Thursday August 5, 7:45 am Eastern Time
Company Press Release
SOURCE: VidaMed, Inc.
VidaMed Reports Second Quarter Results
U.S. Revenue up 37% from First Quarter
FREMONT, Calif., Aug. 5 /PRNewswire/ -- VidaMed, Inc. (Nasdaq: VIDA - news) today reported financial results for the three months ended June 30, 1999. Revenue from the Company's TUNA (Transurethral Needle Ablation) System were $1,225,000, up 34% compared with revenue of $911,000 in the year-ago second quarter and up 18% compared with revenue of $1,038,000 in the immediately prior quarter. The TUNA System is a minimally invasive system for the treatment of symptoms associated with an enlarged prostate, or Benign Prostatic Hyperplasia (BPH).
The year-to-year increase in net revenue is due to rising sales of the TUNA System in Europe, while the sequential-quarter increase reflects the success in penetrating the U.S. market under a new pricing program. For the past six months, the Company has been selling the TUNA System to urologists and hospitals in the U.S. under a Fee-Per-Use (FPU) program. Second quarter 1999 U.S. revenues increased 37% to $790,000 from $577,000 in the 1999 first quarter.
''The entire increase in U.S. sales versus the first quarter is attributable to our new FPU program,'' said Randy Lindholm, VidaMed's President and Chief Executive Officer. ''With Medicare coverage for the TUNA Procedure now available in 38 states representing more than 70% of our target population, the Company is well positioned to focus on expanding sales to existing customers, and on engaging new customers through patient education and awareness.''
Lindholm added that it is the Company's belief that the more a patient knows about BPH treatment options, the more likely he is to choose a TUNA Procedure. ''The thrust of our marketing and communication initiatives is on building patient awareness through a number of vehicles, including the media, the Internet and one-on-one dialogues,'' he stated. ''As one example, we recently began a series of local, grassroots promotional programs in conjunction with our active urologists. We look forward to expanding that program while adding new ones under our recently announced Account Specialists program, working in conjunction with the VidaMed sales team.''
Gross margins increased to 47% for the second quarter of 1999, compared with 33% in the corresponding period of the prior year. Research and development expenses declined by 38% to $742,000, reflecting higher costs in the prior year relating to the ProVu System launch. The net loss for the 1999 second quarter was $3,485,000, or ($0.17) per basic and diluted share, compared with a net loss of $4,240,000, or ($0.24) per basic and diluted share, during the 1998 second quarter.
For the six months ended June 30, 1999, the Company posted a net loss of $6,641,000, or ($0.33) per basic and diluted share, on revenue of $2,263,000. In the same period a year earlier, the net loss was $9,478,000 or ($0.58) per basic and diluted share, on revenue of $2,575,000.
VidaMed designs, develops and markets technology and clinically advanced cost-effective systems for the treatment of urological conditions. For additional patient information and VidaMed's physician referral service, please call (800) 328-8781. For investor information on VidaMed, please call (888) 301-2498 or visit VidaMed's Web site at vidamed.com .
Certain statements in this news release, including statements relating to the demand for the TUNA Procedure, contain forward-looking information. Actual results may vary significantly from those anticipated in such forward-looking statements due to risks and uncertainties, including the rate of adoption of the TUNA Procedure by the medical community, the impact of competitive treatments, products and pricing, the development and effectiveness of the Company's sales organization and marketing efforts, and other risks. Please see the Company's filings with the Securities and Exchange Commission including, without limitation, the Company's most recent Form 10-K and Form 10-Qs, which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements. The Company disclaims any obligation to update any of the forward-looking statements contained herein to reflect future events or developments.
VIDAMED, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Revenue $1,225 $911 $2,263 $2,575
Cost of products sold 646 608 1,480 1,680
Gross profit 579 303 783 895
Operating expenses:
Research and
development 742 1,200 1,555 2,334
Selling, general and
administrative 3,409 3,297 5,913 7,904
Total operating
expenses 4,151 4,497 7,468 10,238
Operating loss (3,572) (4,194) (6,685) (9,343)
Other income
(expense) 87 (46) 44 (135)
Net loss $(3,485) $(4,240) $(6,641) $(9,478)
Basic and diluted
net loss per share $(0.17) $(0.24) $(0.33) $(0.58)
Shares used in
computing basic and
fully diluted net
loss per share 20,546 17,443 20,430 16,341
VIDAMED, INC.
Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
1999 1998
(Unaudited) Audited
Assets:
Cash, cash equivalents and
short-term investments $4,411 $9,384
Other current assets 2,422 2,636
Property and equipment, net 1,316 1,797
Other assets, net 287 315
Total assets $8,436 $14,132
Liabilities and stockholders' equity:
Notes payable,
current portion $1,070 $ 764
Accounts payable and
accrued liabilities 3,437 4,031
Deferred revenue 130 229
Notes payable, noncurrent 1,424 1,785
Total liabilities 6,061 6,809
Stockholders' equity 2,375 7,323
Total liabilities
and stockholders'
equity $8,436 $14,132
SOURCE: VidaMed, Inc. |
