SOMANETICS CORPORATION ANNOUNCES FIRST-QUARTER RESULTS
SOMANETICS CORPORATION ANNOUNCES FIRST-QUARTER RESULTS TROY, Mich., April 10 /PRNewswire/ -- Somanetics Corporation
(NASDAQ: SMTS) reported a net loss of $875,401, or $0.14 per common share, for the quarter ended Feb. 29, 1992, compared to a net loss of $443,487, or $0.22 per common share, for the same period of 1991. Raymond W. Gunn, Somanetics' vice president-finance and chief financial officer, said the company experienced a net loss for the quarter primarily because it is still emerging from the development stage as commercial sales remain on hold pending an FDA response to the company's 510(k) determination letter related to modifications made to the company's medical device.
During the first quarter, to prepare for commercial sales of the Cerebral Oximeter and related disposable SomaSensor(TM), the company modified its products and essentially completed related clinical studies, although studies are continuing for purposes of marketing the product and developing additional market applications. In the operations area, a foreign manufacturer was engaged to assemble the disposable SomaSensors on a high-volume basis and suppliers provided product components in raw and sub-assembly condition, enabling the company to build inventory. In sales and marketing, additional specialty dealers were added to the national and international distribution network. According to Gunn, Somanetics plans to begin sales of the Cerebral Oximeter for resale after it receives a favorable response from the Food and Drug Administration regarding modifications made to the Cerebral Oximeter and related disposable SomaSensor. The company then plans to pursue diversifications to its product line, beginning with the development of product extensions of the Cerebral Oximeter for use on children and newborns. Also during the first quarter and the second quarter through March 26, the company received $2,789,728 from the exercise of 919,236 Class A and Class B Warrants and the issuance of 919,236 common shares. These warrant proceeds were received before the company issued a notice of redemption of the warrants on March 31, 1992. On April 9, 1992, the company held its annual meeting of shareholders in Troy. Daniel S. Follis, Richard A. Flasck, Gary D. Lewis and Michael P. Hickey were elected as directors of the company, and the four other matters voted on at the annual meeting were approved. As stated by Lewis, the company's chairman and chief executive officer, "The framework for growth is now in place. Our management team has been planning carefully for 1992, and is prepared to market the Cerebral Oximeter, develop additional applications of INVOS(R) technology and pursue other opportunities. We are very enthusiastic about this year's prospects. As we wait for a favorable response from the FDA, our plans for production and marketing are ready, and our company is poised to respond to the pent-up demand in the marketplace." Somanetics Corporation, headquartered in Troy, develops, markets and manufactures computer-based medical diagnostic and monitoring equipment using In Vivo Optical Spectroscopy (INVOS) technology. The company has developed the Somanetics INVOS 3100(R) Cerebral Oximeter which uses INVOS technology to measure noninvasively, directly and continuously, oxygen saturation of the blood in portions of an adult's brain. The Cerebral Oximeter is intended for use in a hospital's operating room, intensive-care unit, recovery room and emergency room. Somanetics' common shares are publicly traded on NASDAQ under the symbol SMTS. Its Units trade under the symbol SMTSU. Its Class A and
Class B Warrants trade under the symbols SMTSW and SMTSZ, respectively.
SOMANETICS CORPORATION (A development stage company) SELECTED INCOME STATEMENT DATA For the Fiscal Quarter Ended Feb. 29, 1992 and Feb. 28, 1991 (In thousands, except share and per-share data) Cumulative for the period Jan. 15, 1982 (Date of inception) to Feb. 29 1992 1991 1992 Total revenues $0 $0 $1,201 Gross margin 0 0 892 Net (loss) ($875) ($443) ($9,087) Net (loss) per share ($0.14) ($0.22) ($3.97) Weighted average no. of shares outstanding 6,242,183 1,984,250 2,288,578 SOMANETICS CORPORATION (A development stage company) SELECTED BALANCE SHEET DATA Feb. 29, 1992 and Feb. 28, 1991 (In thousands) 1992 1991 Total current assets $3,530 $3,546 Total assets 3,964 3,903 Total current liabilities 748 854 Long-term debt and redeemable convertible preferred shares 95 100 Shareholders' equity (deficiency) $3,121 $2,949 -0- 4/10/92 /CONTACT: Mary Ann Robb of Somanetics Corporation, 313-689-3996/ (SMTS) CO: Somanetics Corporation ST: Michigan IN: MTC SU: ERN
ML -- DE022 -- 7285 04/10/92 13:57 EDT
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|Date:||Apr 10, 1992|
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