Cytyc Reports Record Fourth Quarter and Full Year 2006 Results.2006 Revenue Increases $100 Million, or 20 Percent, to $608.3 Million 2006 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 Grow 24 percent to $1.16 MARLBOROUGH, Mass. -- 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 announced results for the fourth quarter and year ended December 31, 2006. Revenue for the quarter ended December 31, 2006, rose 18 percent to $163.1 million compared to revenue of $138.6 million for the same period of 2005. Net income for the quarter was $42.4 million, or $0.35 per diluted share, compared to net income for the same period in 2005 of $33.4 million, or $0.27 per diluted share, an increase in diluted earnings per share of 29 percent. Diluted earnings per share for the fourth quarter of 2006 include a gain from the sale of shares in Vision Systems Limited, net of transaction-related costs, and expenses associated with the Company's plan to relocate operations from its Mountain View facility to Marlborough headquarters, which together resulted in a net gain of approximately $0.03 per share. Revenue for the year ended December 31, 2006, grew 20 percent to $608.3 million, compared to full year 2005 revenue of $508.3 million. For the full year 2006, net income was $139.5 million, or $1.16 per diluted share, compared to net income for 2005 of $113.5 million, or $0.94 per diluted share, an increase in diluted earnings per share of 24 percent. Fourth Quarter 2006 Highlights: * Domestic surgical products revenue of $58.3 million increased 36 percent over fourth quarter 2005. * International revenue of $19.6 million increased 32 percent over fourth quarter 2005. * Domestic diagnostic products revenue increased to $85.2 million, driven by a 34 percent increase in ThinPrep([R]) Imager revenue over fourth quarter 2005, and included the shipment of 9.1 million ThinPrep([R]) Pap Tests Pap test, Pap smear, or Papanicolaou test (păp'ənē`kəlou), medical procedure used to detect cancer of the uterine cervix. and 28 ThinPrep Imaging Systems. * The business generated cash from operations of $56.1 million in the fourth quarter of 2006. Full Year 2006 Highlights: * Worldwide revenue of $608.3 million increased $100 million, or 20 percent over 2005. * Domestic surgical products revenue increased 43 percent over 2005 to $206.0 million, representing 34 percent of total revenue. * International revenue increased 29 percent over 2005 to $68.3 million, or 11 percent of total revenue. * Domestic diagnostic products revenue increased to $334.0 million, driven by a 51 percent increase in ThinPrep Imager revenue over 2005 and included the shipment of 36 million ThinPrep Pap Tests and 127 ThinPrep Imaging Systems. * In October, the Company acquired the business of Helica Instruments Limited, net of certain assets, a company that developed a surgical product for the treatment of endometriosis endometriosis (ĕn'dəmē'trē-ō`sĭs), a condition in which small pieces of the endometrium (the lining of the uterus) migrate to other places in the pelvic area. . * In November at the American Society of Cytopathology The creator of this article, or someone who has substantially contributed to it, may have a conflict of interest regarding its subject matter. It may require cleanup to comply with Wikipedia's content policies, particularly neutral point of view. Annual Meeting, the Company introduced the Cellient([TM]) Automated Cell Block system, a fully automated system that allows individual cells or small tissue samples to be processed for histological his·tol·o·gy n. pl. his·tol·o·gies 1. The anatomical study of the microscopic structure of animal and plant tissues. 2. The microscopic structure of tissue. examination. * The business generated cash from operations of $173.7 million in 2006. Patrick J. Sullivan, Cytyc's chairman, president, and chief executive officer, stated, "2006 was a record year for Cytyc. The Company achieved robust revenue and earnings per share growth of 20 and 24 percent, respectively, through a diverse offering of market leading diagnostic and high growth surgical products. Surgical products represented more than one-third of our revenue for the year. We continue to see growth in our domestic diagnostics business, fueled by the market conversion to the ThinPrep Imaging System and the strength of our ThinPrep Pap Test which provides the financial foundation for future growth. Our international sales grew 29 percent over 2005 as we continue to see strong adoption of our diagnostic products in Europe, Canada, and Asia. To achieve our goal of providing long-term growth, we will be expanding our product offerings with the planned launch of the Cellient Automated Cell Block System in 2007. In addition, we expect to launch an enhanced version of the instrument acquired from Helica Instruments for the treatment of endometriosis in 2008. These products underscore our commitment to provide innovative medical technologies, both internally developed and acquired, that leverage our existing sales and operating infrastructure." Mr. Sullivan concluded, "We are excited about our growth plans for 2007. These plans will be led by increased utilization of NovaSure and MammoSite products, increased imager revenue as the ThinPrep Imaging System becomes the standard of care 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 strong international growth from both our diagnostic and surgical products." The Company's segment revenue was as follows: [TABLE OMITTED] The Company generated $173.7 million of cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses during 2006, demonstrating the strength of its business model. Total cash and investments as of December 31, 2006, was $297.7 million, after investing $108 million in the share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program during the year. Non-GAAP Information In addition to disclosing results determined in accordance with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , or GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , Cytyc also discloses adjusted, or non-GAAP, results of operations that exclude certain