Second Quarter Revenues Double and Net Loss Decreases 60 Percent Compared to
First Quarter
FRANKLIN, Mass., July 26 /PRNewswire/ -- PLC Systems Inc. (Amex: PLC), the
leader in carbon dioxide (CO2) transmyocardial revascularization (TMR), today
announced financial results for the second quarter and six months ended
June 30, 2000.
Second quarter total revenues rose 106 percent to $3,580,000 compared with
$1,742,000 in the first quarter of 2000. Second quarter 1999 total revenues
were $3,492,000. The net loss for the second quarter of 2000 of $882,000, or
$.04 per share, was down 60 percent from the first quarter of 2000 net loss of
$2,183,000, or $.10 per share and 48 percent below the second quarter of 1999
net loss of $1,705,000, or $0.08 per share.
"We are very pleased with our second quarter performance," stated Mark R.
Tauscher, president and chief executive officer of PLC Systems. "Improved
revenues combined with increased operating efficiencies enabled PLC to post a
dramatically reduced net loss for the second quarter. Our increased emphasis
of creating relationships with hospitals and surgeons to ensure a tailored CO2
TMR sale, lease or placement program specific to the customer's needs has
enabled us to increase our base of installed lasers. I believe this larger
laser base will assist us in driving procedure volumes in future quarters."
During the second quarter, PLC delivered five new lasers and four
redeployed lasers for a total of nine lasers to new United States customers
and shipped 366 disposable kits to domestic and international accounts. PLC
shipped 316 domestic kits, an increase of 22 percent over first quarter
domestic shipments of 258 kits, and an increase of 36 percent over second
quarter of 1999 domestic shipments of 233. This compares to first quarter of
2000 shipments of eight lasers (seven U.S. and one international) and 411
disposable kits (258 U.S. and 153 international).
Tauscher continued, "To a large extent, the U.S. TMR market continues to
be our main focus and the key driver to PLC's results. Today, this market has
in place two crucial components, FDA approval and Medicare reimbursement,
which I believe are necessary for an economically viable business model. I
believe PLC's strategy to focus on physician training and patient education
has positively stimulated growth in domestic TMR procedures."
"A highlight for the quarter was PLC's first Northeast-region CO2 TMR
training program, which was held at the Brigham & Women's Hospital in Boston,
Massachusetts," stated Tauscher. "Twenty-seven surgeons attended the full-day
medical educational program. In fact, PLC certified and trained more than 50
cardiac surgeons at three regional training sessions during the second
quarter. Going forward, PLC will continue to produce programs that better
educate the cardiac community of the excellent clinical benefits of CO2 TMR."
Tauscher concluded, "Since joining PLC, in January of this year, the PLC team
has dedicated itself to the Company's fundamental strategy, which is to
develop CO2 TMR as the standard of care for the treatment of severe coronary
artery disease. I believe we are on the right track. We intend to continue
to implement our customer focused strategy and look forward to capitalizing on
the momentum in the TMR marketplace."
PLC is the global leader in the development of products for performing a
surgical procedure known as carbon dioxide (CO2) transmyocardial
revascularization (TMR). CO2 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 TheHeart 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 on Form 10-K filed
with the Securities and Exchange Commission on March 30, 2000.
PLC SYSTEMS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenues:
Product sales $2,746 $ 2,685 $ 3,640 $ 4,844
Placement and service
fees 834 807 1,682 1,494
Total revenues 3,580 3,492 5,322 6,338
Cost of revenues:
Product sales 1,127 1,130 1,427 2,121
Placement and service
fees 397 642 1,083 1,013
Total cost of
revenues 1,524 1,772 2,510 3,134
Gross profit 2,056 1,720 2,812 3,204
Operating expenses:
Selling, general and
administrative 2,520 2,977 5,101 5,619
Research and
development 533 573 988 1,621
Total operating
expenses 3,053 3,550 6,089 7,240
Loss from operations (997) (1,830) (3,277) (4,036)
Other income, net 115 125 212 132
Net loss $(882) $(1,705) $(3,065) $(3,904)
Basic and diluted
loss per share $ (0.04) $(0.08) $(0.14) $(0.19)
Shares used to compute
basic and diluted
loss per share 23,906 20,406 22,609 20,171
CONDENSED BALANCE SHEET
June 30, December 31,
2000 1999
Cash and cash equivalents $7,429 $4,467
Total current assets 12,178 9,811
Total assets 18,461 15,319
Total current liabilities 4,533 4,352
Shareholders' equity 10,888 8,885
SOURCE PLC Systems Inc.
-0- 07/26/2000
/CONTACT: John Jordan, Director of Investor Relations,
508-541-8800, ext. 145/
/Web site: plcmed.com
(PLC)
CO: PLC Systems Inc.
ST: Massachusetts
IN: MTC
SU: ERN |
