General Surgical Innovations Reports Third Quarter Fiscal 1997 Financial Results.PALO ALTO Palo Alto, city, California Palo Alto (păl`ō ăl`tō), city (1990 pop. 55,900), Santa Clara co., W Calif.; inc. 1894. Although primarily residential, Palo Alto has aerospace, electronics, and advanced research industries. , Calif.--(BW HealthWire)--April 10, 1997--General Surgical Innovations, Inc. (Nasdaq: GSII GSII Government Services Information Infrastructure ) today announced financial results for the third quarter of fiscal 1997 ended March 31, 1997. Third quarter revenues were approximately $2,173,000, as compared to $1,713,000 for the third quarter a year earlier, and $1,861,000 for the second quarter of fiscal 1997. The Company reported a net loss of $439,000, or $(0.03) per share, compared to a loss of $3,372,000, $(0.51) per share in the third quarter of the previous year, and a loss of $237,000, or $(0.02) per share, in the second quarter of fiscal 1997. GSI GSI - Gensym Standard Interface ended the quarter with approximately $46,395,000 in cash, cash equivalents and available-for-sale securities. "We are pleased with the financial results of the quarter," stated Roderick A. Young, President and Chief Executive Officer of GSI. "The increase in revenue is in large part a result of Ethicon Endo-Surgery Ethicon Endo-Surgery, Inc., a subsidiary of Johnson & Johnson, is a company that designs and manufactures medical devices and surgical instruments with the intent of minimizing the invasiveness of surgery. Ethicon Endo-Surgery was part of Ethicon, Inc. starting to order GSI product for hernia repair Hernia Repair Definition Hernia repair is a surgical procedure to return an organ that protrudes through a weak area of muscle to its original position. , in conjunction with the distribution and licensing agreement we entered into with them in December 1996." Quarter Overview In February, General Surgical announced that it had received clearance from the U.S. Food and Drug Administration (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. ) to market the Spacemaker(R) SAPHtrak(TM) balloon dissection system to aid minimally invasive removal of the saphenous vein saphenous vein n. Either of two main superficial veins of the leg, one larger than the other, that begin at the foot. Saphenous vein A long vein in the thigh or calf commonly used for bypass grafts. . More than 600,000 coronary bypass coronary bypass Surgical treatment for coronary heart disease to relieve angina pectoris and prevent heart attacks. It became widely used in the 1960s. One or more blood vessels—usually an artery in the chest or a vein from the leg—are transplanted to create procedures were performed worldwide in 1996 and approximately 90% of these used the saphenous vein as the bypass conduit. Traditionally, the vein is harvested by making an incision which can span the entire length of the leg from ankle to groin. The SAPHtrak balloon dissector balloon dissector Surgery An instrument used as an alternative to blunt dissection; the BD is inserted uninflated through an incision between tissue layers, then filled with air or saline, resulting in separation of the planes allows the vein to be removed through a small number of one to three centimeter incisions. The balloon is inserted through one such incision and then inflated to create an operating space subcutaneously along the length of the saphenous vein. The clearance of this product is the first part of a minimally invasive saphenous vein harvesting kit which GSI plans to introduce in calendar 1997. Additionally, during the quarter GSI announced that James R. Sulat has joined the Company's Board of Directors. The addition of Mr. Sulat to the Board increases the number of directors to six. Mr. Sulat is currently Chief Financial Officer of Stanford Health Services health services Managed care The benefits covered under a health contract . "In addition, we are excited to have received FDA clearance to market the SAPHtrak balloon dissector and to have met this important milestone," stated Mr. Young. "We are also pleased to have added Jim Sulat to our Board. Jim's extensive senior management experience will be invaluable as we continue through this exciting time in the Company's development." Headquartered in Palo