Cytyc Reports Record Second Quarter 2005 Results; Revenues Up 26 Percent to $125.4 Million; EPS Up 21 Percent to $0.23 per Diluted Share.MARLBOROUGH Marl·bor·ough or Marl·bo·ro A city of east-central Massachusetts east-northeast of Worcester. Settled in 1657, it was nearly destroyed in 1676 during King Philip's War. Population: 38,100. , Mass. -- 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), a leading 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. company, today announced results for the second quarter and six months ended June June: see month. 30, 2005. Revenues for the quarter rose 26 percent to $125.4 million compared to $99.5 million for the second quarter of 2004. Net income increased 28 percent to $28 million compared to $21.9 million in the second quarter of 2004. 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 21 percent to $0.23 compared to $0.19 reported in the second quarter of 2004. "I am pleased with our record financial and operating performance for the second quarter and first half of 2005," said Patrick J. Sullivan, Cytyc's chairman, president, and chief executive officer. "Our surgical products division reported a second quarter revenue increase of nearly 100 percent to $35.6 million compared to the same period last year, with quarterly NovaSure(R) revenue up 64 percent to $29.4 million. In addition, we completed the integration of the Proxima Noun 1. Proxima - the nearest star to the sun; distance: 4.3 light years Proxima Centauri Centaurus, Centaur - a conspicuous constellation in the southern hemisphere near the Southern Cross acquisition and recorded revenue of approximately $6.2 million for the quarter, making the transaction accretive to earnings in the first full quarter of operating results since the completion of the acquisition." "In our diagnostics (1) Software routines that test hardware components (memory, keyboard, disks, etc.). Diagnostics are often stored in ROM chips and activated on startup. (2) Error messages in a programmer's source code that refer to statements or syntax that the compiler or assembler division, we shipped nine million 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 Tests Pap test, Pap smear, or Papanicolaou test (păp'ənē`kəlou), medical procedure used to detect cancer of the uterine cervix. and 34 ThinPrep(R) Imaging Systems to laboratories 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. ." Mr. Sullivan continued, "With respect to our relationship with Quest Diagnostics Quest Diagnostics Incorporated (NYSE: DGX) is a United States corporation which provides clinical laboratory services . The company also has a business presence in England and Mexico. Quest Diagnostics is a member of the Fortune 500 and the S&P 500. , we have implemented an arrangement that includes terms to supply both instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. and disposables to meet their customers' demand." Mr. Sullivan concluded, "We ended the quarter with $97 million in cash and investment securities after completing our $50 million stock repurchase plan stock repurchase plan 1. See buyback. 2. See self-tender. . Our second quarter results reflect our ability to continue to deliver strong financial results while we strategically diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our business. Our success to date gives us great confidence that we are well positioned as a worldwide leader in providing innovative, best-in-class See best-of-class. products for women's health." Revenues for the six months ended June 30, 2005, rose to $238.8 million, compared to revenues of $180.2 million for the same period of 2004. 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 for the six months ended June 30, 2005, which excludes the impact of the DEKA DEKA Dean Kamen (of DEKA Research and Development Corporation, Manchester, NH, USA) DEKA Deutsche Kapitalanlagegesellschaft Mbh (German investment fund) arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the decision in February February: see month. 2005, was $53.9 million, or $0.45 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 pro forma net income for the same period in 2004 of $42.5 million, or $0.37 per diluted share, which excludes the charge for in-process research and development related to the acquisition of Novacept in March 2004. Reported net income for the first half of 2005 was $48.9 million, compared to net income of $23.4 million in the first half of 2004, and reported earnings per diluted share were $0.41 for the first half of 2005, compared to $0.21 for the first half of 2004. Financial Highlights Total worldwide revenues for the second quarter of 2005 were $125.4 million, an increase of 26 percent from the same period last year. Worldwide revenues from the surgical products division, which primarily include sales of the NovaSure System and the MammoSite(R) Radiation Therapy