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UNITED STATES
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): January 29, 1997
TARGET THERAPEUTICS, INC.
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
0-19801 95-3962471
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(Commission File Number) (IRS Employer Identification No.)
47201 Lakeview Blvd., Fremont, CA 94538
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (510) 440-7700
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N/A
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
On January 29, 1997, Target Therapeutics, Inc., a Delaware corporation
(the "Company"), announced net income of $3.8 million, or $0.25 per share, on
revenues of $23.9 million, for the third fiscal quarter ended December 31, 1996.
Further details regarding this announcement are contained in the Company's press
release dated January 29, 1997 attached as an exhibit hereto and incorporated by
reference herein.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) EXHIBITS.
Exhibit 99.1 Target Therapeutics, Inc. Press Release dated January 29,
1997.
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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.
TARGET THERAPEUTICS, INC.
(Registrant)
Dated: January 31, 1997 By: /s/ Robert E. McNamara
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Robert E. McNamara
Vice President, Finance and
Administration, Chief Financial
Officer (Principal Financial and
Accounting Officer) and Assistant
Secretary
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INDEX TO EXHIBITS
Exhibits.
99.1 Target Therapeutics, Inc. Press Release dated January 29, 1997.
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EXHIBIT 99.1
Target Therapeutics Announces Strong Revenue Growth in Third Fiscal
Quarter
FREMONT, Calif., Jan. 29 /PRNewswire/ -- Target Therapeutics (Nasdaq:
TGET) today reported that revenues in the third quarter of fiscal 1997, ended
December 31, 1996, reached $23.9 million compared with $19.0 million recorded in
the comparable period of fiscal 1996. Exclusive of initial stocking orders in
the United States for the company's Guglielmi Detachable Coil (GDC(R)), which
comprised $1.2 million and $1.4 million of revenues in the fiscal 1997 and 1996
three-month periods, respectively, revenues grew 29 percent in the third quarter
of 1997.
For the first nine months of 1997, the company posted revenues of $68.0
million compared with $48.6 million in the first nine months a year ago. Of
those amounts, $4.0 million and $1.6 million of revenues in the fiscal 1997 and
1996 nine-month periods, respectively, were attributable to initial stocking
orders for the GDC. The GDC was cleared for commercialization in the United
States in September 1995.
The Company reported net income for the third quarter of 1997 of $3.8
million, or $0.25 per share. This compares with $3.6 million, or $0.24 per
share, recorded in the third quarter of 1996. For the first nine months of
fiscal 1997, Target reported a net loss of $3.6 million, or $0.24 per share,
which includes a $14 million write-off of in process research and development
related to the Company's May 23, 1996 acquisition of Interventional Therapeutics
Corporation (ITC). Exclusive of the acquisition-related write-off, net income
for the first nine months of fiscal 1997 was $10.4 million, or $0.67 per share.
Net income for the first nine months of 1996 was $8.5 million, or $0.56 per
share.
Commenting on the results of the quarter and recent developments, Gary
R. Bang, Target's president and chief executive officer, said, "During the
quarter we continued to demonstrate solid business management resulting in high
revenue growth and sustained profitability. Last week we announced the signing
of a definitive merger agreement with Boston Scientific Corporation. We believe
this move is of strategic benefit to both companies, and we look forward to
concluding that transaction in the second calendar quarter of this year."
Except for the historical information contained herein, the matters
discussed in this press release are forward looking statements, the accuracy of
which is necessarily subject to risks and uncertainties. Initial stocking orders
should not be viewed as indicative of future results as repeat orders for the
GDC will be driven largely by the number of procedures performed by physicians.
Actual results may differ significantly from results discussed in the forward
looking statements. Actual results may be affected by, among other things, risks
and uncertainties related to new product development cycles, research and
development activities, regulatory approvals of new products, introduction of
competitive products by others, third-party reimbursement, physician training,
and other factors set forth from time to time in the Company's Securities and
Exchange Commission filings, including the Company's Form 10-Q for the quarter
ended September 30, 1996.
Founded in 1985, Target Therapeutics, Inc. develops, manufactures and
markets specialized disposable micro-catheters, guidewires, micro-coils,
silicone balloons, embolics and
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angioplasty products. These therapeutic devices are used in minimally-invasive
procedures to reach disease sites throughout the body via the circulatory
system. The Company's products allow highly targeted treatment of diseased,
ruptured or blocked vessels of the brain responsible for stroke, as well as
other disease sites in the body that are accessible through small vessels of the
circulatory system.
TARGET THERAPEUTICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts; unaudited)
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<TABLE>
<CAPTION>
Three months ended Nine months ended
December 31, December 31,
1996 1995 1996 1995
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<S> <C> <C> <C> <C>
Revenue $ 23,932 $18,980 $68,025 $48,625
Costs and expenses:
Cost of sales 7,510 5,560 20,852 14,952
Research and development 4,873 3,426 14,768 9,081
Acquired in-process research
and development -- -- 14,000 --
Selling, general and
administrative 6,479 5,248 19,041 14,247
Total costs and expenses 18,862 14,234 68,661 38,280
Income/(loss) from operations 5,070 4,746 (636) 10,345
Interest income, net 380 453 1,171 1,323
Other income 418 133 1,289 644
Minority interest (356) (159) (714) (243)
Income before income taxes 5,512 5,173 1,110 12,069
Provision for income taxes 1,709 1,552 4,684 3,615
Net income/(loss) $ 3,803 $ 3,621 $(3,574) $ 8,454
Net income/(loss) per share $ 0.25 $ 0.24 $ (0.24) $ 0.56
Shares used in calculation of net
Income/(loss) per share 15,517 15,408 14,828 15,156
</TABLE>
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OTHER FINANCIAL DATA
(In thousands: unaudited)
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<TABLE>
<CAPTION>
Dec. 31, March 31,
1996 1996
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<S> <C> <C>
Working capital (A) $ 64,663 $ 72,729
Total assets (A) 115,749 114,275
Long-term obligations 416 128
Stockholders' equity (B) 89,109 90,838
</TABLE>
(A) Includes the carrying value of the Company's investment in
Conceptus, Inc. ($14.5 million and $20.5 million at December 31, 1996 and March
31, 1996, respectively.)
(B) Includes unrealized gains related to the Company's investment in
Conceptus, Inc. ($8.7 million and $12.3 million at December 31, 1996 and March
31, 1996, respectively.)
SOURCE: Target Therapeutics, Inc.
CONTACT: investors and analysts, Robert E. McNamara of Target Therapeutics,
510-440-7700; or media, Jonathan Greer of Edelman Public Relations,
415-433-5381, for Target Therapeutics.
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