Published:
AtriCure Reports First Quarter 2008 Financial Results
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.
Financial Guidance
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.
Conference Call
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 www.atricure.com.
Pre-registration is available for this call at the following URL:
https://www.theconferencingservice.com/prereg/key.process?key=PTR8HJAAY
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 inEurope.
Forward-Looking Statements
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.
Contact:
AtriCure, Inc.
Julie A. Piton
Vice President and Chief Financial Officer
(513) 755-4561
jpiton@atricure.com
ATRICURE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
2008 2007
Revenues $13,530,145 $10,750,770
Cost of revenues 3,230,880 2,210,495
Gross profit 10,299,265 8,540,275
Operating expenses:
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
ATRICURE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, December 31,
2008 2007
Assets
Current assets:
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
Current liabilities:
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
Stockholders' equity:
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
ATRICURE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31,
2008 2007
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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