Filed pursuant to
Rule 424(b)(3)
Registration Statement
No.: 33-97722
Prospectus Supplement No. 8, dated July 30, 1996
(To Prospectus dated December 7, 1995,
as supplemented on January 17, February 20,
April 2, May 6, May 16, May 23 and July 16, 1996)
NEUROMEDICAL SYSTEMS, INC.
Common Stock
Par Value $.0001 Per Share
On July 29, 1996, the Company announced results for its
second quarter ending June 30, 1996. Revenues for the second
quarter were $1,017,000, an increase of 81% from $563,000 for the
second quarter of 1995. Of such revenues, $985,000 represented
per slide charges for the screening of Pap smears, and the
balance of such revenues represented lease payments on
PAPNET(registered trademark) Review Stations. The Company
reported a net loss for the second quarter of 1996 of $7,378,000,
or $.25 per share, compared to a net loss of $5,060,000, or $.30
per share (on a pro forma basis), for the second quarter of 1995.
For the six month period ended June 30, 1996, revenues were
$1,668,000, an increase of 56% from $1,067,000 during the
corresponding period of 1995. The Company reported a net loss
for the first six months of 1996 of $14,225,000, or $.49 per
share, compared to a net loss of $8,920,000, or $.53 per share
(on a pro forma basis), for the corresponding period of 1995.
The Company's efforts during the first half of 1996 were
focused on building distribution for PAPNET(registered trademark)
testing in the United States. During the second quarter, the
Company increased the number of U.S. laboratories able to provide
PAPNET(registered trademark) testing by 49, bringing the total
number of U.S. facilities offering the test as of June 30, 1996
to 138.
During the second quarter, the Company scanned Pap smears
from 75 different laboratories in 34 states. The Company
increased its world-wide marketing and sales organization by 12
during the quarter to a total of 53 persons. The Company
expects to start direct-to-consumer advertising later this year.
The Company continued to expand its international laboratory
distribution. PAPNET(registered trademark) testing is now
available in 21 countries worldwide. By the end of the second
quarter, seven new laboratories were added in Australia, bringing
the total to ten laboratories offering PAPNET(registered
trademark) testing in Australia. PAPNET(registered trademark)
testing is now offered in every Australian state. In Asia, the
Company continued to expand its business in Hong Kong and intends
to expand its coverage in other Chinese speaking markets. During
the first half, the Company began to receive limited revenue
slides from nine laboratories in mainland China.
PAPNET(registered trademark) is also available through 30
laboratories in European countries.
The increased net loss during 1996 for both the second
quarter and the six month period, compared to the corresponding
periods of 1995, was due primarily to an increase in marketing
and sales expenses associated with the launch of the
PAPNET(registered trademark) Testing System in the United States
following clearance by the FDA in November 1995. In addition,
the Company's cost of sales, research and development and general
and administrative expenses also increased during 1996, although
at a slower rate than sales and marketing expenses. These
increases were due primarily to the expansion of the
administrative and technical infrastructure of the Company to
support commercial activities in both the United States and
overseas, along with expenses associated with the requirements of
being a public company following the Company's initial public
offering in December 1995.
Safe Harbor Statement
---------------------
Statements which are not historical facts, including
statements about the Company's confidence and strategies and its
expectations about new and existing products, technologies and
opportunities, market growth, demand for and acceptance of new
and existing products (including the PAPNET(registered trademark)
Testing System) and returns on investments are forward looking
statements that involve risks and uncertainties. These include,
but are not limited to, the Company's continuing negative
operating cash flow, reliance on a single product, competition,
dependence on key personnel, the impact on the Company of
territorial license agreements, dependence on patents and
proprietary technology, government regulation, limited marketing
and sales history, the impact of third-party reimbursement
decisions, the risk of litigation and other risks detailed in the
Company's Securities and Exchange Commission filings, including
its Annual Report on Form 10-K for the year ended 1995.
<TABLE>
NEUROMEDICAL SYSTEMS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
<CAPTION>
JUNE 30, DECEMBER 31,
------------- -------------
1996 1995
------------- -------------
<S> <C> <C>
ASSETS
Cash and marketable securities $ 95,827,000 $ 114,143,000
Other current assets 2,186,000 1,601,000
Property, plant and equipment, net 14,608,000 11,216,000
Other assets 1,311,000 388,000
------------- -------------
Total Assets $ 113,932,000 $ 127,348,000
============= =============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities $ 6,511,000 $ 6,631,000
Other liabilities 6,120,000 6,050,000
Stockholders' equity 101,301,000 114,667,000
------------- -------------
Total Liabilities and
Stockholders' Equity $ 113,932,000 $ 127,348,000
============= =============
</TABLE>
<TABLE>
NEUROMEDICAL SYSTEMS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------------- -------------------------
1996 1995 1996 1995
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
REVENUES $ 1,017,000 $ 563,000 $ 1,668,000 $ 1,067,000
------------ ------------ ------------ -----------
COSTS AND EXPENSES
Costs of product sales 1,933,000 1,641,000 3,624,000 2,894,000
Research and
development 1,529,000 1,362,000 3,079,000 2,557,000
Marketing and sales 3,856,000 1,221,000 7,373,000 2,112,000
General and
administrative 1,815,000 1,189,000 3,556,000 2,366,000
------------ ------------ ------------ -----------
Total Costs and
Expenses 9,133,000 5,413,000 17,632,000 9,929,000
------------ ------------ ------------ -----------
Other income (expense),
net 738,000 (210,000) 1,739,000 (58,000)
------------ ------------ ------------ -----------
NET LOSS $ (7,378,000) $ (5,060,000) $(14,225,000) $(8,920,000)
============ ============ ============ ===========
NET LOSS PER SHARE (1) $ (0.25) $ (0.30) $ (0.49) $ (0.53)
============ ============ ============ ===========
WEIGHTED AVERAGE
SHARES OUTSTANDING 29,089,000 16,848,000 28,949,000 16,805,000
============ ============ ============ ===========
<FN>
(1) 1995 on a pro forma basis
</TABLE>
