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ADVANCED INTERVENTIONAL SYSTEMS REPORTS FISCAL 1991 RESULTS; FINANCIAL PERFORMANCE CONSISTENT WITH RECENT ANALYST PROJECTIONS

 ADVANCED INTERVENTIONAL SYSTEMS REPORTS FISCAL 1991 RESULTS;
 FINANCIAL PERFORMANCE CONSISTENT WITH RECENT ANALYST PROJECTIONS
 IRVINE, Calif., March 17 /PRNewswire/ -- Advanced Interventional Systems (NASDAQ: LAIS) today announced total revenues of approximately $3.4 million for the year ended Dec. 31, 1991, compared to total revenues of approximately $8.4 million for the prior year. The operating loss for the fiscal year was approximately $6.5 million, compared to a loss of approximately $4.5 million for the year ended Dec. 31, 1990.
 ADVANCED INTERVENTIONAL SYSTEMS INC.
 Year ended Year ended
 Dec. 31, 1991 Dec. 31, 1990
 Total revenues $3,390,000 $8,361,000
 Net income (loss) (6,505,000) (4,473,000)
 Net income (loss) per share (0.91) (0.71)
 According to Robert E. Wall, the company's chairman and chief executive officer, the decrease in revenues was anticipated and is consistent with financial projections included in a research report issued recently by Smith Barney's healthcare analyst, Joseph France. The decline in revenues resulted primarily from limitations imposed by the federal Food and Drug Administration (FDA) on the number of hospitals that LAIS could sell its laser systems to under an investigational device exemption (IDE).
 Wall said that prior to 1991, the FDA allowed LAIS to increase the number of hospitals conducting clinical trials with its laser system each year, as well as the number of excimer laser coronary angioplasty (ELCA) patients treated.
 "The total number of DYMER 200+ laser units sold in the United States increased from two at Dec. 31, 1988, to 44 at Dec. 31, 1991. The FDA approved the treatment of additional patients during 1991 but it restricted the sale of additional laser units to clinical sites. As a result, only three laser units were sold in the United States during 1991. Twelve laser units had been sold internationally at Dec. 31, 1991," he said.
 LAIS' operating expenses declined nearly 11.5 percent to $7.5 million in 1991, Wall said, compared to operating expense of approximately $8.5 million in 1990. The decrease in expenses resulted from the implementation of an expense reduction plan which included a 10 percent reduction in hours, a hiring freeze and limitations on expenditures.
 Gross margins decreased to 19.6 percent in 1991, compared to 41.5 percent in 1990. According to Wall, this decrease in gross margins was primarily because of:
 -- Increased manufacturing overhead expenses in the anticipation of higher production volumes after receiving FDA approval to market its laser system, which was granted on Jan. 31, 1992;
 -- A shift in product mix from higher margin laser units to lower margin catheters;
 -- Lower manufacturing yields associated with the scale-up of catheter manufacturing; and,
 -- Lower production volumes to absorb increased overhead expenses because of FDA limitation on sales prior to product approval.
 Wall also said that the company recently submitted a supplement to the FDA for approval to market a new family of laser catheters for use with the company's recently approved DYMER 200+ excimer laser angioplasty system.
 The new family of catheters is based on 50-micron fiber technology developed by LAIS, and, to date, is not available from other laser manufacturers.
 "Each 50-micron optical fiber is less than half the diameter of a human hair. Therefore, each catheter in the family of 50-micron catheters can be more densely filled with fibers, which expands the surface area of the plaque that the laser energy actually vaporizes," Wall said.
 "In addition, when these thinner optical fibers are bundled together, the result is increased flexibility at the catheter tip. Such flexibility makes it easier to move the catheter through the arteries of the heart to the more difficult-to-reach blockages," he said.
 During the treatment of heart disease with laser angioplasty, laser energy is transmitted through a fiber-optic based catheter and administrated in pulses. The laser energy literally breaks down the plaque molecules into predominantly gases, with some particulate matter that is carried through the bloodstream and eliminated in the body's natural waste system.
 Advanced Interventional Systems pioneered excimer laser angioplasty and is the technological leader in the development of laser systems for cardiovascular applications. The company was founded in 1986. In November 1991, Advanced Interventional Systems completed its initial public offering, and on Jan. 31, 1992, it received approval from the FDA to market the first laser system designed to treat heart disease.
 ADVANCED INTERVENTIONAL SYSTEMS INC.
 Consolidated Statement of Operations
 Years Ended Dec. 31, 1989, 1990 and 1991
 1989 1990 1991
 Net revenues $5,153,000 $8,361,000 $3,390,000
 Cost of sales 2,877,000 4,893,000 2,724,000
 Gross profit 2,276,000 3,468,000 666,000
 Operating expenses:
 Research and development 3,913,000 4,581,000 4,005,000
 General and administrative 930,000 1,783,000 1,424,000
 Sales and marketing 1,201,000 2,163,000 2,121,000
 Total operating expense 6,044,000 8,527,000 7,550,000
 Operating loss (3,768,000) (5,059,000) (6,884,000)
 Other income (expense):
 Interest income 359,000 706,000 492,000
 Interest expense (27,000) (120,000) (113,000)
 Total other income (expense) 332,000 586,000 379,000
 Net loss ($3,436,000) ($4,473,000) ($6,505,000)
 Net loss per share (.73) (.71) (.91)
 Weighted average shares
 outstanding 4,735,328 6,302,549 7,115,195
 -0- 3/17/92
 /CONTACT: Connie McCluskey, director of corporate communications of Advanced Interventional Systems, 714-586-1342/
 (LAIS) CO: Advanced Interventional Systems Inc. ST: California IN: MTC SU: ERN


EH-JL -- LA011 -- 8648 03/17/92 09:04 EST
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