Collagen Issues Favorable Revision to Third Quarter Results; Aesthetic Technologies Operating Income Up $732,000 to $1.4 million, Gross Margin at 69%.PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif.--(BW HealthWire)--June 11, 1998--Collagen 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 : CGEN CGEN Convective Sigmet Generation ) today issued restated financial results for the fiscal 1998 third quarter, ended March 31, 1998. Cost of sales for the quarter were $6.2 million, down approximately $732,000 compared with the $6.9 million reported by the Company on April 29, 1998. As a result, the consolidated operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the quarter was $3.6 million, consolidated net income was $1.7 million and earnings per diluted share were $0.18. The previously announced fiscal 1998 third quarter results included a consolidated operating loss of $4.4 million, consolidated net income of $938,000 and earnings per diluted share of $0.10. Product sales were unaffected by this restatement. As previously reported, consolidated product sales for the fiscal 1998 third quarter were $20.1 million, up 24% from $16.5 million in the prior-year period, after adjusting for $441,000 of unfavorable foreign exchange impact. "Collagen has been working on a transition from a weighted average cost accounting system to a direct cost accounting system for the past six months. Subsequent to accounting principles (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), our work on the new cost accounting system revealed a processing error that had resulted in an overstatement o·ver·state tr.v. o·ver·stat·ed, o·ver·stat·ing, o·ver·states To state in exaggerated terms. See Synonyms at exaggerate. o of cost of sales and an underseen, vice president and chief financial officer of Collagen. "The Company believes that correcting this processing error now is expected to enable product costs to be appropriately recognized in the same period that revenue is recorded." For the nine months ended March 31, 1998, Collagen Corporation's cost of sales were $20.2 million compared with $20.9 million previously reported. The nine-month consolidated operating loss was $18.3 million, consolidated net loss was $4.7 million and loss per basic share was $0.53. The previously announced nine-month results included a consolidated operating loss of $19.0 million, consolidated net loss of $5.5 million and loss per basic share of $0.61. As previously reported, consolidated product sales for the fiscal 1998 nine-month period were $63.1 million, up 24% from $52.4 million in the prior-year period, after adjusting for $1.9 million of unfavorable foreign exchange impact. On million, compared with $6.8 million previouslye nine months ended March 31, 1998, AT's pro forhich compares with operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $3.6 million in the prior-year period. As previously reported, AT's padjusting for $1.9 million of unfavorable foreigsults has no impact on CT's previously repor ted een the two groups. Collagen Corporation designs, develops, manufactures and markets on a worldwide basis high-quality biocompatible biocompatible /bio·com·pat·i·ble/ (-kom-pat´i-b'l) being harmonious with life; not having toxic or injurious effects on biological function. products for the treatment of de PRO FORMA As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma RESULTS March 31, March 31, $50.3 Costs and expenses: Cost of sales 6.1 3.6 19.4 13.0 Selling, gen ------- ------ -e (loss) from operations $ 1.4 $(1.4) $ (Unaudited) 1998 1997 1998 19 0.1 0.8 0.8 1.9 Selling, general & administrative 1.2 3.4 3.8 5.3 Research & Development 3.9 0.5 11.4 6.6 Acquired in-process research & development --- --- 10.5 --- ------ ------ ------- ------- Total operating costs operating costs npl → gastos mpl operacionales and expenses 5.2 4.7 26.5 13.8 ------ ------ ------- ------- Loss from operations $(5.0) $(4.0) $(25.0) $(11.7) ====== ====== ======= ======= Other income: Net gain on investments, principally Boston Scientific The Boston Scientific Corporation (NYSE: BSX) (abbreviated BSC), is a worldwide developer, manufacturer and marketer of medical devices whose products are used in a range of interventional medical specialties, including interventional cardiology, peripheral interventions, Corporation $ 5.0 $ --- $13.7 $9.2 ===================================== -0- COLLAGEN CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts) Three Months Ended Nine Months Ended March 31, March 31, 1998 1997 1998 1997 ---------------- -------------- Revenues: Product sales $20,114 16,527 $63,067 $52,369 Costs and expenses: Cost of sales 