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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the Fiscal Quarter Ended June 30, 1998
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Transition period from _________ to _________.
Commission file number: 0-27596
CONCEPTUS, INC.
(Exact name of Registrant as specified in its charter)
Delaware 94-3170244
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1021 Howard Avenue
San Carlos, CA 94070
(Address of principal executive offices)
Registrant's telephone number, including area code: (650) 802-7240
-------------------
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for at least the past 90 days.
Yes _X_ No ___
As of June 30, 1998, 9,535,942 shares of the Registrant's Common Stock were
outstanding.
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<PAGE>
<TABLE>
CONCEPTUS, INC.
FORM 10-Q For the Quarter Ended June 30, 1998
INDEX
<CAPTION>
Page
<S> <C> <C>
Facing sheet 1
Index 2
Part I. Financial Information
Item 1. a) Consolidated balance sheets at June 30, 1998 and December 31, 1997 3
b) Consolidated statements of operations for the three and six month periods ended June
30, 1998 and June 30, 1997 4
c) Consolidated statements of cash flows for the three and six month periods ended June
30, 1998 and June 30, 1997 5
d) Notes to consolidated financial statements 6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
7
Item 3. Quantitative and Qualitative Disclosures About Market Risk 11
Part II. Other Information 12
Signature 14
Index to Exhibits 15
</TABLE>
2
<PAGE>
<TABLE>
PART I: FINANCIAL INFORMATION
ITEM 1. Financial Statements
Conceptus, Inc.
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
<CAPTION>
June 30, 1998 December 31, 1997
------------- -----------------
Assets (Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 10,873 $ 9,250
Short-term investments 9,275 17,808
Accounts receivable, net 72 540
Note receivable 256 --
Inventories -- 355
Other current assets 308 290
-------- --------
Total current assets 20,784 28,243
Property and equipment, net 1,474 1,090
Other assets 122 147
-------- --------
$ 22,380 $ 29,480
======== ========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 403 $ 699
Accrued compensation 1,182 670
Other accrued liabilities 121 135
Current portion of deferred revenue 97 97
Current portion of debt and capital lease obligations 8 34
-------- --------
Total current liabilities 1,811 1,635
Long-term portion of debt and capital lease obligations -- 1
Long-term portion of deferred revenue 291 340
Commitments
Stockholders' equity:
Common stock, $0.003 par value, 30,000,000 shares authorized, 63,531 63,505
9,535,942 and 9,495,053 shares issued and outstanding at
June 30, 1998 and December 31, 1997, respectively
Stockholder notes receivable (54) (54)
Deferred compensation (149) (216)
Accumulated deficit (43,050) (35,731)
-------- --------
Total stockholders' equity 20,278 27,504
-------- --------
$ 22,380 $ 29,480
======== ========
<FN>
See notes to consolidated financial statements.
</FN>
</TABLE>
3
<PAGE>
<TABLE>
Conceptus, Inc.
Consolidated Statements of Operations
(unaudited)
(In thousands, except per share amounts)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
1998 1997 1998 1997
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net sales $ 85 $ 424 $ 252 $ 701
Cost of sales 676 752 1,512 1,194
------- ------- ------- -------
Gross profit (loss) (591) (328) (1,260) (493)
Operating expenses:
Research and development 1,563 1,411 2,949 2,969
Selling, general and administrative 2,042 1,483 3,819 3,048
------- ------- ------- -------
Total operating expenses 3,605 2,894 6,768 6,017
------- ------- ------- -------
Operating loss (4,196) (3,222) (8,028) (6,510)
Interest and investment income, net 333 444 709 936
------- ------- ------- -------
Net loss $(3,863) $(2,778) $(7,319) $(5,574)
======= ======= ======= =======
Basic and diluted net loss per share $ (0.41) $ (0.30) $ (0.77) $ (0.60)
======= ======= ======= =======
Shares used in computing basic and diluted net loss per share 9,517 9,348 9,510 9,287
======= ======= ======= =======
<FN>
See notes to consolidated financial statements.