System, totaled $35.6 million for the second quarter of 2005, an increase of 98 percent over the second quarter of 2004. This increase reflects both a 64 percent increase in sales of the NovaSure System and the addition of the MammoSite Radiation Therapy System following the acquisition of Proxima on March 7, 2005. Total domestic revenues from the diagnostic products division for the second quarter were $77 million compared to $70.8 million in the second quarter of 2004. These revenues were comprised of sales of the ThinPrep Pap Test, usage fees associated with the ThinPrep Imaging System, and other revenues from instrument sales and non-GYN tests. International revenues from the diagnostic products division for the second quarter of 2005 were $12.8 million, an increase of 19 percent over the second quarter of 2004. Total worldwide revenues for the first half of 2005 were $238.8 million, an increase of 33 percent from the same period of last year. Worldwide revenues from the surgical products division totaled $62.1 million for the first half of 2005 compared to $19.4 million in the first half of 2004, reflecting growth in Novasure and the timing of the Novacept and Proxima acquisitions in March 2004 and 2005, respectively. Total domestic revenues from the diagnostic products division for the first half of 2005 were $152 million compared to $140.4 million in the first half of 2004. These revenues were comprised of sales of the ThinPrep Pap Test, usage fees associated with the ThinPrep Imaging System, and other revenues from instrument sales and non-GYN tests. International revenues from the diagnostic products division for the first half of 2005 were $24.7 million, an increase of 21 percent over the first half of 2004. Cytyc discloses non-GAAP or pro forma measures that exclude certain charges. Non-GAAP measures may exclude such items as charges related to 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. and acquired in-process research and development. Cytyc management uses these measures to establish operational goals, and believes that non-GAAP measures may assist investors in analyzing the underlying trends in Cytyc's business over time. Investors should consider these non-GAAP measures in addition to, not as a substitute for, or as superior to, financial reporting measures prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Cytyc management will discuss second quarter results, business highlights and future expectations during a conference call on July July: see month. 28, at 8:30 a.m. (Eastern). The call will be hosted by Patrick Sullivan, chairman, chief executive officer, and president; 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, executive vice president and chief commercial officer; Timothy Adams
Timothy Adams (born August 4, 1967 in Bellville, New Jersey) is an American actor. , vice president and chief financial officer; and John McDonough McDonough is the name of several places in the United States:
Cytyc Corporation is a leading women's health company that designs, develops, manufactures, and markets innovative and clinically effective products. Cytyc products cover a range of women's health applications, including 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, breast cancer risk assessment, 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, and treatment of breast cancer. 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, ThinPrep, NovaSure, MammoSite, and GliaSite 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 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, customers and proprietary technology, uncertainty of product development efforts and product acceptance, management of growth and product diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. , entry into new market segments, risks associated with litigation, 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 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 healthcare reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. policies, introduction of technologies that are disruptive disruptive /dis·rup·tive/ (-tiv) 1. bursting apart; rending. 2. causing confusion or disorder. 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 under the heading "Certain Factors Which May Affect Future Results" in its 2004 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 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. FINANCIAL TABLES FOLLOW
Cytyc Corporation
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
----------------------------------------------------------------------
Three Months Ended
June 30, June 30,
2005 2004
--------- --------
Net sales $125,381 $99,474
Cost of sales 26,106 21,655
--------- --------
Gross profit 99,275 77,819
--------- --------
Operating expenses:
Research and development 7,958 5,295
Sales and marketing 33,708 27,391
General and administrative 11,490 8,819
--------- --------
