Here's the earnings report.
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Matritech Reports Third-Quarter Results
NEWTON, Mass., Nov. 8 /PRNewswire/ -- Matritech, Inc. (Nasdaq: NMPS;
BSE: MPS) today reported a net loss of $1,128,000, or $.07 per share,
for the quarter ended September 30. In the third quarter of 1995, the
Company reported a loss of $1,052,000, or $.11 per share.
For the nine months ended September 30, 1996, the Company reported a
net loss of $3,959,000, or $.25 per share, compared with a net loss of
$3,195,000, or $.33 per share, for the same period in 1995.
Total revenues for the third quarter of 1996 were $672,000, compared
with $191,000 in the corresponding quarter of 1995. Revenues from
product sales in the third quarter of 1996 were $484,000, compared
with $97,000 in the corresponding quarter of 1995 due to worldwide
sales of the Company's NMP22(R) Test Kit for bladder cancer, which was
approved for sale in the United States in July 1996. Collaborative
research and development revenues in the third quarter of 1996 were
$60,000 due to achievement of a milestone under a funded development
agreement with Bayer Corporation. Revenues in the third quarter of
1995 also included $70,000 in SBIR funding for the Company's prostate
and colon cancer research projects. Interest income was $128,000 for
the quarter ended September 30, 1996, compared with $24,000 for the
same quarter last year.
Total revenues for the nine months ended September 30, 1996 were
$1,639,000, compared with $654,000 for the same period in 1995.
Revenues from product sales in the nine months ended September 30,
1996 were $1,021,000, compared with $229,000 in the corresponding nine
months of 1995. The increase was primarily due to worldwide sales of
the Company's NMP22 Test Kit for bladder cancer. Collaborative
research and development revenues in the 1996 and 1995 periods
included $120,000 in revenue earned upon achievement of milestones and
a $150,000 initial payment, respectively, related to the Company's
funded development agreement with Bayer. Total revenues from SBIR
funding in the nine months ended September 30, 1996, were $84,000,
compared with $163,000 in funding during the first nine months of
1995. Interest income was $414,000 for the nine months ended September
30, 1996, compared with $112,000 for the same period last year.
Research and development expenses increased 38% to $1,010,000 in the
third quarter ended September 30, 1996, compared with $729,000 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,
costs associated with the initial stages of clinical trials for the
Company's colorectal cancer test and, to a lesser extent, increased
research and development personnel costs.
Research and development expenses increased 25% to $2,871,000 in the
first nine months of 1996, compared with $2,295,000 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 research and development
personnel costs and costs associated with the initial stages of
clinical trials for the Company's colorectal cancer test.
Selling, general and administrative expenses increased 53% to $789,000
for the third quarter ended September 30, 1996, compared with $514,000
for the quarter ended September 30, 1995. The increase resulted
primarily from increased sales and marketing personnel costs and the
establishment of marketing programs to promote the Company's products
worldwide and, to a lesser extent, increased professional fees.
Selling, general and administrative expenses increased 75% to
$2,727,000 for the nine months ended September 30, 1996, compared with
$1,554,000 for the corresponding nine months last year. During the
second and third quarters of 1996, the Company expensed approximately
$212,000 of costs associated with a proposed public offering which the
Company elected not to complete. Excluding these costs, selling,
general and administrative expenses increased 62% primarily from
increased sales and marketing personnel costs, costs associated with,
termination of the Company's former European distributor and the
establishment of marketing programs to promote the Company's products
worldwide. The balance of the increase is primarily related to
increased professional fees and office supplies.
"The third quarter marked a major corporate transition for Matritech
to a fully functional production and sales company," remarked Stephen
D. Chubb, Matritech's Chief Executive Officer. "We are pleased with
the recognition of the clinical utility of our bladder cancer test kit
by urologists," 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 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 Nine Months Ended
September 30 September 30
1996 1995 1996 1995
Revenues $671,661 $191,276 $1,638,788 $654,160
Net Loss (1,127,510) (1,052,279) (3,959,173) (3,195,209)
Net Loss Per Share (.07) (.11) (.25) (.33)
Weighted Average
Shares Outstanding 15,978,312 9,821,394 15,865,090 9,798,332
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. |
