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EXHIBIT 99.1
Contact: Kevin R. Sayer
Chief Financial Officer
(818) 362-5958
MiniMed Inc.
Investor Relations
Morgen-Walke Associates
Robert P. Jones/Dory Lombardo
(212) 850-5600
MINIMED INC. ANNOUNCES RECORD SECOND QUARTER SALES AND EARNINGS
--NET INCOME INCREASES 77% ON 41% SALES GAIN--
-- COMPANY ANNOUNCES 2-FOR-1 STOCK SPLIT AS STRONG FINANCIAL
PERFORMANCE CONTINUES --
Sylmar, California, July 19, 2000--MiniMed Inc. (Nasdaq: MNMD) today
announced financial results for the second quarter and six months ended June 30,
2000. The Company also announced today that its Board of Directors has declared
a 2-for-1 stock split, in the form of a stock dividend, which will result in the
issuance of one additional share of common stock for every share of common stock
outstanding, increasing the total number of diluted shares outstanding to
approximately 67 million. The Company stated the stock split will be effective
August 2, 2000 for holders of record at the close of business on that date and
will be distributed on August 18, 2000.
For the second quarter of 2000 revenues grew approximately 41% to $69.4
million over the $49.1 million reported in the comparable quarter of 1999. Net
income increased at a faster rate of 77% to $8.6 million, or $0.26 per share on
a diluted basis, compared to net income of approximately $4.9 million, or $0.16
per share on a diluted basis, reported in last year's comparable quarter. For
the six months ended June 30, 2000, revenues grew 44% to $129.7 million compared
to $90.0 million in the comparable 1999 period. Net income increased 72% to
$14.9 million, or $0.45 per share on a diluted basis, compared to net income of
approximately $8.7 million, or $0.29 per share on a diluted basis, reported in
first half of fiscal 1999.
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Commenting on the quarter, Alfred E. Mann, Chairman and Chief Executive
Officer stated, "We are pleased to report another quarter of solid financial
growth and progress for MiniMed. Our strong revenue increase continues to be
driven by world-wide insulin pump placement growth, which exceeded 42% during
the quarter. We are also pleased with our ability to drive earnings growth,
particularly in light of the 1999 completion of our research and development
agreement which provided the 1999 second quarter with $1.5 million in income."
Mr. Mann added, "The recently-completed American Diabetes Association meetings
further strengthened our commitment to providing solutions for this chronic
condition and has generated continued excitement about our efforts and
achievements to date. Further, the Board's decision to approve another stock
split demonstrates continued optimism and confidence about the Company's
future."
Terrance H. Gregg, President and Chief Operating Officer, commented, "We
remain on schedule with our consumer sensor project, which continues to be our
top priority. We expect to file our supplemental PMA for this product in August,
and anticipate FDA approval in the first quarter of 2001. Already, our
continuous glucose monitoring system, currently utilized by physicians, is
beginning to make a significant impact upon the treatment of diabetes. We also
continue to make progress in our other new product development efforts. Clinical
trials for both our pre-filled insulin cartridges and our disposable infusion
system for Type 2 diabetes will begin later this year and we are hopeful of
sales of these products during fiscal 2002. With respect to U.S. regulatory
approval for our implantable pump system, we already have filed three modular
segments of the PMA for the device and are working with Aventis on the final
requirements for the NDA application for the insulin."
MiniMed Inc. designs, develops, manufactures and markets advanced infusion
systems with a primary emphasis on the intensive management of diabetes. The
Company's products include external pumps and related disposables, a first
generation continuous glucose monitoring system as well as exclusive marketing
rights to an implantable insulin pump, which is currently approved for
distribution in the European Community and has not yet been cleared for
marketing in the U.S. The Company is also developing new infusion systems to
deliver compounds designed to treat a variety of medical conditions.
