Filer: Thermo Cardiosystems Inc.
Subject Company: Thermo Cardiosystems Inc.
Subject Company Exchange Act File No.: 001-10114
Registration Statement No.: 333-
Thermo Cardiosystems Announces Third Quarter Results
WOBURN, Mass., October 30, 2000 - Thermo Cardiosystems Inc. (ASE:TCA), a Thermo
Electron company, today reported that revenues for the quarter ended September
30, 2000, were $19.4 million, compared with $19.7 million for the same period in
1999. Net income was $1.5 million, or $.04 per diluted share, versus $2.8
million, or $.07 per diluted share, last year. Results for the 1999 period
reflect the favorable resolution of the company's claim for prior-year research
and development tax credits of $1.2 million, or $.03 per diluted share.
"The slight decrease in revenues, the first in three years, is due in part
to the prolonged pending sale of the company, which created some uncertainty for
our employees and perhaps some trepidation among certain distributors and
customers," said R. Michael Kleine, chief executive officer of Thermo
Cardiosystems. "We look forward to completing our proposed merger with Thoratec,
as announced earlier this month, and continuing to work toward the many
ambitious objectives we have set. The combined company would be a world-class
medical technology business focused on developing and commercializing
life-saving equipment and systems for the treatment of heart failure."
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Consolidated Statement of Income
(unaudited)
Three Months Ended Nine Months Ended
------------------ -----------------
Sept. 30, Oct. 2, Sept. 30, Oct. 2,
(In thousands except per share amounts) 2000 1999 2000 1999
---------------------------------------------------------------------------------------------------
Revenues $19,391 $19,738 $62,235 $59,414
------- ------- ------- -------
Costs and Operating Expenses:
Cost of revenues 8,299 8,568 26,123 25,451
Selling, general, and administrative expenses 5,609 5,517 17,601 16,561
Research and development expenses 3,902 3,812 11,552 11,064
Restructuring and unusual costs 387 - 1,094 -
------- ------- ------- -------
18,197 17,897 56,370 53,076
------- ------- ------- -------
Operating Income 1,194 1,841 5,865 6,338
Interest Income 1,945 1,813 5,627 5,273
Interest Expense (707) (905) (2,201) (2,715)
Other Expense (6) - (6) -
------- ------- ------- -------
Income Before Income Taxes and
Extraordinary Item 2,426 2,749 9,285 8,896
Income Tax (Provision) Benefit (932) 96 (3,573) (2,268)
------- ------- ------- -------
Income Before Extraordinary Item 1,494 2,845 5,712 6,628
Extraordinary Item (net of income taxes of $117) - - 191 -
------- ------- ------- -------
Net Income $ 1,494 $ 2,845 $ 5,903 $ 6,628
------- ------- ------- -------
Basic and Diluted Earnings per Share $ .04 $ .07 $ .15 $ .17
------- ------- ------- -------
Weighted Average Shares:
Basic 38,562 38,467 38,549 38,433
------- ------- ------- -------
Diluted 38,563 38,522 38,573 38,483
------- ------- ------- -------
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Thermo Cardiosystems Inc. is a leader in the research, development, and
manufacture of implantable left ventricular-assist systems (LVAS). Its
air-driven and electric HeartMate heart-assist devices are implanted alongside
the natural heart and take over the pumping function of the left ventricle for
patients whose hearts are too damaged or diseased to produce adequate blood
flow. Both devices are approved for commercial sale in the United States,
Europe, and Canada. The company also supplies whole-blood coagulation testing
equipment and related disposables, as well as single-use skin-incision devices.
Thermo Cardiosystems is a public subsidiary of Thermo Electron company. More
information is available at http://www.thermo.com/subsid/tca1.html.
Other Important Information:
The proposed merger between Thermo Cardiosystems Inc. and Thoratec Laboratories
Corporation will be described in a joint proxy statement/prospectus to be filed
with the Securities and Exchange Commission. You should read this document when
it becomes available because it will contain important information about the
transaction and participants to the transaction. You can obtain the joint proxy
statement/prospectus and other documents that will be filed with the Securities
and Exchange Commission for free when they are available on the Securities and
Exchange Commission's web site at http://www.sec.gov. Also, if you write us or
call us at the below address and phone number, we will send you the joint proxy
statement/prospectus for free when it is available.
You can call us at (781) 622-1111, or write to us at:
Investor Relations Department
Thermo Cardiosystems Inc.
81 Wyman Street, P.O. Box 9046
Waltham, MA 02454-9046
-more-
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The following constitutes a "Safe Harbor" statement under the Private Securities
Litigation Reform Act of 1995: This press release contains forward-looking
statements that involve a number of risks and uncertainties. Important factors
that could cause actual results to differ materially from those indicated by
such forward-looking statements are set forth under the heading "Forward-looking
Statements" in Exhibit 13 to the company's annual report on Form 10-K for the
year ended January 1, 2000. These include risks and uncertainties relating to:
regulatory approvals, reimbursement by insurers, medical community acceptance,
technological change, competition, new products, availability of materials and
components, intellectual property rights, limited experience in commercializing
LVAS products, product liability, and international operations and sales.
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