<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1996
--------------------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
------------------ ---------------------------
Commission File 0-28016
Number Biopsys Medical, Inc.
------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 33-0578012
- -------------------------------------------- --------------------
State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
3 Morgan, Irvine CA 92618
----------------------------------------------------------------------------
(address of principal executive offices)
(Zip Code)
714-460-7800
----------------------------------------------------------------------------
(Registrant's telephone number, including area code)
----------------------------------------------------------------------------
(Former name, former address and fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- -----
As of January 29, 1997, 9,830,713 shares of Common Stock were issued and
outstanding.
<PAGE>
BIOPSYS MEDICAL, INC.
FORM 10-Q For the Three and Six Months Ended December 31, 1996
INDEX
PAGE
----
Facing Sheet 1
Index 2
Part I. Financial Information
Item 1. a) Balance sheets at December 31, 1996 and June 30, 1996 3
b) Statements of operations for the three month and six month
periods ended December 31, 1996 and 1995 4
c) Statements of cash flows for the six month periods ended
December 31, 1996 and 1995 5
d) Note to financial statements 6
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 7
Part II. Other Information 11
Signature 13
Index to Exhibits 14
2
<PAGE>
PART 1: FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BIOPSYS MEDICAL, INC.
BALANCE SHEETS
ASSETS
December 31, June 30,
---------------------------
1996 1996
----------- -----------
(unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 7,019,000 $12,122,000
Short-term investments 8,790,000 9,405,000
Accounts receivable, net 2,317,000 985,000
Inventories 2,386,000 1,581,000
Prepaid expenses and other current assets 561,000 141,000
----------- -----------
Total current assets 21,073,000 24,234,000
LONG-TERM INVESTMENTS 18,914,000 15,860,000
PROPERTY AND EQUIPMENT, net 986,000 776,000
OTHER ASSETS 32,000 44,000
----------- -----------
$41,005,000 $40,914,000
----------- -----------
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 922,000 $ 1,270,000
Accrued expenses 775,000 561,000
----------- -----------
Total current liabilities 1,697,000 1,831,000
COMMITMENTS - -
STOCKHOLDERS' EQUITY
Common Stock, $.001 par value; 50,000,000
shares authorized; 9,793,377 shares issued
and outstanding 10,000 10,000
Additional paid-in capital 45,095,000 45,092,000
Accumulated deficit (6,609,000) (6,615,000)
Deferred stock option compensation 812,000 596,000
----------- -----------
Net stockholders' equity 39,308,000 39,083,000
----------- -----------
$41,005,000 $40,914,000
----------- -----------
----------- -----------
See accompanying notes to financial statements.
3
<PAGE>
BIOPSYS MEDICAL, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended December 31, Six Months Ended December 31,
------------------------------- -------------------------------
1996 1995 1996 1995
----------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
Net Sales $ 3,302,000 $ 538,000 $ 5,703,000 $ 763,000
Cost of Sales 1,404,000 317,000 2,510,000 470,000
----------- ---------- ----------- -----------
Gross Profit 1,898,000 221,000 3,193,000 293,000
Operating Expenses:
Research and development 574,000 274,000 1,060,000 511,000
Selling, general and administrative 1,664,000 915,000 3,081,000 1,418,000
----------- ---------- ----------- -----------
Total operating expenses 2,238,000 1,189,000 4,141,000 1,929,000
----------- ---------- ----------- -----------
Interest income 484,000 71,000 953,000 135,000
Interest expense - - - (13,000)
----------- ---------- ----------- -----------
Net income (loss) $ 144,000 $ (897,000) $ 5,000 $(1,514,000)
----------- ---------- ----------- -----------
----------- ---------- ----------- -----------
Net income (loss) per share $ 0.01 $ (0.12) $ 0.00 $ (0.20)
----------- ---------- ----------- -----------
----------- ---------- ----------- -----------
Weighted average shares outstanding 11,055,000 7,600,000 10,983,000 7,570,000
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
BIOPSYS MEDICAL, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended December 31,
-------------------------------
1996 1995
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 5,000 $(1,514,000)
Adjustments to reconcile net income (loss) to net cash used in
operating activities:
Depreciation and amortization 120,000 43,000
Deferred Compensation 217,000 199,000
Changes in assets and liabilities:
Accounts receivable (1,332,000) (264,000)
Prepaid expenses and other current assets (420,000) (5,000)
Inventories (805,000) (511,000)
Accounts payable and accrued expenses (134,000) 290,000
----------- -----------
Net cash used in operating activities (2,349,000) (1,762,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment (317,000) (267,000)
Short-term investment maturities 615,000 -
Short-term investment purchases - (1,516,000)
Long-term investment purchases (3,054,000) -
----------- -----------
Net cash used in investing activities (2,756,000) (1,783,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance common stock 2,000 7,000
Net proceeds from issuance of Series C preferred stock - 6,495,000
----------- -----------
Net cash provided by financing activities 2,000 6,502,000
----------- -----------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (5,103,000) 2,957,000
CASH AND CASH EQUIVALENTS, beginning of period 12,122,000 13,000
----------- -----------
CASH AND CASH EQUIVALENTS, end of period $ 7,019,000 $ 2,970,000
----------- -----------
----------- -----------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for income taxes $ - $ 800
----------- -----------
----------- -----------
Cash paid for interest $ - $ -
----------- -----------
----------- -----------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
BIOPSYS MEDICAL, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. BASIS OF PRESENTATION
The accompanying balance sheet as of December 31, 1996 and the statements
of operations and cash flows for the three months and six months ended
December 31, 1996 and 1995 have been prepared by Biopsys Medical, Inc.( the
"Company"), without audit. In the opinion of management, all adjustments
necessary to present fairly the financial position, results of operations, and
cash flows at December 31, 1996, and for all periods presented, have been made.