</FN>
</TABLE>
4
<PAGE>
<TABLE>
Conceptus, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
Increase (Decrease) in Cash and Cash Equivalents
(In thousands)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
1998 1997 1998 1997
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Cash flows used in operating activities
Net loss $ (3,863) $ (2,778) $ (7,319) $ (5,574)
Adjustments to reconcile net loss to net cash
from (used in) operating activities:
Depreciation and amortization 183 128 346 218
Amortization of deferred compensation 35 239 52 403
Recognition of deferred revenue (25) -- (49) --
Changes in operating assets and liabilities:
Accounts receivable 177 (186) 468 (256)
Note receivable (6) -- (256) --
Inventory 327 225 355 31
Other current assets 11 639 (18) (133)
Accounts payable (277) 103 (296) 322
Accrued compensation 514 (55) 512 (43)
Other accrued liabilities 30 (176) (14) 123
-------- -------- -------- --------
Net cash from (used in) operating activities (2,894) (1,861) (6,219) (4,909)
-------- -------- -------- --------
Cash flows from (used in) investing activities
Purchase of investments (10,072) (8,963) (18,522) (22,954)
Maturities of investments 12,276 11,873 27,055 26,056
Capital expenditures (221) (558) (718) (711)
Change in other assets -- (890) 13 (890)
-------- -------- -------- --------
Net cash from (used in) investing activities 1,983 1,462 7,828 1,501
-------- -------- -------- --------
Cash flows from (used in) financing activities
Proceeds from issuance of common stock 31 76 40 138
Principal payments on debt and capital obligations (8) (32) (26) (75)
-------- -------- -------- --------
Net cash from (used in) financing activities 23 44 14 63
-------- -------- -------- --------
Net change in cash and cash equivalents (888) (355) 1,623 (3,345)
Cash and cash equivalents at beginning of period 11,761 13,949 9,250 16,939
-------- -------- -------- --------
Cash and cash equivalents at end of period $ 10,873 $ 13,594 $ 10,873 $ 13,594
======== ======== ======== ========
Supplemental disclosure of cash flow information
Cash paid for interest $ 1 $ 3 $ 2 $ 7
======== ======== ======== ========
Supplemental disclosure of non cash financing information
Issuance of common stock to Microgyn shareholders $ -- $ 1,000 $ -- $ 1,000
======== ======== ======== ========
<FN>
See notes to consolidated financial statements.
</FN>
</TABLE>
5
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Unaudited
Note 1. Summary of Significant Accounting Policies
Method of Preparation
The accompanying consolidated balance sheet as of June 30, 1998 and the
consolidated statements of operations and cash flows for the three and six month
periods ended June 30, 1998 and 1997 have been prepared by Conceptus, Inc.
("Conceptus" or the "Company"), without audit. In the opinion of management, all
adjustments, consisting only of normal recurring adjustments, necessary to
present fairly the financial position, results of operations, and cash flows at
June 30, 1998, and for all periods presented, have been made. The balance sheet
as of December 31, 1997 has been derived from audited financial statements as of
that date.
Although the Company believes that the disclosures in these
consolidated financial statements are adequate to make the information presented
not misleading, certain information and footnote disclosures required by
Generally Accepted Accounting Principles for complete financial statements have
been omitted pursuant to the rules and regulations of the Securities and
Exchange Commission ("SEC"). This financial data should be reviewed in
conjunction with the audited financial statements and notes thereto included in
the Company's Form 10-K for the year ended December 31, 1997. The results of
operations for the three and six months ended June 30, 1998 may not necessarily
be indicative of the operating results for the full 1998 fiscal year.
Computation of Net Loss Per Share
Basic earnings per share is computed using net income and the weighted
average number of common shares outstanding during the period. Diluted earnings
per share is computed using net income and the weighted average number of common
and dilutive common equivalent shares outstanding during each period. Under the
requirements for calculating basic earnings per share, the effect of potentially
dilutive securities such as stock options is excluded. Basic and diluted net
loss is computed using the weighted average number of shares of common shares
outstanding. The computation of the weighted average number of shares
outstanding were (in thousands) 9,517 and 9,348 for the three months ended June
30, 1998 and 1997, respectively, and 9,510 and 9,287 for the six months ended
June 30, 1998 and 1997, respectively.