items. By disclosing this non-GAAP information, management intends to provide investors with additional information to further analyze Cytyc's performance and underlying trends. In order to better assess operating trends, management utilizes a measure of adjusted net income and adjusted diluted net income per common share on a non-GAAP basis that excludes for the applicable period stock options expensed under new accounting guidelines adopted January 1, 2006, net of tax effects, the gain on sale of Vision Systems stock in the fourth quarter of 2006, net of related transaction fees and tax effects, a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. in the fourth quarter of 2006 related to the closure of the Company's Mountain View, California For the census-designated place, see Mountain View, Contra Costa County, California. For other places called "Mountain View", see . Mountain View is a city in Santa Clara County, in the U.S. state of California. The city gets its name from the views of the Santa Cruz Mountains. , facility, net of tax effects, and a charge in the first quarter of 2005, net of tax effects, related to the DEKA DEKA Dean Kamen (of DEKA Research and Development Corporation, Manchester, NH, USA) DEKA Deutsche Kapitalanlagegesellschaft Mbh (German investment fund) Products Limited Partnership arbitration panel arbitration panel A group of individuals charged with resolving a dispute between individuals and/or organizations. Arbitration panels to resolve investment disputes are sponsored by self-regulatory organizations such as NASD. decision. Management believes adjusted net income provides useful supplemental information to management and investors regarding the performance and underlying trends of Cytyc's business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets and facilitates comparisons to its historical operating results. Management uses this information internally for forecasting, budgeting, evaluating the effectiveness of Cytyc's operational strategies, and performance measurement for compensation of management and employees. Management believes it is important to provide investors with the same metrics used by management to measure operating performance, which assists investors in analyzing the underlying trends in Cytyc's business over time. Non-GAAP information should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as measures of Cytyc's profitability or liquidity. Users of this financial information should consider the types of events and transactions for which adjustments have been made. See the tables in this press release for a reconciliation of non-GAAP amounts to amounts reported under GAAP. Cytyc management will discuss fourth quarter and full year 2006 results, business highlights and future expectations during a conference call on February 8 at 8:30 a.m. (Eastern). The call will be hosted by Patrick J. Sullivan, Cytyc Corporation's chairman, president, and chief executive officer, and Timothy M. Adams, chief financial officer. A live webcast of the call may be accessed at Cytyc's website, http://ir.cytyc.com, and the event will be available for replay at this site approximately two hours following the call until February 22, 2007. Those without web access may access the call by dialing 201-689-8560. A telephonic replay of the call will be available through February 22, 2007, by dialing 201-612-7415; enter account # 3055 and conference ID # 226904. Cytyc Corporation is a diversified diagnostic and medical device company that designs, develops, manufactures, and markets innovative and clinically effective diagnostic and surgical products. Cytyc's products cover a range of cancer and 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. applications, including cervical cancer screening, treatment of excessive menstrual menstrual /men·stru·al/ (men´stroo-al) pertaining to the menses or to menstruation. men·stru·al or men·stru·ous adj. Of or relating to menstruation. bleeding, radiation treatment of early-stage breast cancer, and radiation treatment of patients with malignant brain tumors Brain Tumor Definition A brain tumor is an abnormal growth of tissue in the brain. Unlike other tumors, brain tumors spread by local extension and rarely metastasize (spread) outside the brain. . Cytyc is traded on The NASDAQ Global Select Market under the symbol CYTC. Cytyc, ThinPrep, FirstCyte, NovaSure, MammoSite, and GliaSite are registered trademarks of Cytyc Corporation. Cellient is a trademark 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 Cytyc's future financial condition, operating results and economic performance, and management's expectations regarding key customer relationships, 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 customers as well as reliance on proprietary technology, uncertainty of product development efforts and timelines, management of growth, product diversification, and organizational change, entry into new market segments domestically and new markets internationally, 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. , the successful consummation of planned acquisition transactions, the effective integration of acquired businesses and technologies, 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 healthcare reimbursement policies in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and abroad, introduction of technologies that are disruptive to Cytyc's business and operations, the impact of new accounting requirements and governmental rules and regulations, as well as other risks detailed in Cytyc's filings with the Securities and Exchange Commission, including those under the heading "Risk Factors" in its 2005 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. Cytyc cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date they were made. Cytyc disclaims any obligation to publicly update or revise any such statements to reflect any change in its expectations or events, conditions, or circumstances 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. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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