Cytyc Reports $0.17 EPS on Record ThinPrep Pap Test Volume; ThinPrep Imaging System Ahead of Schedule.Business Editors/Health/Medical Writers BOXBOROUGH, Mass.--(BUSINESS WIRE)--Oct. 22, 2003 Cytyc Cytyc Corporation (NASDAQ: CYTC) engages in the design, development, manufacture, and marketing of clinical products that focus on women’s health. Its products cover a range of women's health applications, including cervical cancer screening, breast cancer risk Corporation (Nasdaq:CYTC) today announced results for the third quarter and nine months ended September September: see month. 30, 2003. Revenues for the quarter rose 29 percent to $75.5 million compared to $58.5 million for the third quarter of 2002. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 55 percent to $0.17 compared to $0.11 reported in the third quarter of 2002. Net income increased 34 percent to $18.6 million compared to $13.9 million in the third quarter of 2002. For the nine months ended September 30, 2003, revenues grew 32 percent to $224.8 million compared to $169.8 million for the same period in 2002. Reported net income increased 89 percent to $56.7 million and diluted earnings per share increased 108 percent to $0.50, for the first nine months of 2003, compared to $30.0 million, or $0.24 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the first nine months of 2002. Net income for the nine months ended September 30, 2002, included non-recurring after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. expenses of $3.8 million, or $0.03 per diluted share associated with the terminated merger with Digene Corporation. Patrick J. Sullivan, Cytyc's chairman, president and chief executive officer, commented, "This quarter, we achieved record 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. (R) Pap Test Pap test, Pap smear, or Papanicolaou test (păp'ənē`kəlou), medical procedure used to detect cancer of the uterine cervix. shipment volume, exceeded our earnings targets, and generated $24.5 million of cash before stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. . The overall usage data available to the Company indicates continued strong adoption of the ThinPrep Pap Test although selected customers indicated seasonal ThinPrep Pap Test weakness during the summer months. Implementation of our ThinPrep(R) Imaging System is ahead of schedule, and to date, we have received purchase orders for a total of 17 units. Of these units, six shipped during the third quarter and four shipped in October October: see month. . We are excited by the level of interest our customers continue to express in this innovative technology." Mr. Sullivan added, "Today, the National Institute for Clinical Excellence (NICE) in the UK issued guidance recommending that liquid-based cytology cytology (sītŏl`əjē), in biology, the study of the structure of all normal and abnormal components of cells and the changes, movements, and transformations of such components. be used as the primary means to process samples in the 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. screening programme in England and Wales England and Wales are both constituent countries of the United Kingdom, that together share a single legal system: English law. Legislatively, England and Wales are treated as a single unit (see State (law)) for the conflict of laws. . Last year, a similar recommendation was made in Scotland Scotland, political division of Great Britain (1991 pop. 4,957,000), 30,414 sq mi (78,772 sq km), comprising the northern portion of the island of Great Britain and many surrounding islands. and since then the Scottish Cervical Screening Programme is converting exclusively to the ThinPrep Pap Test. This important decision by NICE and our experience in Scotland underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. the significant opportunity Cytyc has to further grow its international ThinPrep Pap Test business." Cytyc management will discuss third quarter results, business highlights and future expectations during a conference call on October 22 at 5:30 p.m. (Eastern). The call will be hosted by Patrick Sullivan, chairman, president, and chief executive officer, Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Bowen Bow·en , Catherine Drinker 1897-1973. American writer of semifictional biographies, such as The Lion and the Throne (1957), a life of Sir Edward Coke. , vice president and chief financial officer, Christopher Bleck v. t. 1. To blacken; also, to defile. , vice president of commercial operations, and Daniel Daniel, book of the Bible Daniel, book of the Bible. It combines "court" tales, perhaps originating from the 6th cent. B.C., and a series of apocalyptic visions arising from the time of the Maccabean emergency (167–164 B.C. Levangie, president and chief executive officer of Cytyc Health Corporation. A webcast and replay of the call may be accessed at Cytyc's website, http://ir.cytyc.com, where the event will be available for replay approximately two hours following the webcast until November November: see month. 