles worldwide by 33 in Q1 to a total of over 507 consoles world-

wide.

- Explosive sales growth of our flagship product Arctic Front with a 97%

revenue increase over Q1 2007.

- Strong progress in enrollment of patients in our Pivotal STOP AF IDE

Trial, with 210 patients consented as of February 13, 2008. The

program remains firmly on track for April completion of enrollment and

late 2009 FDA approval.

- Gross profit of 51.8% keeps us on track towards achieving our long-

term goal of at least 70% gross margins post launch in the US. Margin

improvements will be driven by the impact of volume increases, mix

improvements, as well as by ongoing improvements in process design.

- Net loss of $6.1 million, an increase of $2.6 million over Q1 2007.

This increase reflects the impact of reduced revenues and volume

following the sale of our surgical portfolio in June 2007. Excluding a

large non-recurring foreign exchange gain in Q1 2007, departmental

spending increased by only 1% versus the prior year, this despite t

INVESTING ACTIVITIES

Proceeds from maturities of short-term

investments 4,962,754 3,702,613

Decrease (increase) in cash subject to

restrictions 153,125 (1,640,625)

Acquisition of intellectual property (69,206) (110,392)

Acquisition of property, plant, and

equipment (50,997) (281,497)

Placement of consoles at customers'

premises (380,668) (426,579)

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Cash flows related to investing activities 4,615,008 1,243,520

-------------------------------------------------------------------------

-------------------------------------------------------------------------

FINANCING ACTIVITIES

Issuance of common shares 52,983 -

Repayment of employee share purchase loans - 2,550

Increase in deferred financing charges - (167)

Increase in long-term debt - 3,534,000

Repayment of long-term debt (308,902) (220,900)

Increase (decrease) in bank indebtedness (1,078,400) -

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Cash flows related to financing activities (1,334,319) 3,315,483

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Effect of exchange rate change on cash and

cash equivalents 61,008 158,048

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Net change in cash and cash equivalents (5,439,296) 1,773,343

Cash and cash equivalents, beginning of

period 9,139,844 9,178,123

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Cash and cash equivalents, end of period 3,700,548 10,951,466

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Cash and cash equivalents consist of:

Cash 3,700,548 7,455,341

Cash equivalents - commercial paper and

other investments with maturities

less than 90 days - 3,496,125

-------------------------------------------------------------------------

-------------------------------------------------------------------------

3,700,548 10,951,466

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Supplemental cash flow information

Cash paid during the period for

Interest 770,200 18,350

Income taxes 5,126 -

-------------------------------------------------------------------------

-------------------------------------------------------------------------

he

accelerated enrollment pace in STOP AF, increased investments in

Europe and significant incremental investments in administrative

process and controls.

"In the first quarter of 2008 we have been able to make significant progress in developing our business," said Jan Keltjens, President and CEO of CryoCath. "All regions are showing solid sales growth, and Arctic Front is starting to show its true potential with a rapid uptake in Europe. With 34 active sites and a total of more than 2,060 procedures performed, Arctic Front is rapidly building broad acceptance as a safe, easy to use and effective therapy for Paroxysmal AFib. Based on the consistently strong clinical feedback, and the rapid progression of enrollment of patients in our pivotal trial in the US, we remain confident that we can complete enrollment by April and obtain US approval towards the end of 2009, thus positioning ourselves for even more explosive growth in 2010 and beyond."

Financial Results

The Company's total revenue reached $8.7 million in the first quarter, a decrease of 14% from the $10.1 million for the same quarter last year. Breaking out the $8.7 million revenue number, total electrophysiology (EP) disposables revenue for the quarter reached $5.9 million, a 21% increase over the same period last year, representing 67.6% of revenue with the remainder largely made up of cryoconsole sales.

Gross profit for the first quarter of fiscal 2008 was $4.5 million or 51.8% of sales, a decrease from $6.2 million or 61.1% in the first quarter of fiscal 2007. Driving the reduced margins primarily were lower volumes due to the sale of the surgical business and an unfavorable product mix change in favor of lower margin consoles.

Total expenses were $11.2 million in the first quarter of 2008, an increase of $1.4 million over expenses in the same quarter of 2007. The increase is primarily related to foreign exchange (a $1.2 million higher expense in Q1 2008 as compared to the prior quarter) along with an increase in administrative costs related to higher professional fees as we strengthened out internal control structure. These increases were partially offset by lower sales and marketing costs.

Net research and development expenses for the first quarter of 2008 were $2.3 million compared to $2.0 million in the same quarter last year, driven primarily by the increase in enrollment for the STOP AF study.

The Company's sales and marketing expenses for the first quarter of 2008 decreased to $4.4 million compared to $5.2 million in the same period last year. The decrease was a result of increased fiscal discipline notwithstanding increased spending to support growth initiatives in Europe.

Administrative expenses for the first quarter of 2008 increased to $2.7 million from $2.0 million for the same period last year. The increase is mostly related to increased professional fees driven by the creation of a new structure to handle global tax payments, investments in improved compliance and control processes, and higher costs for the FY2007 audit.

