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 quarterly period ended March 31, 1999
or
[ ] TRANSITION REPORTS PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from __________________ to ________________________
Commission File Number: 0-26082
VIDAMED, INC.
(exact name of registrant as specified in its charter)
Delaware 77-0314454
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
46107 Landing Parkway
Fremont, CA 94538
(Address of principal executive offices)
(510) 492-4900
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
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
the past 90 days. [ X ] Yes [ ] No
The number of outstanding shares of the registrant's Common Stock, $.001 par
value, was 20,566,323 as of May 13, 1999.
Page 1 of 15
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<TABLE>
VIDAMED, INC.
INDEX
PART I: FINANCIAL INFORMATION
<CAPTION>
Page
<S> <C>
Item 1. Condensed consolidated financial statements - unaudited
Condensed consolidated balance sheets - March 31, 1999
and December 31, 1998 3
Condensed consolidated statements of operations - three months
ended March 31, 1999 and 1998 4
Condensed consolidated statements of cash flows - three months
ended March 31, 1999 and 1998 5
Notes to condensed consolidated financial statements 6
Item 2. Management's discussion and analysis of financial condition
and results of operations 8
Item 3 Quantitative and qualitative Disclosure About Market Risk 13
PART II: OTHER INFORMATION
Item 1. Legal Proceedings 13
Item 2. Changes in Securities 13
Item 3. Defaults Upon Senior Securities 13
Item 4. Submission of Matters to a Vote of Security Holders 13
Item 5. Other Information 13
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 14
</TABLE>
Page 2 of 15
<PAGE>
PART I: FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
VidaMed, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
1999 1998
-------- --------
(Unaudited) (*)
Assets
Current Assets:
Cash and cash equivalents $ 7,816 $ 9,384
Accounts receivable 499 228
Inventories 1,020 1,228
Other current assets 1,113 1,179
-------- --------
Total current assets 10,448 12,019
Property and equipment, net 1,542 1,797
Other assets, net 318 316
-------- --------
Total assets $ 12,308 $ 14,132
======== ========
Liabilities and stockholders' equity Current liabilities:
Notes payable, current portion $ 912 $ 764
Accounts payable 255 338
Accrued professional fees 217 317
Accrued clinical trial costs 320 431
Accrued and other liabilities 2,650 2,362
Accrued advertising costs 309 309
Restructuring accrual 252 252
Current portion of obligations under capital leases -- 22
Deferred revenue 231 229
-------- --------
Total current liabilities 5,146 5,024
Notes payable, long-term portion 1,607 1,785
Stockholders' equity:
Capital stock 96,930 95,542
Accumulated deficit (91,375) (88,219)
-------- --------
Total stockholders' equity 5,555 7,323
-------- --------
Total liabilities and stockholders' equity $ 12,308 $ 14,132
======== ========
* The Balance Sheet at December 31, 1998 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
See accompanying notes.
Page 3 of 15
<PAGE>
VidaMed, Inc.
Condensed Consolidated Statements of Operations
(In thousands except per share amounts)
(Unaudited)
Three Months Ended
March 31,
----------------------
1999 1998
-------- --------
Revenues:
Product sales, net $ 987 $ 1,375
License fees and grant revenue 50 289
-------- --------
Net revenues 1,037 1,664
Cost of Products Sold 833 1,072
-------- --------
Gross Profit 204 592
Operating Expenses:
Research and development 814 1,132
Selling, general and administrative 2,504 4,607
-------- --------
Total operating expenses 3,318 5,739
-------- --------
Loss from operations (3,114) (5,147)
Other income(expense), net (42) (91)
-------- --------
Net loss $ (3,156) $ (5,238)
======== ========
Basic and diluted net loss per share $ (0.16) $ (0.34)
======== ========
Shares used in computing basic and diluted
net loss per share 20,313 15,238
======== ========
See accompanying notes.
Page 4 of 15
<PAGE>
VidaMed, Inc.
