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TARGET THERAPEUTICS ANNOUNCES Q2 RESULTS; EARNINGS OF $0.03 PER SHARE REFLECT GDC CHARGE OF $0.14 PER SHARE

 FREMONT, Calif., Oct. 25 /PRNewswire/ -- Target Therapeutics Inc. (NASDAQ: TGET) today announced financial results for the second quarter of fiscal 1994 ended Sept. 30, 1993.
 Revenues for the quarter were up 18 percent to $8,544,000 from $7,251,000 in the second quarter of fiscal 1993. Net income for the quarter was $210,000 or $0.03 per share, compared with $1,047,000 or $0.15 per share, in the second quarter of the prior fiscal year. The company recently announced that it is making certain changes to its Guglielmi Detachable Coil (GDC) system, an investigational medical device intended for the treatment of high-risk or inoperable cerebral aneurysms. These changes are expected to result in additional costs for which a charge was recorded during the quarter. The effect of this charge was a reduction in net income of $975,000, or $0.14 per share.
 Revenues for the six months ended Sept. 30, 1993 were $16,097,000, up 21 percent from $13,336,000 in the comparable prior-year period. Net income for the current six-month period was $1,680,000, or $0.24 per share, compared with $1,659,000, or $0.23 per share, for the same period of the prior year. Included in net income for the current six-month period is the charge for the estimated cost of the GDC changes described above as well as a positive cumulative effect of a change in accounting method for income taxes. The aggregate impact to net income of these two items was a reduction of $344,000, or $0.05 per share.
 "We are pleased with the second-quarter increase in revenues, which is due in part to the introduction of several new products," said Gary R. Bang, Target's president and chief executive officer. "During the quarter Target received U.S. regulatory clearance to market the FasTRACKER(TM), a new generation of Target micro-catheters featuring Hydrolene(TM), a chemically bonded hydrophilic polymer that reduces friction when negotiating tortuous portions of the vascular system. We also began marketing in North America the Magic line of flow-directed catheters manufactured by Balt Extrusion."
 Founded in 1985, Target Therapeutics Inc. develops, manufactures and markets innovative, highly specialized disposable micro-catheters, guidewires and micro-coils for use in minimally invasive non-surgical procedures to treat vascular diseases of the brain associated with stroke, as well as to treat diseases of other parts of the body that are accessible through small vessels of the circulatory system.
 Products referenced herein are the trademarks or registered trademarks of the company.
 TARGET THERAPEUTICS INC.
 CONSOLIDATED STATEMENTS OF INCOME
 (In thousands, except per share amounts; unaudited)
 Three months ended Six months ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Revenues $8,544 $7,251 $16,097 $13,336
 Costs and expenses:
 Cost of sales (including $1,500
 GDC charge in Q2'94)(A) 4,388 2,352 7,016 4,610
 Research and development 1,817 1,594 3,563 3,187
 Selling, general and
 administrative 2,322 1,909 4,457 3,597
 Total costs and expenses 8,527 5,855 15,036 11,394
 Income from operations 17 1,396 1,061 1,942
 Interest income, net 237 174 459 572
 Other income 7 -- 32 --
 Income before income taxes and
 cumulative effect of change in
 accounting for income taxes 261 1,570 1,552 2,514
 Provision for income taxes 51 523 503 855
 Income before cumulative effect
 of accounting change 210 1,047 1,049 1,659
 Cumulative effect of change in
 method of accounting for
 income taxes -- -- 631 --
 Net income $ 210 $1,047 $ 1,680 $ 1,659
 Net income per share:
 Income before cumulative effect
 of accounting change $ 0.03 $ 0.15 $ 0.15 $ 0.23
 Cumulative effect of change in
 method of accounting for
 income taxes -- -- 0.09 --
 Net income per share $ 0.03 $ 0.15 $ 0.24 $ 0.23
 Shares used in computing net
 income per share 7,111 7,085 7,093 7,073
 (A) The per share effect of the GDC charge for the three-month and the six-month periods was a reduction of $0.14.
 OTHER FINANCIAL DATA
 (In thousands, unaudited)
 Sept. 30, March. 30,
 1993 1993
 Working capital $38,541 $37,370
 Total assets 50,670 46,827
 Long-term obligations 139 152
 Stockholders' equity 44,499 42,462
 Six months ended
 Sept. 30,
 1993 1992
 Net cash provided by operating activities $ 2,166 $ 213
 -0- 10/22/93
 /CONTACT: investors, A. Larry Tannenbaum, vice president, finance and administration and CFO of Target Therapeutics, 510-440-7700; or media, Bruce Voss of Edelman Public Relations, 415-433-5381 for Target Therapeutics/
 (TGET)


CO: Target Therapeutics Inc. ST: California IN: MTC SU: ERN

RB-TM -- SF009 -- 6538 10/25/93 17:01 EDT
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Publication:PR Newswire
Date:Oct 25, 1993
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