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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) February 23, 1999
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PLC SYSTEMS INC.
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(Exact name of Registrant as specified in charter)
British Columbia
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(State or other jurisdiction of incorporation)
1-11388 04-3153858
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(Commission File Number) (IRS Employee Identification No.)
10 Forge Park, Franklin, Massachusetts 02038
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (508) 541-8800
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Not Applicable
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(Former name or former address, if changed since last report)
THIS DOCUMENT CONSISTS OF 6 PAGES.
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Item 5. OTHER EVENTS.
News Release dated February 23, 1999, filed as Exhibit 20.1 to this Current
Report on Form 8-K, is incorporated by reference herein.
Item 7. EXHIBITS.
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Exhibit Number Description
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20.1 News Release dated February 23, 1999.
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SIGNATURE
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 hereunto duly authorized.
PLC SYSTEMS INC.
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(Registrant)
Date: February 23, 1999 By: /s/ ROBERT SVIKHART
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Robert Svikhart
Chief Financial Officer and Treasurer
EXHIBIT INDEX
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Exhibit Page
Number Description Number
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20.1 News Release dated February 23, 1999. 4
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EXHIBIT 20.1
FOR IMMEDIATE RELEASE:
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Contacts:
PLC Systems Inc. Noonan/Russo Communications, Inc.
Robert Svikhart (212) 696-4455
Chief Financial Officer Meredith Milewicz, ext. 228
508-541-8800, ext. 153 Heather Hennessy, ext. 274
[email protected]
PLC REPORTS RESULTS FOR FOURTH QUARTER
AND YEAR ENDED DECEMBER 31, 1998
FRANKLIN, MA, FEBRUARY 23, 1999 - PLC SYSTEMS INC. (AMEX: PLC), a leader in
transmyocardial revascularization (TMR), today reported results for the fourth
quarter and year ended December 31, 1998.
Total revenues for the quarter ended December 31, 1998 were $2,453,000 compared
to $2,046,000 in the fourth quarter of 1997. The net loss for the quarter ended
December 31, 1997 was $3,259,000, or $0.17 per share, compared to a net loss of
$5,123,000, or $0.28 per share, in the fourth quarter of 1997.
Total revenues for the year ended December 31, 1998 were $5,693,000 compared to
$8,941,000 in 1997. The net loss for the year ended December 31, 1998 was
$16,603,000, or $0.86 per share, based on 19.2 million weighted average shares
outstanding, compared with a net loss of $14,404,000, or $0.84 per share, based
on 17.1 million weighted average shares outstanding, for the year ended December
31, 1997. Cash and equivalents were $4,846,000.
"We continued our trend toward profitability in the fourth quarter," said
William C. Dow, president and chief executive officer of PLC. "Fourth quarter
revenue increased more than 50% from the third quarter and operating expenses
remained flat, resulting in a reduction of nearly 20% in our quarterly loss.
Perhaps more importantly, we reduced our burn rate by more than 25%."
"We were pleased with our sales activity in the fourth quarter," added Dow. "We
completed 13 transactions with new and existing customers, including a new
shipment to the Peoples Republic of China, the sale of an existing system in
Germany and contract extensions at two leading domestic teaching hospitals."
At December 31, 1998, PLC had an installed base of 111 systems worldwide, all of
which have
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been designed to be used exclusively in TMR procedures. These systems have
been used in more than 4,300 TMR procedures worldwide, which represents the
largest number of procedures performed on a single system in the industry.
"Looking forward, we are encouraged by HCFA's decision to provide
reimbursement for TMR and the favorable assessment by the Blue Cross and Blue
Shield Technology Evaluation Center," added Dow. "We anticipate significant
growth during 1999."
Transmyocardial revascularization (TMR) using The Heart Laser System is
performed on a beating heart, generally through a small left chest incision.
The Heart Laser System is synchronized to the patient's heartbeat and is used
to create between 20 and 40 channels through oxygen-deprived muscle, into the
heart's left ventricle. It is believed this allows blood to flow into the
heart muscle again, despite blocked arteries.
TMR is intended for patients with severe angina refractory to medical
management who cannot be adequately treated by other revascularization
procedures, such as coronary artery bypass graft (CABG) or percutaneous
transluminal coronary angioplasty (PTCA). The FDA's approval was based upon
findings from clinical trials of significant reductions in angina, increases
in myocardial perfusion and improvement in quality of life measurements among
patients with severe angina.
