Roundup of news. Dropped 15% due missing estimates.
Cytyc Reports Record Quarter and Year; U.S. Market Share Doubles
PR Newswire - January 27, 2000 18:47
BOXBOROUGH, Mass., Jan. 27 /PRNewswire/ -- Cytyc Corporation (Nasdaq: CYTC) today reported record results of operations for the fourth quarter and year ended December 31, 1999. Cytyc said its share of the U.S. market for cervical cancer screening doubled from 9 percent to 19 percent during the year.
For the fourth quarter of 1999, Cytyc reported net income of $2.9 million compared to $613,000 (excluding litigation settlement of $3.1 million) in the fourth quarter of 1998, an increase of 373 percent. Revenue for the fourth quarter of 1999 was $24.7 million compared to $14.6 million in the same quarter of 1998, an increase of 69 percent. For 1999, Cytyc reported its first fully profitable year, with net income of $5.6 million on revenue of $81.1 million compared to a loss of ($11.7) million on $44.3 million in revenue in 1998.
The Company declared a two-for-one stock split in the form of a stock dividend for stockholders of record as of January 14, 2000. Cytyc will pay the stock dividend on January 28, 2000, and the stock will trade ex-dividend on January 31, 2000.
Net income per share for the fourth quarter of 1999, on a pre-split basis, was $0.16 per basic share and $0.15 per diluted share compared to $0.03 per basic and diluted share (excluding litigation settlement) for the same period of 1998. Net income per share for the full year 1999, on a pre-split basis, was $0.32 per basic share and $0.30 per diluted share compared to a loss of ($0.66) per basic and diluted share for the same period of 1998.
Net income per share for the fourth quarter of 1999, on a post-split basis, was $0.08 per basic share and $0.07 per diluted share compared to $0.02 per basic and diluted share for the same period of 1998 (excluding litigation settlement). Net income per share for the full year 1999, on a post-split basis, was $0.16 per basic share and $0.15 per diluted share compared to a loss of ($0.33) per basic and diluted share for the same period of 1998.
"This was a terrific year for Cytyc Corporation," said Patrick J. Sullivan, Cytyc's president and chief executive officer. "During 1999, revenue grew in each quarter, and the fourth quarter was our most successful quarter ever with revenue growth of nearly 70 percent compared to the fourth quarter of last year. In addition 1999 was our first profitable year. We not only experienced record performance financially, but from a strategic standpoint, our investment in our sales force and focus on the ThinPrep(R) Pap Test" resulted in a doubling of our market share in the United States, from 9 percent to 19 percent." The Company also experienced continued market penetration in its target regions for the quarter, most notably in New England where market share is 70 percent.
Mr. Sullivan continued, "The ThinPrep Pap Test is redefining the standard for accuracy and value in cervical cancer screening. With our direct-to- physician sales force, laboratory commitments, established reimbursement agreements, continued conversions, and growing body of scientific data, we enter the new year with significant momentum towards our goal of making the ThinPrep Pap Test the screening method of choice for women and their doctors throughout the United States."
In conclusion, Mr. Sullivan said, "Two key events occurred in 1999 that position the Company well for the year 2000. We believe that the Aetna/U.S. Healthcare decision to provide coverage for the test combined with the acquisition of SmithKline Beecham Clinical Labs by Quest Diagnostics Incorporated will open significant new markets for the ThinPrep Pap Test. Currently laboratories representing approximately 75% percent of the cervical cancer screening market in the U.S. are Cytyc customers. We believe we will accelerate revenue growth in 2000 as we continue our effort to make the ThinPrep Pap Test the standard of care for cervical cancer screening."
Cytyc Corporation develops, manufactures, and markets the ThinPrep(R) System for medical diagnostic applications. The ThinPrep System consists of the ThinPrep(R) 2000 Processor and related reagents, filters, and other supplies. Since introduction of the ThinPrep System, Cytyc has manufactured more than 1,200 ThinPrep 2000 Processors and 15 million ThinPrep(R) Pap Tests for cervical cancer screening.
Cytyc(R), PreservCyt(R) and ThinPrep(R) are registered trademarks and ThinPrep(R) Pap Test" and ThinPrep(R) Imaging System" are trademarks of Cytyc Corporation.
Forward-looking statements in this press release are made pursuant to the provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements regarding management's plans and objectives for future operations, product plans and performance, potential savings to the healthcare system, management's assessment of market factors, as well as statements regarding the strategy and plans of the Company constitute forward-looking statements which involve risks and uncertainties, including, without limitation, risks associated with the Company's dependence on a single product, uncertainty of market acceptance and additional cost, dependence on timely and adequate levels of third-party reimbursement, CPT code implementation delays and delays in reimbursement, risks associated with potential year 2000 software disruptions involving the products and systems of the Company and certain third party customers, suppliers, and payers, limited marketing and sales experience, and limited number of customers and lengthy sales cycle, as well as risks of downturns in economic conditions generally, and in the healthcare industry specifically, risks associated with competition and competitive pricing pressures, potential liabilities and costs associated with litigation, and other risks detailed in the Company's filings with the Securities and Exchange Commission, including in its 1998 Form 10-K filed with the Commission
Q2Q revs increase, EPS up Q2Q, market share doubled.
Jack |
