Revenues dried up:
--------------------------------------------------------------------------------
Tuesday July 21, 6:57 am Eastern Time
Company Press Release
SOURCE: VidaMed Inc.
VidaMed Reports Results From The 2nd Quarter of 1998; California Medicare Advisory Committee Votes to Reimburse TUNA Procedure
FREMONT, Calif., July 21 /PRNewswire/ -- VidaMed Inc. (Nasdaq: VIDA - news) today reported its financial results for the second quarter ended June 30, 1998.
At the same time, the Company announced its TUNA Procedure, a minimally invasive treatment of symptomatic Benign Prostatic Hyperplasia - BPH, was recently an agenda item at several multiple state Medicare coverage meetings, including eight Western states and ten Southeastern states. Feedback from meeting attendees have indicated that California voted to approve drafted TUNA coverage policy, which will now move into the comment period.
The Company explained that Medicare policy implementation is activated on a state-by-state basis, often including a comment period that may take several months.
Additionally, an Ambulatory Surgery Center (ASC) Code was published in the Federal Register and allows TUNA to be reimbursed in these lower cost settings outside the hospital effective January 1999. There are 2,500 Medicare approved ASCs in which the TUNA Procedure is uniquely suited.
Illingworth said, ''We are encouraged that we are seeing significant progress moving through the reimbursement process at the state level. A positive endorsement by a multi-state consensus group such as the Western states, as well as individual large states, will result in a rapid acceleration of TUNA acceptance. Such advancements will allow VidaMed to recapture the strong momentum that was enjoyed in 1997 when we added almost two hundred systems to our installed base in anticipation of Medicare reimbursement.''
For the recent quarter, VidaMed reported quarterly revenues of $0.9 million compared to $2.2 million in the year earlier quarter. Sales were adversely effected by the continued delay of reimbursement approvals. VidaMed reported a net loss of $4.24 million or $0.24 per share on 17.4 million average shares outstanding, compared to a net loss of $4.54 million or $0.38 per share on 11.9 million average shares outstanding for the comparable quarter in 1997. While the loss reflects lower gross margins due to reduced sales volume, the $4.5 million in operating expenses is a 15% reduction from the second quarter of 1997 and a 22% reduction from the immediate prior quarter.
For the six months ended June 30, 1998, VidaMed reported revenue of $2.58 million and a net loss of $9.48 million or $0.58 per share on 16.3 million average shares outstanding, compared to revenue of $5.45 million and a net loss of $8.28 million or $0.72 per share on 11.5 million average shares outstanding reported for the same period of 1997.
Illingworth said, ''The support from our investor base that led to a successful $17 million private offering of common stock, the recent and rapid progress made on the reimbursement front, the publication of peer reviewed clinical data, and the move towards reimbursing minimally invasive BPH therapies outside the hospital, continue to substantiate the safety, efficacy, durability and cost effectiveness of the TUNA Procedure.''
As the Company monitors the sales progress, as a result of state level Medicare coverage, the Company will continue to focus on spending levels. In July, the Company implemented a further restructuring and rebalancing of operating expenses that included both program spending and an 8% reduction in headcount. The costs of this restructuring will be included in the upcoming quarter's expenses.
Randy Lindholm will join VidaMed on August 10th as Executive Vice President of Worldwide Sales and Marketing. He will bring a much-needed focus to international sales and be responsible for implementing effective, well- coordinated sales and marketing programs. Mr. Lindholm has over 20 years of medical device experience with GE Medical, Nellcor Puritan Bennett and Mallinckrodt.
Illingworth stated, ''The timing for Randy Lindholm joining the VidaMed team couldn't be better, as we approach a reimbursement critical mass. Randy's experience is ideally matched to VidaMed's strategy of optimizing installed base usage and taking advantage of the rapidly expanding minimally invasive BPH market.''
Carol Chludzinski, Sr. Vice President of North American Sales, will continue her domestic focus and will remain part of the executive team, reporting to Randy Lindholm.
VidaMed designs, develops, manufactures and markets clinically advanced cost-effective systems for the treatment of urological conditions. Founded in 1992, VidaMed is headquartered in the Silicon Valley in Fremont, California.
The statements in this news release include forward-looking information including uncertainties associated with the introduction of the VidaMed TUNA Procedure into the U.S. and worldwide markets, the availability of reimbursement for the procedure including Medicare reimbursement in the U.S., development by the Company of a sales and marketing organization, whether VidaMed's TUNA Procedure will be deemed cost effective by health care payors and providers, the ability of VidaMed's TUNA System to achieve market acceptance, the impact of competitive products and pricing and other risks. The Company's actual results may differ significantly from the results anticipated by the forward-looking statements as a result of these and other factors.
For additional patient information and VidaMed's physician referral service, please call 800-328-8781. For investor information on VidaMed, Inc. at no cost please 888-301-2498. VidaMed's website can be viewed at www.vidamed.com
VIDAMED, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per-share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Net Revenue $ 911 $ 2,153 $ 2,575 $ 5,455
Cost of products sold 608 1,265 1,680 3,048
Gross profit 303 888 895 2,407
Operating expenses:
Research and development 1,200 1,456 2,334 3,354
Selling, general
and administrative 3,297 3,865 7,904 7,223
Total operating expenses 4,497 5,321 10,238 10,577
Operating loss (4,194) (4,433) (9,343) (8,170)
Other income (expense) (46) (102) (135) (109)
Net loss $ (4,240) $(4,535) $(9,478) $(8,279)
Net loss per share $ (0.24) $ (0.38) $ (0.58) $ (0.72)
Shares used in computing
net loss per share 17,443 11,913 16,341 11,521
VIDAMED, INC.
Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
1998 1997
(unaudited) (audited)
Assets:
Cash, cash equivalents and
short-term investments $ 15,331 $ 8,026
Other current assets 6,211 6,086
Property and equipment, net 2,623 2,647
Other assets, net 201 206
Total assets $ 24,366 $ 16,965
Liabilities and stockholders' equity:
Notes payable, current portion $ 388 $ 480
Accounts payable and
accrued liabilities 5,127 6,626
Deferred revenue 338 610
Notes Payable, noncurrent 892 --
Other long-term liabilities 6 22
Total liabilities 6,751 7,738
Stockholders' equity 17,615 9,227
Total liabilities and
stockholders' equity $ 24,366 $ 16,965
SOURCE: VidaMed Inc.
--------------------------------------------------------------------------------
More Quotes and News: Vidamed Inc (Nasdaq:VIDA - news)
Related News Categories: banking, earnings, health care, medical/pharmaceutical
--------------------------------------------------------------------------------
Help
--------------------------------------------------------------------------------
Copyright c 1998 PRNewswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
See our Important Disclaimers and Legal Information.
Questions or Comments? |