Recent Accounting Pronouncements
Effective January 1, 1998, the Company adopted Financial Accounting
Standards Board's Statement of Financial Accounting Standard No. 130 ("Statement
130"), Reporting Comprehensive Income. Statement 130 establishes new rules for
the reporting and display of comprehensive income (loss) and its components;
however, the adoption of Statement 130 had no impact on the Company's net income
(loss) or stockholders' equity. Statement 130 requires unrealized gains or
losses on the Company's available-for-sale securities, which prior to adoption
were reported separately in stockholders' equity, to be included in other
comprehensive income (loss). Prior year financial statements have been
reclassified to conform to the requirements of Statement 130. During the first
and second quarters of 1998 and 1997, total comprehensive income (loss) was the
same as net income (loss) as unrealized gains and losses were immaterial.
6
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
The following discussion should be read in conjunction with the
unaudited financial statements and notes thereto included in Part I-Item 1 of
this Quarterly Report. In addition, except for the historical statements
contained therein, the following discussion contains forward-looking statements
within the meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. The Company wishes to alert readers that the factors set forth in the
Company's Annual Report on Form 10-K for the year ended December 31, 1997, as
well as other factors, including those set forth in the following discussion
could in the future affect, and in the past have affected, the Company's actual
results and could cause the Company's results for future periods to differ
materially from those expressed in any forward-looking statements made by or on
behalf of the Company.
Overview
Since its inception on September 18, 1992, Conceptus has been primarily
engaged in the design, development and marketing of innovative interventional
medical devices for use in reproductive medicine. The Company's initial focus
was on the development of systems to improve the diagnosis and treatment of
fallopian tube disorders, a primary cause of infertility, and on technology
designed to improve the safety and ease-of-use of therapeutic hysteroscopy, a
growing, less-invasive alternative to hysterectomy. The Company's current focus
is on providing a non-surgical approach to fallopian tube sterilization, the
most commonly performed contraceptive procedure worldwide. The Company has a
limited history of operations and has experienced significant operating losses
since inception. Operating losses are expected to continue for at least the next
several years as the Company continues to expend substantial resources to fund
clinical trials in support of regulatory and reimbursement approvals and to
conduct research and product development.
The Company's first commercial products were the T-TAC (Transcervical
Tubal Access Catheter) and STARRT (Selective Tubal Assessment to Refine
Reproductive Therapy) Falloposcopy systems. In February 1998, the Company
received 510(k) clearance of its second generation STARRT catheter, the Stargate
Catheter, a component of the Company's STARRT Falloposcopy system, for the
diagnosis of proximal tubal occlusion (PTO). The Stargate Catheter is a
modification of the VS Falloposcopy Catheter, which was previously cleared by
the FDA for marketing in the United States. The Stargate Catheter is designed to
improve visualization of the fallopian tube by reducing the amount of light
reflected off of tubal surfaces. The Company introduced the ERA and FUTURA
Resectoscope Sleeve products in the second half of 1997. These products allow
the use of saline solution when performing hysteroscopic procedures, which
increases the safety of resection procedures by eliminating the risk of
dilutional hyponatremia, a complication that can lead to serious heart, lung and
brain disorders. The Company received 510(k) clearance for its FUTURA
Resectoscope Sleeve for urologic applications in the first quarter of 1997. In
September 1997, the Company received 510(k) clearance for its ERA Resectoscope
Sleeve for gynecological procedures. To date, the Company has generated limited
sales of these commercial products. In connection with the Company's recent
restructuring, which is discussed in more detail below, the Company plans to
cease all direct sales of its commercial products.
7
<PAGE>
In July 1998, the Company announced a restructuring which will
significantly reduce its spending levels. The Company has eliminated 53
positions worldwide, since January 1, 1998, through both natural attrition and
employee layoffs. This restructuring resulted in an additional charge to
operating expenses of $920,000 in the second quarter of 1998, comprised of
$725,000 related to the reduction in work force and $195,000 to fully reserve
all remaining inventory. The number of employees will be reduced to
approximately 18 by the end of 1998. Internal sales, marketing and operations
positions are being eliminated and the administrative positions are being
significantly reduced. No research and development positions were eliminated as
a result of the restructuring.
