Hi George
Is this looks good or what?
Tuesday October 14 4:40 PM EDT
Company Press Release
ATS Medical Inc. Announces Third Quarter Results Closing
of Scotland Facility
MINNEAPOLIS--(BUSINESS WIRE)--Oct. 14, 1997--Manny Villafana, Chairman and CEO of ATS
Medical, announced today that sales for the third quarter ended September 30, 1997 totaled $3,469,000
compared to $2,758,825 for the quarter ended September 30, 1996. The 26% increase in revenue was
especially noteworthy given significant competition and the strength of the dollar vs. local currencies in
the company's key markets. Revenue for the nine months ended September 30, 1997 totaled
$10,608,880, a 26% increase over revenue of $8,425,525 for the nine months ended September 30,
1996.
Mr. Villafana also announced that as of October 4, 1997 the company is closing its facility in Glasgow,
Scotland. ''A European presence allowed our company to initiate clinical studies and achieve
regulatory approvals including the CE Mark and Japanese Shonin in parallel with the lengthy U.S. IDE
process. We are now able to distribute heart valves from the U.S. to all the approved markets and it
was not economically feasible to maintain two facilities,'' he continued.
''We are very grateful for the assistance of the Scottish government during our six years of operation
in Scotland and we sincerely appreciate the dedication and service of our Scottish employees.'' The
closing should result in cost savings in future periods.
The Company will incur one-time expenses totaling approximately $225,000 as a result of this decision.
An accrual for this amount is included in S. G. & A. expense for the three and nine month periods
ending September 30, 1997.
Before deducting the expense of the shutdown, net income for the quarter ended September 30, 1997
totaled $530,471 or $0.03 per share compared to $384,843 or $0.02 per share for the quarter ended
September 30, 1997. After deducting the expenses associated with the shutdown of the Scottish
facility, net income for the quarter ended September 30, 1997 totaled $305,471 or $0.02 per share and
for the nine months ended September 30, 1997 net income totaled $1,542,681 or $.09 per share
compared to $930,635 or $0.06 per share for the nine months ended September 30, 1996.
ATS Medical Inc. manufactures and markets a pyrolytic carbon open pivot mechanical heart valve.
The company's common stock is traded on the Nasdaq National Market under the symbol ''ATSI''.
Portions of this press release contain forward looking statements. Actual results could differ materially
from those projected in the forward looking statements as a result of a number of important factors,
including regulatory actions, competition, pricing pressures, supplier actions and management of
growth. For discussion of these and other important factors that could affect the company's activities
and results, please refer to the company's Form 10-Q for the quarter ended June 30, 1997.
ATS Medical Inc.
Consolidated Condensed Statement of Operations (Unaudited)
Three months ended Nine months ended
September 30, September 30,
1997 1996 1997 1996
Revenues
Net sales 3,469,000 $ 2,758,825 $ 10,608,880 $ 8,425,525
Less cost of
goods sold 2,252,546 1,654,064 6,722,217 5,209,100
Gross profit 1,216,454 1,104,761 3,886,663 3,216,425
Operating expenses
Research, development
and engineering 284,053 137,618 780,812 466,632
Selling, general and
administrative 991,389 746,986 2,512,717 2,313,818
Total expenses 1,275,442 884,604 3,293,529 2,780,450
Interest income 364,459 164,686 949,547 494,660
Net income for
the period $ 305,471 $ 384,843 $ 1,542,681 $ 930,635
Net income
per share $ 0.02 $ 0.02 $ 0.09 $ 0.06
Weighted average
number of shares
outstanding during
the period 18,112,660 16,065,511 17,781,033 16,485,741
Consolidated Statement of Financial Position (Unaudited)
September 30, December 31,
1997 1996
Current Assets
Cash and marketable securities $ 28,485,702 $ 10,187,629
Accounts receivable 3,836,457 3,139,559
Inventory 21,206,197 18,242,066
Other current assets 247,495 468,249
Total current assets 53,775,851 32,037,503
Furniture, machinery & equipment,
less accumulated depreciation 817,108 894,564
Other assets, less accumulated
amortization 430,068 388,233
Total assets $ 55,023,027 $ 33,320,300
Current liabilities $ 2,111,349 $ 1,393,561
Long-term debt 0 0
Shareholders' equity 52,911,678 31,926,739
Total liabilities & shareholders'
equity $ 55,023,027 $ 33,320,300 |
