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Previous: ENDOCARDIAL SOLUTIONS INC, 8-K, 2000-10-13 |
Next: VIDEO NETWORK COMMUNICATIONS INC, S-3, 2000-10-13 |
Exhibit 99.1
October 13, 2000
Endocardial Solutions Announces Third Quarter Earnings Results
MINNEAPOLIS / ST.PAUL—Endocardial Solutions, Inc. (Nasdaq: ECSI) today announced that for the third quarter ended September 30, 2000 revenue results will be lower than analysts' estimates.
Revenues for the three-month period were $3,097,137, compared with revenues of $3,527,893 for the same period of 1999. The net loss for the third quarter was $2,791,036, or $.23 per share, compared with a net loss of $2,526,797, or $.25 per share, for the same period of 1999.
For the nine months ended September 30, 2000, revenue was $10,194,326, compared to revenues of $6,540,328 for the same period of 1999. The net loss for the nine months ended September 30, 2000 was $8,430,911, or $.78 per share, compared to a net loss of $9,190,200, or $.98 per share, for the same period of 1999.
"While third quarter revenues fell short of market expectations, we remain very optimistic about future revenue growth", said Jim Bullock, president and CEO. "We have upgraded the majority of accounts with our new Clarity software and the results have exceeded our expectations. The feedback from physicians indicates a significant benefit from the enhancements provided through Clarity. Additionally, I continue to be impressed how EnSite has improved the clinical outcome in an expanding range of cardiac arrhythmias."
"Gross margin remains strong as a result of stable pricing and manufacturing efficiencies," said Bullock.
The U.S. Food and Drug Administration cleared the EnSite 3000® System for use in diagnostic mapping of complex arrhythmias in the right atrium of the heart during the second quarter 1999. Through a distribution agreement with Medtronic, Inc. (www.medtronic.com), the EnSite 3000® System and catheter have been available to electrophysiologists in Europe since the second quarter 1998.
Based in St. Paul, Minnesota, Endocardial Solutions (www.endocardial.com) develops, manufactures and markets technology for diagnostic mapping of complex arrhythmias (abnormally rapid heartbeats caused by irregular electrical activity in the heart). The EnSite 3000® System provides a 3D graphical display of the heart's electrical activity.
The discussion above is based on preliminary financial results, which are subject to further review and adjustment, and contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding gross margins, operating expenses and revenue expectations, that involve a number of risks and uncertainties. A number of factors should be considered in conjunction with these forward-looking statements. These factors are set forth in the cautionary statements included in Exhibit 99 to Endocardial Solutions' Form 10-Q for the quarter ended June 30, 2000, filed with the Securities and Exchange Commission. Endocardial Solutions cautions investors and others to review the statements set forth in that report and that other factors may prove to be important in affecting the business and results of operations of Endocardial Solutions.
Contacts:
Jim
Bullock, President and CEO, Endocardial Solutions (651) 523-6928
[email protected]
Endocardial Solutions, Inc. Consolidated Statements of Operations (Unaudited)
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For the Three Months Ended |
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|---|---|---|---|---|---|---|---|---|---|
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September 30, 2000 |
September 30, 1999 |
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| Revenue | $ | 3,097,137 | $ | 3,527,893 | |||||
| Cost of goods sold | 1,524,536 | 1,984,997 | |||||||
| Gross profit | 1,572,601 | 1,542,896 | |||||||
| Operating expenses: | |||||||||
| Research and development | 1,203,583 | 1,408,565 | |||||||
| General and administrative | 547,380 | 501,956 | |||||||
| Sales and marketing | 2,651,396 | 2,201,893 | |||||||
| Operating loss | (2,829,758 | ) | (2,569,518 | ) | |||||
| Other income (expense): | |||||||||
| Interest income | 209,150 | 151,121 | |||||||
| Interest expense | (170,428 | ) | (108,400 | ) | |||||
| 38,722 | 42,721 | ||||||||
| Net loss for the period | $ | (2,791,036 | ) | $ | (2,526,797 | ) | |||
| Net loss per share—basic and diluted | $ | (0.23 | ) | $ | (0.25 | ) | |||
| Weighted average shares outstanding | 12,223,496 | 9,984,319 | |||||||
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|
For the Nine Months Ended |
|
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|---|---|---|---|---|---|---|---|---|---|
| |
September 30, 2000 |
September 30, 1999 |
|||||||
| Revenue | $ | 10,194,326 | $ | 6,540,328 | |||||
| Cost of goods sold | 5,329,527 | 4,838,741 | |||||||
| Gross profit | 4,864,799 | 1,701,587 | |||||||
| Operating expenses: | |||||||||
| Research and development | 3,431,228 | 4,115,566 | |||||||
| General and administrative | 1,614,823 | 1,506,229 | |||||||
| Sales and marketing | 8,153,066 | 5,349,202 | |||||||
| Operating loss | (8,334,318 | ) | (9,269,410 | ) | |||||
| Other income (expense): | |||||||||
| Interest income | 411,193 | 350,722 | |||||||
| Interest expense | (507,786 | ) | (271,512 | ) | |||||
| (96,593 | ) | 79,210 | |||||||
| Net loss for the period | $ | (8,430,911 | ) | $ | (9,190,200 | ) | |||
| Net loss per share—basic and diluted | $ | (0.78 | ) | $ | (0.98 | ) | |||
| Weighted average shares outstanding | 10,870,003 | 9,352,775 | |||||||
Selected Balance Sheet Data (Unaudited)
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September 30, 2000 |
December 31, 1999 |
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|---|---|---|---|---|---|---|
| Cash and cash equivalents | $ | 12,430,914 | $ | 7,086,786 | ||
| Working capital | 8,968,977 | 9,699,660 | ||||
| Total assets | 23,465,974 | 17,577,986 | ||||
| Total liabilities | 11,728,907 | 9,324,414 | ||||
| Stockholders' equity | 11,737,067 | 8,253,572 | ||||
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