Total operating expenses 53,156 41,505
--------- --------
Income from operations 46,119 36,314
Other expense, net:
Interest income 526 391
Interest expense (1,792) (1,789)
Other expense (703) (174)
--------- --------
Total other expense, net (1,969) (1,572)
--------- --------
Income before provision for income taxes 44,150 34,742
Provision for income taxes 16,115 12,866
--------- --------
Net income $28,035 $21,876
========= ========
Net income per common share --
Basic $0.25 $0.20
========= ========
Diluted $0.23 $0.19
========= ========
Weighted average common and potential common
shares outstanding:
Basic 113,173 110,840
========= ========
Diluted (1) 124,796 123,329
========= ========
Cytyc Corporation
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
---------------------------------------------------------------------
Six Months Ended Six Months Ended
June 30, 2005 June 30, 2004
----------------------------- ----------------------------
Pro Adjust- As Pro Adjust- As
Forma ment Reported Forma ment Reported
-------- -------- ----------- -------- -------- ----------
Net sales $238,786 $- $238,786 $180,199 $- $180,199
Cost of
sales 50,033 - 50,033 36,838 - 36,838
-------- -------- --------- -------- --------- ---------
Gross
profit 188,753 - 188,753 143,361 - 143,361
-------- -------- --------- -------- --------- ---------
Operating
expenses:
Research
and
develop-
ment 14,757 - 14,757 9,607 - 9,607
In-process
research
and
develop-
ment - - - - 19,100(3) 19,100
Sales and
marketing 63,391 - 63,391 47,564 - 47,564
General and
admini-
strative 22,197 - 22,197 16,265 - 16,265
Arbitration
decision - 7,807(2) 7,807 - - -
-------- -------- --------- -------- --------- ---------
Total
operating
expenses 100,345 7,807 108,152 73,436 19,100 92,536
-------- -------- --------- -------- --------- ---------
Income from
operations 88,408 (7,807) 80,601 69,925 (19,100) 50,825
Other expense,
net:
Interest
income 1,418 - 1,418 1,105 - 1,105
Interest
expense (3,584) - (3,584) (1,789) - (1,789)
Other
expense (1,386) - (1,386) (673) - (673)
--------- ------- --------- --------- -------- ---------
Total other
expense,
net (3,552) - (3,552) (1,357) - (1,357)
--------- ------- --------- --------- -------- ---------
Income before
provision
for income
taxes 84,856 (7,807) 77,049 68,568 (19,100) 49,468
Provision
for income
taxes 30,973 (2,850)(2) 28,123 26,056 - 26,056
-------- -------- --------- -------- --------- ---------
Net income $53,883 $(4,957) $48,926 $42,512 $(19,100) $23,412
======== ======== ========= ======== ========= =========
Net income
per common
share --
Basic $0.48 $0.43 $0.39 $0.21
========= ========= ========= =========
Diluted $0.45 $0.41 $0.37 $0.21
========= ========= ========= =========
Weighted average
common and
potential
common shares
outstanding:
Basic 113,417 113,417 110,380 110,380
========= ========= ========= =========
Diluted(1) 125,281 125,281 118,457 118,457
========= ========= ========= =========
(1) Diluted earnings per share includes the effect of the assumed
conversion of 8.4 million shares of our common stock (weighted for
the periods deemed outstanding) related to our contingent
convertible notes issued in March 2004, in accordance with new
accounting rules effective for fiscal 2004. Inclusion of these
shares decreased the Company's diluted earnings per share for the
three and six months ended June 30, 2005 by $0.01, but had no
effect on the Company's diluted earnings per share for the three
and six months ended June 30, 2004.
(2) Charge in connection with the DEKA Products Limited Partnership
arbitration panel decision in the first quarter 2005.
(3) Charge to write off in-process research and development costs
related to the acquisition of Novacept in the first quarter of
2004.
Cytyc Corporation
Consolidated Balance Sheets
(in thousands)
June 30, December 31,
2005 2004
----------- ---------
(unaudited)
Assets:
Current assets
Cash and investment securities $96,956 $232,295
Accounts receivable, net 69,459 63,636
Inventories 23,126 17,310
Other current assets 8,130 7,549
----------- ---------
Total current assets 197,671 320,790
----------- ---------
Property and equipment:
Property and equipment 96,146 95,040
Equipment under customer usage agreements 53,669 42,380
Less: accumulated depreciation and
amortization (46,143) (45,908)
----------- ---------
Total property and equipment, net 103,672 91,512
----------- ---------
Goodwill and other intangible assets, net 564,473 388,908
Other assets, net 7,420 8,140
----------- ---------
Total Assets $873,236 $809,350
=========== =========
Liabilities and Stockholders' Equity:
Current liabilities $54,429 $42,585
Long-term debt and other non-current
liabilities 315,426 279,320
Stockholders' equity 503,381 487,445
----------- ---------
Total Liabilities and Stockholders' Equity $873,236 $809,350
=========== =========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion