Cytyc Reports Q4 Revenues of $66.7 Million and Diluted EPS of $0.15.Business Editors BOXBOROUGH, Mass.--(BUSINESS WIRE)--Jan. 28, 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 fourth quarter and year ended December December: see month. 31, 2002. Fourth quarter 2002 revenues grew 5 percent to $66.7 million compared to $63.3 million in the fourth quarter 2001. Fourth quarter 2002 reported net income was $17.9 million, or $0.15 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, compared to reported net loss of $37.0 million, or a $0.31 loss per diluted share, in the fourth quarter 2001. 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 net income in the fourth quarter 2001, which excludes a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge of $56.0 million for in-process research and development related to the acquisition of Pro-Duct Health and reflects a 38 percent pro forma tax rate, was $16.5 million, or $0.13 per diluted share. For the year ended December 31, 2002, revenues grew 7 percent to $236.5 million compared to $221.0 million for the same period in 2001. Reported net income was $47.9 million, or $0.39 per diluted share for the year, compared to $12.6 million, or $0.10 per diluted share in 2001. In 2002, the Company reported pro forma net income of $51.4 million, or $0.42 per diluted share for the year, compared to $56.2 million, or $0.47 per diluted share for the same period last year. Pro forma net income for the year ended December 31, 2002, excludes a one-time pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charge of $5.7 million related to the abandoned merger with Digene Corporation. Pro forma net income for the year ended December 31, 2001 excludes the one-time charge of $56.0 million for in-process research and development noted above as well as a pre-tax gain of $3.1 million from settlement of 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. . For all periods, pro forma income reflects a pro forma tax rate of 38 percent. Patrick J. Sullivan, Cytyc's chairman, president, and chief executive officer, commented, "We ended 2002 with solid operating and financial performance, including the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 4.4 million shares of Cytyc stock at a cost of $42.5 million during the fourth quarter of 2002. We also received an Approvable Letter from the U.S. Food and Drug Administration (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. ) for 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. (R) Imaging System." Mr. Sullivan concluded, "We continue to focus on our growth initiatives, including continued U.S. conversion of the ThinPrep(R) Pap Test Pap test, Pap smear, or Papanicolaou test (păp'ənē`kəlou), medical procedure used to detect cancer of the uterine cervix. , adoption of the FirstCyte(TM) Breast Test for breast cancer risk assessment, international expansion for worldwide adoption of the ThinPrep Pap Test, and the introduction of the ThinPrep Imaging System." Cytyc management will discuss fourth quarter results, business highlights and future expectations during a conference call on January January: see month. 28, at 5:00 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 live webcast of the call may be accessed at Cytyc's website, www.cytyc.com, and the event will be available for replay at this site approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. two hours following the call until February February: see month. 7, 2003. Those without web access may access the call by dialing 212-896-6118. A telephonic replay of the call will be available through February 7, 2003, by dialing 402-977-9140 (Access Code: 21108191). In connection with the adoption of the SEC rules on corporate disclosure, Cytyc is publishing its procedures for announcing its future expectations for the Company. Towards the end of each fiscal quarter, Cytyc will have a "Quiet Period" when it will not comment concerning its financial results or expectations other than in a public manner in compliance with Regulation FD. The Quiet Period will extend until Cytyc's next quarterly Earnings Release is published and the conference call takes place. For the first quarter of 2003, the Quiet Period will be March 16, 2003, through approximately April 30, 2003. Cytyc Corporation develops, manufactures, and markets products for 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(R) System consists of the ThinPrep(R) 2000 Processor, ThinPrep(R) 3000 Processor, 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. 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 financial condition, operating results and future 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, management of growth, risks associated with competition and competitive pricing pressures, risks associated with the FDA regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approval processes and any healthcare reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. policies, uncertainties involving the Company's co-promotional arrangements with third parties and the products marketed thereunder, 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 2001 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
