ArthroCare Announces Third Quarter Financial Results.SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 24, 1996--ArthroCare Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ARTC ARTC Arthrocare Corp (stock symbol) ARTC Australian Rail Track Corporation ARTC Air Route Traffic Control ARTC Association de la Recherche Theatrale au Canada ARTC Andean Root and Tuber Crops ) today announced revenues of $1.6 million for the third quarter of 1996, ended September 28, 1996. Cash, cash equivalents, and available-for-sale securities at quarter-end stood at $30.6 million. For the first nine months of 1996, the Company posted revenues of $4.1 million. In the comparable periods of 1995, ArthroCare was in the product development stage and posted no revenues. The Company reported a net loss of $1.9 million or $0.22 per share for the third quarter of 1996. This compares with a net loss of $2.0 million, or $0.41 per share in the third quarter of 1995. For the nine month period, the Company reported a net loss of $5.4 million, or $0.67 per share in 1996, and $4.7 million, or $0.99 per share in 1995. Per share amounts in the third quarter and first nine months of 1996 reflect an increase in weighted average shares outstanding due to the Company's initial public offering of 2.5 million shares of common stock in February 1996. Commenting on the quarter, Hira Thapliyal, ArthroCare's president and chief executive officer said, "We are pleased that in our first year of product shipments, we are posting sequential increases in both units and revenues. Our first product, an arthroscopic electrosurgical system consisting of a disposable disposable Nursing adjective Referring to that which is discarded or disposed of noun An item used in health care-related Pt contact which is discarded after use–eg masks, gloves, gowns, needles, paper products, syringes, wipes. See Biohazardous waste. , multi-electrode, bipolar (1) See bipolar transmission. (2) One of two major categories of transistor; the other is "field effect transistor" (FET). Although the first transistors and first silicon chips were bipolar, most chips today are field effect transistors wired as CMOS logic, which wand A handheld optical reader used to read typewritten fonts, printed fonts, OCR fonts and bar codes. The wand is waved over each line of characters or codes in a single pass. and power controller, has generated over $4 million in revenues in its initial ten months of availability. The success of our arthroscopic promotional programs generated over 100 new controller placements with doctors in the quarter. Unit wand sales increased over 20 percent compared with the second quarter level. We have shipped approximately 30,000 wands year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. ." "Shortly after the close of the quarter, we announced two major accomplishments which begin to expand our markets internationally," Thapliyal added. "Advanced Surgical Technologies (AST (AST Computer, Irvine, CA) A PC manufacturer founded in 1980 by Albert Wong, Safi Quershey and Tom Yuen (A, S and T). It offered a complete line of PCs that sold through its dealer channel. ) in Australia/New Zealand has become our first international distributor. In addition, we announced CE certification of our manufacturing facilities, which will allow us to enter the European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. market. We have already shipped product to AST in Australia and are evaluating options for distribution in the European market in 1997." ArthroCare Corporation designs, develops, manufactures, and markets arthroscopic surgical equipment that ablates soft tissue with minimal damage to surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. healthy tissue, and simultaneously achieves hemostasis hemostasis /he·mo·sta·sis/ (he?mo-sta´sis) (he-mos´tah-sis) 1. the arrest of bleeding by the physiological properties of vasoconstriction and coagulation or by surgical means. 2. . The Company's long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategy includes applying its proprietary technology to a range of other soft tissue surgical procedures Surgical procedures have long and possibly daunting names. The meaning of many surgical procedure names can often be understood if the name is broken into parts. For example in splenectomy, "ectomy" is a suffix meaning the removal of a part of the body. "Splene-" means spleen. in the fields of urology urology Medical specialty dealing with the urinary system and male reproductive organs. It traces its origin to medieval lithologists, itinerant healers who specialized in surgical removal of bladder stones. , gynecology gynecology (gīn'əkŏl`əjē), branch of medicine specializing in the disorders of the female reproductive system. Modern gynecology deals with menstrual disorders, menopause, infectious disease and maldevelopment of the , dermatology dermatology (dûrmətŏl`əjē), branch of medicine concerned with diagnosis and treatment of diseases and disorders of the skin. , and plastic, oral and general surgery. The Company is headquartered at 595 North Pastoria Avenue, Sunnyvale, California Sunnyvale ([sʌniveil]) is a city in Santa Clara County, California, United States. It is one of the major cities that make up the Silicon Valley. As of the 2000 census, the city population was 131,760. , 94086. Telephone number is 408/736-0224. Except for historical information, this press release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, including, but not limited to, quarterly fluctuations in results, the management of growth, the competitive environment, and risks as detailed from time to time in the Company's Securities and Exchange Commission filings, including the Company's Form 10Q for the quarter ended June 29, 1996. Actual results may differ materially from management expectations. -0-
FINANCIAL STATEMENTS APPENDED
ARTHROCARE CORPORATION
Condensed Statements of
Operations
(In thousands, except share data)
(Unaudited)
For the Three Months For the Nine Months
Ended Ended
Sept. Sept. Sept. Sept.
28, 1996 30, 1995 28, 1996 30, 1995
Net sales $ 1,574 $ --- $ 4,139 $ ---
Cost of sales 1,365 --- 3,666 ---
Gross margin 209 --- 473 ---
Operating expenses:
Research and
development 830 1,407 2,644 3,407
Sales and marketing 1,056 311 2,586 730
General and
administrative 648 346 1,751 675
Total operating
expenses 2,534 2,064 6,981 4,812
Loss from operations (2,325) (2,064) (6,508) (4,812)
Interest and other
income, net 393 55 1,098 150
Net loss (1,932) (2,009) (5,410) (4,662)
Net loss per common
and common
equivalent (0.22) (0.41) (0.67) (0.98)
Common and common equivalent
shares used in the calculation
of net loss per
share 8,714,364 4,849,953 8,056,724 4,751,138
ARTHROCARE CORPORATION
Condensed Balance Sheets
(In thousands)
Sept. 28, Dec. 31,
ASSETS 1996 1995
(Unaudited)
Current assets
Cash, cash equivalents, and
available-for-sale
securities $ 26,016 $ 4,774
Accounts receivable, net 1,144 212
Inventory 1,022 516
Prepaid expenses 256 891
Total current assets 28,438 6,393
Property and equipment, net 1,462 1,135
Related party receivables 279 223
Available-for-sale securities 4,535 --
Other assets 69 49
Total assets $ 34,783 $ 7,800
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 529 $ 768
Accrued liabilities 1,033 472
Capital lease obligation, current 37 34
Total current liabilities 1,599 1,274
Capital lease obligation, net of
current portion 30 53
Deferred rent 162 148
Total liabilities 1,791 1,475
STOCKHOLDERS' EQUITY
Stockholders' equity 32,992 6,325
Total liabilities and
stockholders' equity 34,783 7,800
CONTACT: ArthroCare Corporation Larry Tannenbaum, 408/736-0224 |
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