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LifeCell Reports Record Product Revenues And Operating Income for Second Quarter 2002
BRANCHBURG, N.J., July 24 /PRNewswire-FirstCall/ --
LifeCell Corporation (Nasdaq: LIFC - News), a leader in the development and commercialization of biologically based solutions to repair or replace the body's damaged tissue, today reported financial results for the second quarter ended June 30, 2002.
Second Quarter Highlights:
* Record product revenues of $8.1 million and operating income of
$255,000;
* Third consecutive quarter of net income since achieving profitability;
* Signed agreement with Wright Medical Group to develop a new orthopedic
product; and
* Announced partnership with Arthrex Tissue Systems and LifeNet to
deliver acellular allografts for sports medicine.
Second Quarter Financial Results:
The Company reported total revenue of $8.4 million for the second quarter of 2002, up 13 percent from $7.5 million for the same period in 2001. Product revenues of $8.1 million were 15 percent above the $7.0 million reported for the second quarter of 2001. The increase was largely due to a 24 percent increase in AlloDerm® revenues which grew to $4.1 million in the quarter compared to $3.3 million in the second quarter of 2001. The balance of the increase resulted from higher shipments of cryopreserved allograft skin, which is used as a temporary wound dressing in the treatment of burns. Repliform(TM) revenues were $2.5 million in the second quarter of 2002 and 2001. Repliform revenues were up $164,000 compared to the first quarter of 2002. Cymetra® revenues were $1.0 million in the second quarter of 2002 and 2001.
Net income for the second quarter of 2002 rose to $214,000, or $.01 per share, compared to a net loss of $657,000 or $.05 loss per share, in the second quarter of 2001.
The improvement in operating results for the second quarter of 2002 was principally due to the increase in AlloDerm revenues through LifeCell's direct sales organization, higher gross margin resulting from operating efficiencies and tight control over operating expenses which increased slightly compared to the second quarter of 2001.
Year-To-Date Financial Results:
Total revenues for the six months ended June 30, 2002 increased 13 percent to $16.1 million from $14.2 million in the same period in 2001. Product revenues of $15.4 million were 14 percent above the $13.4 million reported in the first six months of 2001.
Net income for the six months ended June 30, 2002 rose to $650,000, or $.03 per share, compared to a net loss of $1,973,000, or $.14 loss per share, in the same period in 2001. Net income in 2002 includes a $248,000 tax benefit related to the sale of state tax net operating losses recognized in the first quarter. Excluding the tax benefit, net income for the first six months of 2002 was $402,000.
Operating results for the first six months of 2002 improved as a result of higher product revenues and improved gross margin reflecting continued emphasis on operating efficiencies and control of operating expenses.
"LifeCell continues to deliver strong operating results which demonstrates that our strategy of direct sales to hospital-based surgeons is the right one. Based on AlloDerm's versatility, we see enormous potential to grow our business. We still expect our year-over-year product revenue increase to be in the range of approximately 20 percent and full year 2002 net income of approximately $1.0 million, excluding the tax benefit realized in the first quarter," said Paul Thomas, President and CEO of LifeCell. "We also remain committed to investing in product development initiatives such as vascular graft and orthopedic applications and identifying complementary product opportunities for our direct sales organization." |
