- Conference Call Scheduled for Today at 1:30 p.m. PDT;
Simultaneous Webcast at www.1mti.com -
IRVINE, Calif., April 28 /PRNewswire-FirstCall/ -- Micro Therapeutics,
Inc. (MTI) (Nasdaq: MTIX) today reported financial results for the first
quarter ended April 3, 2005.
For the 2005 first quarter, net sales increased to $11.4 million, a 50%
increase over net sales of $7.6 million in the comparable period a year ago.
Net sales of MTI's neuro access and delivery products, which include the
company's portfolio of microcatheters, guidewires and balloons, rose 46% to
$6.7 million compared with $4.6 million in the 2004 first quarter. Net sales
of neuro embolic products, comprised of the Sapphire and NXT families of
detachable coils and Onyx(R), the company's proprietary liquid embolic
material, increased 75% to $3.9 million compared with $2.2 million in the 2004
first quarter. Revenue performance in geographic markets continued to
demonstrate broad-based growth, with net sales in the U.S. increasing 55% to
$4.2 million and international net sales growing 48% to $7.2 million, compared
to respective net sales in the first quarter of 2004.
"The increase in net sales was driven primarily by our growing portfolio
of neurovascular products and expanding global distribution capability," said
Tom Wilder, MTI President and Chief Executive Officer. "We are especially
pleased with the market acceptance and sales performance of our new products
including the Echelon family of access and delivery catheters and the Tetris
framing coil."
For the first quarter of 2005, operating loss was $3.7 million,
representing a 41% reduction versus the year-ago first quarter. This
operating performance improvement was led by an increase in gross margin to
64%, up from 55% in the year-ago first quarter. Total operating expenses
increased 6%, or $650,000, versus the year-ago first quarter. Operating
expenses in the first quarter of 2005 benefited from the receipt of
approximately $950,000 resulting from a favorable interim settlement reached
in connection with intellectual property matters in the United Kingdom.
Excluding litigation expense in both periods, total operating expenses
increased 25% reflecting the overall growth of the company.
Tom Wilder continued, "We also are encouraged by the significant
improvement to our first quarter operating performance, particularly our gross
margin, which was aided by both volume growth and the recent consolidation of
our manufacturing operations."
Net loss for the 2005 first quarter was $63,000, or less than $0.01 per
share, compared with a net loss of $12.3 million, or $0.31 per share, in the
first quarter of 2004. The financial results for the first quarter of 2005
include a gain from the receipt of $3.7 million as a result of the sale of
certain assets of Genyx Medical, a company in which MTI held an equity
interest, to C.R. Bard. The financial results for the first quarter of 2004
include a $6.3 million non-cash charge related to the value ascribed to the
conversion feature of the $17 million of notes exchanged for shares of MTI's
common stock in January 2004. Weighted average shares outstanding for the 2005
and 2004 first quarters were 48.4 million and 39.5 million, respectively.
About Micro Therapeutics, Inc.
Micro Therapeutics develops, manufactures and markets minimally invasive
medical devices for the diagnosis and treatment of vascular disease. The
company is focused on catheter-based, or endovascular, technologies for the
minimally invasive treatment of neurovascular disorders of the brain
associated with stroke. MTI's products include the Sapphire and NXT lines of
embolic coils, the Onyx(R) liquid embolic, and a range of access and delivery
products that include microcatheters, balloon systems and guidewires which
allow access to small, remote blood vessels.
Conference Call Information and Forward-Looking Statements
The company will host a conference call today with interested parties
beginning at 1:30 p.m. PDT to review the results of operations for the first
quarter of 2005 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 www.1mti.com. For
those unable to listen to the live broadcast, a playback of the webcast will
be available at www.1mti.com for approximately one year.
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.
MICRO THERAPEUTICS, INC.
Statement of Operations Data
(unaudited)
Three Months Ended
April 3, 2005 April 4, 2004
Net sales $11,385,000 $7,574,000
Cost of sales 4,061,000 3,388,000
Gross profit 7,324,000 4,186,000
Operating expenses:
Research & development 3,537,000 3,838,000
Selling, general & administrative 7,440,000 6,489,000
Total operating expenses 10,977,000 10,327,000
Loss from operations (3,653,000) (6,141,000)
Other income (expense)
Amortization of conversion feature of notes -- (6,190,000)
Gain on sale of investment 3,733,000 --
Foreign currency transaction gain (loss) (312,000) 37,000
Other, net 171,000 (46,000)
Total other income (expense) 3,592,000 (6,199,000)
Loss before income taxes (61,000) (12,340,000)
Income tax expense 2,000 2,000
Net loss (63,000) (12,342,000)
Other comprehensive income
Foreign currency translation gain 397,000 131,000
Total other comprehensive gain 397,000 131,000
Comprehensive income (loss) $334,000 $(12,211,000)
Per share information
Net loss available to common stockholders $(63,000) $(12,342,000)
Net loss per share (basic and diluted) $(0.00) $(0.31)
Weighted average shares outstanding 48,426,000 39,505,000
MICRO THERAPEUTICS, INC.
Selected Balance Sheet Data
(unaudited)
April 3, 2005 April 4, 2004
Cash and cash equivalents $12,940,000 $9,442,000
Working capital $17,501,000 $12,173,000
Total assets $61,049,000 $54,428,000
Accumulated deficit $(146,277,000) $(121,106,000)
Total stockholders' equity $48,379,000 $42,830,000
MICRO THERAPEUTICS, INC.
Net Sales by Product Line and Geographic Markets
(unaudited)
Three Months Ended
April 3, 2005 April 4, 2004
Product Line
Embolic products $3,918,000 $2,234,000
Neuro access and delivery products 6,732,000 4,617,000
Peripheral blood clot therapy and
other products 735,000 723,000
Total net sales $11,385,000 $7,574,000
Geographic Markets
United States $4,184,000 $2,698,000
International 7,201,000 4,876,000
Total net sales $ 11,385,000 $7,574,000
SOURCE Micro Therapeutics, Inc.
04/28/2005
CONTACT: Thomas C. Wilder 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.1mti.com
