Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact: Cheryl R. Johnson
Vice President, Investor Relations
NOVOSTE CORPORATION
(770) 717-6052
NOVOSTE REPORTS SECOND QUARTER 2000 FINANCIAL RESULTS
NORCROSS, GA., July 25, 2000 - Novoste Corporation (Nasdaq: NOVT) today
announced that for the quarter ended June 30, 2000, net sales reached a record
$1,198,000, a 116% increase over net sales of $554,000 in the second quarter of
1999. For the six months ended June 30, 2000, net sales totaled $2,044,000,
compared to $638,000 during the first six months of 1999. The increase in net
sales was due primarily to growth in the customer base in Europe and other
international markets.
For the three months ended June 30, 2000, the Company reported a net loss
of $7,129,000, or $(0.45) per share, compared to a net loss of $7,438,000, or
$(0.53) per share, for the same period last year. For the six months ended June
30, 2000, the net loss was $14,328,000, or $(0.95) per share, compared to a net
loss of $15,500,000 or $(1.22) per share for the corresponding period in 1999.
The decrease in net loss was attributed to improved gross margins and increased
interest income related to a higher cash balance in 2000 compared to 1999.
Commenting on the quarter, William A. Hawkins, President & CEO of Novoste,
stated, "I am pleased with our sales growth and in the broadening of our
customer base. In the last 90 days, the number of hospitals licensed to purchase
the Beta-Cath(TM) System outside the United States increased from 72 to 101.
During the second quarter, we also expanded our product offering by receiving
approval to affix the CE mark to our 60-mm radiation source train, which will
enable physicians to use our vascular brachytherapy device to treat patients
with longer lesions. In Europe, we now offer radiation source trains in lengths
of 30, 40, and 60 millimeters."
Mr. Hawkins added, "Novoste has made tremendous progress towards
commercializing the Beta-Cath(TM) System in the U.S. market. Our Pre-Market
Approval (PMA) application, which was filed with the FDA on April 14, is
currently undergoing expedited review. We also have made excellent progress
towards completing patient follow-up in our START 40 and Beta-Cath(TM) System
trials and are committed to announcing the results of both trials during the
fourth quarter of this year."
Novoste Corporation, based in Atlanta, Ga., is a leader in the emerging
field of vascular brachytherapy to reduce the incidence of restenosis. The
company's Beta-Cath(TM) System is commercially available in the European Union
and other countries outside the U.S. For more information on the Beta-Cath(TM)
System or Novoste, please call (770) 717-0904 or visit the company's web site at
www.novoste.com.
The forward-looking statements included in this release reflect
management's best judgment based on factors currently known. Actual results may
differ materially from those projected in these forward-looking statements based
upon risks and uncertainties, including the demonstration of safety and efficacy
of the Beta-Cath(TM) System, receipt and timing of FDA and other regulatory
approvals, market acceptance and availability of the Beta-Cath(TM) System, and
other risks detailed in documents filed by Novoste with the SEC including its
S-3 registration statement and Forms 10-K, 10-Q and 8-K.
- FINANCIAL HIGHLIGHTS TO FOLLOW -
<PAGE>
NOVOSTE CORPORATION
CONDENSED STATEMENT OF OPERATIONS
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended June 30, Six Months Ended June 30,
2000 1999 2000 1999
---------------------------- ----------------------------
<S> <C> <C> <C> <C>
Net Revenue $ 1,197,647 $ 553,914 $ 2,043,693 $ 637,826
Cost of Sales 770,013 499,012 1,523,393 676,908
------------ ------------ ------------ ------------
Gross Margin 427,634 54,902 520,300 (39,082)
------------ ------------ ------------ ------------
Operating expenses
Research and development 4,250,381 5,672,618 8,725,921 11,835,387
Sales and marketing 2,987,702 1,467,260 5,357,206 2,841,266
General and administrative 1,367,654 1,070,393 2,415,155 1,814,171
------------ ------------ ------------ ------------
Total operating expenses 8,605,737 8,210,271 16,498,282 16,490,824
------------ ------------ ------------ ------------
Loss from operations (8,178,103) (8,155,369) (15,977,982) (16,529,906)
Interest income 1,048,970 717,027 1,649,907 1,029,624
------------ ------------ ------------ ------------
Net loss $ (7,129,133) $ (7,438,342) $(14,328,075) $(15,500,282)
============ ============ ============ ============
Net loss per share $ (0.45) $ (0.53) $ (0.95) $ (1.22)
============ ============ ============ ============
Shares used in computing net loss
per share 15,865,441 14,095,791 15,067,015 12,680,973
============ ============ ============ ============
</TABLE>
CONDENSED BALANCE SHEETS
(unaudited)
June 30, December 31,
2000 1999
----------- ------------
ASSETS
Current assets
Cash, cash equivalents and
short-term investments $79,173,647 $ 41,423,692
Other current assets 2,675,300 3,699,527
----------- ------------
Total current assets 81,848,947 45,123,219
Other assets 8,061,264 4,244,183
----------- ------------
Total assets $89,910,211 $ 49,367,402
=========== ============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities $ 6,466,191 6,302,558
Stockholders' equity 83,444,020 43,064,844
----------- ------------
Total liabilities and stockholders' equity $89,910,211 $ 49,367,402
=========== ============
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