Stock should fly today...
Company Names James Thomasch Chief Financial Officer
FRANKLIN, Mass., Oct. 27 /PRNewswire/ -- PLC Systems Inc. (Amex: PLC),
a leader in transmyocardial revascularization (TMR), today announced financial
results for the third quarter and nine months ended September 30, 1999.
Third quarter total revenues increased 57 percent to $2,542,000 compared
with $1,615,000 in the third quarter of 1998. The net loss for the third
quarter of 1999 decreased by 65 percent to $1,395,000, or $.07 per share,
compared with a third quarter of 1998 net loss of $4,006,000, or $.21 per
share.
Total revenues for the nine months ended September 30, 1999 were
$8,880,000, an increase of 174 percent from $3,240,000 in the nine months
ended September 30, 1998. Net loss for the nine months ended September 30,
1999 was $5,299,000, or $.26 per share, compared to a net loss of $13,344,000,
or $0.70 per share in the nine months ended September 30, 1998.
"We are pleased with the continued growth and momentum of the Company
within the rapidly evolving TMR marketplace," stated Edward H. Pendergast,
Chairman, President and CEO of PLC Systems. "The medical community's
awareness of TMR continues to grow. Specifically, The New England Journal of
Medicine published data from a TMR study that utilized PLC's The Heart
Laser(TM) System. The study results demonstrated significantly reduced chest
pain, improved quality of life and increased blood flow to the heart following
the procedure. PLC's carbon dioxide heart laser is the only TMR laser that
has demonstrated significant increased blood flow to the heart."
Highlights for PLC during the third quarter include:
-- Named a chief financial officer.
-- Shipped nine laser systems.
-- Increased revenue 57 percent compared to third quarter 1998.
-- Increased domestic procedure kit shipments 373 percent compared to
third quarter 1998.
-- Reduced operating expenses by 39 percent compared to third quarter
1998.
-- Published study in the New England Journal of Medicine.
The Company also announced that James Thomasch, age 40, has accepted the
position of senior vice president of finance and administration, and chief
financial officer. Effective November 8, Thomasch will assume responsibility
for the company's accounting, treasury, tax, and information systems
functions.
Thomasch is a Certified Public Accountant with an extensive background in
financial leadership roles. His industry experience includes serving as Chief
Financial Officer of XRE and Angiographic Devices Corporation for almost 10
years before it was acquired by Trex Medical, a publicly owned subsidiary of
Thermo Electron. Most recently, he was the XRE Division President and Chief
Operating Officer for Trex Medical. Also, Thomasch was an Enterprise Group
Audit Manager for Arthur Andersen. Thomasch holds a bachelor of science in
management from Boston College.
Pendergast continued, "We are pleased to welcome Jim to the PLC team. He
is an operations-focused senior financial executive with more than 18 years of
experience. Jim will be a valuable addition to our team as we build our
leadership position in the TMR market."
Pendergast concluded, "Based on the strong response from the medical
community regarding our technology, we continue to believe our domestic and
international markets provide excellent growth opportunities for the Company.
PLC is well positioned to grow as the TMR market continues to emerge."
PLC is a leader in the development of products for performing a new
surgical procedure known as transmyocardial revascularization (TMR). TMR
offers a new medical treatment option for patients who suffer from severe
coronary artery disease. Coronary artery disease, the leading cause of death
in the United States and Europe, is expected to increase as the worldwide
population continues to age.
Working with leading researchers and premier heart surgery centers around
the world, PLC developed the world's first FDA-approved TMR device, a
high-powered laser known as The Heart Laser System. Designed to perform TMR
in the safest manner possible, The Heart Laser System was approved by the U.S.
Food and Drug Administration in August of 1998 for treatment of the estimated
80,000 domestic patients each year who suffer from severe coronary artery
disease but cannot be treated with conventional coronary revascularization
techniques such as bypass surgery or angioplasty.
For more information on PLC and its products, please visit the Company's
Web site at plcmed.com.
Note: Certain of the above statements are forward-looking statements that
involve risks and uncertainties. Actual results could differ materially from
those indicated by such forward-looking statements as a result of a variety of
factors, including operational changes, competitive developments, regulatory
approval requirements, the ability to convince health care professionals and
third party payers of the medical and economic benefits of The Heart Laser
System, no assurance that all payers will reimburse health care providers who
perform TMR procedures or that reimbursement, if provided, will be adequate,
and risk factors described in the Company's annual report, SEC form 10-K for
fiscal year ended December 31, 1998, and the Company's other SEC reports.
PLC SYSTEMS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Revenues:
Product sales $ 1,623 $1,036 $ 6,467 $1,561
Placement and
service fees 919 579 2,413 1,679
Total revenues 2,5421,615 8,880 3,240
Cost of revenues:
Product sales 637 519 2,758 1,035
Placement and
service fees 673 776 1,686 1,979
Total cost of revenues 1,310 1,295 4,444 3,014
Gross profit 1,232 320 4,436 226
Operating expenses:
Selling, general
and administrative 2,182 3,324 7,801 10,321
Research and
development 493 1,028 2,114 3,593
Total operating
expenses 2,675 4,352 9,915 13,914
Loss from operations (1,443) (4,032) (5,479) (13,688)
Other income, net 48 6 80 44
Net loss $(1,395) $(4,006) $(5,299) $(13,344)
Basic and diluted
loss per share $(0.07) $(0.21) $(0.26) $(0.70)
Shares used to
compute basic and
diluted loss
per share 21,127 19,074 20,696 19,019
CONDENSED BALANCE SHEET
September 30, December 31,
1999 1998
Cash and cash equivalents $5,611 $4,846
Total current assets 9,948 10,608
Total assets 15,880 16,257
Total current liabilities,
excluding Convertible
Debentures 4,195 5,537
Shareholders' equity 10,069 10,662
SOURCE PLC Systems Inc.
-0- 10/27/1999
/CONTACT: John Jordan, Manager of Investor Relations of PLC Systems Inc.,
508-541-8800, ext. 145/
/Web site: plcmed.com
(PLC)
CO: PLC Systems Inc.
ST: Massachusetts
IN: MTC FIN
SU: ERN
KO
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