Cytyc Reports Record Third Quarter Revenue of $102.8 Million; Revenue Increases 36 Percent EPS Increases 24 Percent to $0.21 per Diluted Share.BOXBOROUGH, 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) today announced results for the third quarter and nine months ended September September: see month. 30, 2004. Revenues for the quarter rose 36 percent to $102.8 million compared to $75.5 million for the third quarter of 2003. 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 24 percent to $0.21 compared to $0.17 reported in the third quarter of 2003. Net income increased 33 percent to $24.8 million compared to $18.6 million in the third quarter of 2003. For the nine months ended September 30, 2004, revenues grew 26 percent to $283.0 million compared to $224.8 million for the same period in 2003. Net income was $48.2 million, or $0.42 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 $56.7 million, or $0.50 per diluted share for the same period of 2003. Excluding the nonrecurring charge Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". of $19.1 million for acquired in-process research and development related to the acquisition of Novacept, net income for the nine months ended September 30, 2004, was $67.3 million, or $0.59 per diluted share. "I am pleased with our strong performance in both the diagnostic and surgical divisions of the business," said Patrick J. Sullivan, Cytyc's chairman, president, and chief executive officer. "We are well on our way towards establishing 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 as a lab standard for processing ThinPrep(R) Pap Tests Pap test, Pap smear, or Papanicolaou test (păp'ənē`kəlou), medical procedure used to detect cancer of the uterine cervix. as exemplified by our new, long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. agreements signed this quarter with LabCorp Laboratory Corporation of America Holdings (NYSE: LH), more commonly known as LabCorp, is an S&P 500 company in Burlington, North Carolina, and one of the largest clinical laboratory networks in the world, with a United States network of 36 primary laboratories. and LabOne. International adoption International adoption, or intercountry adoption, is a type of adoption in which an individual or couple becomes the legal and permanent parents of a child born in another country. of our technology continues to expand in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Asia-Pacific The term Asia-Pacific generally applies to littoral East Asia, Southeast Asia and Australasia near the Pacific Ocean, plus the states in the ocean itself (Oceania). . Sales of our NovaSure(R) product
continue to grow and this quarter approached $20 million as we continue
to realize the synergies of our combined OBGYN OBGYN Obstetrics and Gynecology sales force that is now
more than 170 people strong. " Mr. Sullivan concluded, "We
remain focused on executing our key growth initiatives, which will
enable us to support our position as a premier provider of innovative
and clinically effective women's health Women's Health DefinitionWomen's health is the effect of gender on disease and health that encompasses a broad range of biological and psychosocial issues. products and services." Cytyc management will discuss third quarter results, business highlights and future expectations during a conference call on October October: see month. 28 at 9:00 a.m. (Eastern). The call will be hosted by Patrick Sullivan, chairman, president, and chief executive officer; Leslie Leslie (Gaelic, derived from a surname meaning 'garden of hollies,'grey fortress, or'garden by the pool')[1] can refer to any of the following: Places in Scotland:
Cytyc Corporation is a leading medical device company that designs, develops, manufactures, and markets innovative and clinically effective products primarily focused on women's health. 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, and 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. The ThinPrep(R) System is the most widely used method for cervical cancer screening 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. . The ThinPrep System consists of the ThinPrep(R) 2000 Processor, ThinPrep(R) 3000 Processor, ThinPrep(R) Imaging System, and related reagents, filters, and other supplies. The ThinPrep System also provides the platform from which the Company has launched its expansion into breast cancer risk assessment with the FirstCyte(R) Breast Test. Cytyc Surgical Products, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Cytyc Corporation, manufactures and markets the NovaSure(R) Impedance impedance, in electricity, measure in ohms of the degree to which an electric circuit resists the flow of electric current when a voltage is impressed across its terminals. Controlled Endometrial Ablation Endometrial ablation is a medical procedure that is used to remove (ablate) or destroy the endometrial lining of a woman's uterus. This technique is most often employed for women who suffer from excessive or prolonged bleeding during their menstrual cycle but can not or do not wish System, or the NovaSure(R) System, an innovative endometrial ablation device to treat menorrhagia menorrhagia /men·or·rha·gia/ (men?ah-ra´jah) hypermenorrhea. men·or·rha·gia n. See hypermenorrhea. , or excessive menstrual bleeding. 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, FirstCyte, and NovaSure 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, product acceptance, management of growth, 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. and 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 any healthcare reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. policies, and other risks detailed in the Company's filings with the Securities and Exchange Commission, included under the heading "Certain Factors Which May Affect Future Results" in its 2003 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 Statements of Operations
(in thousands, except per share data)
(unaudited)
---------------------------------------------------------------------
Three Months Ended
September 30, September 30,
2004 2003
--------------------------
Net sales $102,787 $75,457
Cost of sales 21,334 14,063
------------ ------------
Gross profit 81,453 61,394
------------ ------------
Operating expenses:
Research and development 5,424 4,212
Sales and marketing 26,349 20,201
General and administrative 8,402 6,805
------------ ------------
Total operating expenses 40,175 31,218
------------ ------------
Income from operations 41,278 30,176
Other (expense) income, net:
Interest income 492 477
Interest expense (1,801) -
Other (30) (200)
------------ ------------
Total other (expense) income, net (1,339) 277
------------ ------------
Income before provision for income taxes 39,939 30,453
Provision for income taxes 15,177 11,855
------------ ------------
Net income $24,762 $18,598
============ ============
Net income per common and potential
common share:
Basic $0.22 $0.17
============ ============
Diluted $0.21 $0.17
============ ============
Weighted average common and potential
common shares outstanding:
Basic 111,412 109,728
============ ============
Diluted 115,791 111,613
============ ============
Cytyc Corporation
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
----------------------------------------------------------------------
Nine
Months
Nine Months Ended Ended
September 30, 2004 September
30, 2003
------------------------------- ----------
Pro Adjustment As As
Forma Reported Reported
------------------------------- ----------
Net sales $282,986 $- $282,986 $224,766
Cost of sales 58,172 - 58,172 41,639
--------- ---------- ---------- ----------
Gross profit 224,814 - 224,814 183,127
--------- ---------- ---------- ----------
Operating expenses:
Research and development 15,031 - 15,031 10,989
In-process research and
development - 19,100(1) 19,100 -
Sales and marketing 73,913 - 73,913 60,201
General and administrative 24,667 - 24,667 19,711
--------- --------- ----------- ----------
Total operating expenses 113,611 19,100 132,711 90,901
--------- --------- ----------- ----------
Income from operations 111,203 (19,100) 92,103 92,226
Other (expense) income, net:
Interest income 1,597 - 1,597 1,884
Interest expense (3,590) - (3,590) -
Other (703) - (703) (112)
--------- --------- ----------- ----------
Total other (expense)
income, net (2,696) - (2,696) 1,772
--------- --------- ----------- ----------
Income before provision for
income taxes 108,507 (19,100) 89,407 93,998
Provision for income taxes 41,233 - 41,233 37,281
--------- --------- ----------- ----------
Net income $67,274 $(19,100) $48,174 $56,717
========= ========= =========== ==========
Net income per common and
potential common share:
Basic $0.61 $0.44 $0.51
========= =========== ==========
Diluted $0.59 $0.42 $0.50
========= =========== ==========
Weighted average common and
potential common
shares outstanding:
Basic 110,707 110,707 111,410
========= =========== ==========
Diluted 114,553 114,553 113,196
========= =========== ==========
(1) One-time charge to write off in-process research and development
costs related to acquisition of Novacept in Q1 2004
Cytyc Corporation
Consolidated Balance Sheets
(in thousands)
September 30, December 31,
2004 2003
------------- ------------
(unaudited)
Assets:
Current assets
Cash and investment securities $178,878 $177,897
Accounts receivable, net 61,466 42,070
Inventories 25,017 17,801
Other current assets 10,260 4,859
----------- ----------
Total current assets 275,621 242,627
----------- ----------
Property and equipment, net 40,405 32,561
Goodwill and other intangible assets, net 391,670 107,246
Equipment under customer usage
agreements, net 26,630 8,072
Other assets, net 7,757 394
----------- ----------
Total Assets $742,083 $390,900
=========== ==========
Liabilities and Stockholders' Equity:
Current liabilities $57,617 $32,920
Long-term debt and other non-current
liabilities 254,475 4,349
Stockholders' equity 429,991 353,631
----------- ----------
Total Liabilities and Stockholders' Equity $742,083 $390,900
=========== ==========
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