Cytyc Reports Record Revenue And EPS; Share of U.S. Market Increases to 33 Percent; Net Income Increases Tenfold.Business/Technology Editors BOXBOROUGH, Mass.--(BUSINESS WIRE)--Oct. 25, 2000 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 reported third quarter net income of $11.0 million, or $0.28 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 net income of $1.1 million, or $0.03 per diluted share, reported for the same period last year. Assuming a theoretical tax rate of 40 percent, pro-forma net income was $0.17 per diluted share for the current quarter. The Company said that 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) Pap Test Pap test, Pap smear, or Papanicolaou test (păp'ənē`kəlou), medical procedure used to detect cancer of the uterine cervix. (TM) represented approximately 33 percent of all Pap tests performed 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. during the third quarter, an increase from 28 percent in the second quarter of this year. Sequential One after the other in some consecutive order such as by name or number. revenue grew 11 percent to a record $37.2 million in the current quarter from $33.5 million reported in the second quarter of year 2000. Third quarter revenues represented a 74 percent increase over the $21.3 million reported in the same quarter of 1999. For the nine months ended September September: see month. 30, 2000, revenues grew 77 percent to $99.5 million compared to revenue of $56.4 million for the same period in 1999. The Company reported net income of $23.4 million, or $0.60 per diluted share for the first nine months of 2000 compared to net income of $2.8 million, or $0.07 per diluted share for the same period last year. Net income for the nine months ended September 1999 included a $1.1 million 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. settlement. "This represents our tenth consecutive quarter of record revenue growth," said Patrick J. Sullivan, Cytyc's president and chief executive officer. "We improved our gross margins from 82 percent to 84 percent resulting in our strongest quarter ever." "Cytyc's consistent revenue growth and financial performance is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the increasing adoption of the ThinPrep Pap Test 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, which now represents one in every three Pap tests done in the U.S.," said 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. J. Levangie, Cytyc's executive vice president. "We believe the accelerating market acceptance is the result of the superior clinical performance of the ThinPrep Pap Test and the effectiveness of our sales and marketing strategy." Cytyc management will discuss results of the third quarter and future expectations during a conference call on October October: see month. 26, 2000, at 10:30 a.m. (Eastern). A webcast or a replay of the call may be accessed at Cytyc's web site, www.cytyc.com, where the event will be available for replay approximately two hours following the webcast. Those without web access may contact Cytyc for dial-in instructions to access the call. A telephonic replay of the call will be available through November November: see month. 2, 2000, by calling 800-615-3210 (Access Code: 4671132). In connection with the recent adoption of the new 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. The Quiet Period will extend until Cytyc's next quarterly Earnings Release is published and the conference call takes place. For the fourth quarter, the Quiet Period will be December December: see month. 16, 2000, through approximately January January: see month. 25, 2001. Cytyc Corporation develops, manufactures, and markets the ThinPrep(R) System for medical diagnostic applications. The ThinPrep System consists of the ThinPrep(R) 2000 Processor, ThinPrep(R) 3000 Processor, and related reagents, filters, and other supplies. Cytyc(R), ThinPrep(R), and PreservCyt(R) are registered trademarks and ThinPrep(R) Pap Test(TM) 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 regarding management's plans and objectives for future operations, product plans and performance, potential savings to the healthcare system, management's assessment of market factors, as well as statements regarding the strategy and plans of the Company, constitute forward-looking statements. These statements involve risks and uncertainties which could cause actual results to differ, including, without limitation, risks associated with the Company's dependence on a single product, uncertainty of market acceptance and additional cost, dependence on proprietary technology, dependence on timely and adequate levels of third-party reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. , dependence on key personnel, management of growth, limited marketing and sales experience, and limited number of customers and lengthy sales cycle, as well as risks of downturns in economic conditions generally, and in the healthcare industry specifically, risks associated with competition and competitive pricing pressures, potential liabilities and costs associated with litigation, 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 1999 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. filed with the Commission. In addition, revenues and earnings in the medical device industry are subject to fluctuation Fluctuation A price or interest rate change. , and the growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. recently experienced by the Company do not necessarily represent future operating results. 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)
September 30, December 31,
2000 1999
Assets:
Current assets
Cash and short-term
investments $ 78,734 $ 70,368
Accounts receivable, net 33,463 22,379
Inventories 9,700 5,427
Other current assets 1,056 783
Total current assets 122,953 98,957
Property and equipment, net 16,730 10,660
Other assets, net 9,347 2,711
Total Assets $ 149,030 $ 112,328
Liabilities and Stockholders' Equity:
Current liabilities $ 19,838 $ 17,337
Stockholders' equity:
Capital stock 182,256 170,312
Accumulated other
comprehensive loss (1,171) (53)
Accumulated deficit (51,893) (75,268)
Total stockholders' equity 129,192 94,991
Total Liabilities and Stockholders' Equity $ 149,030 $ 112,328
Cytyc Corporation
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Nine Months Ended
Sept 30, Sept 30, Sept 30, Sept 30,
2000 1999 2000 1999
Net sales $ 37,209 $ 21,331 $ 99,512 $ 56,367
Cost of sales 5,866 3,832 17,285 11,303
Gross profit 31,343 17,499 82,227 45,064
Operating expenses:
Research and
development 3,462 4,246 10,653 9,826
Sales and marketing 14,264 11,842 41,145 31,663
General and
administrative 3,539 1,254 9,784 4,690
Total operating
expenses 21,265 17,342 61,582 46,179
Income (loss)
from operations 10,078 157 20,645 (1,115)
Other income, net 1,263 936 3,323 3,892
Income before provision
for income taxes 11,341 1,093 23,968 2,777
Provision for
income taxes 346 - 592 -
Net income $ 10,995 $ 1,093 $ 23,376 $ 2,777
Net income per common
and potential common
share
Basic $ 0.30 $ 0.03 $ 0.64 $ 0.08
Diluted $ 0.28 $ 0.03 $ 0.60 $ 0.07
Weighted average
common and potential
common shares
outstanding:
Basic 37,195 35,800 36,740 35,686
Diluted 39,437 37,626 39,259 37,106
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