Given the reduced spending levels, the Company will focus on its
research and development and clinical studies of the S/TOP (Selective Tubal
Occlusion Procedure) device, a non-surgical alternative to surgical tubal
ligation, the most commonly used method of sterilization. The system utilizes a
unique micro-coil designed to be permanently implanted into the fallopian tube
in order to obtain effective sterilization. Peri- and pre-hysterectomy patients
have participated in trials to determine the best placement position and the
tissue response to the implanted microcoil. In the second half of 1997, the
Company commenced a small Phase II efficacy study of the S/TOP system in
Australia. The Phase II study involves device placement in fertile women who
desire permanent sterilization. Study patients will be monitored for a minimum
of two years.
With the recent restructuring, the Company will seek to outlicense or
establish relationships with marketing partners to distribute the ERA and FUTURA
Resectoscope Sleeves and the STARRT Falloposcopy system. The Company currently
does not have any such partners. The inability to outlicense or attract any
significant marketing partners would have a material adverse effect on the
Company's business, financial condition or results of operations. Furthermore,
there is no proven distribution channel for marketing and selling the Company's
products in the United States or internationally. While the Company is committed
to establishing an effective distribution channel for its products, there can be
no assurance that the Company will be successful in doing so. The failure to do
so would have a material adverse effect on the Company's business, financial
condition or results of operations.
Some of the Company's products are currently manufactured by certain
original equipment manufacturers while others have been manufactured by
Conceptus at its location in San Carlos, California. As a result of the
restructuring, the Company anticipates ceasing manufacturing of its products at
its San Carlos location by the end of the third quarter of 1998. Consequently,
the Company is seeking to out-source the manufacturing of its STARRT, ERA and
FUTURA products. The inability to successfully out-source the manufacturing of
the Company's products could have a material adverse effect on the Company's
business, financial condition or results of operations. Future revenues and
results of operations may fluctuate significantly from quarter to quarter and
will depend upon, among other factors, the ability to attract marketing and
out-source manufacturing partners, the timing and size of distributor purchases,
if any, actions relating to regulatory and reimbursement matters, the extent to
which the Company's products gain market acceptance, the progress of clinical
trials, and the introduction of competitive products for diagnosis and treatment
of disorders of the female reproductive system.
8
<PAGE>
Results of Operations - Three and Six Months Ended June 30, 1998 and 1997
Sales decreased to $85,000 and $252,000 for the three and six months
ended June 30, 1998, respectively, from $424,000 and $701,000 for the same
periods in the prior year. The 80% and 64% decreases, respectively, are
primarily due to a cessation in shipments of the Company's T-TAC products to a
domestic distributor, Mallinckrodt Group Inc., which was partially offset by an
increase in shipments of the Company's ERA products in the first half of 1998.
ERA products were not shipped in the first half of 1997, as the 510(k) clearance
on the ERA product was not received until September 1997. It is anticipated that
revenues will continue to decrease during the third quarter of 1998, with no
revenues anticipated during the fourth quarter, as the Company focuses its
resources on the research and development of its S/TOP device and the operations
group is eliminated. Domestic sales comprised 96% and 78% of sales for the three
and six month periods ended June 30, 1998, respectively, compared with 87% and
88% in the prior year periods.
Cost of sales decreased to $676,000 for the three months ended June 30,
1998 and increased to $1,512,000 for the six months ended June 30, 1998,
respectively, from $752,000 and $1,194,000 for the same periods in the prior
year. The 10% decrease in cost of sales for the second quarter of 1998 is due to
the cessation in unit shipments of the Company's T-TAC products to a domestic
distributor in the second quarter of 1998 partially offset by an increase in the
inventory reserve to fully reserve the remaining inventory balance at June 30,
1998. The 27% increase in cost of sales for the six months ended June 30, 1998
is due to an increase in inventory reserves to fully reserve for the remaining
inventory, and to royalties paid related to the acquisition of the exclusive
manufacturing rights of the ERA and FUTURA products.