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This Press Release contains statements that are forward-looking, including
statements relating to future results of operations, growth or capital, the
development, regulatory approval, manufacture, introduction, distribution, and
commercial acceptance of new products, the conduct of clinical trials, the
timing of any regulatory filings or approvals relating to new products
(including, without limitation, MiniMed's consumer sensor, pre-filled insulin
cartridges and disposable infusion system), the ability to adequately fund new
products, clinical and regulatory activities, and the growth of our business,
the ability of MiniMed to provide solutions for diabetes and its treatment, and
the impact of our continuous glucose monitoring system on the treatment of
diabetes, are made pursuant to the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned that, although
MiniMed believes that its expectations are based on reasonable assumptions,
forward-looking statements involve risks and uncertainties which may affect
MiniMed's business and prospects, including changes in economic and market
conditions, the results of clinical trials, acceptance of MiniMed's products by
the health care and reimbursement communities, health care legislation and
regulation, new developments in diabetes therapy, the ability to obtain
administrative and regulatory approvals for products currently in development,
competitive developments, changes in MiniMed's capital requirements, and other
factors discussed in the Company's filings with the Securities and Exchange
Commission.
(tables to follow)
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MINIMED INC.
CONDENSED CONSOLIDATED INCOME STATEMENT
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------ ----------------
June 30, 2000 July 2, 1999 June 30, 2000 July 2, 1999
------------- ------------ ------------- ------------
(unaudited) (unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C>
Net sales $ 69,411 $ 49,083 $ 129,749 $ 89,994
Cost of sales 22,155 16,280 41,746 30,118
--------- --------- --------- ---------
Gross profit 47,256 32,803 88,003 59,876
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Operating expenses:
Selling, general and administrative 29,201 20,167 55,104 37,535
Research and development 7,415 6,572 15,219 11,868
Research and development contract -- (1,500) -- (3,000)
--------- --------- --------- ---------
Total operating expenses 36,616 25,239 70,323 46,403
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Operating income 10,640 7,564 17,680 13,473
Other income 2,037 573 4,759 737
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Pretax income 12,677 8,137 22,439 14,210
Provision for income taxes 4,055 3,264 7,569 5,555
--------- --------- --------- ---------
Net income $ 8,622 $ 4,873 $ 14,870 $ 8,655
========= ========= ========= =========
Basic earnings per share $ 0.27 $ 0.17 $ 0.47 $ 0.31
========= ========= ========= =========
Basic weighted average shares outstanding 31,775,000 28,455,000 31,600,000 28,301,000
========== ========== ========== ==========
Diluted earnings per share $ 0.26 $ 0.16 $ 0.45 $ 0.29
========= ========= ========= =========
Diluted weighted average shares outstanding 33,553,000 30,302,000 33,370,000 30,163,000
========== ========== ========== ==========
</TABLE>
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MINIMED INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
<TABLE>
<CAPTION>
June 30, 2000 December 31, 1999
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(unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash, cash equivalents and short-term investments $ 179,443 $ 170,434
Accounts receivable, net of allowances 69,052 65,938
Inventories 30,175 19,338
Deferred income taxes 8,755 9,973
Income taxes receivable 4,000 5,761
Prepaid expenses and other current assets 7,538 7,602
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TOTAL CURRENT ASSETS 298,963 279,046
Note receivable from affiliate 3,600 3,600
Long-term investments 22,038 8,552
Property and equipment, net 55,575 44,631
Other assets 19,174 17,969
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TOTAL ASSETS $ 399,350 $ 353,798
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable--current portion $ 1,000 $ 1,000
Accounts payable 7,678 3,573
Accrued payroll and related expenses 8,568 10,713
Accrued warranties 3,586 3,859
Other accrued expenses 4,445 6,010
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TOTAL CURRENT LIABILITIES 25,277 25,155
Deferred income taxes 5,205 1,545
STOCKHOLDERS' EQUITY
Common stock 361 317
Paid in capital 298,992 280,825
Accumulated other comprehensive income 11,620 2,931
Retained earnings 57,895 43,025
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TOTAL STOCKHOLDERS' EQUITY 368,868 327,098
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 399,350 $ 353,798
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</TABLE>