TMR using The Heart Laser System is considered less invasive heart surgery.
It usually involves a small left chest incision; generally does not
necessitate a blood transfusion; and, because it isperformed on a beating
heart, does not require the use of a heart lung machine. Recovery is
potentially quicker, less traumatic and less costly than in open-heart
procedures.
PLC Systems Inc. is a cardiac revascularization company that is pioneering,
developing and supplying the systems and components for TMR. Although not an
FDA approved indication, the Company is also investigating TMR as a potential
adjunct to cardiac bypass surgery. PLC, founded in 1981, is located in
Franklin, Massachusetts.
NOTE: CERTAIN OF THE ABOVE STATEMENTS MAY BE FORWARD-LOOKING STATEMENTS THAT
INVOLVE RISKS AND UNCERTAINTIES. ACTUAL RESULTS COULD DIFFER MATERIALLY FROM
THOSE INDICATED BY SUCH FORWARD-LOOKING STATEMENTS AS A RESULT OF A VARIETY OF
FACTORS, INCLUDING COMPETITIVE DEVELOPMENTS, REGULATORY APPROVAL REQUIREMENTS,
THE ABILITY TO CONVINCE HEALTH CARE PROFESSIONALS AND THIRD PARTY PAYERS OF THE
MEDICAL AND ECONOMIC BENEFITS OF THE HEART LASER SYSTEM, NO ASSURANCE THAT ALL
PAYERS WILL REIMBURSE HEALTH CARE PROVIDERS WHO PERFORM TMR PROCEDURES OR THAT
REIMBURSEMENT, IF PROVIDED, WILL BE ADEQUATE, AND RISK FACTORS DESCRIBED IN THE
COMPANY'S ANNUAL REPORT, SEC FORM 10-K FOR FISCAL YEAR ENDED DECEMBER 31, 1997,
AND THE COMPANY'S OTHER SEC REPORTS.
(FINANCIAL TABLE FOLLOWS)
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PLC SYSTEMS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
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Three Months Ended Year Ended
December 31, December 31,
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1998 1997 1998 1997
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Revenues:
Product sales. . . . . . . . . . . . . $ 1,527 $ 1,281 $ 3,088 $ 5,687
Placement and service fees . . . . . . 926 765 2,605 3,254
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Total revenues. . . . . . . . . . . 2,453 2,046 5,693 8,941
Cost of revenues:
Product sales. . . . . . . . . . . . . 910 826 1,945 2,721
Placement and service fees . . . . . . 643 971 2,622 2,595
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Total cost of revenues. . . . . . . 1,553 1,797 4,567 5,316
Gross profit . . . . . . . . . . . . . . 900 249 1,126 3,625
Operating expenses:
Selling, general and administrative. . 3,397 3,638 13,718 13,049
Research and development . . . . . . . 875 1,761 4,468 5,158
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Total operating expenses . . . . . . 4,272 5,399 18,186 18,207
Loss from operations . . . . . . . . . . (3,372) (5,150) (17,060) (14,582)
Other income:
Interest income, net . . . . . . . . . . 46 172 379 346
Other income . . . . . . . . . . . . . . 63 - 63 -
Income (loss) from foreign
currency, net. . . . . . . . . . . . . 4 (145) 15 (168)
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Net loss . . . . . . . . . . . . . . . . $(3,259) $(5,123) $(16,603) $(14,404)
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Basic and diluted loss per share . . . . $ (.17) $ ( .28) $ (.86) $ (.84)
Shares used to compute basic and
diluted loss per share. . . . . . . . 19,635 18,170 19,218 17,050
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CONDENSED BALANCE SHEET
(In thousands)
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December 31, December 31,
1998 1997
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Cash, cash equivalents and
marketable securities. . . . . . . . . $4,846 $16,329
Total current assets . . . . . . . . . . 10,608 20,680
Total assets . . . . . . . . . . . . . . 16,257 27,017
Total current liabilities, excluding
Convertible Debentures . . . . . . . . 5,537 7,887
Convertible Debentures . . . . . . . . . 934 3,819
Shareholders' equity . . . . . . . . . . 10,662 19,009
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