Alto, California “Palo Alto” redirects here. For other uses, see Palo Alto (disambiguation). Palo Alto (IPA: /ˌpæloʊˈʔæltoʊ/, from Spanish: palo: "stick" and alto: "high", i.e. , General Surgical Innovations, Inc. develops, manufactures, and sells balloon dissection systems for minimally invasive surgery minimally invasive surgery Laparoscopic surgery, see there. See Laparoscopic cholecystectomy. . The Company's products are specifically designed for endoscopic en·do·scope n. An instrument for examining visually the interior of a bodily canal or a hollow organ such as the colon, bladder, or stomach. en and laparoscopic Laparoscopic A minimally-invasive surgical or diagnostic procedure that uses a flexible endoscope (laparoscope) to view and operate on structures in the abdomen. Mentioned in: Obstetrical Emergencies techniques for use in general, vascular, cosmetic and reconstructive surgeries to create a working space at the surgical site, minimize tissue damage and improve patient recovery time. The Company has developed a broad range of balloon shapes and sizes to be used for various surgical techniques, procedures, and market segments. In addition to selling products through corporate partners, GSI also sells products directly into the vascular surgery Vascular surgery is a subspecialty of general surgery in which diseases of the vascular system, or arteries and veins, are managed, largely via surgical intervention. The vascular surgeon is trained in the diagnosis and management of diseases affecting all parts of the vascular and cosmetic and reconstructive surgery markets. Except for historical information contained herein, the matters discussed in this press release are forward-looking statements, the accuracy of which is necessarily subject to risks and uncertainties. The clinical efficacy of and market demand for the SAPHtrak balloon dissector and GSI's other products, among other matters discussed in this release, may differ significantly from the discussion of such matters in the forward-looking statements. Such differences may be based upon factors within General Surgical Innovations' control, such as strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. decisions by management and reallocation Noun 1. reallocation - a share that has been allocated again allocation, allotment - a share set aside for a specific purpose 2. reallocation of internal resources, or on factors outside of General Surgical Innovations' control, such as scientific advances by third parties, introduction of competitive products and delays by regulatory authorities, as well as those factors set forth under the heading "Factors Affecting Future Results" in General Surgical Innovations' Prospectus, Form 10K for the year ended June 30, 1996, Form 10Q for the quarters ended September 30, 1996 and December 31, 1996 and other securities filings of the Company. -0-
General Surgical Innovations, Inc. and Subsidiary
Condensed, Consolidated Statements of Operations (Unaudited)
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
March 31, March 31,
1997 1996 1997 1996
Sales $ 693 $ 1,713 $ 3,524 $ 3,421
Guaranteed Payments 1,480 - 2,980 -
2,173 1,713 6,504 3,421
Cost of Sales 397 734 1,749 1,654
Gross Profit 1,776 979 4,755 1,767
Operating Expenses:
Research and
development 581 384 1,527 864
Sales and marketing 1,216 825 3,419 2,578
General and
administrative 1,044 414 2,597 1,120
Write-off of
acquired in-process
research and
development - 2,791 - 2,791
Total operating
expenses 2,841 4,414 7,543 7,353
Operating loss (1,065) (3,435) (2,788) (5,586)
Interest and other
income (expense) 626 63 1,883 151
Net loss $ (439) $ (3,372) $ (905) $ (5,435)
Net loss per share $(0.03) $ (0.51) $(0.07) $ (0.83)
Shares used in
computing net
loss per share 13,211,359 6,557,252 13,180,538 6,555,501
Selected Balance Sheet Data
March 31, June 30,
1997 1996
(Unaudited)
Cash, cash equivalents &
available-for-sale securities $ 46,395 $ 49,826
Current assets 50,627 51,801
Total assets 51,544 52,767
Current liabilities 1,376 1,733
Stockholders' equity 49,741 50,475
CONTACT: Stephen J. Bonelli Burns McClellan, Inc CFO/VP Finance Jonathan M. Nugent (Investors) 415-812-9730 212-505-1919 sbonelli@gsii.com Leah Fine (Media) 415-352-6262 |
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