Condensed Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended
March 31,
-------------------------
1999 1998
------- -------
Cash flows from operating activities:
Net loss $(3,156) $(5,238)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 313 348
Changes in assets and liabilities:
Accounts receivable (271) 452
Inventory 208 (7)
Other current assets 66 (762)
Other assets (2) (2)
Accounts payable (83) (347)
Accrued professional fees (100) (163)
Accrued clinical trial costs (111) (29)
Accrued interest payable -- 38
Accrued restructuring cost -- (568)
Accrued and other liabilities 288 1,118
Deferred revenue 2 (235)
------- -------
Net cash used in operating activities (2,846) (5,395)
------- -------
Cash flows from investing activities:
Expenditures for property and equipment (58) (504)
Net cash used in investing activities (58) (504)
------- -------
Cash flows from financing activities:
Principal payments under capital leases (22) (38)
Principal payments of notes payable (30) (303)
Net proceeds from issuance of notes payable -- 1,500
Net proceeds from issuance of common stock 1,388 52
------- -------
Net cash provided by financing activities 1,336 1,211
------- -------
Net decrease in cash and cash equivalents (1,568) (4,688)
Cash and cash equivalents at the beginning
of the period 9,384 8,026
------- -------
Cash and cash equivalents at the end of the period $ 7,816 $ 3,338
======= =======
Supplemental disclosure of cash flows information:
Cash paid for interest $ 95 $ 98
======= =======
See accompanying notes.
Page 5 of 15
<PAGE>
VIDAMED, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1999
(Unaudited)
1. Basis of presentation
The accompanying unaudited condensed consolidated financial statements of
VidaMed, Inc. (the "Company" or "VidaMed") have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions for Form 10-Q and Article 10 of Regulation S-X. The
balance sheet as of March 31, 1999 and the statements of operations for the
three months ended March 31, 1999 and 1998, and the statements of cash flows for
the three months ended March 31, 1999 and 1998, are unaudited but include all
adjustments (consisting of normal recurring adjustments) which the Company
considers necessary for a fair presentation of the financial position at such
date and the operating results and cash flows for those periods. Although the
Company believes that the disclosures in these financial statements are adequate
to make the information presented not misleading, certain information normally
included in financial statements and related footnotes prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to the rules and regulations of the Securities and Exchange Commission.
The accompanying financial statements should be read in conjunction with the
financial statements and notes thereto included in the Company's annual report
on Form 10-K for the year ended December 31, 1998 filed with the Securities and
Exchange Commission.
Results for any interim period are not necessarily indicative of results for any
other interim period or for the entire year.
2. Net loss per share
Basic and diluted net loss per share is computed using the weighted average
number of shares of common stock outstanding during the periods presented.
Common equivalent shares from options, warrants and convertible securities are
excluded from the computation, as their effect is anti-dilutive. As the Company
has incurred losses from operations in each of the periods presented, there is
no difference between basic and diluted net loss per share amounts.
3. Inventories
Inventories are stated at the lower of cost (determined using the first-in,
first-out method) or market value. Inventories at March 31, 1999 and December
31, 1998 consist of the following (in thousands):
March 31, December 31,
1999 1998
------ ------
Raw materials $ 260 $ 404
Work in process 208 261
Finished goods 552 563
------ ------
$1,020 $1,228
====== ======
Page 6 of 15
<PAGE>
4. Notes Payable
During 1998, the Company finalized a commitment for $5.5 million in new debt
financing with Transamerica Technology Finance, a division of Transamerica
Corporation. The facility is secured by the Company's assets and consists of a
revolving accounts receivable based credit line of up to $3 million and a $2.5
million equipment term loan, fully funded. As of March 31, 1999 the Company was
eligible to borrow and has borrowed,$335,000 against the revolving accounts
receivable-based line at a rate of 9.75% per year.
5. Restructuring Accrual
In September 1997, VidaMed announced a restructuring program designed to reduce
costs and improve operating efficiencies by closing the company's U.K.
manufacturing facility. The charge in the third quarter of 1997 was $2.1
million.
