Integ Reports 1997 Third Quarter Results
PR Newswire, Tuesday, October 28, 1997 at 16:21
ST. PAUL, Minn., Oct. 28 /PRNewswire/ -- Integ Incorporated (NASDAQ:NTEG)
today reported a net loss of $2.5 million, or $.27 per share, for the third
quarter ended September 30, 1997, compared to a net loss of $2.2 million, or
$.24 per share, for the third quarter of 1996. As a development stage
company, Integ does not yet have revenue.
For the nine month period ended September 30, 1997, the Company had a net
loss of $7.5 million, or $.81 per share, compared to a net loss of
$6.1 million, or $.78 per share, for the 1996 comparable period, on a
fully-diluted basis.
"We made very good progress during the third quarter on resolving the
design issues in the LifeGuide Meter," said Frank Solomon, Integ's President
and CEO. "As a result of this work, we have determined that we need to modify
one of the custom parts of the LifeGuide Meter to correct a major source of
error. We anticipate receiving the new, modified parts by the end of 1997 and
will immediately build and test new prototype units with these components.
"In addition to the engineering effort required to identify and resolve
the remaining design issues in the LifeGuide Meter, we are aggressively
pursuing parallel efforts to prepare the entire LifeGuide System for high
volume manufacturing," said Solomon. "We are hopeful this parallel effort
will shorten the time from completion of the system design to product launch.
During the fourth quarter, we expect to complete the acceptance test on the
first automated manufacturing line for the LifeGuide Key at the vendor's plant
and anticipate producing Keys in our facility during the first quarter of
1998.
"During the summer and early fall, we received very positive feedback
about the LifeGuide System from our in-house testing of 81 people with
diabetes," Solomon noted. "We received favorable comments on the lack of pain
and blood in the testing process and the ease of use when compared to their
current blood glucose systems. In addition, two-thirds of the patients
indicated a preference for the LifeGuide System over their current monitoring
device."
Solomon concluded, "We are continuing to diligently pursue the remaining
design issues in the LifeGuide Meter. While it is difficult to estimate
exactly how long it will take, I am confident that we are on track for
identifying and resolving these remaining issues."
Integ Incorporated is developing the LifeGuide System, a hand-held glucose
monitoring product for use by people with diabetes. The LifeGuide System will
allow people with diabetes to frequently self-monitor their glucose levels
without repeatedly enduring the pain of lancing their fingers and the need to
draw blood, thus allowing them to manage their disease more effectively and
conveniently.
Certain statements in this press release constitute "forward looking
statements" within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All forward looking statements involve risks and uncertainties that
may cause the Company's actual results to be materially different. Factors
that could impact the Company's future results are described in the Company's
Cautionary Statement, Exhibit 99.1 of the Company's Annual Report on Form
10-K/A and the 1997 Quarterly Reports on Form 10-Q.
Integ Incorporated
(A Development Stage Company)
Statement of Operations
Three Months Ended
September 30
1997 1996
Operating expenses:
Research and development $ 1,176,786 $ 1,264,678
Manufacturing development 614,512 359,865
Clinical and regulatory 285,784 235,691
General and administrative 506,436 553,848
Sales and marketing 179,675 196,888
Operating loss (2,763,193) (2,610,970)
Other income (expense):
Interest income 378,018 491,656
Interest expense (150,222) (68,482)
227,796 423,174
Net loss $ (2,535,397) $ (2,187,796)
Net loss per share:
Primary ($.27) ($.24)
Fully-diluted* ($.27) ($.24)
Weighted average number of
common shares outstanding:
Primary 9,312,865 9,270,125
Fully-diluted* 9,312,865 9,270,125
* Assumes conversion of all previously outstanding convertible preferred
stock into common stock during each reporting period prior to July 1, 1996,
the closing date of the company's initial public offering, at which time all
convertible preferred stock was automatically converted into common stock.
Integ Incorporated
(A Development Stage company)
Statement of Operations
Nine Months Ended
September 30
1997 1996
Operating expenses:
Research and development $ 3,472,858 $ 3,378,769
Manufacturing development 1,753,453 1,060,671
Clinical and regulatory 861,554 544,696
General and administrative 1,558,530 1,211,465
Sales and marketing 628,194 612,313
Operating loss (8,274,589) (6,807,914)
Other income (expense):
Interest income 1,217,111 839,408
Interest expense (463,149) (148,823)
753,962 690,585
Net loss $ (7,520,627) $ (6,117,329)
Net loss per share:
Primary ($.81) ($1.54)
Fully-diluted* ($.81) ($.78)
Weighted average number of
common shares outstanding:
Primary 9,296,197 3,961,335
Fully-diluted* 9,296,197 7,830,429
* Assumes conversion of all previously outstanding convertible preferred
stock into common stock during each reporting period prior to July 1, 1996,
the closing date of the company's initial public offering, at which time all
convertible preferred stock was automatically converted into common stock.
Integ Incorporated
(A Development Stage Company)
Balance Sheets
September 30 December 31
1997 1996
Assets
Current assets:
Cash and cash equivalents $ 25,532,940 $ 33,879,608
Receivables 361 113,254
Prepaid expenses 163,679 157,933
Total current assets 25,696,980 34,150,795
Furniture and equipment 7,645,084 3,701,648
Less accumulated depreciation (1,389,977) (821,476)
6,255,107 2,880,172
Other assets 487,124 684,933
Total assets $ 32,439,211 $ 37,715,900
Liabilities and shareholders' equity
Current liabilities:
Accounts payable and
accrued expenses $ 706,058 $ 1,236,348
Current portion of long-term debt
and capital lease obligations 852,735 337,277
Total current liabilities 1,558,793 1,573,625
Long-term debt and capital lease
obligations, less current portion 3,296,382 1,298,484
Shareholders' equity:
Common stock 93,227 92,757
Additional paid-in capital 54,308,260 54,269,333
Deficit accumulated during
the development stage (26,394,584) (18,873,957)
28,006,903 35,488,133
Deferred compensation (422,867) (644,342)
Total shareholders' equity 27,584,036 34,843,791
Total liabilities and
shareholders' equity $ 32,439,211 $ 37,715,900
SOURCE Integ Incorporated
-0- 10/28/97
/CONTACT: John R. Brintnall, Vice President of Finance of Integ,
612-639-8816, E-mail: john.brintnall@integ-inc.com/
/Web site: integonline.com |
