IRVINE, Calif., May 15 /PRNewswire-FirstCall/ -- Alsius Corporation , the worldwide leader in intravascular temperature management (IVTM(TM)) therapies for critically ill patients, today reported on its financial results and business for the first quarter ended March 31, 2008.
Revenue for the first quarter of 2008 increased 25 percent to $2.5 million, compared to $2.0 million in the first quarter of 2007. The increase in revenue was attributable to an increase in sales in the U.S. of 40 percent compared to the first quarter of 2007.
“The first quarter results reflect increased U.S. awareness of our intravascular temperature management products,” said Bill Worthen, president and chief executive officer of Alsius. “We are pleased with our performance given that the first calendar quarter tends to be the softest in the hospital capital equipment market. We are also getting back on track for growth in Europe, where we expect the growth rate to exceed that of 2007.”
Additional First Quarter 2008 Financial Results
In the first quarter of 2008, gross profit was $0.6 million, compared to $0.08 million in the first quarter of 2007. Total operating expenses in the first quarter of 2008 were $6.0 million compared to $4.4 million in the same period of 2007. Included in the first quarter 2008 expenses were non-cash, stock compensation expenses of $1.0 million, compared to $0.1 million during the same period in 2007. The increase in total operating expenses for the first quarter of 2008 was primarily attributable to the growth in Alsius’ direct sales force and marketing activities to support worldwide market expansion.
As a percentage of revenue, cost of revenue decreased to 76 percent of sales for the first quarter 2008, from 96 percent of sales for the first quarter 2007. The percentage decrease was primarily due to the realization of cost reduction programs and higher average selling prices as a result of an increase in sales in the U.S.
The net loss for the first quarter of 2008 decreased to $5.5 million, or $0.27 per share, from $6.4 million, or $0.58 per share, for the first quarter of 2007.
Cash and cash equivalents were $18.5 million at March 31, 2008, compared to $24.4 million at December 31, 2007. Cash used for operating activities during the first quarter was $5.5 million. In addition, the company repaid $0.8 million of debt, in the first quarter of 2008.
“As we continue to increase revenues from sales of our systems in the U.S., it is important to note that, at the end of the first quarter of 2008, the cumulative number of systems sold in the U.S. was approximately double what it was at the end of the first quarter in 2007,” added Mr. Worthen. “In addition, the total number of hospitals that have purchased three or more systems has also doubled over the past year, and we continue to have a robust pipeline of leads. We see this as an important indicator of interest as we strive to penetrate the critical care market with our IVTM solution.”
About Alsius
Alsius, headquartered in Irvine, Calif., is a medical device company that develops, manufactures and sells proprietary products to precisely control patient temperature in hospital critical care settings. Controlling body temperature, through cooling and warming, is becoming the standard of care for patients in select critical conditions and those undergoing a variety of surgical procedures. Alsius markets a comprehensive suite of catheter-based intravascular temperature management products that address the need for effective, accurate, easy-to-use and cost-effective control of body temperature in critical care patients. For more information, visit http://www.alsius.com.
Safe Harbor
This press release may contain statements regarding plans and expectations for the future that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking. Such forward looking statements, based upon the current beliefs and expectations of Alsius’ management, are subject to risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The information set forth herein should be read in light of such risks. Additional information concerning such risks and uncertainties are contained in Alsius’ filings with the Securities and Exchange Commission, which can be accessed electronically on the Securities and Exchange Commission website at http://www.sec.gov or on the Investor Relations section of Alsius’ website at http://www.alsius.com.
CONTACT: Brett L. Scott, Chief Financial Officer of Alsius Corporation,
+1-949-453-0150, bscott@alsius.com; or Julio Cantre of WeissComm Partners,
+1-415-946-1055, jcantre@wcpglobal.com, for Alsius Corporation
Web site: http://www.alsius.com/