Although the Company believes that the disclosures in these financial
statements are adequate to make the information presented not misleading,
certain information and footnote disclosures required by Generally Accepted
Accounting Principles for complete financial statements have been omitted
pursuant to the rules and regulations of the Securities and Exchange Commission
("SEC"). This financial data should be reviewed in conjunction with the audited
financial statements and notes thereto included in the Company's Form 10-K for
the year ended June 30, 1996. The results of operations for the three months
and six months ended December 31, 1996 may not necessarily be indicative of the
operating results for the full 1997 fiscal year.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion of the financial condition and results of
operations of the Company should be read in conjunction with the unaudited
Financial Statements and related Note thereto included in Part I - Item 1 of
this Form 10-Q and with the Financial Statements and related Notes thereto
included in its June 30, 1996 Annual Report on Form 10-K. This Report on
Form 10-Q contains certain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Actual events or results may differ materially from
those projected in the forward-looking statements as a result of the factors
described herein and in the documents incorporated herein by reference.
Such forward-looking statements include, but are not limited to, statements
concerning the Company's operating and capital requirements.
OVERVIEW
Since its inception in July 1993, the Company has been engaged in the
design, development, clinical testing and, more recently, the manufacture and
sale of the Mammotome Biopsy System. The Company received clearance of its
510(k) premarket notification for the Mammotome Biopsy System from the FDA in
April 1995, began limited sales to selected customers in May 1995 and
commercially introduced the Mammotome Biopsy System in August 1995. For the
three and six months ended December 31, 1996, net sales of the Mammotome Biopsy
System totaled $3,302,000 and $5,703,000, respectively. As of December 31,
1996, the Mammotome Biopsy System had been used in approximately 40,000 breast
biopsy procedures at approximately 416 sites primarily in the United States.
The Company has a limited history of operations and has experienced
significant operating losses since inception. As of December 31, 1996 the
Company had an accumulated deficit of approximately $6.6 million. Results of
operations may fluctuate significantly from quarter to quarter and will depend
upon numerous factors, including the extent to which the Company's products
continue to gain market acceptance, actions relating to regulatory and
reimbursement matters, progress of clinical trials, introduction of alternative
means for less-invasive breast biopsy by competitors of the Company, pricing of
competitive products and the cost and effect of promotional discounts and
marketing programs. There can be no assurance that the Company will
successfully commercialize the Mammotome Biopsy System or achieve significant
revenues or profitability. Furthermore, although the Company achieved
profitability in the quarter ended December 31, 1996, there can be no assurance
that such levels of revenues and profitability will be sustained on a quarterly
or annual basis, or at all.
The Mammotome procedure requires the use of an imaging modality during the
procedure. Currently, the only imaging modality with which the Mammotome Biopsy
System is compatible is a prone stereotactic x-ray imaging table. Two
companies, Fischer and Lorad, have sold substantially all of the approximately
1,000 prone stereotactic imaging tables installed in the United States. The
Company has established non-exclusive marketing arrangements with Fischer and
Lorad under which Fischer and Lorad can purchase Mammotome drive units from the
Company at a discount from list price and can then bundle Mammotome drive units
with stereotactic imaging tables for sale to customers. However, Mammotome
probes and other disposable products related to the Mammotome Biopsy System are
purchased by the customer directly from the Company, not from Fischer or Lorad.
