MINNEAPOLIS, Feb. 25 /PRNewswire-FirstCall/ -- ATS Medical, Inc. , manufacturer and marketer of state-of-the-art cardiac surgery products and services, today reported financial results for the fourth quarter and full year ended December 31, 2007. Revenue for the quarter was $14.2 million, up 32.4% from $10.7 million reported in the fourth quarter of 2006.
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Contributing to the strong fourth quarter revenue growth was a 166.7% increase in revenues from the Company’s ATS CryoMaze(TM) cryoablation products for the treatment of cardiac arrhythmias. Revenue from this product line rose to $3.6 million. Revenue from the Company’s heart valve therapy products, consisting of mechanical valves, tissue valves and repair products, was up 13.3% on a year-over-year basis to $10.3 million. The growth reflected a 13.5% increase in mechanical valve revenue. Revenue from products and services other than the Company’s mechanical valves represented 33% of total revenue during the fourth quarter of 2007 compared with 21% in the fourth quarter of 2006.
Gross profit margin for the fourth quarter of 2007 set another quarterly record of 58.2% compared with 51.0% for the fourth quarter of 2006, and 56.3% for the third quarter of 2007. The prior record gross margin was 57.8% in the first quarter of 2007.
“Our strong fourth quarter revenue growth and improved gross profit demonstrate continuing progress towards our goal of leadership in cardiac surgery by advancing the standards in the treatment of heart valve disease and cardiac arrhythmias,” said Michael Dale, Chairman, President and Chief Executive Officer. “We have made substantial progress in diversifying our cardiac surgery offerings, while continuing to grow our mechanical heart valve franchise. We are particularly pleased by the increased revenue contribution of our new product lines designed to treat atrial fibrillation and heart valve repair therapies.”
“We finished 2007 with good momentum and a strong product pipeline that will continue to drive our growth in 2008,” continued Mr. Dale. “Our new development efforts have produced innovative new products designed specifically to improve efficacy for the cardiac surgeon and safety for their patients. As a result, we have made substantial progress on several key milestones -- diversifying our revenue sources, leveraging our sales force and enhancing our profit potential. We believe 2008 will be another landmark year for ATS and we look forward to continued growth and enhanced financial performance.”
Additional Financial Results
The operating loss for the fourth quarter was $4.9 million compared with an operating loss of $5.6 million in the fourth quarter of 2006. The net loss for the 2007 fourth quarter was $6.2 million, or $0.10 per share, compared with $6.1 million, or $0.15 per share in the fourth quarter of 2006.
Full Year 2007 Results
For the full year 2007, revenue totaled $49.6 million, 22.6% above 2006 revenue of $40.4 million. The Company reported a net loss for 2007 of $23.0 million, or $0.44 per share, compared to a net loss of $27.7 million, or $0.83 per share, in 2006. The net loss for 2007 included charges for acquired in-process research and development of $3.5 million related to the CryoCath asset acquisition and $0.8 million related to discontinuance of the PARSUS development program. The net loss for 2006 included a charge for acquired in-process research and development of $14.4 million related to the acquisition of 3f Therapeutics.
2008 Outlook
For the full year 2008 the Company expects revenue to grow approximately 21% to 29% from 2007 to a range of $60 to $64 million. The Company continues to expect to generate a profit in the fourth quarter of 2008.
Conference Call Today
ATS management will host a conference call today, February 25, 2008 at 5:00 p.m. ET to discuss its fourth quarter financial results and current corporate developments. The dial-in number for the conference call is 800-218-4007 for domestic participants and 303-262-2142 for international participants. A live webcast of the call can also be accessed at http://www.atsmedical.com by clicking on the Investors icon.
A taped replay of the conference call will also be available beginning approximately one hour after the call’s conclusion and will remain available for seven days. The replay can be accessed by dialing 800-405-2236 for domestic participants and 303-590-3000 for international callers, using the passcode 11109130#.
About ATS Medical
ATS Medical, Inc. provides innovative products and services focused on cardiac surgery. The company, global in scope, is headquartered in Minneapolis, Minnesota. More than 145,000 ATS Open Pivot(R) Heart Valves, which utilize a unique pivot design resulting in exceptional performance and low risk profile, have been implanted in patients worldwide. The ATS 3f(R) brand encompasses multiple tissue heart valve product offerings at varying steps from market introductions to clinical trials to development projects that incorporate less invasive valve replacement technology. ATS Medical’s focus on serving the cardiac surgery community is further strengthened by offerings that include ATS Simulus(R) annuloplasty products for heart valve repair and ATS CryoMaze(TM) surgical ablation products. The ATS Medical web site is http://www.atsmedical.com.
Safe Harbor
This Press Release contains forward-looking statements that may include statements regarding intent, belief or current expectations of the Company and its management. Actual results could differ materially from those projected in the forward looking statements as a result of a number of important factors, including the results of clinical trials, the timing of regulatory approvals, the integration of 3f Therapeutics and the surgical cryoablation business of CryoCath Technologies, Inc., regulatory actions, competition, pricing pressures, supplier actions and management of growth. For a discussion of these and other risks and uncertainties that could affect the Company’s activities and results, please refer to the Company’s filings with the Securities and Exchange Commission, including its Form 10-K for the year ended December 31, 2006 and its most recent quarterly report on Form 10-Q.
CONTACT: Michael Dale, President-CEO, +1-763-553-7736, or Michael Kramer,
CFO, +1-763-557-2222, or Investors, Jenifer Kirtland, +1-415-896-6820, or
Doug Sherk, +1-415-896-6820, or Media, Steve DiMattia, +1-646-201-5445, all
of ATS Medical, Inc.
Web site: http://www.atsmedical.com/