The elements of the total charge as of March 31, 1999 are as follows (in
thousands):
Representing
-------------------------------
Cash Outlays
-------------------
Total Asset
Charges Write-down Completed Future
------ ------ ------ ------
Fixed assets $ 390 $ 390 $ -- $ --
Facility shut down 1,305 -- 1,305 --
Grant 405 -- 153 252
------ ------ ------ ------
Total Special Charges $2,100 $ 390 $1,458 $ 252
------ ------ ------ ------
6. Reporting Comprehensive Income (Loss)
As of January 1, 1998, the Company adopted Statement of Financial Accounting
Standards No.130, Reporting Comprehensive Income (Statement 130). Statement 130
establishes new rules for the reporting and display of comprehensive income and
its components. Statement 130 requires unrealized gains or losses on the
Company's available-for-sale securities and foreign currency translation
adjustments, which prior to adoption were reported in shareholders' equity, to
be included in other comprehensive income (loss). During the three months ended
March 31, 1999 and 1998, the total comprehensive loss was not materially
different from the net loss.
7. Common Stock
Proceeds from the issuance of common stock for the quarter ended March 31, 1999
were $1,388,000. In February 1999, the Company completed a sale of common stock,
related to a key vendor of the Company. In this transaction, the Company issued
368,596 shares of common stock at a purchase price of $2.713 per
Page 7 of 15
<PAGE>
share resulting in net proceeds of $1,000,000 to the Company. The balance of
$388,000 was attributable to employee stock plans.
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is a discussion and analysis of the consolidated financial
condition and results of operations for the Company for the three months ended
March 31, 1999 and 1998, and of certain factors that may affect the Company's
prospective financial condition and results of operations. The following should
be read in conjunction with the Condensed Consolidated Financial Statements and
related Notes appearing elsewhere herein, the Company's Annual Report on Form
10-K/A for the year ended December 31, 1998, and the Company's cautionary
statement regarding forward-looking statements.
This Management's Discussion and Analysis of Financial Condition and Results of
Operations contains, in addition to historical information, forward-looking
statements that are based on current expectations and beliefs. Such
forward-looking statements involve a number of risks and uncertainties that
could cause actual results to differ materially. Some of the factors that could
cause actual results to differ materially include, among others, market
acceptance of the VidaMed Tuna Procedure, availability and timing of third-party
reimbursement for procedures performed with the VidaMed Tuna System,
availability of cash resources sufficient to fund operations, the possible
volatility of the Company's stock price, and the factors discussed in the
Company's report on Form 10-K/A for the fiscal year ended December 31, 1998
under Factors Affecting Results of Operations. VidaMed undertakes no obligation
to publicly revise these forward-looking statements to reflect events or
circumstances that arise after the date hereof. Readers should carefully review
the risk factors described in other documents the Company files from time to
time with the Securities Exchange Commission, including but not limited to
reports on Form 10-K, 10-Q and current reports on Form 8-K filed by the Company.
Overview
VidaMed is engaged in the design, development, clinical testing and marketing of
the VidaMed TUNA System for the treatment of symptoms associated with the
enlarged prostate or benign prostatic hyperplasia (BPH). The Company commenced
international sales of the VidaMed TUNA System in late 1993 and received United
States FDA 510(k) clearance in October 1996.
VidaMed anticipates that a substantial amount of its revenues from product sales
in the future will be from sales in the United States. Following the FDA
clearance to market this system for the treatment of symptoms associated with
BPH in the United States on October 8, 1996, the Company applied to the American
Medical Association for a CPT code covering the TUNA Procedure. CPT code number
53852 relating to the TUNA Procedure has been published in the Federal Register
and is part of the Medicare Physician Fee Schedule beginning in calendar year
1998. VidaMed sells its products in the United States to individual and group
urology practices and hospitals. The Company markets the VidaMed TUNA System
through a network of three VidaMed regional business directors, supported by
both sales representatives and
Page 8 of 15
<PAGE>
independent dealers in the United States. Outside the United States, a network
of distributors, supported by VidaMed staff, cover other countries in Europe,
Asia and South America.
VidaMed does not anticipate reaching profitability in the near future. The
Company expects its operating losses to continue as it continues to commit
substantial resources to expand marketing and sales activities, fund clinical
trials in support of regulatory and reimbursement approvals, and fund research
and development. The Company's future profitability will be dependent upon,
among other factors, market acceptance of the VidaMed TUNA Procedure and
availability and timing of third-party reimbursement for procedures performed
with the TUNA System.
