ArthroCare Revenues Grow 83 Percent in First Quarter; Earnings Per Share Reach $0.36.Business Editors/Health & Medical Writers SUNNYVALE, Calif.--(BW HealthWire)--April 13, 2000 ArthroCare Corporation (Nasdaq: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 reported total revenue of $17.8 million in the first quarter of 2000, ended April 1, 2000. This represents an 83 percent increase over the $9.7 million recorded in the first quarter of 1999. The company posted net income of $4.3 million, or $0.36 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with $240,000, or $0.03 per diluted share in the same period a year ago. Weighted average shares outstanding increased more than 25 percent between the 1999 and 2000 periods. For the first time, ArthroCare shipped more than 100,000 disposable devices in the quarter and controller shipments exceeded 1,200, a new record. Product sales were strong at $15.7 million in the first quarter of 2000 compared to $9.1 million in the same quarter of the previous year, driven by strong growth of more than 60 percent in the arthroscopy Arthroscopy Definition Arthroscopy is the examination of a joint, specifically, the inside structures. The procedure is performed by inserting a specifically designed illuminated device into the joint through a small incision. business. ArthroCare's cosmetic surgery cosmetic surgery, plastic surgery for cosmetic purposes, such as the improvement of the appearance of the face by removing wrinkles or reshaping the nose. business contributed meaningfully to total revenue for the quarter. ArthroCare received 510(k) clearance from the U.S. Food and Drug Administration (FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. ) to label the company's Coblation(R)-based cosmetic surgery products specifically for wrinkle Wrinkle A feature of a new product or security intended to entice a buyer. reduction. The FDA's action allows for Inamed Corporation, ArthroCare's marketing partner in the cosmetic surgery market, to enhance its marketing efforts for Coblation-based skin resurfacing Skin Resurfacing Definition Skin resurfacing employs a variety of techniques to change the surface texture and appearance of the skin. Common skin resurfacing techniques include chemical peels, dermabrasion, and laser resurfacing. techniques in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The approval also triggered a one-time milestone payment, which is included in total revenue for the first quarter of 2000. "The first quarter was extremely productive from both an operational and strategic perspective," said Michael A. Baker Michael Allen Baker (Captain, USN, Ret.) is the International Space Station Program Manager for International and Crew Operations, at NASA's Johnson Space Center. He is responsible for the coordination of program operations, integration and flight crew training and support , president and chief executive officer. "Our existing businesses continue to grow and we expanded our spinal surgery business to include the neurosurgery neurosurgery /neu·ro·sur·gery/ (noor´o-sur?jer-e) surgery of the nervous system. neu·ro·sur·ger·y n. Surgery on any part of the nervous system. market. We received six clearances to market new products and procedures from the FDA, including the treatment of snoring snoring, rough, vibratory sounds made in breathing during sleep or coma. The noisy breathing is the result of an open mouth and a relaxation of the palate; it is frequently induced by lying on one's back. . In addition, we introduced seven new products in three markets, and debuted two exciting new surgical techniques for the treatment of tonsils tonsils, name commonly referring to the palatine tonsils, two ovoid masses of lymphoid tissue situated on either side of the throat at the back of the tongue. ." ArthroCare's products allow surgeons to operate with a high level of precision and control, limiting damage to surrounding tissue and thereby potentially reducing pain and speeding recovery for the patient. The company's products operate at lower temperatures than traditional electrosurgical or laser surgery tools and enable surgeons to remove, shrink or sculpt sculpt v. sculpt·ed, sculpt·ing, sculpts v.tr. 1. To sculpture (an object). 2. To shape, mold, or fashion especially with artistry or precision: soft tissue and to seal bleeding vessels. ArthroCare is a medical device company that develops, manufactures and markets products based on its patented Coblation technology. ArthroCare's soft-tissue surgery systems consist of a controller unit and an assortment of single-use disposable devices that are specialized for specific types of surgery. The company believes its Coblation technology can replace the multiple surgical tools traditionally used in soft-tissue surgery with one multi-purpose surgical system. Coblation technology is applicable across many soft-tissue surgical markets. The company's strategy includes applying its patented Coblation technology to a broad range of soft-tissue surgical markets, including arthroscopic surgery Arthroscopic Surgery Definition Arthroscopic surgery is a procedure to visualize, diagnose, and treat joint problems. The name is derived from the Greek words arthron, which means joint, and skopein, which means to look at. , cosmetic surgery, ear, nose and throat surgery, spinal surgery, neurosurgery, general surgery, and various cardiology cardiology Medical specialty dealing with heart diseases and disorders. It began with the 1749 publication by Jean Baptiste de Sénac of contemporary knowledge of the heart. Diagnostic methods improved in the 19th century, and in 1905 the electrocardiograph was invented. applications. 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. including, but not limited to, the company's fundamental position, continued success of certain product lines and strategies, the strength of the company's market position, and other statements that involve risks and uncertainties. These risks and uncertainties are detailed from time to time in the company's Securities and Exchange Commission filings, including ArthroCare's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended January 1, 2000. Forward-looking statements are indicated by words or phrases such as "anticipates," "estimates," "projects," "believes," "intends," "expects," and similar words and phrases Words and Phrases® A multivolume set of law books published by West Group containing thousands of judicial definitions of words and phrases, arranged alphabetically, from 1658 to the present. . Actual results may differ materially from management expectations. The company disclaims any obligation to update any of the forward-looking statements contained herein to reflect future events or developments.
ARTHROCARE CORPORATION
Condensed Consolidated Statements of Operations
(In thousands, except per share data; unaudited)
For the Three Months Ended
April 1, April 3,
2000 1999
Revenues:
Product sales $15,691 $ 9,077
License fees and royalty income 2,069 625
Total revenues 17,760 9,702
Cost of product sales 6,364 3,876
Gross profit 11,396 5,826
Operating expenses:
Research and development 1,757 1,024
Sales and marketing 4,896 3,336
General and administrative 1,239 1,349
Total operating expenses 7,892 5,709
Income from operations 3,504 117
Interest and other income, net 1,071 134
Income before income tax provision 4,575 251
Income tax provision 229 11
Net income $ 4,346 $ 240
Basic net income per share $ 0.40 $ 0.03
Diluted net income per share $ 0.36 $ 0.03
Shares used in computing basic
net income per share 10,918 8,973
Shares used in computing diluted
net income per share 11,944 9,505
ARTHROCARE CORPORATION
Condensed Consolidated Balance Sheets
(In thousands)
April 1, January 1,
2000 2000
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents,
and available-for-sale securities $ 61,000 $ 70,457
Accounts receivable, net 17,129 13,917
Inventory 8,758 6,960
Prepaid expenses and other
current assets 677 719
Total current assets 87,564 92,053
Property and equipment, net 7,975 7,366
Related party receivables 1,205 1,205
Other assets 265 265
Available-for-sale securities 21,125 9,150
Total assets $118,134 $110,039
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,133 $ 2,930
Accrued liabilities 4,746 4,005
Total current liabilities 7,879 6,935
Capital lease obligations 67 87
Deferred rent 130 134
Total liabilities 8,076 7,156
Stockholders' equity 110,058 102,883
Total liabilities and
stockholders' equity $118,134 $110,039
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion