Monday February 22, 7:03 am Eastern Time
Company Press Release
Sunrise Technologies International Inc. Reports Fourth Quarter and Full Year 1998 Financial Results
FREMONT, Calif.--(BUSINESS WIRE)--Feb. 22, 1999--Sunrise Technologies International Inc. (NASDAQ/NMS: SNRS - news) today reported financial results for the fourth quarter and year ended Dec. 31, 1998.
Revenues for the fourth quarter of 1998 were $90,000 compared to $300,000 for the comparable period in 1997. Operating expenses were $3,711,000 in the fourth quarter of 1998 compared to $2,145,000 for the same period of 1997. Net loss was $4,886,000, or $0.14 per share, in the fourth quarter of 1998 compared to net loss of $2,511,000, or $0.08 per share, in the comparable period of 1997.
Revenues for the year ended Dec. 31, 1998 were $594,000 compared to $2,839,000 for the same period in 1997. Operating expenses for the year ended Dec. 31, 1998 were $12,718,000 compared to $7,368,000 for the comparable period of 1997. Net loss was $17,821,000, or $0.52 per share, for the year ended Dec. 31, 1998 compared to net loss of $6,618,000, or $0.23 per share, in the comparable period of 1997. According to Timothy A. Marcotte, vice president and chief financial officer, ''Approximately 33% of the $17,821,000 of the 1998 net loss, or $0.17 per share, was attributable to non-cash expenses associated with the Company's 1997 and 1998 convertible debt financings, warrants issued in connection with these financings and warrants issued to consultants in lieu of cash.'' Approximately $1,968,000 of 1997 revenues, $1,980,000 of 1997 operating expenses and $1,750,000 of 1997 net loss was attributable to the Company's dental business that was sold in June 1997.
''The Company raised over $31 million in the last fourteen months, without the services of a placement agent, saving the Company approximately $2 million in placement and legal fees,'' added Marcotte. The Company closed the year ended Dec. 31, 1998 with a cash and cash equivalents balance of $9,889,000 and $6,773,000 in working capital as compared to $1,958,000 in cash and cash equivalents and $1,382,000 in working capital at Dec. 31, 1997.
''It has been an extraordinary year for our Company. The fact that the FDA has begun its substantive review of our pre-market approval application (PMA) for the treatment of hyperopia (+.75 to +2.50 diopters) is a very significant achievement,'' said C. Russell Trenary III, president and CEO of Sunrise Technologies International Inc. Trenary added, ''The Company also has continued its studies to expand the clinical indications for the treatment of mid-hyperopia (+2.5 to +4.0 diopters), as well as for the treatment of presbyopia and for the treatment of former myopes that were overcorrected to a hyperopic condition because of inadequate excimer laser treatments. Additionally, we are on schedule in planning the manufacturing and the marketing of our anticipated launch of the Hyperion(TM) LTK System.''
The Hyperion(TM) LTK System differs from excimer laser procedures (PRK and LASIK) and traditional incisional surgeries (Radial Keratotomy) because no corneal tissue is cut or removed. It is an office-based system that applies two rings of laser energy to the mid-periphery of the cornea. Each ring of energy is applied in 1.4 seconds and gently heats collagen in the cornea to change corneal shape. The application of energy is accomplished without physically contacting the cornea with instrumentation or any other apparatus. The patient sits upright opposite the ophthalmic surgeon, and total chair time, including focusing, is designed to be less than five minutes.
Founded in 1987, the Company produces and markets high technology products revolutionizing treatment methods in eye care. The Company develops Holmium laser-based systems, which utilize a patented process for shrinking collagen developed by Dr. Bruce Sand (the ''Sand Process'') in correcting ophthalmic conditions. These Systems(1) incorporate a non-contact simultaneous application for correction of hyperopia (farsightedness), presbyopia (loss of focus due to natural aging), and overcorrection resulting from PRK and LASIK treatments for myopia. The system is currently in use in Europe and the Americas, and is in clinical trials in the United States.
Except for historical information, this news release contains certain forward-looking statements that involve risk and uncertainties which may cause actual results to differ materially from the statements made, including market potential, regulatory clearances, business growth and other risks listed from time to time in the Company's Securities and Exchange Commission (SEC) filings. These forward-looking statements represent the Company's judgment, as of the date of this release, and the Company disclaims any intent or obligation to update these forward-looking statements.
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