The Company has received FDA clearance of its 510(k) notification for the TUNA
System for treatment of symptoms associated with BPH and has commenced marketing
of the TUNA System in the United States. There can be no assurance that the TUNA
System will be deemed clinically or cost effective by health care providers and
payors, that it will be deemed superior to other current and emerging methods
for treating BPH or that it will achieve significant market acceptance in the
United States. Furthermore, determinations of reimbursement of the VidaMed TUNA
Procedure by private and governmental health payors are made by such payors and
their medical directors independent of the FDA approval. Accordingly, there can
be no assurance that the TUNA Procedure will be reimbursed at adequate levels in
the United States under either private or governmental healthcare payment
systems. Availability of Medicare reimbursement for the TUNA Procedure may be
dependent on the publication of clinical data relating to the cost-effectiveness
and duration of the TUNA therapy. Inadequate reimbursement for the TUNA
procedure could adversely effect market acceptance of the TUNA System. The
business, financial condition and results of operations of the Company could be
adversely affected by the failure of the TUNA procedure to achieve market
acceptance in the United States, the impact of competitive products and pricing
and other risks identified in the Company's form 10K/A for the fiscal year ended
1998, under the Factors Affecting Results of Operations.
The Company does not have a backlog of orders for its products in countries
where the VidaMed TUNA System is sold and anticipates that it will continue to
manufacture and ship orders after their receipt. Accordingly, the Company does
not anticipate that it will develop a significant backlog in the future.
Results of Operations
Net revenue for the three months ended March 31, 1999 was $1.0 million. This was
down $0.7 million or 41% from $1.7 million in the three months ended March 31,
1998. Product sales in the first quarter of 1999 decreased 29% to $1.0 million
from $1.4 in the same period in 1998.
The decrease in net revenue between the 1999 and 1998 periods is primarily due
to a one time license fee and a $500,000 stocking order from the Company's
Japanese distributor in the first quarter of 1998. United States sales of
$577,000 in the first quarter of 1999, down from sales of $698,000 in the first
quarter of 1998, have been limited by Medicare Part B reimbursement approval at
the state levels. VidaMed has now gained approval of the professional component
(under Medicare Part B) in 35 states. Other states with significant Medicare
populations are moving forward with regard to this type of Medicare
reimbursement. In addition, Medicare reimbursement for the TUNA system (as part
of Medicare Part B facility expenses) generally follows approval of the
professional component. At this time such approval extends to procedures
Page 9 of 15
<PAGE>
performed in a hospital outpatient setting. In order for the Company to achieve
significant increases in sales volume, it will likely be necessary for the
Company to obtain Medicare reimbursement approvals in all 50 states, or at least
in all states with significant population centers, particularly since sales
agreements with major healthcare providers are often on a national, or
system-wide basis. The Company has several initiatives underway to facilitate
the Medicare reimbursement approval process, including working in cooperation
with state Medicare Medical Directors. Notwithstanding the foregoing, there can
be no assurance that the Company will receive additional Medicare reimbursement
approvals in major states in a timely manner, and the failure to receive such
approvals would have a material adverse effect on the business, financial
condition and results of operations of the Company.
Cost of product sold for the three months ended March 31, 1999 was $0.8 million,
a decrease of 22% or $0.3 million from $1.1 million for the three months ended
March 31, 1998. The decrease is due to lower product sales. Also included in
cost of products sold for the three months ended March 31, 1999 were charges
related to a reduction in work force, due to the announced outsourcing of the
manufacturing of the Company's disposable product.
Research and development (R & D) expenses included expenditures for regulatory
compliance and clinical trials. Clinical trial costs consist largely of payments
to clinical investigators, product for clinical trials, and costs associated
with initiating and monitoring clinical trials. R&D expenses decreased 28% to
$0.8 million in the three months ended March 31, 1999 from $1.1 million in the
three months ended March 31, 1998. The decrease was primarily reduced clinical
activity in 1999.
Selling, general and administrative (SG&A) expenses decreased 46% to $2.5
million in the three months ended March 31, 1999 from $4.6 in the three months
ended March 31, 1998. The expenditures in 1998 included a charge to the
allowance for doubtful accounts, as a result of the length of time involved in
obtaining Medicare reimbursement levels for each state, and the transition to a
new CEO.
Other expense for the three months ended March 31, 1999 was $42,000 compared to
$91,000 for the comparable period in 1998. These changes were primarily a
function of the balance of cash, cash equivalents and debt, the interest earned
or incurred, respectively, and fluctuations in the relative balances.
