URMD 2nd Qtr. Results
Thursday August 3, 8:39 am Eastern Time
Press Release
UroMed Corporation Announces Second-Quarter 2000 Results
SECOND-QUARTER 2000 RESULTS
NORWOOD, Mass.--(BW HealthWire)--Aug. 3, 2000-- UroMed Corporation (NASDAQ SmallCap:URMD - news) today announced revenues of $1.2 million for the second quarter ended June 30, 2000, an 83% increase over revenue of $0.7 million reported for the quarter ended June 30, 1999. Second quarter 2000 revenue increased 23% over the $1.0 million of revenue reported in the previous quarter ended March 31, 2000.
UroMed also announced the following financial highlights:
A net loss of $1.0 million, or $0.19 per share, for the second quarter ended June 30, 2000, compared with $1.8 million, or $0.34 per share, for the same period in 1999. Revenues of $2.2 million for the six months ended June 30, 2000, compared with $1.1 million for the same period in 1999.
A loss before extraordinary gain of $2.2 million, or $0.42 per share, for the six months ended June 30, 2000, compared with $3.8 million, or $0.73 per share, for the same period in 1999.
A net loss of $0.9 million, or $0.17 per share, for the six months ended June 30, 2000, compared with $3.1 million, or $0.59 per share, for the same period in 1999. For the six months ended June 30, 2000 and 1999, the net losses included extraordinary gains of $1.3 million, or $0.25 per share, and $0.7 million, or $0.14 per share, respectively, resulting from the Company's repurchase, at a discount, of its outstanding 6% Convertible Subordinated Notes due October 15, 2003.
COMPANY COMMENTS
Dan Muscatello, UroMed's President and CEO commented, ``We continue to be encouraged by the ongoing improvement in our operating results. Revenue growth of 23% versus the previous quarter coupled with an improving net loss position reflects our commitment to executing our plan and delivering shareholder value.''
``During the annual meeting of the American Urological Association in Atlanta, the company formally unveiled it's second generation CaverMap® Surgical Aid. While there remain challenges in creating a market for this revolutionary new nerve-sparing device, we feel confident that we are in a position to continue to solidify our market position. In addition, we continue to work with thought leaders in urology to further study the benefits of the CaverMap® Surgical Aid for use in nerve sparing radical prostatectomy surgery.
Additionally, our CaverMap® Surgical Aid was, for the first time, formally presented to a new target market at the American Society of Colon and Rectal Surgeons meeting held in Boston. Initial interest has been favorable.
Our Symmetra(TM) I-125 brachytherapy seed business continues to make progress. Establishment of our initial target accounts has been successful and we are preparing for the second phase of our market entry later this year. Included in this second phase of market entry is the expansion of our distribution channel. Key distribution arrangements, in addition to our direct team of sales people, may help us increase our rate of brachytherapy market penetration. Also, at the recent American Association of Physicists in Medicine meeting held in Chicago, Symmetra(TM) I-125 generally received a positive response from potential customers. We believe the quality of our Symmetra(TM) I-125 seed and our comprehensive service offering will position us to penetrate the brachytherapy seed market.``
COMPANY MISSION
UroMed is dedicated to establishing itself as a leader in providing interventional urological products, with primary emphasis on the treatment of prostate cancer. The Company seeks to market a portfolio of products including its two main proprietary products for the treatment of prostate cancer: the CaverMap® Surgical Aid, available to aid physicians in preserving vital nerves during prostate cancer surgery, and the Symmetra(TM) I-125 radioactive seeds, used in brachytherapy procedures to treat localized prostate cancer. The Company also markets brachytherapy introducer needles. UroMed, through its approximate one-third ownership of Assurance Medical Inc., has supported the development of electronic palpation technology in order to aid physicians and patients in the important mission of finding suspicious breast lumps earlier. UroMed also continues to dedicate resources to the development and/or acquisition of product lines that fit into its strategic platform.
RISK FACTORS AND FORWARD-LOOKING STATEMENTS
The Company recognizes that the previous paragraphs contain forward-looking statements relating to the Company's future activities, including development and commercialization of the company's CaverMap® Surgical Aid and Symmetra(TM) I-125 radioactive seeds, and future growth. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties beyond the Company's control. Actual results could differ materially from these forward-looking statements as the result of certain risks, including the risk that physicians will not use its products in significant numbers, the risk that physicians using its products will not develop into long-term users, the Company's ability to successfully reduce costs, the uncertainty of securing additional alliances, the uncertainty of manufacturing scale-up and general market acceptance of the Company's Symmetra(TM) I-125 radioactive seeds, and the CaverMap® Surgical Aid, as well as the Company's dependence on these products going forward, and the risk that the Company will not be able to successfully develop any new products. There can be no assurance that these risks would not have a material adverse effect on the Company. Other relevant risks are described in the Company's Annual Report on Form 10-K for the year ended December 31, 1999, under the headings ``Forward-Looking Statements and Associated Risks'' and ``Risk Factors,'' which are incorporated herein by reference.
CaverMap® Surgical Aid is a registered trademark of UroMed Corporation and Symmetra(TM) I-125 Seeds is a trademark of UroMed Corporation.
UROMED CORPORATION
CONDENSED STATEMENT OF OPERATIONS
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
(In thousands, except per share data)
Revenues $ 1,234 $ 675 $ 2,235 $ 1,118
Costs and expenses:
Cost of revenues 1,025 736 1,758 1,341
Research and development 347 586 650 1,339
Marketing and sales 648 605 1,279 1,042
General and administrative 203 408 662 1,023
Restructuring -- -- -- (80)
Total costs and expenses 2,223 2,335 4,349 4,665
Loss from operations (989) (1,660) (2,114) (3,547)
Interest income 222 263 452 580
Interest expense (241) (385) (520) (791)
Loss before extraordinary
gain on early
retirement of debt (1,008) (1,782) (2,182) (3,758)
Extraordinary gain on
early retirement of debt -- -- 1,259 701
Net loss $(1,008) $(1,782) $ (923) $(3,057)
Basic and diluted
per share amounts:
Loss before
extraordinary
gain on early
retirement of debt $ (.19) $ (.34) $ (.42) $ (.73)
Extraordinary gain
on early retirement
of debt -- -- $ .25 .14
Net loss $ (.19) $ (.34) $ (.17) $ (.59)
Basic and diluted
weighted average
common shares
outstanding 5,177 5,181 5,164 5,183
UROMED CORPORATION
CONDENSED BALANCE SHEET
(unaudited)
June 30, December 31,
2000 1999
(In thousands)
Assets
Current assets:
Cash and cash equivalents $ 5,157 $ 3,485
Short-term investments 7,399 14,377
Accounts receivable 826 585
Inventories 1,202 841
Prepaid expenses and other assets 1,108 475
Total current assets 15,692 19,763
Fixed assets, net 96 143
Other assets 1,795 1,970
$17,583 $21,876
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 220 $ 145
Accrued expenses 821 1,347
Total current liabilities 1,041 1,492
Convertible subordinated notes 14,393 17,393
Stockholders' equity 2,149 2,991
$17,583 $21,876 |
