Cytyc Reports Record Revenue and Earnings; Q2 Revenue Grows 58% Year over Year to $53 Million; Second Quarter Pro-Forma EPS Increases to $0.11; U.S. Market Share Reaches 46%.Business Editors BOXBOROUGH, Mass.--(BUSINESS WIRE)--July 25, 2001 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 record revenue and earnings for the second quarter ended June June: see month. 30, 2001. The Company also announced that its estimated share of 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. Pap test Pap test, Pap smear, or Papanicolaou test (păp'ənē`kəlou), medical procedure used to detect cancer of the uterine cervix. market increased to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 46 percent. Revenue for the second quarter was $53 million, a 12 percent increase from the $47.5 million reported in the first quarter of 2001 and a 58 percent increase from the $33.5 million reported in the comparable quarter last year. Assuming a theoretical tax rate of 40 percent, pro-forma net income for the second quarter was $13 million, or $0.11 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 fully taxed pro-forma net income of $10.8 million, or $0.09 per diluted share in the first quarter of 2001, excluding 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 income. Fully taxed pro-forma net income in the comparable quarter last year was $4 million, or $0.04 per diluted share. Reported net income for the quarter was $16 million, or $0.13 per diluted share, compared to $15.6 million, including litigation settlement income, or $0.13 per diluted share, in the first quarter of 2001, and $6.7 million, or $0.06 per diluted share, in the second quarter of 2000. For the six months ended June 30, 2001, revenues grew 61 percent to $100.5 million compared to revenue of $62.3 million for the same period in 2000. The Company reported net income of $31.6 million, or $0.26 per diluted share, for the first half of 2001 compared to net income of $12.4 million, or $0.11 per diluted share, for the same period last year. Assuming a theoretical tax rate of 40 percent and excluding a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gain related to a litigation settlement, pro-forma net income for the six months was $23.8 million, or $0.20 per diluted share, compared to fully taxed pro-forma net income of $7.6 million, or $0.06 per diluted share for the same period of 2000. "We are pleased to report record revenues and earnings," said Patrick J. Sullivan, Cytyc's president and chief executive officer. "In addition, we increased our U.S. market share by five percentage points for the second consecutive quarter. Our U.S. market share has grown substantially to approximately 46 percent at June 30 from 36 percent at the end of 2000, and we expect to exceed 50 percent domestic market conversion by year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . This growth has been driven by the combination of our proven marketing strategy, best-in-class See best-of-class. sales team, and superior technology." In conclusion, Mr. Sullivan stated, "As Cytyc continues to achieve record results in the marketplace, I am confident in our ability to continue the momentum established in the first half of the year. We look forward to continuing our consistent quarter to quarter growth and delivering a record financial performance for 2001." Cytyc management will discuss results of the first quarter and future expectations during a conference call on July July: see month. 25, 2001, at 5:00 p.m. (Eastern). A webcast and 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 until August 3, 2001. 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 August 3, 2001, by calling 800-642-1687 (access code: 1388274). 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. The Quiet Period will extend until Cytyc's next quarterly Earnings Release is published and the conference call takes place. For the third quarter of 2001, the Quiet Period will be September September: see month. 16, 2001, through approximately October October: see month. 31, 2001. Cytyc Corporation develops, manufactures, and markets 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) 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) and ThinPrep(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 expectations for future growth, profitability, and objectives for future management and operations, as well as statements regarding the management and operation of Cytyc Healthcare Ventures, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , constitute forward-looking statements which 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, sales, and private equity investment 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, 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 2000 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 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 Statements of Operations
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
Net sales $ 52,997 $ 33,525 $100,464 $ 62,303
Cost of sales 9,439 6,113 18,280 11,419
Gross profit 43,558 27,412 82,184 50,884
Operating expenses:
Research and development 5,249 3,771 10,037 7,191
Sales and marketing 14,482 14,368 28,353 26,881
General and administrative 3,548 3,456 6,999 6,245
Total operating expenses 23,279 21,595 45,389 40,317
Income from operations 20,279 5,817 36,795 10,567
Other income, net:
Interest income 1,431 1,079 2,841 2,060
Litigation settlement -- -- 3,087 --
Total other income, net 1,431 1,079 5,928 2,060
Income before provision
for income taxes 21,710 6,896 42,723 12,627
Provision for income taxes 5,701 156 11,164 246
Net income $ 16,009 $ 6,740 $ 31,559 $ 12,381
Net income per common and
potential common share
Basic $ 0.14 $ 0.06 $ 0.28 $ 0.11
Diluted $ 0.13 $ 0.06 $ 0.26 $ 0.11
Weighted average common and
potential common shares
outstanding:
Basic 114,744 110,322 114,179 109,539
Diluted 119,981 118,041 119,585 117,756
Cytyc Corporation
Consolidated Balance Sheets
(in thousands)
June 30, December 31,
2001 2000
Assets:
Current assets
Cash and short-term
investments $ 128,100 $ 88,845
Accounts receivable, net 44,542 40,214
Inventories 9,828 11,093
Other current assets 2,102 937
Total current assets 184,572 141,089
Property and equipment, net 23,726 21,363
Other assets, net 22,517 8,434
Total Assets $ 230,815 $ 170,886
Liabilities and Stockholders' Equity:
Current liabilities $ 22,554 $ 23,840
Stockholders' equity:
Capital stock 215,288 184,783
Accumulated other
comprehensive loss (1,481) (632)
Accumulated deficit (5,546) (37,105)
Total stockholders' equity 208,261 147,046
Total Liabilities and Stockholders' Equity $ 230,815 $ 170,886
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