Arthrocare Revenues Double in Second Quarter.SUNNYVALE Sunnyvale, city (1990 pop. 117,229), Santa Clara co., W Calif., near San Francisco; settled 1849, inc. 1912. A city in Silicon Valley, its many manufactures include semiconductors; machinery and instruments; electrical, electronic, and aerospace products; , Calif.--(BW HealthWire)--July 23, 1997--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 that, driven by significant increases in sales of 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. instruments, revenues in the second quarter, ended June 28, 1997, were $2.8 million, double the $1.4 million reported in the second quarter of 1996. For the first half of 1997 the company reported revenues of $5.1 million, compared with $2.6 million reached in the first half of 1996. The Company reported a net loss for the second quarter of $2.0 million, or $.23 per share, compared with $1.7 million, or $.20 per share, in the second quarter of 1996. In the first half of 1997, the company reported a net loss of $4.2 million, or $.47 per share compared with $3.5 million, or $.45 per share in the first half of 1996. At June 28, 1997, cash, cash equivalents, and available- for-sale securities stood at $25.1 million. 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 , ArthroCare's recently appointed president and chief executive officer said, "We believe the significant increase in disposable 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. sales is an indication of both increasing market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" and strong acceptance of the company's technology by physicians. In the second quarter alone, we sold more wands than in the first half of last year. Additionally, total controller shipments to date now exceed 1000." In the second quarter, the company once again shipped a record number of controllers, the vast majority of which went to new accounts. ArthroCare's proprietary platform technology comprises the ArthroWand, a versatile multi-electrode surgical tool for the removal of soft tissue while simultaneously achieving hemostatsis, and a radio frequency controller that powers the wand. During the quarter, company co-founder Hira Thapliyal assumed the role of chief technical officer, reinforcing ArthroCare's focus on and investment in research and development, a critical component of the company's long term strategy. "We are executing to plan and meeting our internal objectives," Baker said. "In the second half of the year, we will continue to drive 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 while intensifying in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: our focus on research and development and building the infrastructure to support our international expansion." 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 10-Q Form 10-Q See 10-Q. for the quarter ended March 29, 1997. Actual results may differ materially from management expectations. ArthroCare Corporation designs, develops, manufactures, and markets arthroscopic surgical equipment that ablates (removes) 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. (sealing of small bleeding vessels). 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 platform 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. Its telephone number is 408/736-0224. -0-
ArthroCare Corporation
Condensed Statements of Operations
(In thousands, except share data)
(Unaudited)
For the Three Months End For the Six Months Ended
June 28, June 29, June 28, June 29,
1997 1996 1997 1996
-------- -------- -------- --------
Net sales $ 2,832 $ 1,406 $ 5,093 $ 2,565
Cost of sales 1,994 1,236 3,673 2,301
------ -------- ------- --------
Gross margin 838 170 1,420 264
-------- -------- -------- ---------
Operating expenses:
Research and
development 873 950 1,753 1,814
Sales and marketing 1,386 872 2,751 1,530
General and
administrative 927 527 1,818 1,103
----- --- ----- -----
Total operating
expenses 3,186 2,349 6,322 4,447
----- ----- ----- -----
Loss from operations (2,348) (2,179) (4,902) (4,183)
Interest and other
income, net 359 444 746 707
----- ------ ------ ------
Loss before income
tax provision (1,989) (1,735) (4,156) (3,476)
Income tax provision -- -- -- 2
------ ------- ------ -------
Net Loss $(1,989) $(1,735) $(4,156) $(3,478)
====== ======= ======= ========
Net loss per common
and common
equivalent $ (0.23) $(0.20) $ (0.47) $ (0.45)
======= ====== ======= =======
Common and common
equivalent shares
used in the
calculation of
net loss per
share 8,806,024 8,675,053 8,795,379 7,758,459
========= ========= ========= =========
ArthroCare Corporation
Condensed Balance Sheets
(In thousands)
June 28, December 28,
ASSETS 1997 1996
------------ ------------
(Unaudited)
Current assets
Cash, cash equivalents,
and available-for-sale
securities $ 20,282 $ 23,640
Accounts receivable, net 1,229 1,251
Inventory 1,276 759
Prepaid expenses 326 155
-------- ---------
Total current assets 23,113 25,805
Property and equipment, net 1,473 1,484
Related party receivables 232 298
Available-for-sale securities 4,833 5,641
Other assets 63 69
------- ---------
Total assets $ 29,714 $ 33,297
======== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 1,218 $ 1,055
Accrued liabilities 1,491 1,245
Capital lease obligation,
current 32 37
------- ------
Total current liabilities 2,741 2,337
Capital lease obligation,
net of current portion 3 21
Deferred rent 160 157
-------- ------
Total liabilities 2,904 2,515
STOCKHOLDERS' EQUITY
Stockholders' equity 26,810 30,782
------- -------
Total liabilities and
stockholders' equity $ 29,714 $ 33,297
======== ========
CONTACT: ArthroCare Corporation Larry Tannenbaum, 408/736-0224 |
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