CryoCath's net loss for the first quarter ended December 31, 2007 increased to $6.1 million or ($0.16) per share from a loss of $3.5 million or ($0.09) per share in the first quarter of fiscal 2007.

Operating burn for the quarter increased to $4.9 million from $2.1 million in the first quarter of 2007 while EBITDA decreased from ($2.1) million in Q1 2007 to ($4.8) million in the current quarter. The increase in burn and resulting decrease in EBITDA are both related to lower revenues in the wake of the sale of the surgical business, the lower gross margin and the aforementioned increase in expenses.

The Company, as of December 31, 2007, had access to approximately $19.4 million in cash and borrowing facilities as compared to $28.5 million at the end of September, 2007. The decrease is related to the higher operating burn as well as unfavorable movements in non-cash working capital, in particular, accounts payable which was negatively impacted by one-time payments including costs related to the sale of the surgical business and annual bonus payments.

The Company will host a conference call to discuss the first quarter and provide an update on its business this afternoon, Thursday, February 14, at 4:30 PM (EST.) The call will be audio-cast live from CryoCath's website and archived for 90 days. CryoCath will also be holding its Annual Meeting on Thursday, February 28, 2008 in Montreal at The Queen Elizabeth Hotel at 4:30 p.m. and welcomes all shareholders, members of the financial community and interested parties to attend.
Complete financials will be filed at http://www.sedar.com.

About CryoCath

CryoCath - http://www.cryocath.com - is a medical technology company that leads the world in cryotherapy products to treat cardiac arrhythmias. With a priority focus on providing physicians with a complete solution of catheter products to treat cardiac arrhythmias, CryoCath has multiple products approved in the U.S., across Europe and several ROW countries. The Company is developing additional products to expand its pipeline of products to treat cardiac arrhythmias.

This press release includes "forward-looking statements" that are subject to risks and uncertainties, including with respect to the timing of regulatory trials and their outcome. For information identifying legislative or regulatory, economic, climatic, currency, technological, competitive and other important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, see CryoCath's annual report available at http://www.sedar.com under the heading Risks and Uncertainties in the Management's Discussion and Analysis section.

Balance Sheets (unaudited)

As at December 31 September 30

2007 2007

$ $

ASSETS

Current Assets

Cash and cash equivalents 3,700,548 9,139,844

Cash subject to restrictions 634,375 612,500

Short-term investments held-to-maturity 9,923,948 14,894,481

Accounts receivables 7,579,662 7,027,518

Investment tax credits receivable 665,611 296,840

Inventories 6,506,000 7,701,067

Prepaid expenses 684,517 1,143,381

-------------------------------------------------------------------------

Total current assets 29,694,661 40,815,631

Cash subject to restrictions 525,000 700,000

Balance of sale receivable 1,606,365 1,563,195

Consoles at customers' premises 1,486,919 1,475,631

Property, plant, and equipment 2,592,127 2,881,313

Intellectual property 2,882,304 2,876,325

-------------------------------------------------------------------------

38,787,376 50,312,095

-------------------------------------------------------------------------

-------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities

Bank indebtedness 5,397,888 6,476,288

Accounts payable and accrued liabilities 9,765,411 14,410,438

Fair value of derivative financial

instruments 18,464 41,175

Current portion of long-term debt 1,280,051 1,236,032

Current portion of deferred revenue 598,781 615,546

-------------------------------------------------------------------------

Total current liabilities 17,060,595 22,779,479

Long-term debt 22,677,769 22,927,229

Deferred revenue 273,036 294,169

-------------------------------------------------------------------------

Total Liabilities 40,011,400 46,000,877

-------------------------------------------------------------------------

Shareholders' equity

Capital stock 181,105,223 181,041,609

Contributed Surplus 9,732,463 9,215,635

Deficit (192,061,710) (185,946,026)

-------------------------------------------------------------------------

Total shareholders' equity (1,224,024) 4,311,218

-------------------------------------------------------------------------

38,787,376 50,312,095

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Statement of Operations and Comprehensive Loss and Deficit (unaudited)

Three months Three months

ended ended

December December

31, 2007 31, 2006

$ $

REVENUES

Sales (including rental income of

$284,559; 2006 - $166,062) 8,651,184 10,076,565

Cost of sales (including amortization of

$341,488; 2006 - $667,360) 4,173,225 3,918,941

-------------------------------------------------------------------------

Gross Profit 4,477,959 6,157,624

Interest income 257,166 113,400

-------------------------------------------------------------------------

4,735,125 6,271,024

-------------------------------------------------------------------------

EXPENSES

Research and development 2,642,315 2,103,754

Investment tax credits (368,771) (100,935)

-------------------------------------------------------------------------

Net research and development 2,273,544 2,002,819

Administrative 2,693,084 1,992,886

Sales and marketing 4,389,937 5,227,574

Amortization of intellectual property 60,307 41,747

Amortization of property, plant, and

equipment 271,788 167,891

Amortization of deferred financing charges 103,461 139,993

Interest on long-term debt 666,333 586,374

Gain on foreign exchange embedded

derivatives (22,711) (57,701)

Foreign exchange (gain) loss 221,233 (965,091)

Stock-based compensation expense 527,459 373,822

Other expenses - 299,274

-------------------------------------------------------------------------

11,184,435 9,809,588

-------------------------------------------------------------------------

Net loss and other comprehensive loss

before undernoted item (6,449,310) (3,538,564)

Income from manufacturing agreement 338,752 -

-------------------------------------------------------------------------

Net loss and other comprehensive loss

before income taxes (6,110,558) (3,538,564)

Income taxes (5,126) -

-------------------------------------------------------------------------

Net loss and other comprehensive loss (6,115,684) (3,538,564)

-------------------------------------------------------------------------

Deficit, beginning of period (185,946,026) (166,970,727)

-------------------------------------------------------------------------

Deficit, end of period (192,061,710) (170,509,291)

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Weighted average number of common shares 38,131,284 37,969,619

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Basic and diluted loss per share ($0.16) ($0.09)

-------------------------------------------------------------------------

-------------------------------------------------------------------------

Statement of Cash Flows (unaudited)

Three months Three months

ended ended

December December

31, 2007 31, 2006

$ $

OPERATING ACTIVITIES

Net loss and other comprehensive loss for

the period (6,115,684) (3,538,564)

Items not affecting cash

Stock-based compensation expense 527,459 373,822

Interest capitalized on long-term debt - 569,342

Amortization of intellectual property 63,227 460,152

Amortization of consoles at customers'

premises 218,723 208,838

Amortization of property, plant, and

equipment 391,632 208,008

Amortization of deferred financing charges 103,461 139,993

Unrealized (gain) loss on foreign exchange

embedded derivatives (22,711) (57,701)

Unrealized foreign exchange loss (gain) (46,497) (421,659)

Accretion in balance of sale receivable (55,622) -

-------------------------------------------------------------------------

(4,936,012) (2,057,769)

Net change in non-cash working capital

balances relating to operations (3,807,083) (940,332)

Decrease in net investments in leases - 5,967

(Decrease) increase in deferred revenue (37,898) 48,426

-------------------------------------------------------------------------

Cash flows related to operating activities (8,780,993) (2,943,708)

-------------------------------------------------------------------------


'/>"/>
SOURCE CryoCath Technologies Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. CryoCath Provides Update on Patent Infringement Lawsuit
2. CryoCath to Hold First Quarter 2008 Conference Call and Webcast
3. CryoCath intends to contest patent infringement claim by CryoCor, Inc.
4. CryoCath announces 2007 fourth quarter and fiscal year end financial results
5. CryoCath to present at Piper Jaffray and BMO Healthcare conferences
6. CryoCath to present at CIBC Healthcare Conference
7. CryoCath files patent infringement lawsuit
8. ATS Medical Announces Fourth Quarter 2007 Earnings Release Date and Conference Call
9. Pennsylvania Attorney General Corbett Announces Multi-State Settlement With Caremark
10. National Inventors Hall of Fame announces 2008 inductees
11. Northfield Automation Announces Wholly Owned Subsidiary to Diversify Into Medical Device Market
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/27/2016)... , ... June 27, 2016 , ... ... , the only authorized OSHA Training Institute Education Center headquartered in Northern California, ... their workers from extreme heat at their worksites. Employers with workers exposed ...
(Date:6/27/2016)... , ... June 27, 2016 , ... "FCPX editors can ... inside of Final Cut Pro X," said Christina Austin - CEO of Pixel Film ... Final Cut Pro X users can now reveal the media of their ...
(Date:6/27/2016)... ... , ... TherapySites, the leading website and online ... Counseling Association. This new relationship allows TherapySites to continue to extend their ... benefits and promotional offers. , "TCA is extremely excited about this new partnership, ...
(Date:6/27/2016)... California (PRWEB) , ... June ... ... pioneer in the patient payment industry today announced its strategic partnership with ... health system workflows. , The two companies’ proven, proprietary technology combine to ...
(Date:6/27/2016)... Brooklyn, NY (PRWEB) , ... June 27, 2016 ... ... is using cutting edge technology to revolutionize the emergency ambulance transport experience for ... Many are aware of how Uber has disrupted the taxi industry through the ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... ALEXANDRIA, Va. , June 24, 2016 ... a set of recommendations that would allow ... information (HCEI) with entities that make formulary and coverage ... determine the "value" of new medicines. The ... that does not appear on the drug label, a ...
(Date:6/24/2016)... India , June 24, 2016 ... Needles Market by Type (Standard Pen Needles, Safety Pen ... Therapy (Insulin, GLP-1, Growth Hormone), Mode of Purchase (Retail, ... by MarketsandMarkets, This report studies the market for the ... expected to reach USD 2.81 Billion by 2021 from ...
(Date:6/23/2016)... 2016  MedSource announced today that it has ... solution of choice.  This latest decision demonstrates MedSource,s ... their clients by offering a state-of-the-art electronic data ... nowEDC as the EDC platform of choice in ... "nowEDC has long been a preferred EDC platform ...
Breaking Medicine Technology: