To All, Matritech Reports Second-Quarter Results.
As expected, Matritech reported insignificant quarterly results. It sure would be beneficial if they put out some type of news release that mentioned how well U.S.sales were progressing, assuming that they have overcome all FDA hurdles.
Here is the earnings release.
Matritech, Inc. (Nasdaq: NMPS; BSE: MPS) today reported a net loss of $1,425,000, or $.09 per share, for the quarter ended June 30. In the second quarter of 1995, the Company reported a loss of $979,000, or $.10 per share.
For the six months ended June 30, 1996, the Company reported a net loss of $2,832,000, or $.18 per share, compared with a net loss of $2,143,000 or $.22 per share for the same period in 1995.
Total revenues for the second quarter of 1996 were $635,000, compared with $335,000 in the corresponding quarter of 1995. Collaborative research and development revenues in the second quarter of 1996 and 1995 were $60,000 in milestone revenue and a $150,000 initial payment,
respectively, from a funded development agreement with Bayer Corporation. Revenues from product sales in the second quarter of 1996 were $406,000, compared with $93,000 in the corresponding quarter of 1995 due to initial sales of the Company's NMP22(R) Test Kit for bladder cancer to the Company's two new European distributors. Revenues in the second quarter of 1996 also included $36,000 from an SBIR grant for the Company's drug screening assay project, as
compared with $57,000 in SBIR funding for the Company's prostate and colon cancer research projects in the second quarter of 1995. Interest income was $133,000 for the quarter ended June 30, 1996, compared with $35,000 for the same quarter last year.
Total revenues for the six months ended June 30, 1996, were $967,000, compared with $462,000 for the same period in 1995. Collaborative research and development revenues in the 1996 and 1995 periods included $60,000 in milestone revenue and a $150,000 initial payment, respectively, related to the Company's funded development agreement with Bayer. Revenues from product sales in the six months ended June 30, 1996 were $537,000, compared with $132,000 in the corresponding six months of 1995. The increase was primarily due to initial sales to two new distributors in Europe for the Company's NMP22 Test Kit for bladder cancer and increased sales of certain research products. Total revenues from SBIR funding in the six months ended June 30, 1996
were $84,000 compared with $92,000 in funding during the first six months of 1995. Interest income was $286,000 for the six months ended June 30, 1996, compared with $88,000 for the same period last year.
Research and development expenses increased 19% to $928,000 in the second quarter ended June 30, 1996, compared with $780,000 for the same quarter a year ago. The increase primarily relates to the scale-up of product manufacturing for the Company's NMP22 Test Kit for bladder cancer which the FDA approved for sale in the US in July 1996.
Research and development expenses increased 19% to $1,861,000 in the first six months of 1996, compared with $1,566,000 for the same period last year. The increase primarily relates to the scale-up of product manufacturing for the Company's NMP22 Test Kit for bladder cancer, and to a lesser extent, increased personnel costs in the research department.
Selling, general and administrative expenses increased 112% to $1,131,000 for the second quarter ended June 30, 1996, compared, with $534,000 for the quarter ended June 30, 1995. During the second quarter of 1996, the Company expensed approximately $184,000 of costs associated with a proposed public offering which the Company elected not to complete. Excluding these costs, selling, general and administrative expenses increased 77%, resulting primarily from increased staffing in the sales and marketing departments, costs associated with termination of the Company's former European distributor and the marketing programs established to promote the Company's products worldwide, and to a lesser extent, increased salaries and office supplies.
Selling, general and administrative expenses increased 86% to $1,937,000 for the six months ended June 30, 1996, compared with $1,040,000 for the corresponding six months last year. During the
second quarter of 1996, the Company expensed approximately $184,000 of costs associated with a proposed public offering which the Company elected not to complete. Excluding the costs, selling, general and administrative expenses increased 69% primarily from increased staffing in the sales and marketing departments, costs associated with termination of the Company's former European distributor and the marketing programs established to promote the Company's products worldwide. The balance of the increase is primarily related to increased salaries, office supplies and professional fees.
"We are encouraged by the medical community's recognition of the clinical utility of the NMP22 Test Kit for bladder cancer," commented Stephen D. Chubb, Chairman and Chief Executive Officer. "Signing agreements with Wallac ADL GmBH and Medical Systems for distribution of the kit in Europe were important accomplishments during the second quarter providing a solid basis for future sales" he continued.
Matritech, Inc., based in Newton, MA, is using its proprietary nuclear matrix protein (NMP) technology, discovered at the Massachusetts Institute of Technology (MIT) and Johns Hopkins University School of Medicine and licensed exclusively to Matritech, to develop and commercialize innovative serum-, cell- and urine-based NMP diagnostics that enable physicians to reliably detect and monitor the presence of bladder, breast, colorectal, cervical and prostate cancers.
Matritech, Inc. Financial Highlights
Three Months Ended Six Months Ended
June 30 June 30
1996 1995 1996 1995
Revenues $634,841 $335,081 $967,127 $462,884
Net Loss (1,424,838) (979,127) (2,831,663) (2,142,930)
Net Loss Per Share (.09) (.10) (.18) (.22)
Weighted Average
Shares Outstanding 15,954,031 9,787,402 15,809,538 9,786,848
Any statements contained in this release which are not statements of historical fact, such as those concerning future sales or product utility and acceptance, are forward-looking statements that involve risks and uncertainties, including but not limited to risks relating to customer demand, performance of independent distributors, pricing, competition, the effect of general economic conditions and other risks identified in the Company's filings with the Securities and Exchange
Commission. SOURCE Matritech, Inc. |