Research and development ("R&D") expenses, which include clinical and
regulatory expenses, increased to $1,563,000 for the three months ended June 30,
1998 and decreased to $2,949,000 for the six months ended June 30, 1998,
respectively, from $1,411,000 and $2,969,000 for the same periods in the prior
year. The 11% increase for the second quarter of 1998 is primarily due to
severance expense as a result of employee layoffs, and increased R&D efforts and
cost associated with clinical trials on the S/TOP device. This increase was
partially offset by a decrease in R&D efforts required to complete the
development of the ERA and FUTURA products at Medical Scientific, Inc. The R&D
efforts were subsequently transferred to the Company which are now running at a
reduced level of spending. The 1% decrease in R&D expenses for the six months
ended June 30, 1998 is a result of the factors noted above, as well as a
decrease in consulting expenses.
Selling, general and administrative ("SG&A") expenses increased to
$2,042,000 and $3,819,000 for the three and six months ended June 30, 1998,
respectively, from $1,483,000 and $3,048,000 for the same periods in the prior
year. The 38% and 25% increases, respectively, are due to severance expense as a
result of employee layoffs, legal and consulting costs associated with corporate
strategic planning, additional rent as a result of leasing an additional
facility, which is intended to be sublet during the second half of 1998, and
$401,000 associated with fully reserving the outstanding balance from Imagyn
Medical Technologies, Inc. ("Imagyn"). The distribution agreement with Imagyn
was terminated in the second quarter of 1998 because Imagyn had not made payment
on its purchases of FUTURA products.
Net interest and investment income decreased to $333,000 and $709,000
for the three and six months ended June 30, 1998, respectively, from $444,000
and $936,000 for the same periods in the prior year. The decreases for the three
and six months ended June 30, 1998 are a result of lower average cash balances
due to the utilization of cash for operations. Interest expense for the three
and six months ended June 30, 1998 and the amount for the same respective
periods in the prior year are immaterial.
9
<PAGE>
As a result of the items discussed above, net loss increased to
$3,863,000 and $7,319,000 for the three and six months ended June 30, 1998,
respectively, from $2,778,000 and $5,574,000 for the same respective periods in
1997.
The Company has a limited history of operations. Since its inception in
September 1992, the Company has been engaged primarily in research and
development of its T-TAC and STARRT Falloposcopy systems and its S/TOP device,
and since 1996, the ERA and FUTURA product lines. The Company has generated only
limited revenues and has only limited experience in manufacturing, marketing or
selling its products in commercial quantities. As a result of the restructuring,
the Company will focus primarily in research and development of its S/TOP device
and will not directly manufacture, market or sell any of its products. The
Company has experienced significant operating losses since inception and, as of
June 30, 1998, had an accumulated deficit of $43.1 million. The Company expects
its operating losses to continue for at least the next several years as it
continues to expend substantial resources in research and product development
and funding clinical trials in support of its S/TOP device. Due to the expense
and unpredictable nature of these activities, there can be no assurance that the
Company will achieve or sustain profitability in the future.
Liquidity and Capital Resources
At June 30, 1998, Conceptus had cash, cash equivalents and investments
of $20.1 million, compared with $27.1 million at December 31, 1997. The decrease
is primarily due to $6.2 million used in operating activities. Capital
expenditures of $718,000 for the first half of 1998 remained flat with capital
expenditures of $711,000 in the prior year period. Capital expenditures in the
first half of 1998 represent leasehold improvements and furniture and equipment
for a new leased facility, while capital expenditures for the same period in
1997 represent expenditures for a new enterprise computer system and
expenditures necessary to support the growth in employees. It is management's
intention to sublease excess facility space caused by the restructuring, which
has a monthly lease payment of $21,000. Cash outflow for the second half of
1998, exclusive of payments of $725,000 in restructuring charges to be paid out
over the third and fourth quarters, should be substantially lower than the first
half of 1998.
As a result of the restructuring, Conceptus believes that its existing
capital resources will be sufficient to fund its operations through 2000.
However, the Company's future liquidity and capital requirements will depend
upon numerous factors, including the progress of the Company's clinical research
and product development programs, the receipt of and the time required to obtain
regulatory clearances and approvals, and the resources devoted to developing the
Company's S/TOP product. Accordingly, there can be no assurance that the Company
will not require additional financing within this time frame and, therefore, may
in the future seek to raise additional funds through bank facilities, debt or
equity offerings or other sources of capital. Furthermore, any additional equity
financing may be dilutive to stockholders, and debt financing, if available, may
involve restrictive convenants. Additional funding may not be available when
needed or on terms acceptable to the Company, which would have a material
adverse effect on the Company's business, financial condition and results of
operations.
