Computer Motion Announces Record Quarterly Revenues; AESOP, HERMES and ZEUS Product Families All Contribute to Revenue Gains.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.--(BW HealthWire)--April 24, 1998--Computer Motion, Inc. (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 National Market:RBOT RBOT Rotating Bomb Oxidation Test ), the world leader in medical robotics with over 350 medical robots in use and an estimated 40,000 procedures successfully accomplished to date, announced today record quarterly revenues for its first quarter ended March 31, 1998. Revenues for the quarter totaled $2,077,000, a 51% increase from revenues of $1,373,000 in last year's first quarter. Gross profit of $1,184,000 for the quarter was up 64% from the $722,000 recorded in last year's first quarter. The revenue gains resulted from increased sales of the Company's 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) robotic 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. positioning system which were up 22% in the first quarter. The Company's AESOP 3000 with Voice Control, which was introduced in the fourth quarter of 1997, has been the principle factor in increased AESOP revenues. Late in the first quarter of 1998, the Company recognized initial revenues for its HERMES(TM) OR Control Center under its original equipment manufacturer agreement with Stryker Corporation. The first quarter 1998 also included a 170% increase in revenue derived from the Company's ZEUS(TM) Robotic Surgical System. Robert W. Duggan, Chairman of the Board 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. of Computer Motion said, "Increased revenues in each of our three product lines indicates that the market continues to embrace our computer controlled robotic technology. The Company's AESOP 3000 with Voice Control, which is optimized specifically for cardiac surgery Cardiac surgery is surgery on the heart and/or great vessels performed by a cardiac surgeon. Frequently, it is done to treat complications of ischemic heart disease (for example, coronary artery bypass grafting), correct congenital heart disease, or treat valvular heart disease , was cleared by the United States Food and Drug Administration United States Food and Drug Administration (FDA), n.pr a unit of the Public Health Service created to protect the health of the nation against impure and unsafe foods, drugs, and cosmetics. (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. ) in late December, and in the first quarter comprised 58% of our total AESOP sales. "In addition, the first HERMES OR Control Center revenues were reflected in the first quarter under our 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 agreement with Stryker. The initial revenues for the HERMES OR Control Center represent a significant milestone since the HERMES System, which allows surgeons to have direct control over key operating room operating room n. Abbr. OR A room equipped for performing surgical operations. devices and equipment using simple verbal commands, represents our second product platform based on our proprietary speech recognition technology. The additional revenues for HERMES will help us meet our goal of doubling our full year revenues in 1998." The Company continues to progress with its development of the ZEUS Robotic Surgical System comprised of three robotic arms, one of which positions an endoscope through verbal commands and two of which enhance the surgeon's capability to manipulate surgical instruments A surgical instrument is a specially designed tool or device for performing specific actions of carrying out desired effects during a surgery or operation, such as modifying biological tissue, or to provide access or viewing it. in performing complex minimally invasive procedures such as 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 coronary artery bypass grafting coronary artery bypass graft n. Abbr. CABG A surgical procedure in which a section of vein or other conduit is grafted between the aorta and a coronary artery below the region of an obstruction in that artery. (E-CABG(TM)). The ZEUS System incorporates the Company's proprietary computer, robotic, haptics (force feedback) and speech control technologies to enable minimally invasive microsurgery microsurgery or micromanipulation Surgical technique for operating on minute structures, with specialized, tiny precision instruments under observation through a microscope, sometimes equipped with cameras to show the operation on a monitor. . The System allows the operating surgeon to be comfortably seated while remaining sterile, greatly enhances surgeon dexterity, eliminates hand tremor and offers the advantage of computerized motion scaling. An example of motion scaling is where a one inch movement of the surgeon's hand is scaled and translated to a 1/10 inch movement at the robotic instrument tip. The Company plans to initiate the process for obtaining FDA clearance to market the ZEUS System later this year. Net loss for the first quarter 1998 was $2,730,000 ($.35 per share) compared to $1,530,000 ($.88 per share) for the comparable prior year period. The loss reflects significant additional personnel hired in the sales and marketing and research and development areas in the past twelve months, as well as increased expenses associated with pre-clinical and clinical trials. Weighted average common shares outstanding increased from 1,744,000 at March 31, 1997 to 7,792,000 shares at March 31, 1998, reflecting the impact of the Company's initial public offering which occurred in August 1997. Mr. Duggan further stated, "Our goal to drive the vast market for open 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. to a more patient friendly minimally invasive/endoscopic approach is increasingly close to commercial reality. Our ZEUS Robotic Surgical System, designed especially for endoscopic reconstructive surgical procedures such as E-CABG, has now been delivered to eight institutions around the world for use in pre-clinical studies. "While ZEUS is not yet FDA cleared for human procedures, two dozen surgeons are currently in training on the System. We have completed our cardiac surgery animal study per the FDA's Good Laboratory Practice (GLP See gateway location protocol. ) standards and our GLP chronic animal study should be completed by fall. We anticipate performing our first human cardiac procedure by year end." Computer Motion develops, manufactures and markets proprietary robotic and computerized surgical systems for the operating room. The Company's mission is to enhance surgeons' capabilities, improve outcomes and reduce costs using computers and robotics. The Company is developing new products that leverage the core technologies underlying the AESOP family of products: the ZEUS Robotic Surgical System for new minimally invasive microsurgery procedures such as endoscopic coronary artery bypass grafting (E-CABG); and the HERMES OR Control Center, a centralized control 1. In air defense, the control mode whereby a higher echelon makes direct target assignments to fire units. 2. In joint air operations, placing within one commander the responsibility and authority for planning, directing, and coordinating a military operation or group/category of and operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. designed to control an integrated network of "smart" operating room devices through a surgeon's voice commands. Computer Motion is traded on the NASDAQ National Market under the stock symbol RBOT. The Company's Internet Web site is www.ComputerMotion.com. This press release contains forward-looking statements concerning the Company's business, products, research and development and regulatory activities. Actual results may differ materially depending on a number of risk factors, including the risks of competition and competing technologies, duration or suspension of pre-clinical and clinical studies, regulatory approvals and physicians' and/or payors' acceptance of the Company's new 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. -0-
COMPUTER MOTION, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
1998 1997
Revenue $2,077,000 $1,373,000
Cost of revenue 893,000 651,000
Gross profit 1,184,000 722,000
Selling, general and
administrative
expense 2,575,000 1,338,000
Research and development
expense 1,745,000 558,000
Loss from operations (3,136,000) (1,174,000)
Other expense (income) (413,000) 356,000
Loss before income
taxes (2,723,000) (1,530,000)
Provision for taxes 7,000 --
Net loss ($2,730,000) ($1,530,000)
Weighted average shares
outstanding used to
compute net
loss per share 7,792,000 1,744,000
Net loss per share ($.35) ($.88)
COMPUTER MOTION, INC.
CONDENSED BALANCE SHEETS
(Unaudited)
March 31, December 31,
1998 1997
Cash and marketable
securities $30,245,000 $32,734,000
Accounts receivable 2,085,000 1,804,000
Inventories 1,541,000 992,000
Plant and equipment,
net 1,437,000 1,108,000
Other assets 799,000 675,000
Total Assets $36,107,000 $37,313,000
Current liabilities $3,051,000 $2,398,000
Shareholders' equity 33,056,000 34,915,000
Total Liabilities
and Equity $36,107,000 $37,313,000
CONTACT: Computer Motion, Inc. Stephen L. Wilson (Executive VP/CFO) 805/968-9600, ext. 155 or Computer Motion, Inc. Holley Malia (Corporate Relations Manager) 805/968-9600, ext. 179 |
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