There can be no assurance that Fischer and Lorad will purchase or promote the
Mammotome drive unit or that they will continue their marketing arrangements
with the Company. Lorad also has an arrangement with United States Surgical
Corporation ("USSC"), a competitor of the Company, under which Lorad
manufactures stereotactic tables for USSC on a private label basis. In
addition, Fischer and Lorad may have additional arrangements to market other
competing biopsy systems. There can be no assurance that these or other imaging
equipment manufacturers will not redesign the stereotactic tables so that they
would not be compatible with the Mammotome Biopsy System. The failure or loss
of such marketing arrangements could have a material adverse affect on the
Company's business, financial condition and results of operations.
7
<PAGE>
The Company has limited experience in manufacturing the Mammotome Biopsy
System. If the Company is unable to manufacture an adequate number of drive
units or probes on a cost-effective and timely basis, it would have a material
adverse effect on the Company's ability to realize significant product revenues
for at least the next several quarters. The Company currently contracts with
third parties to manufacture certain components of the Mammotome Biopsy System.
Final assembly, sterilization and packaging of the Mammotome Biopsy System is
currently performed by the Company in-house and by contract manufacturers. The
Company has limited capacity to manufacture the Mammotome Biopsy System and will
be required to increase its in-house capability to manufacture more of the
system's components. There can be no assurance that the Company will be able to
attract, train and retain the required personnel or will be able to increase its
manufacturing capability in a timely manner, or at all. There can be no
assurance that reliable, high-volume manufacturing can be established or
maintained at commercially reasonable costs on a timely basis, or at all. If
the Company is unable to increase its in-house manufacturing capability, the
Company may need to obtain alternative manufacturing facilities or establish
additional contract manufacturing for its products. Delays associated with, or
the inability to establish, such additional capacity could have a material
adverse affect on the Company's business, financial condition and results of
operations.
The Company purchases components used in the Mammotome Biopsy System from
various suppliers. A limited number of parts and components are currently
available only from single sources. The Company is in the process of qualifying
additional sources for these components. There can be no assurance that the
Company will be successful in qualifying any additional sources on a timely
basis, or at all. Medical device companies frequently experience difficulties in
obtaining required quantities of components necessary to manufacture their
products. For example, the industry has experienced shortages of the type of
stainless steel used in the Mammotome probes, and there can be no assurance that
such shortages will not occur in the future. If the Company or any of its
contract manufacturers encounter future manufacturing difficulties, including
problems involving production yields, quality control and assurance, shortages
of components or shortages of qualified personnel, it could have a material
adverse effect on the Company's business, financial condition and results of
operations. In addition, prior to international commercialization, the Company
will be required to attain and maintain compliance with GMP requirements and ISO
9001 standards. Failure to either attain or maintain compliance with the
applicable regulatory requirements of various regulatory agencies would have a
material adverse effect on the Company's business, financial condition and
results of operations.
Biopsys has during the past several months engaged in discussions and
correspondence with the FDA's 510(k) Reviewing Division regarding the Mammotome
system and the FDA's concerns that devices cleared under 510(k) premarket
notifications for diagnostic tissue sampling are being used for excision of
tissue. The Company's discussions with the Reviewing Division resulted in
defining the procedural steps necessary to fulfill the agency's requests and
desire to establish consistent indications and promotional materials for all
breast biopsy devices. As a result, on February 3 and 4, 1997, Biopsys advised
the FDA that it would comply with the requests and file a stand alone 510(k)
application for the Mammotome specifically directed towards breast biopsy for
diagnostic purposes. However, on February 5, 1997, the Company received a
warning letter concerning the labeling and promotion of the Mammotome system
from a different FDA division than the division involved in previous
discussions. The Company believes that the commitments already made to the FDA
should help to provide a resolution of the principal issues identified in the
warning letter. However, although the Company currently believes that the
resolution of these matters with the FDA will not have a material impact on its
business or operations, the Company cannot predict how long it will take for
resolution of these matters.
8
<PAGE>
RESULTS OF OPERATIONS
THREE MONTHS ENDED DECEMBER 31, 1996 AND 1995
Net sales for the three months ended December 31, 1996 were $3,302,000
compared to $538,000 during the three months ended December 31, 1995. The
Company commenced commercial shipments of its Mammotome Biopsy System in August
1995. Net sales for the three months ended December 31, 1996 reflect sales of
99 Mammotome drive units and approximately 15,000 disposable probes compared to
32 Mammotome drive units and approximately 2,600 disposable probes in the three
months ended December 31, 1995.