10
<PAGE>
The "Year 2000 issue" arises because most computer systems and programs
were designed to handle only a two-digit year, not a four-digit year. These
computer systems and programs may interpret "00" as the year 1900 and could
either stop processing date-related computations or could process them
incorrectly in the year 2000. The Company has been informed by its information
system vendors that such systems are able to process the year 2000 accurately
and accordingly does not anticipate any Year 2000 issues from its own
information systems, databases or programs. However, the Company could be
adversely impacted by Year 2000 issues faced by major distributors, suppliers,
customers, vendors and financial service organizations with which the Company
interacts. The Company is in the process of developing a plan to determine the
impact that third parties which are not year 2000 compliant may have on the
operations of the Company. There can be no assurance that such plan will be able
to address fully, or at all, the impact of the Year 2000 issue on the Company,
which could have a material adverse effect upon the Company's business,
financial condition and results of operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Not applicable.
11
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
There are no material pending or threatened legal proceedings against
the Company. The Company from time to time is involved in routine legal matters
incident to its business. While management currently believes the amount of
ultimate liability, if any, with respect to these actions will not materially
affect the financial position, results of operations, or liquidity of the
Company, the ultimate outcome of any litigation is uncertain.
Item 2. Changes in Securities
None.
Item 3. Defaults in Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
At the Annual Meeting of Stockholders of the Registrant, held on May
26, 1998, the stockholders approved the following proposals as indicated below:
(1) To elect Class I directors to serve a term of three years and until
their successors are elected:
NOMINEE IN FAVOR WITHHELD
Richard D. Randall 6,140,660 50,843
Robert F. Kuhling 6,140,660 50,843
The Company's Class II directors, comprised of Thomas C.
McConnell and Howard D. Palefsky, and Class III directors, comprised of
Kathryn A. Tunstall, Sanford Fitch and Dr. Florence Comite, have terms
which will end at the Annual Meetings of Stockholders in 1999 and 2000,
respectively.
(2) To ratify the appointment of Ernst & Young LLP as the Registrant's
independent auditors for the fiscal year ending December 31, 1998:
FOR AGAINST ABSTAIN BROKER NON-VOTE
6,182,533 3,950 5,020 3,315,425
12
<PAGE>
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 27
Exhibit 27 Financial Data Schedule
(a) Reports on Form 8-K.
None.
13
<PAGE>
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.
CONCEPTUS, INC.
By: /s/ SANFORD FITCH
-----------------------------------
Sanford Fitch
Senior Vice President
and Chief Financial Officer
(Duly Authorized and Principal Financial and
Accounting Officer)
Date: July 24, 1998
14
<PAGE>
INDEX TO EXHIBITS
Exhibit
Number Description
------ -----------
27 Financial Data Schedule
15
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 896778
<NAME> Conceptus, Inc.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 10,873
<SECURITIES> 9,275
<RECEIVABLES> 478
<ALLOWANCES> 406
<INVENTORY> 0
<CURRENT-ASSETS> 20,784
<PP&E> 2,778
<DEPRECIATION> 1,304
<TOTAL-ASSETS> 22,380
<CURRENT-LIABILITIES> 1,811
<BONDS> 0
0
0
<COMMON> 63,531
<OTHER-SE> (43,253)
<TOTAL-LIABILITY-AND-EQUITY> 22,380
<SALES> 252
<TOTAL-REVENUES> 252
<CGS> 1,512
<TOTAL-COSTS> 1,512
<OTHER-EXPENSES> 6,768
<LOSS-PROVISION> 156
<INTEREST-EXPENSE> 2
<INCOME-PRETAX> (7,319)
<INCOME-TAX> 0
<INCOME-CONTINUING> (7,319)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (7,319)
<EPS-PRIMARY> (0.77)
<EPS-DILUTED> (0.77)
</TABLE>
