SCIMED ANNOUNCES THIRD QUARTER RESULTS
SCIMED ANNOUNCES THIRD QUARTER RESULTS MINNEAPOLIS, Dec. 19 /PRNewswire/ -- SCIMED Life Systems, Inc.
(NASDAQ: SMLS) today announced results for the third quarter ended Nov. 30, 1991.
Sales for the quarter were $49,053,000 compared to $28,693,000 in the prior year. The company reported a loss for the quarter of $1,756,000, or $.12 per share, due to a pretax charge of $28 million in connection with settlement of patent litigation with Advanced Cardiovascular Systems, Inc. (ACS), a subsidiary of Eli Lilly and Company (Lilly). Sales for the nine months ended Nov. 30, 1991, were $135,574,000 compared to $78,992,000 in the prior year. Net earnings were $21,991,000, or $1.44 per share fully diluted, compared to $20,710,000, or $1.38 per share, in the prior year. Excluding the $28,000,000 pretax charge, third quarter operating profits increased 122 percent to $24,046,000 compared to $10,825,000 in the prior year. The company said that greater than expected sales were due to continued strong worldwide demand for its coronary angioplasty catheter and guiding catheter products. The company also believes third quarter sales benefited from inventory buildup by certain customers who feared supply interruptions caused by patent litigation with ACS and Lilly which was settled on Nov. 27, 1991. As previously announced, the company has entered into a broad agreement with ACS and Lilly which included a settlement of all existing patent litigation between the companies and also resolved potential future disputes over all existing and certain future products and patents. The company has one pending patent infringement suit with Schneider, Inc. regarding the EXPRESS(TM) catheter product. SCIMED Life Systems, Inc. develops, manufactures and markets disposable medical devices, principally coronary angioplasty catheters, for interventional treatment of coronary artery disease. SCIMED LIFE SYSTEMS, INC. STATEMENT OF OPERATIONS (Unaudited, in thousands, except per share data) Three Months Ended Nine Months Ended 11/30/91 11/30/90 11/30/91 11/30/90 Net sales $49,053 $28,693 $135,574 $78,992 Cost of sales 7,960 7,797 26,242 20,849 Gross profit 41,093 20,896 109,332 58,143 Operating expenses: Selling, general and administrative 14,071 8,545 41,848 23,723 Research and development 2,976 1,526 7,828 3,846 Litigation settlement 28,000 -- 28,000 -- Operating profit (loss) (3,954) 10,825 31,656 30,574 Interest income 1,116 942 3,025 2,630 Interest expense 1 37 4 167 Other income (expense), net (21) 6 36 16 Earnings (loss) before income taxes (2,860) 11,736 34,713 33,053 Income tax expense (benefit) (1,104) 4,412 12,722 12,343 Net earnings (loss) $(1,756) $7,324 $21,991 $20,710 Primary earnings (loss) per common share $(.12) $.50 $1.46 $1.44 Fully diluted earnings (loss) per common share $(.12) $.49 $1.44 $1.38 Weighted average number of common and common equivalent shares outstanding 14,792 14,631 15,072 14,336 -0- 12/19/91 /CONTACT: Craig R. Dvorak of SCIMED, 612-420-0700/ (SMLS) CO: SciMed Life Systems, Inc. ST: Minnesota IN: MTC SU: ERN
AL -- MN014 -- 4063 12/19/91 16:06 EST
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|Date:||Dec 19, 1991|
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