Cytyc Corporation announces 1996 first quarter financial results.BOSTON--(BUSINESS WIRE)--May 1, 1996--Cytyc 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 :CYTC) today reported results of operations for the first quarter of 1996. For the quarter ended March 31, 1996, Cytyc reported revenue of $1.1 million compared to $611,000 in the same quarter of 1995. The net loss for the quarter ended March 31, 1996, was $2.7 million, or $0.25 per share, compared to a net loss of $1.5 million, or $0.14 per share for the first quarter of 1995. The number of shares used to calculate loss per share was 10,880,000 for 1996 and 10,868,000 for 1995. Cytyc completed an initial public offering of 3.0 million shares of common stock on March 8, 1996 raising net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $43.3 million. On April 4, 1996, an additional 450,000 shares of common stock were issued for net proceeds of $6.7 million pursuant to the exercise of the underwriters' overallotment option overallotment option See greenshoe. . Patrick J. Sullivan, President and Chief Executive Officer, commented, "These results for the first quarter of 1996 are in line with expectations. The increased net loss for the first quarter resulted primarily from increased expenditures for sales, marketing and customer support activities for the potential commercial launch of the ThinPrep ThinPrep™ Cytology A proprietary system–Cytec, Inc, in which specimens are obtained with a special fluid collection system and the slides for cytologic examination are spread in one-cell-thick layers. See thin prep. System for cervical cancer Cervical Cancer Definition Cervical cancer is a disease in which the cells of the cervix become abnormal and start to grow uncontrollably, forming tumors. screening." Mr. Sullivan said that Cytyc is awaiting 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. comments on its application for the Company's cervical cancer screening product. "The increased revenue for the first quarter of 1996 reflects an increase in the number of ThinPrep 2000 Processors sold as well an increase in sales of reagents, filters and other supplies for use in non-gynecological diagnostic applications," said Sullivan. Cytyc Corporation will not be permitted to market or sell the ThinPrep System for cervical cancer screening unless and until specific 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. approval is received. The Company's 1995 application to obtain marketing approval of the ThinPrep System for cervical cancer screening was accepted for filing by the FDA as of November 22, 1995. The Company has marketed the ThinPrep System for use in non-gynecological testing applications since 1991. Cytyc designs, manufactures and markets sample preparation systems for medical diagnostic applications. The Company's ThinPrep sample preparation system is a system for the automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. preparation of cervical cervical /cer·vi·cal/ (ser´vi-k'l) 1. pertaining to the neck. 2. pertaining to the neck or cervix of any organ or structure. cer·vi·cal adj. cell specimens as a replacement for conventionally prepared Pap smears Pap smear or Papanicolaou smear Sample of cells from the vagina and cervix of the uterus for laboratory staining and examination to detect genital herpes and early-stage cancer, especially of the cervix. Developed by the Greek-born U.S. , as well as for the automated preparation of non-gynecological cell specimens. 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. in this release are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including, without limitation, risks associated with the Company's dependence on a single product, uncertainty of FDA approval, uncertainty of market acceptance, and limited number of customers, as well as risks of downturns in economic conditions generally, and in the healthcare industry specifically, risks associated with competition and competitive pricing pressures, and other risks detailed in the Company's filings with the Securities and Exchange Commission. -0-
CYTYC CORPORATION
Results of Operations
(in thousands, except per share data)
Three Months Ended
March 31, March 31,
1996 1995
(Unaudited)
Net sales $ 1,114 $ 611
Cost of sales 734 468
Gross profit 380 143
Operating expenses:
Research and development 866 786
Sales, marketing and customer support 1,708 513
General and administrative 644 334
Total operating expenses 3,218 1,633
Loss from operations (2,838) (1,490) Other income (expense), net 170 (30) Net loss $ (2,668) $ (1,520) Net loss per share $ (0.25) $ (0.14) Shares used in computing net loss per share 10,880 10,868
CYTYC CORPORATION
Balance Sheet Data
(in thousands)
March 31, December 31,
1996 1995
(Unaudited)
Cash, cash equivalents and
short-term investments $ 48,127 $ 7,902
Total current assets 49,852 10,026
Total assets 52,140 11,025
Total liabilities 3,435 2,947
Stockholders' equity 48,705 8,078
Total liabilities and equity 52,140 11,025
CONTACT: Cytyc Corporation Investor Contact: Joe Kelly Joe Kelly is a common name that can refer to different people:
Chief Financial Officer (508) 481-1341 |
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