Computer Motion Announces First Quarter Results Up 317% Vs. the Previous Year.Business Editors SANTA BARBARA Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850. , Calif.--(BUSINESS WIRE)--April 26, 2001 Quarterly Conference Call Scheduled for 11:00 a.m. PT; Simultaneous Webcast to be Found at www.ComputerMotion.com Computer Motion Inc. (Nasdaq:RBOT RBOT Rotating Bomb Oxidation Test ), the pioneer and leader in medical robotics, today announced its financial results for the quarter ended March 31, 2001. Revenue for the quarter totaled $5,716,000, which is a 317% increase in revenue over last year's first quarter of $1,368,000. The gross profit of $3,276,000 was 57% of sales, exceeding the previous year's first quarter result of $679,000 and 50%, respectively. This represents a 480% increase in gross profit compared with last year. For the quarter, Computer Motion had sales of Robotic Systems of $3,513,000 with 28 systems placed. HERMES(TM) system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. to the company's initial OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and partner, Stryker Corp., totaled $1,093,000. Developmental revenues from various partners around the world totaled $303,000. Recurring revenues continue to be strong with a first quarter result of $807,000. Net loss for the quarter totaled $4,200,000 ($0.40 per share before dividend to preferred shareholders) compared with $5,019,000 ($0.57 per share) for the same period in 2000. The company closed a convertible preferred financing during the quarter. The financing resulted in a noncash dividend, making the loss per share attributable to common shareholders $0.65 per share. Weighted average common shares outstanding increased to 10,535,000 at March 31, 2001, compared with 8,780,000 on March 31, 2000. Robert W. Duggan, chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated: "Computer Motion remains committed to achieving profitability in the fourth quarter of 2001. On that pathway to profitability, our second quarter is off to a positive start on many fronts including revenues, continued procedural progress, operational changes in the field and sales training, surgeon interest in our education programs, as well as our emerging product offerings." Duggan continued: "We have implemented several steps to reduce the cost of operating and expanding our business. The net effect of these measures is approximately a $4 million reduction in this year's expense level. While reducing expenses, we have also increased our direct sales force and maintained engineering headcount. This reflects confidence in the strong revenue growth we anticipate over the next three quarters. Furthermore, for the second quarter, we expect revenues to come in above $7 million." Computer Motion ended the quarter with a cash balance of $7,500,000, no debt and the ability to raise $12 million from an equity line of credit with Societe Generale. Computer Motion will host a teleconference call today at 11:00 a.m. PT (2:00 p.m. ET) to discuss its results for the first quarter. To participate, call 800/776-9117 and ask to be connected to the Computer Motion earnings conference call. A live Webcast will also be available at www.ComputerMotion.com. For parties interested in a replay of the call, a digital playback will be available through May 10, 2001, at 703/326-3020 or 800/615-3210, code 5185988. An archive of the Webcast will also be available until May 10, 2001, at www.ComputerMotion.com. Computer Motion is a high-tech medical device company evolving surgical practices to enhance patient lives. The company develops, manufactures and markets proprietary computer-enhanced and robotic surgical systems, which enhance surgeons' capabilities, improve outcomes and reduce costs. Computer Motion plays a significant role in transitioning the surgical community from current open procedures to increasingly demanded endoscopic en·do·scope n. An instrument for examining visually the interior of a bodily canal or a hollow organ such as the colon, bladder, or stomach. en procedures. The Computer Motion products include the AESOP Aesop (ē`səp, ē`sŏp), legendary Greek fabulist. According to Herodotus, he was a slave who lived in Samos in the 6th cent. B.C. and eventually was freed by his master. (R)/ZEUS(TM) robotic system for new minimally invasive microsurgical procedures, such as endoscopic beating heart bypass surgery Bypass surgery A surgical procedure that grafts blood vessels onto arteries to reroute the blood flow around blockages in the arteries (arteriosclerosis). . Other products include the HERMES Control Center, a centralized system In telecommunications, a centralized system is one in which most communications are routed through one or more major central hubs. Such a system allows certain functions to be concentrated in the system's hubs, freeing up resources in the peripheral units. that enables the surgeon to voice control a network of "smart" medical devices. The AESOP Endoscope endoscope, any instrument used to look inside the body. Usually consisting of a fiber-optic tube attached to a viewing device, endoscopes are used to explore and biopsy such areas as the colon and the bronchi of the lungs. Positioner is the first FDA-cleared surgical robot surgical robot Surgery A device used to perform some surgical procedures Pros Smaller incisions, ↓ pain, correction of surgeon error and tremors, ↓ infections and other post-surgical complications, faster recovery, better outcomes Cons , and the ZEUS Robotic Surgical System is CE-Marked for commercial sale in the European Community. Computer Motion has completed an FDA-approved Phase 1 Investigational Device Exemption An Investigational Device Exemption (IDE) allows the investigational device to be used in a clinical study in order to collect safety and effectiveness data required to support a Premarket Approval (PMA) application or a Premarket Notification [510(k)] submission to Food and (IDE) coronary bypass coronary bypass Surgical treatment for coronary heart disease to relieve angina pectoris and prevent heart attacks. It became widely used in the 1960s. One or more blood vessels—usually an artery in the chest or a vein from the leg—are transplanted to create study and has initiated an IDE mitral valve mitral valve n. A valve of the heart, composed of two triangular flaps, that is located between the left atrium and left ventricle and regulates blood flow between these chambers. Also called bicuspid valve, left atrioventricular valve. surgery, general laparoscopic Laparoscopic A minimally-invasive surgical or diagnostic procedure that uses a flexible endoscope (laparoscope) to view and operate on structures in the abdomen. Mentioned in: Obstetrical Emergencies and thoracic studies with the ZEUS system. Also, the company has begun the second phase of its tubal Tubal (t  `bəl), in the Bible, son of Japheth. reanastomosis study. The company's Web site is
www.ComputerMotion.com.
This news release contains forward-looking statements concerning the company's business and products. Actual results may differ materially depending on a number of risk factors, including the risks of competition and competing technologies; duration or suspension of clinical studies; regulatory clearances and approvals; and physician, hospital and payor acceptance of the company's products. These factors and other risks inherent in the company's business are described from time to time in the company's Securities and Exchange Commission filings, including its Annual Report on 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. . The company undertakes no obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.
COMPUTER MOTION INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in thousands, except per share amounts)
Three Months Ended
March 31,
2001 2000
Revenue $ 5,716 $ 1,368
Cost of revenue 2,440 689
Gross profit 3,276 679
Gross profit % 57.3% 49.6%
Research and development expense 3,134 2,216
Selling, general and administrative
expense 4,345 3,553
Total operating expense 7,479 5,769
Loss from operations (4,203) (5,090)
Other expense/(income) (9) (76)
Loss before income tax provision (4,194) (5,014)
Income tax provision 6 5
Net loss (4,200) (5,019)
Dividend to preferred shareholders 2,633 --
Net loss available to common
shareholders $ (6,833) $ (5,019)
Weighted average common shares
outstanding used to compute net
loss per share -- basic and diluted 10,535 8,780
Loss per share -- basic and diluted $ (0.65) $ (0.57)
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