Sunrise Technologies International,Inc. Releases Third Quarter Results
October 27, 1998 07:02 AM
FREMONT, Calif.--(BW HealthWire)--Oct. 27, 1998--Sunrise Technologies International, Inc. SNRS , today announced financial results for the third quarter and year-to-date ended September 30, 1998.
Revenues and operating expenses for the third quarter of 1998 were $180,000 and $2,503,000, respectively, as compared to $76,000 and $1,343,000 for the same period in 1997. This represents an increase of 137% in revenues and 86% in operating expenses compared to the third quarter of 1997. The net loss was $3,568,000 or $0.10 per share in the third quarter of 1998 compared to a net loss of $1,557,000 or $0.06 per share in the third quarter of 1997. In comparison to the second quarter of 1998, revenues were lower by 19% while operating expenses were reduced by 46%. Net loss per share was reduced by $0.07 per share in comparison to the second quarter.
Revenues for the nine-month period ended September 30, 1998 were $504,000 compared to $2,539,000 for the same period in 1997. This decrease was primarily due to the lack of revenues from the dental operations that were sold in June 1997. Operating expenses for the nine-month period ended September 30, 1998 were $9,007,000 compared to $5,222,000 for the comparable period of 1997. Net loss was $12,935,000 or $0.38 per share in the nine-month period ended September 30, 1998, compared to net loss of $4,108,000 or $0.15 per share in the comparable period of 1997. Approximately 45% of the 1998 losses are attributable to non-cash expenses.
"Our third quarter results were in line with our expectations and reflect the accelerated milestones we are achieving and the investments we are making in the exciting and fast growing ophthalmic refractive surgery industry," explained C. Russell Trenary III, President and Chief Executive Officer. "Our spending was similar to last quarter and occurred in several important areas. In the product development arena, we completed our first prototype of the new Hyperion LTK(TM) System. This new technology performs the Sunrise LTK(TM) procedure in approximately three seconds, and relative to our current machine the doctor will now have access to a system that has enhanced characteristics, like our proprietary eye tracking system, as well as increased convenience through automation and sophisticated computer user interface features. We displayed it in September at the European Society of Cataract and Refractive Surgery meeting. The Hyperion LTK(TM) System, which possesses a small footprint designed for offices or surgery centers, represents the system we plan to launch in the U.S.A. in 1999."
Mr. Trenary continued, "In the clinical arena we ramped up studies in three essential areas. Enrollment accelerated for treatment of hyperopia from 2.75 to 4.0 diopters, as was also the case in our clinical trial for the treatment of presbyopia. In addition, we continued our study for treatment of former myopes that are overcorrected to a hyperopic condition because of inadequate excimer laser treatments. Simultaneously much work has gone into compiling and analyzing data for our pivotal clinical trial treating hyperopia from .75 to 2.5 diopters for which we are preparing our premarket approval application for submission to the FDA this year. As a final note, in the G & A arena we began investing in equipment and infrastructure required for occupying the 55,000 square foot facility that we are moving into this quarter, which will facilitate our planned U.S.A. launch next year."
According to Timothy A. Marcotte, Vice President and Chief Financial Officer, "Approximately $5,841,000 of the $12,935,000 of the year-to-date net loss, or $0.17 per share, was attributable to non-cash expenses associated with debt financing costs and warrants attached to the 1997 and 1998 financings and warrants issued to consultants in lieu of cash. The Company closed the third quarter of 1998 with a cash and cash equivalents balance of $5,783,000 and $3,727,000 in working capital as compared to $1,958,000 in cash and cash equivalents and $1,382,000 in working capital at December 31, 1997."
Founded in 1987 the Company produces and markets high technology products revolutionizing treatment methods in eye care. The Company develops Holmium laser-based systems, which utilize a patented process for shrinking collagen developed by Dr. Bruce Sand (the "Sand Process") in correcting ophthalmic conditions. These Systems(a) incorporate a non-contact simultaneous application for correction of hyperopia (farsightedness), presbyopia (loss of focus due to natural aging), and overcorrection resulting from PRK and LASIK treatments for myopia. The system is currently in use in Europe and the Americas, and is in clinical trials in the United States.
Except for historical information, this news release contains certain forward-looking statements that involve risk and uncertainties which may cause actual results to differ materially from the statements made, including market potential, regulatory clearances, business growth, and other risks listed from time to time in the Company's Securities and Exchange Commission (SEC) filings. These forward-looking statements represent the Company's judgment, as of the date of this release, and the Company disclaims any intent or obligation to update these forward-looking statements.
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