During the three months ended December 31, 1996, cost of sales totaled
$1,404,000, or 42.5% of net sales compared to $317,000 or 59% of net sales in
the prior year. The decrease in cost of sales as a percentage of net sales and
resulting higher gross profit is primarily related to a higher sales mix of
disposable probes which carry a higher gross profit.
Research and development expenses increased 109% to $574,000 during the
three months ended December 31, 1996 from $274,000 during the three months ended
December 31, 1995. This increase was primarily due to research and development
expenses associated with the continued development of the 11-gauge probe, the
MicroMark Clip, software and ultrasound related products.
Selling, general and administrative expenses increased 82% to $1,664,000
during the three months ended December 31, 1996 from $915,000 during the three
months ended December 31, 1995. This increase was primarily due to the hiring
of sales personnel, increased marketing activities and increases in
administrative personnel and related costs to support increased commercial sales
of the Mammotome Biopsy System.
Interest income increased to $484,000 during the three months ended
December 31, 1996 from $71,000 during the three months ended December 31, 1995.
The increase was due to higher cash balances and short-term and long-term
investments associated with completion of the Company's initial public offering
in May 1996.
SIX MONTHS ENDED DECEMBER 31, 1996 AND 1995
Net sales for the six months ended December 31, 1996 were $5,703,000
compared to $763,000 during the six months ended December 31, 1995. Net sales
for the six months ended December 31, 1996 reflect sales of 196 Mammotome drive
units and approximately 26,000 disposable probes compared to 52 Mammotome drive
units and approximately 3,500 disposable probes in the six months ended December
31, 1995.
During the six months ended December 31, 1996, cost of sales totaled
$2,510,000, or 44% of net sales compared to $470,000, or 61.5% of net sales in
the prior year. The decrease in cost of sales as a percentage of net sales and
resulting higher gross profit is primarily related to a higher sales mix of
disposable probes which carry a higher gross profit.
Research and development expenses increased 107% to $1,060,000 during the
six months ended December 31, 1996 from $511,000 during the six months ended
December 31, 1995. This increase was primarily due to research and development
expenses associated with the continued development of the 11-gauge probe, the
MicroMark Clip, software and ultrasound related products.
Selling, general and administrative expenses increased 117% to $3,081,000
during the six months ended December 31, 1996 from $1,418,000 during the six
months ended December 31, 1995. This increase was primarily due to the hiring of
sales personnel, increased marketing activities and increases in administrative
personnel and related costs to support commercial sales of the Mammotome Biopsy
System.
9
<PAGE>
Interest income increased to $953,000 during the six months ended December
31, 1996 from $122,000, net during the six months ended December 31, 1995. The
increase was due to higher cash balances and short-term and long-term
investments associated with completion of the Company's initial public offering
in May 1996.
LIQUIDITY AND CAPITAL RESOURCES
In May 1996, the Company completed an initial public offering of 2,587,500
shares of common stock (including the underwriters overallotment of 337,500
shares) at $15.00 per share. Net proceeds to the Company were approximately
$35.3 million. From inception through April 1996, the Company financed its
operations primarily through the private placement of equity securities totaling
$9.7 million. These equity securities were converted to common stock in
conjunction with the initial public offering. As of December 31, 1996, cash,
cash equivalents, short-term and long-term investments totaled $34.7 million.
The Company's cash used in operating activities increased to $2.3 million for
the six months ended December 31, 1996 from $1.8 million for the six months
ended December 31, 1995, primarily resulting from increases in accounts
receivable and inventories related to the commercial introduction of the
Mammotome Biopsy System.
The Company's principal source of liquidity at December 31, 1996 consisted
of cash, cash equivalents, short-term and long-term investments of $34.7
million. The Company has adopted investment guidelines which restrict the types
and quality of investments the Company is authorized to enter into. At December
31, 1996, the Company had invested approximately $1.2 million in money market
funds, approximately $15.8 million in commercial paper and short term corporate
bonds rated a minimum of A1/P1, and approximately $17.7 million in U.S.
government treasury notes or long term corporate bonds. At December 31, 1996,
the Company had no long term debt. The Company has never had and currently does
not have commitments for credit facilities, such as revolving credit agreements
or lines of credit, that could provide additional working capital.
The Company believes that the current cash balances and short-term and
long-term investments will be sufficient to meet the Company's operating and
capital requirements through fiscal 1997. The Company's future liquidity and
capital requirements will depend on numerous factors, including the extent to
which the Company's Mammotome Biopsy System gains market acceptance, the timing
of regulatory actions regarding the Company's potential future products, the
costs and timing of expansion of sales, marketing and manufacturing activities,
obtaining and enforcing patents important to the Company's business, results of
clinical trials and competition. There can be no assurance that the Company
will not be required to raise additional capital, or that such capital will be
available on acceptable terms, or at all.