Consolidated Balance Sheets
(in thousands)
December 31, December 31,
2002 2001
Assets:
Current assets
Cash and short-term investments $163,744 $153,242
Accounts receivable, net 34,066 50,278
Inventories 11,012 10,698
Other current assets 2,046 1,583
Total current assets 210,868 215,801
Property and equipment, net 27,281 26,662
Other assets, net 124,277 144,297
Total Assets $362,426 $386,760
Liabilities and Stockholders' Equity:
Current liabilities $37,385 $35,615
Non-current liabilities 313 837
Stockholders' equity:
Capital stock 300,528 376,307
Accumulated other comprehensive
income (loss) 776 (1,529)
Retained earnings (deficit) 23,424 (24,470)
Total stockholders' equity 324,728 350,308
Total Liabilities and Stockholders' Equity $362,426 $386,760
Cytyc Corporation
Consolidated Statements of Operations
(in thousands, except per share data)
Year Ended Year Ended
December 31, 2002 December 31, 2001
Pro Forma Adjusted As Pro Forma Adjusted As
Reported Reported
Net sales $236,493 $- $236,493 $220,993 $- $220,993
Cost of sales 48,622 - 48,622 40,168 - 40,168
Gross profit 187,871 - 187,871 180,825 - 180,825
Operating expenses:
Research and
development 14,524 - 14,524 18,975 56,000(2) 74,975
Sales and
marketing 69,971 - 69,971 59,161 - 59,161
General and
administrative 23,125 - 23,125 16,987 - 16,987
Expenses related
to abandoned
merger - 5,705(1) 5,705 - - -
Total operating
expenses 107,620 5,705 113,325 95,123 56,000 151,123
Income from
operations 80,251 (5,705) 74,546 85,702 (56,000) 29,702
Other income, net:
Interest income 3,505 - 3,505 5,412 - 5,412
Other expense (794) - (794) (493) - (493)
Litigation
settlement - - - - 3,087(3) 3,087
Total other
income, net 2,711 - 2,711 4,919 3,087 8,006
Income before
provision for
income taxes 82,962 (5,705) 77,257 90,621 (52,913) 37,708
Provision for
income taxes 31,531 (2,168)(1) 29,363 34,442 (9,369)(4) 25,073
Net income $51,431 $(3,537) $47,894 $56,179 $(43,544) $12,635
Net income per common
and potential
common share:
Basic $0.43 $0.40 $0.49 $0.11
Diluted $0.42 $0.39 $0.47 $0.10
Weighted average common
and potential
common shares
outstanding:
Basic 120,114 120,114 115,396 115,396
Diluted 122,782 122,782 120,776 120,776
(1) Expenses related to Digene merger terminated Q2 2002
and related tax effect
(2) One-time charge to write off in-process research and development
related to acquisition of Pro-Duct Health in Q4 2001
(3) Gain from settlement of litigation
(4) Adjustment to match 2002's 38% effective tax rate for
comparison purposes
Cytyc Corporation
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Three Months Ended
December 31, 2002 December 31, 2001
Pro Adjusted As Pro Adjusted As
Forma Reported Forma Reported
Net sales $66,743 $- $66,743 $63,280 $- $63,280
Cost of sales 12,952 - 12,952 11,422 - 11,422
Gross profit 53,791 - 53,791 51,858 - 51,858
Operating expenses:
Research and
development 2,640 - 2,640 3,569 56,000(2) 59,569
Sales and
marketing 18,844 - 18,844 16,312 - 16,312
General and
administrative 4,217 (409)(1) 3,808 5,973 - 5,973
Total operating
expenses 25,701 (409) 25,292 25,854 56,000 81,854
Income (loss)
from
operations 28,090 409 28,499 26,004 (56,000) (29,996)
Other income, net:
Interest income 762 - 762 1,108 - 1,108
Other expense (354) - (354) (493) - (493)
Total other
income, net 408 - 408 615 - 615
Income (loss) before
provision for
income taxes 28,498 409 28,907 26,619 (56,000) (29,381)
Provision for
income taxes 10,835 155(1) 10,990 10,120 (2,546)(3) 7,574
Net income
(loss) $17,663 $254 $17,917 $16,499 $(53,454) $(36,955)
Net income (loss)
per common and
potential
common share:
Basic $0.15 $0.16 $0.14 $(0.31)
Diluted $0.15 $0.15 $0.13 $(0.31)
Weighted average
common and potential
common shares
outstanding:
Basic 115,185 115,185 117,526 117,526
Diluted 116,868 116,868 122,827 117,526
(1) Adjustment to expenses related to Digene merger terminated Q2
2002 and related tax effect
(2) One-time charge to write off in-process research and development
related to acquisition of Pro-Duct Health in Q4 2001
(3) Adjustment to match 2002's 38% effective tax rate
for comparison purposes
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