VidaMed's results of operations have fluctuated in the past and may fluctuate in
the future from year to year as well as from quarter to quarter. Revenues may
fluctuate as a result of several factors, including actions relating to
regulatory and reimbursement matters, results of clinical trials, the extent to
which the TUNA System gains market acceptance, varying pricing promotions,
volume discounts to customers, introduction of new products and the competitive
introduction of alternative therapies for BPH. Operating expenses may fluctuate
as a result of several factors, including the timing of expansion of sales and
marketing activities, costs of clinical activities, R&D and SG&A expenses
associated with the potential growth of VidaMed's organization. As a result of
these factors there can be no assurance as to when or whether the Company will
achieve profitability. If profitability is achieved, there can be no assurance
such profitability will continue in the future.
Liquidity and Capital Resources
Page 10 of 15
<PAGE>
In October 1998, the Company finalized a debt financing with Transamerica
Technology Finance, a division of Transamerica Corporation. The facility is
secured by the Company's assets and consists of a revolving accounts
receivable-based credit line of up to $3 million and a $2.5 million equipment
term loan, fully funded. As of March 31, 1999 the company was eligible to borrow
and has borrowed,$335,000 against the revolving accounts receivable-based line
at a rate of 9.75% per year.
At March 31, 1999, the Company's cash and cash equivalents decreased $1.6
million to $7.8 million, compared to $9.4 million at December 31,1998. The
decrease is due to operating expenses offset by the issuance of equity as
discussed in footnote 7 of this Form 10-Q. In April 1999, pursuant to retention
agreements with certain executives, which expired in April, the Company paid the
executives the aggregate of $0.8 million.
VidaMed believes that the Transamerica financing, combined with its current
capital resources and cash generated from the sale of products will be
sufficient to meet the Company's operating and capital requirements for the next
twelve months. It's ability to fund operating and capital requirements assumes
revenues to double over 1998 levels based on new United States sales and
marketing programs focussing on usage rather than capital equipment sales.
However there can be no assurances that such growth established under it's plans
will continue to be achieved. The Company's existing inventory of generators is
sufficient to support this program without an immediate need to incur costs
associated with manufacturing additional generators. Funds currently available
for operations and capital requirements could become insufficient, however, if
the product is not accepted in the marketplace and the Company is not able to
achieve its usage and revenue plan. Further, the Company's plans assume
reimbursement by additional key states during 1999. Delays of Medicare coverage
in these key states or other reasons could also cause the Company's sales to
fall below projections, and if expenses exceed budgeted amounts, the Company
would require additional funding. In summary, the Company may be required to
expend greater than anticipated funds if unforeseen difficulties arise in the
marketing and sales of the VidaMed TUNA System, in obtaining necessary
regulatory and reimbursement approvals or in other aspects of the Company's
business. In such a case, the Company will likely require additional debt and/or
equity financing. There can be no assurance that additional financing, if
required, will be available on satisfactory terms or at all. Future equity
financing would result in dilution to the holders of the Company's Common Stock.
If financing were not available, management would need to reevaluate and revise
current operating plans as well as reduce spending in general. Should such a
situation arise, management has formulated a contingent operating plan, which
management believes is achievable, to sustain the Company's operations at least
through the next twelve months.
Restructuring Accrual
In September 1997, VidaMed announced a restructuring program designed to reduce
costs and improve operating efficiencies by closing the Company's U.K.
manufacturing facility. The Company expects to incur approximately $252,000 in
cash outlays during 1999. See also Note 5 of notes to condensed consolidated
financial statements.
Impact of Year 2000
Page 11 of 15
<PAGE>
Many currently installed computer systems and software products are coded to
accept, store, or report only two digit year entries in date code fields.
Beginning in the Year 2000 (Y2K), these date code fields will need to accept
four digit entries to distinguish 21st century dates from 20th century dates.
The Y2K issue is a result of these programs being written with two digits
instead of four. As a result, computer systems and software used by companies,
including VidaMed, Inc. and its vendors and customers, will need to comply with
the Y2K requirements. The Company presently believes that as a byproduct of
normal business system modifications and upgrades and the short length of time
the Company has been in operation, the Y2K issue should not have a material
effect on the Company's current financial position, liquidity or results of
operations. However, this does not completely prevent the possibility of
problems arising related to the Y2K that could have a material impact on
operations of the Company.