6,153 4,461 20,190 14,927 Selling, general and administrative 11,166 10,963 32,720 30,291 Officer separation cost --- 2,006 --- 2,006 Research and development 6,416 4,558 17,910 13,244 Acquired in-process research and development --- --- 10,530 --- ---------------------------------- Total operating costs and expenses 23,735 21,988 81,350 60,468 ----------------------------------- Loss from operations (3,621) (5,461) (18,283) (8,099) Other income (expense): Net gain on investments, principally Boston Scientific Corporation (Target Therapeutics, Inc. in fiscal 1997) 4,964 --- 13,739 9,222 Equity in losses of affiliates, net (83) (133) (232) (730) Interest income 164 238 702 897 Interest expense (15) (120) (50) (351) ------------ ---------------- Income (loss) before income taxes and minority interest 1,409 (5,476) (4,124) 939 Provision (benefit) for income taxes (250) (1,726) 651 1,674 Minority interest (11) (189) (38) (491) ------- -------- ------- ------- Net income (loss) $ 1,670 $(3,561) $(4,737) $(244) ======= ======== ======= ======= Net income (loss) per share - Basic $ .19 $ (.41) $ (.53) $(.03) ======== ========= ======== ======= Net income (loss) per share - Diluted $ .18 $ (.41) $ (.53) $(.03) ======== ========= ======== ======= Shares used in calculating per share information- Basic 8,989 8,764 8,901 8,806 ==================================== Shares used in calculating per share information Diluted 9,071 8,764 8,901 8,806 ==================================== -0- COLLAGEN CORPORATION CONSOLIDATED BALANCE SHEETS consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (Unaudited) (In thousands, except share and per share amounts) March 31, June 30, 1998 1997 (a) ASSETS Current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. : Cash and cash equivalents $ 15,755 $ 18,481 Short-term investments 2,542 5,117 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , net 11,515 10,759 Inventories, net 14,344 14,293 Other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. , net 8,002 9,314 Total current assets 52,158 57,964 Property and equipment, net 15,418 15,260 Intangible assets and goodwill, net 12,576 14,764 Investment in Boston Scientific Corporation 75,455 83,874 Other investments and assets, net 14,999 13,049 $170,606 $184,911 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. : Accounts payable $ 2,205 $ 2,638 Other accrued liabilities 13,850 13,638 Income taxes payable 9,883 9,376 Notes payable --- 70 Total current liabilities 25,938 25,722 Long-term liabilities Long-Term Liabilities Recorded on the balance sheet, a company's liabilities for leases, bond repayments and other items due in more than one year. Notes: A company's long-term liabilities are accounted for by its debt obligations to other parties which last longer than : Deferred income taxes 32,293 35,448 Other long-term liabilities Other Long-Term Liabilities A balance sheet item that includes obligations that do not currently require interest payments. Notes: This would include items such as remaining leases, future employee benefits and deferred taxes. 1,703 3,795 ---------- ---------- Total long-term liabilities 33,996 39,243 Commitments and contingencies Minority interest 8 49 Stockholders' equity: Preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , $.01 par value, authorized: 5,000,000 shares; none issued or outstanding --- --- Common shares, $.01 par value, authorized: 28,950,000 shares, issued: 10,924,127 shares at March 31, 1998 (10,756,935 shares at June 30, 1997), outstanding: 8,951,227 shares at March 31, 1998 (8,809,035 shares at June 30, 1997) 110 108 Additional paid-in capital additional paid-in capital Stockholder contributions that are in excess of a stock's stated or par value. For example, if a firm issues stock with a par value of $1 per share but sells the stock to investors at $10 per share, the firm's financial statements 68,900 67,204 Retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. 42,369 47,999 Cumulative translation adjustment (2,314) (1,717) Unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. on available-for-sale investments 42,806 47,069 Treasury stock, 1,972,900 shares at March 31, 1998 (1,947,900 shares at June 30, 1997) (41,207) (40,766) Total stockholders' equity 110,664 119,897 $170,606 $184,911 (a) Amounts derived from audited financial statements at the date indicated CONTACT: Collagen Corporation Lisa Morgensai, 650/856-0200 or Investor Relations Investor relations The process by which the corporation communicates with its investors. : Lippert/Heilshorn & Associates, Inc. Bruce Voss (bruce@lhai.com) 310/575-4848 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion