Cytyc Reports Second Quarter Revenue Growth of 30 Percent; Second Quarter Revenues $99.5 Million; EPS $0.19 per Diluted Share; 100th ThinPrep Imaging System Shipped.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 second quarter and six months ended June June: see month. 30, 2004. Revenues for the quarter rose 30 percent to $99.5 million compared to $76.7 million for the second 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 to $0.19 compared to $0.16 reported in the second quarter of 2003. Net income increased to $21.9 million compared to $18.4 million in the second quarter of 2003. Revenues for the six months ended June 30, 2004, rose to $180.2 million, compared to revenues of $149.3 million for the same period of 2003. Net income was $23.4 million, or $0.21 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 $38.1 million, or $0.33 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 six months ended June 30, 2004, was $42.5 million, or $0.37 per diluted share. "I am pleased with our strong performance for the first half of 2004. During the second quarter, we showed excellent execution on our key growth initiatives in both the diagnostic and surgical divisions of our business," said Patrick J. Sullivan, Cytyc's chairman, president, and chief executive officer. "NovaSure(R) sales exceeded expectations, and the results confirm both the increasing market acceptance of this 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 as well as the successful integration of the business. For our core business, I am especially pleased to announce that we shipped our one-hundredth Noun 1. one-hundredth - one part in a hundred equal parts one percent, hundredth common fraction, simple fraction - the quotient of two integers 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 well as our one-millionth Noun 1. one-millionth - one part in a million equal parts millionth common fraction, simple fraction - the quotient of two integers ThinPrep Imaging slide during the second quarter. In addition, two regions of the United Kingdom announced adoption of the ThinPrep(R) Pap Test Pap test, Pap smear, or Papanicolaou test (păp'ənē`kəlou), medical procedure used to detect cancer of the uterine cervix. . Together with Scotland Scotland, political division of Great Britain (1991 pop. 4,957,000), 30,414 sq mi (78,772 sq km), comprising the northern portion of the island of Great Britain and many surrounding islands. , these regions represent approximately 25 percent of the UK market." Cytyc management will discuss second quarter results, business highlights and future expectations during a conference call on July July: see month. 29, at 5:30 p.m. (Eastern). The call will be hosted by Patrick Sullivan, chairman, chief executive officer, and president; 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:
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; and John McDonough McDonough is the name of several places in the United States:
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 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. . 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 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. , 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, including 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
June 30, June 30,
2004 2003
--------- ---------
Net sales $99,474 $76,688
Cost of sales 21,655 15,208
--------- ---------
Gross profit 77,819 61,480
--------- ---------
Operating expenses:
Research and development 5,295 3,822
Sales and marketing 27,391 21,092
General and administrative 8,819 6,837
--------- ---------
Total operating expenses 41,505 31,751
--------- ---------
Income from operations 36,314 29,729
Other (expense) income, net:
Interest income 391 679
Interest expense (1,789) -
Other (174) 200
--------- ---------
Total other (expense) income, net (1,572) 879
--------- ---------
Income before provision for income taxes 34,742 30,608
Provision for income taxes 12,866 12,243
--------- ---------
Net income $21,876 $18,365
========= =========
Net income per common and potential common share:
Basic $0.20 $0.17
========= =========
Diluted $0.19 $0.16
========= =========
Weighted average common and potential common
shares outstanding:
Basic 110,840 111,069
========= =========
Diluted 114,903 112,666
========= =========
Cytyc Corporation
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Six Months
Ended
Six Months Ended June 30,
June 30, 2004 2003
-------------------------------- ---------
As As
Pro Forma Adjustment Reported Reported
-------------------------------- ---------
Net sales $180,199 $- $180,199 $149,308
Cost of sales 36,838 - 36,838 27,575
--------- ---------- --------- ---------
Gross profit 143,361 - 143,361 121,733
--------- ---------- --------- ---------
Operating expenses:
Research and
development 9,607 - 9,607 6,777
In-process research and
development - 19,100 (1) 19,100 -
Sales and marketing 47,564 - 47,564 40,000
General and
administrative 16,265 - 16,265 12,906
--------- ---------- --------- ---------
Total operating expenses 73,436 19,100 92,536 59,683
--------- ---------- --------- ---------
Income from operations 69,925 (19,100) 50,825 62,050
Other (expense) income, net:
Interest income 1,105 - 1,105 1,407
Interest expense (1,789) - (1,789) -
Other (673) - (673) 88
--------- ---------- --------- ---------
Total other (expense)
income, net (1,357) - (1,357) 1,495
--------- ---------- --------- ---------
Income before provision for
income taxes 68,568 (19,100) 49,468 63,545
Provision for income taxes 26,056 - 26,056 25,426
--------- ---------- --------- ---------
Net income $42,512 $(19,100) $23,412 $38,119
========= ========== ========= =========
Net income per common and
potential common share:
Basic $0.39 $0.21 $0.34
========= ========= =========
Diluted $0.37 $0.21 $0.33
========= ========= =========
Weighted average common
and potential common
shares outstanding:
Basic 110,380 110,380 112,244
========= ========= =========
Diluted 113,988 113,988 113,986
========= ========= =========
(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)
June 30, December 31,
2004 2003
------------ ------------
(unaudited)
Assets:
Current assets
Cash and investment securities $146,099 $177,897
Accounts receivable, net 58,520 42,070
Inventories 23,481 17,801
Other current assets 6,705 4,859
------------ ------------
Total current assets 234,805 242,627
------------ ------------
Property and equipment, net 34,544 32,561
Goodwill and other intangible assets, net 392,994 107,246
Equipment under customer usage agreements,
net 21,976 8,072
Other assets, net 7,943 394
------------ ------------
Total Assets $692,262 $390,900
============ ============
Liabilities and Stockholders' Equity:
Current liabilities $42,399 $32,920
Long-term debt and other non-current
liabilities 253,932 4,349
Stockholders' equity 395,931 353,631
------------ ------------
Total Liabilities and Stockholders' Equity $692,262 $390,900
============ ============
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