The Company is aware of the Y2K issue and has been proactive in addressing the
issue internally and externally. The Company's primary software system is
currently Y2K compliant. The Company does not depend on in-house custom systems
and generally purchases off the shelf software from reputable vendors who have
tested their software for Y2K compliance. The Y2K issue is being considered for
all future software purchases. Although the Company believes the Y2K issue will
not pose material operational problems for its computer systems, there can be no
assurance that problems arising from the Y2K issue will be completely
eliminated.
In early 1999, the Company completed its evaluation of its significant suppliers
and large customers systems to determine the extent to which the Company's
interface with these systems is vulnerable to the Y2K issue.The Company
determined that Medicare coverage for supplies and devices in the office-based
and ASC markets was delayed in mid-1998 due to Medicare announced Y2K problems.
The ASC reimbursement program, which was expected to be effective January 1,
1999 is now likely to go into effect before mid-2000, at which time,
office-based payments will begin their three year phase-in: 50% in 2000, 75% in
2001 and full payment in 2002. As a result of Medicare coverage delays, the
Company established a $2.7 million reserve in the third quarter of 1998 for all
office-based and ASC sales.
VidaMed's products are Y2K compliant and are able to operate in the Year 2000
and beyond. The Y2K issue is relevant to the hardware and software used in the
TUNA System generator. There are two processors used in the generator. One
processor does not have date sensitivity and the other is a motherboard assembly
running Microsoft's Windows 95 Operating system. With regard to Windows 95
Operating system being Y2K compliant, Microsoft wrote in a letter dated
September 10, 1996, to the UNITED STATES House of Representatives stating that,
"All Microsoft's operating systems (MS-DOS, Windows 3.x, Windows 95, and Windows
NT) can handle files created up to the year 2108."
The Company has not and does not expect to have material costs associated with
the Y2K issues.
The Company believes it has an effective program in place to resolve Y2K issues
in a timely manner. The Company also has contingency plans for certain critical
applications and is working on such plans for others. These contingency plans
involve, among other actions, manual workarounds, increasing inventories, and
adjusting staffing strategies. In the event that the Company does not completely
resolve all of the Y2K
Page 12 of 15
<PAGE>
issues, the Company's business operations could be adversely affected, although
the resulting costs and loss of business cannot be reasonably estimated at this
time.
Item 3
Quantitative and Qualitative Disclosures About Market Risk
The Company has assessed it's exposure to market risk based on it's current
market risk sensitive instruments and determined that amounts are not material.
VIDAMED, INC.
PART II: OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits
(27.1) Financial Data Schedule
b) Reports on Form 8-K.
No reports on Form 8-K were filed during the
quarter ended March 31, 1999.
Page 13 of 15
<PAGE>
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.
VIDAMED, INC.
Date: May 14, 1999 By: /s/ David J. Illingworth
---------------- ---------------------------------------
David J. Illingworth
Chairman, President, Chief Executive Officer
Date: May 14, 1999 By: /s/ Richard D. Brounstein
---------------- ----------------------------------------
Richard D. Brounstein
VP Finance, Chief Financial Officer
(Principal Financial and Accounting Officer)
Page 14 of 15
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1999
<PERIOD-START> Jan-01-1999
<PERIOD-END> Mar-31-1999
<CASH> 7,816
<SECURITIES> 0
<RECEIVABLES> 3,562
<ALLOWANCES> 3,063
<INVENTORY> 1,020
<CURRENT-ASSETS> 10,448
<PP&E> 6,100
<DEPRECIATION> 4,558
<TOTAL-ASSETS> 12,308
<CURRENT-LIABILITIES> 5,146
<BONDS> 0
0
0
<COMMON> 20
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<TOTAL-LIABILITY-AND-EQUITY> 12,308
<SALES> 987
<TOTAL-REVENUES> 1,037
<CGS> 833
<TOTAL-COSTS> 833
<OTHER-EXPENSES> (107)
<LOSS-PROVISION> 345
<INTEREST-EXPENSE> 119
<INCOME-PRETAX> (3,156)
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<EPS-PRIMARY> (.16)
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