Subject:
Hot Off The Wire: XILLIX TECHNOLOGIES CORP.
Date:
Thu, 26 Mar 1998 17:02:49 -0500
From:
cthompson@cdn-news.com
To:
cthompson@cdn-news.com
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Canadian Corporate News --- Hot Off The Wire
News Release for XILLIX TECHNOLOGIES CORP.
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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: XILLIX TECHNOLOGIES CORP.
TSE SYMBOL: XLX
MARCH 26, 1998
Xillix Reports 1997 Year End Results, Product Sales
Increase 253 Percent
RICHMOND, BRITISH COLUMBIA--Xillix reported its financial results
for the year ended December 31, 1997. Revenues increased 149
percent to $5,049,263 for 1997 compared to $2,027,274 for 1996.
Product revenues increased 253 percent to $3,622,701 in 1997 from
$1,024,091 in 1996. The improvement in product revenues was a
result of Xillix LIFE-Lung Fluorescence Endoscopy System sales to
key institutions around the world. The loss from operations
decreased 18 percent from $6,918,007 in 1996 to $5,660,774 in
1997. The increase in the net loss per share from $0.19 per share
in 1996 to $0.22 per share in 1997 was attributable to the one
time gain from the divestiture of Oncometrics Imaging Corp. As at
December 31, 1997 the Company had working capital of $6,806,356
including cash of $5,035,014.
Cost of sales were impacted as the Company decided to upgrade
Xillix LIFE-Lung Fluorescence Endoscopy Systems that were sold to
customers prior to the U.S. FDA approval. Improvements included
software upgrades and component replacements.
"1997 was a year of strategic achievements and healthy progress
for our Company" said Pierre Leduc, President and CEO of Xillix.
"We signed our exclusive worldwide, distribution agreement with
Olympus to market and distribute the Xillix LIFE-Lung Fluorescence
Endoscopy System; Olympus officially launched the international
sales of the Xillix LIFE-Lung Fluorescence Endoscopy System early
in the year which resulted in progressive growth throughout the
year; we commenced Phase II clinical testing of the Xillix LIFE-GI
Fluorescence Endoscopy System; we commenced development of a new
application for head and neck cancers; increased our patent
position with the first patent for the Xillix LIFE-GI Fluorescence
Endoscopy System; won Japanese regulatory approval and achieved
the European CE Mark for the Xillix LIFE-Lung Fluorescence
Endoscopy System."
Xillix Technologies Corp. is a leader in the development and
commercialization of proprietary medical imaging technology which
helps physicians diagnose early-stage cancer. When tissue
containing abnormal cells is exposed to light from Xillix's
fluorescence imaging devices, physicians are able to detect
precancerous and cancerous cells.
The Company's lead product, called the Xillix LIFE-Lung
Fluorescence Endoscopy System(TM) has been approved for sale in
the United States, Canada, Europe and Japan. Worldwide marketing
has been granted to Olympus Optical Co. Ltd., of Tokyo, the
international endoscopy market leader.
/T/
Consolidated Statement of Operations (Unaudited)
Three months ended Twelve months ended
(expressed in Dec. 31, Dec. 31, Dec. 31, Dec. 31,
Canadians dollars) 1997 1996 1997 1996
(Restated- (Restated-
Revenues note) note)
Product sales $1,576,054 $109,495 $3,622,701 $1,024,091
Contract revenue 41,652 154,546 1,247,107 834,545
Interest income 63,299 46,032 179,455 168,638
_________ _________ _________ _________
1,681,005 310,073 5,049,263 2,027,274
Cost and expenses (income)
Cost of sales 1,556,014 270,415 3,460,437 1,060,353
Research and
development 974,098 839,774 3,370,747 3,956,029
Marketing, sales
and support 231,771 254,648 997,252 1,283,617
General and
administrative 678,276 666,199 2,026,879 1,799,823
Depreciation and
amortization 174,873 188,417 894,848 855,549
Other (25,614) 32,508 (40,126) (10,090)
_________ _________ __________ _________
3,589,418 2,251,961 10,710,037 8,945,281
_________ _________ __________ _________
Loss from
operations 1,908,413 1,941,888 5,660,774 6,918,007
Gain on
divestiture of
Oncometrics - 2,570,727 - 2,570,727
_________ _________ _________ _________
Net loss (income)
for the
period $1,908,413 $(628,839) $5,660,774 $4,347,280
Deficit, beginning
of period
restated 29,298,523 26,175,001 25,546,162 21,198,882
__________ __________ __________ __________
Deficit, end
of period 31,206,936 25,546,162 31,206,936 25,546,162
__________ __________ __________ __________
__________ __________ __________ __________
Loss (income)
per share $0.07 $(0.03) $0.22 $0.19
_____ ______ _____ _____
_____ ______ _____ _____
Weighted average
number of common
shares
outstanding 28,462,307 23,822,044 26,320,809 22,792,801
/T/
Note Accounting Change: In 1997 the Company changed its accounting
for the 1996 gain on sale of two-thirds interest in Oncometrics so
as to not recognize a dilution gain of $831,474 arising on the
issuance of treasury shares to a third party by Oncometrics. As
Oncometrics is a development stage enterprise engaged in research
and development activities, it is uncertain that the Company will
realize the dilution gain. As a result of this change, the loss
and deficit at and for the year ended December 31, 1996, has
increased by $831,474 ($0.04 per share) and the carrying value of
the investment has been reduced by a corresponding amount, as
compared to amounts that were originally reported.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Xillix Technologies Corp.
Laurie McMichael
Manager, Communications and Investor Relations
(604) 278-5000
(604) 278-3356 (FAX) |
