Nitinol Medical Technologies Announces Fourth Quarter and Full Year 1997 Unaudited Results
Wednesday, January 28, 1998 10:15 AM
> BOSTON -- Nitinol Medical Technologies, Inc. (Nasdaq-NNM: NMTI) today announced unaudited results for the fourth quarter and the year ended December 31, 1997. The Company's final results for the fourth quarter and full year 1997 and its Annual Report on Form 10-K will be available on or about March 12, 1998.
Revenues for the fourth quarter increased 23% to $3.2 million, compared to $2.6 million in the fourth quarter of 1996. Net income for the fourth quarter was $503,000, or $.05 diluted earnings per share, based on 11.0 million weighted average diluted common shares outstanding, compared to net income of $391,000 in the fourth quarter of 1996, or $.04 diluted earnings per share, based on 10.8 million weighted average diluted common shares outstanding.
Revenues for the year ended December 31, 1997 rose 44% to $10.1 million, compared to $7.0 million for the year ended December 31, 1996. The net loss for the year ended December 31, 1997 was $1.8 million, or $.19 basic loss per share, based on 9.6 million weighted average shares outstanding, versus a net loss for the year ended December 31, 1996 of $1.2 million, or $.15 basic loss per share, based on 8.0 million average common shares outstanding.
Full-year 1997 results were reduced by two one-time charges in the second quarter; a $2.4 million write-off of in-process research and development related to the investment in Image Technologies Corporation, and a $194,000 restructuring charge, including a non-cash charge of $112,000 for the accelerated vesting of certain stock options in connection with the reduction of staff, related to the reorganization of the Company's vena cava filter operations.
Earnings for the year ended December 31, 1997 excluding such charges and write-off were $805,000, or $.07 diluted earnings per share, based on 11.0 million weighted average diluted common shares outstanding.
Full-year 1996 results were affected chiefly by a $1.1 million one-time write-off of in-process research and development related to the February 1996 acquisition of the CardioSEAL(TM) technology. The net loss for the year ended December 31, 1996 excluding such write-off was $52,000, or $.01 basic loss per share, based on 7.8 million average common shares outstanding.
Commenting on the preliminary unaudited results for the quarter and the year, Thomas M. Tully, President and Chief Executive Officer of Nitinol Medical Technologies, said, "Revenues and profits for the fourth quarter represent all-time highs for the Company. Importantly, the continued ramp up of sales for the CardioSEAL Septal Occluder represented nearly 50% of product sales for the quarter. Full-year total revenues of more than $10 million were driven by continued significant increases in sales of the Simon Nitinol Vena Cava Filter, the commercial introduction of the CardioSEAL internationally and the launch of the Symphony stent by our exclusive licensee, Boston Scientific Corporation.
"We believe we are well positioned to continue significant revenue and earnings growth as we enter 1998. Since the commercialization of the CardioSEAL in June 1997, we have trained more than 50 new centers internationally on the implantation technique for the device. We have highly capable sales professionals in place in Europe to support direct sales of the CardioSEAL to key markets there. Additionally, we have established distributor agreements in 11 other international markets with several additional agreements nearing completion.
"Continued increases in sales of the Simon Nitinol Filter by our distribution partner, C.R. Bard, Inc., should be aided by increased sales coverage for the device to vascular surgeons through the sales force of the Impra vascular graft division of Bard.
"Boston Scientific Corporation has recently initiated clinical trials in the U.S. to expand the labeling of the Symphony stent to include peripheral vascular indications.
"Finally, our affiliate, Image Technologies Corporation, is targeting the commercial introduction of the Trocam/Troview imaging system for laparoscopic surgery in the second half of 1998. This innovative system will allow surgeons to personally control the field of view by pivoting and rotating the camera and zooming in or out on the surgical field using a simple fingertip remote control device with a fully computerized viewing system." Image Technologies Corporation is a privately held company, owned 23% by Nitinol Medical Technologies, Inc., which is developing a line of advanced imaging products for minimally invasive surgery which require less equipment, are easier to use, reduce procedure time and personnel requirements, improve operating room efficiency and reduce overall treatment costs.
Nitinol Medical Technologies, Inc. designs, develops, and markets innovative medical devices that utilize advanced technologies and are delivered by minimally invasive procedures. The Company's products are designed to offer alternative approaches to existing complex treatments, thereby reducing patient trauma, shortening procedure, hospitalization and recovery times, and lowering overall treatment costs. The Company's patented medical devices include self-expanding stents, vena cava filters and septal repair devices.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties or other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed under the heading "Certain Factors That May Affect Future Results" included in the Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's Annual Report on Form 10-K for the year ended December 31, 1996 and in the Company's 1996 Annual Report to Stockholders, and in documents subsequently filed by the Company with the Securities and Exchange Commission.
To receive Nitinol's latest news release and other corporate documents via FAX -- no cost -- please dial 800-PRO-INFO. Enter Nitinol's ticker-NMTI. /CONTACT: Thomas M. Tully, President & CEO of Nitinol Medical Technologies, 617-737-0930; or General Info., Paula Schwartz, 212-661-8030, Analysts, Kathy Brunson, 312-266-7800, or Brian Gill, 212-661-8030, or Media, Deanne Eagle, 212-661-8030, all of The Financial Relations Board, for Nitinol/
Quote for referenced ticker symbols: NMTI
c 1998, PR Newswire
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