3, 2003. Those without web access may access the call by calling 706-634-7069 or 800-477-5747. A telephonic replay of the call will be available through November 3, 2003, by calling 800-642-1687 (Reservation number: 3221524). International participants may dial 706-645-9291; the reservation number is the same. Cytyc Corporation designs, develops, manufactures, and markets the ThinPrep(R) System for use in medical diagnostic applications primarily focused on women's health Women's Health Definition Women's health is the effect of gender on disease and health that encompasses a broad range of biological and psychosocial issues. . The ThinPrep System is widely used 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 and is the platform from which the Company has launched its expansion into breast cancer risk assessment with the FirstCyte(TM) Breast Test. The ThinPrep System consists of the ThinPrep(R) 2000 Processor, ThinPrep(R) 3000 Processor, ThinPrep(R) Imaging System, and related reagents, filters, and other supplies. Cytyc is traded on The Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol CYTC. Cytyc and ThinPrep are registered trademarks of Cytyc Corporation. FirstCyte is a trademark of Cytyc Corporation for which registration has been applied. 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 press release are made pursuant to the provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's future financial condition, operating results and economic performance, and management's expectations regarding future growth opportunities, product acceptance and business strategy, constitute forward-looking statements. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties, which could cause actual outcomes and results to differ materially from those statements. Risks and uncertainties include, among others, dependence on key personnel and proprietary technology, uncertainty of product development efforts, product acceptance, management of growth, risks associated with litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , competition and competitive pricing pressures, risks associated with the 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. regulatory approval processes and any healthcare reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. policies, and other risks detailed in the Company's filings with the Securities and Exchange Commission, including under the heading "Certain Factors Which May Affect Future Results" in its 2002 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. and its most recent Quarterly Report on Form 10-Q Form 10-Q See 10-Q. filed with the Commission. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date they were made. The Company disclaims any obligation to publicly update or revise any such statements to reflect any change in Company expectations or events, conditions, or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
Cytyc Corporation
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
Sept. 30, Dec. 31,
2003 2002
---------------------------
Assets
Current assets:
Cash and investment securities $172,720 $163,744
Accounts receivable, net 41,245 34,066
Inventories 15,336 11,012
Other current assets 3,396 2,046
---------------------------
Total current assets 232,697 210,868
---------------------------
Property and equipment, net 29,831 27,281
Other assets, net 115,781 123,477
---------------------------
Total Assets $378,309 $361,626
===========================
Liabilities and Stockholders' Equity
Current liabilities $42,169 $36,585
Non-current liabilities 54 313
Stockholders' equity 336,086 324,728
---------------------------
Total Liabilities and Stockholders' Equity $378,309 $361,626
===========================
Cytyc Corporation
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
Three Months Ended
September 30,
2003 2002
---------------------------
Net sales $75,457 $58,540
Cost of sales 14,063 11,734
---------------------------
Gross profit 61,394 46,806
---------------------------
Operating expenses:
Research and development 4,212 3,192
Sales and marketing 20,201 15,319
General and administrative 6,805 6,608
---------------------------
Total operating expenses 31,218 25,119
---------------------------
Income from operations 30,176 21,687
Other income, net:
Interest income 477 960
Other expense (200) (178)
---------------------------
Total other income, net 277 782
---------------------------
Income before provision for income taxes 30,453 22,469
Provision for income taxes 11,855 8,538
---------------------------
Net income $18,598 $13,931
===========================
Net income per common and
potential common share:
Basic $0.17 $0.12
===========================
Diluted $0.17 $0.11
===========================
Weighted average common and
potential common shares outstanding:
Basic 109,728 120,816
===========================
Diluted 111,613 122,440
===========================
Cytyc Corporation
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
Nine Months Ended
September 30,
2003 2002
---------------------------
Net sales $224,766 $169,750
Cost of sales 41,639 35,670
---------------------------
Gross profit 183,127 134,080
---------------------------
Operating expenses:
Research and development 10,989 11,884
Sales and marketing 60,201 51,127
General and administrative 19,711 18,908
Expenses related to terminated merger - 6,114
---------------------------
Total operating expenses 90,901 88,033
---------------------------
Income from operations 92,226 46,047
Other income, net:
Interest income 1,884 2,743
Other expense (112) (440)
---------------------------
Total other income, net 1,772 2,303
---------------------------
Income before provision for income taxes 93,998 48,350
Provision for income taxes 37,281 18,373
---------------------------
Net income $56,717 $29,977
===========================
Net income per common and
potential common share:
Basic $0.51 $0.25
===========================
Diluted $0.50 $0.24
===========================
Weighted average common and
potential common shares outstanding:
Basic 111,410 121,757
===========================
Diluted 113,196 124,598
===========================
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