10
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3 DEFAULTS IN SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On December 9, 1996, at the Company's Annual Meeting of Stockholders, the
holders of Common Stock of the Company (i) elected two Class I directors to
serve for terms of three years expiring upon the 1999 Annual Meeting of
Stockholders and elected two Class III directors to serve for terms of two years
expiring upon the 1998 Annual Meeting of Stockholders, and (ii) ratified the
appointment of Deloitte and Touche LLP as independent auditors for the fiscal
year ending June 30, 1997. The voting on each matter is set forth below.
1. Votes cast for election of directors.
Nominee Total For Total Withheld
Each Nominee From Each Nominee
--------------------------------------------------------------------
CLASS I DIRECTORS:
David W. Chonette 8,743,901 200
Thomas J. Fogarty, M.D. 8,743,901 200
CLASS III DIRECTORS:
Norwick B.H. Goodspeed 8,743,601 500
Edgar J. Cummins 8,743,601 500
2. Votes cast to ratify the appointment of Deloitte & Touche LLP.
FOR AGAINST ABSTAIN BROKER NON
VOTE
8,743,251 750 100 -0-
11
<PAGE>
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
PAGE
----
(a)
11.1 Computation of net income (loss) per share 15
27 Financial Data Schedule 16
(b) Reports on Form 8-K
None
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BIOPSYS MEDICAL, INC.
By: /s/ Steven J. Naber
-----------------------------------
Steven J. Naber
Vice President of Finance and
Chief Financial Officer
(Duly Authorized and Principal
Financial and Accounting Officer)
Date: February 11, 1997
13
<PAGE>
BIOPSYS MEDICAL, INC.
INDEX TO EXHIBITS
EXHIBIT SEQUENTIALLY
NUMBER DESCRIPTION NUMBERED PAGE
- ------- ------------ -------------
11.1 Statement Re: Computation of Net Income (Loss) Per Share 15
27 Financial data schedule 16
14
<PAGE>
EXHIBIT 11.1
BIOPSYS MEDICAL, INC.
STATEMENT RE: COMPUTATION OF NET INCOME (LOSS) PER SHARE
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
-------------------------- --------------------------
1996 1995 1996 1995
----------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
Net income (loss) $ 144,000 $ (897,000) $ 5,000 $(1,514,000)
----------- ---------- ----------- -----------
----------- ---------- ----------- -----------
Shares used in computing net income (loss) per share:
Weighted average common shares outstanding during the period 9,758,565 1,785,000 9,737,722 1,762,218
Equivalent shares representing
shares issuable upon conversion of
preferred stock and preferred warrants:
Series A - 833,333 - 833,333
Series B - 1,333,333 - 1,333,333
Series C - 3,051,590 - 3,051,590
Series C warrants - 32,624 - 32,624
Equivalent shares representing
shares issuable upon conversion
of common stock options 1,296,410 556,902 1,245,635 556,902
----------- ---------- ----------- -----------
Total shares used in computing
historical net income (loss) per
share 11,054,975 7,592,782 10,983,357 7,570,000
----------- ---------- ----------- -----------
----------- ---------- ----------- -----------
Net income (loss) per share $ 0.01 $ (0.12) $ 0.00 $ (0.20)
----------- ---------- ----------- -----------
----------- ---------- ----------- -----------
</TABLE>
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
UNAUDITED BALANCE SHEET AND STATEMENT OF OPERATIONS CONTAINED IN THE BIOPSYS
MEDICAL, INC. FORM 10Q FOR THE SIX MONTHS ENDED DECEMBER 31, 1996 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 7,019,000
<SECURITIES> 8,790,000
<RECEIVABLES> 2,414,000
<ALLOWANCES> (97,000)
<INVENTORY> 2,386,000
<CURRENT-ASSETS> 21,073,000
<PP&E> 1,211,000
<DEPRECIATION> (225,000)
<TOTAL-ASSETS> 41,005,000
<CURRENT-LIABILITIES> 1,697,000
<BONDS> 0
0
0
<COMMON> 10,000
<OTHER-SE> 39,298,000
<TOTAL-LIABILITY-AND-EQUITY> 41,005,000
<SALES> 5,703,000
<TOTAL-REVENUES> 5,703,000
<CGS> 2,510,000
<TOTAL-COSTS> 2,510,000
<OTHER-EXPENSES> 4,141,000
<LOSS-PROVISION> 25,000
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 5,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 5,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,000
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
