MINNEAPOLIS, May 5 /PRNewswire-FirstCall/ -- ATS Medical, Inc. , manufacturer and marketer of state-of-the-art cardiac surgery products and services, today reported financial results for the first quarter ended March 29, 2008. Revenue for the quarter was $14.8 million, up 37.5% from $10.8 million reported in the first quarter of 2007.
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Revenue growth was strong across all regions with domestic and international revenue increasing 36.2% and 38.3%, respectively. Contributing to the strong first quarter revenue growth was a 160.5% 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 $3.8 million. Revenue from the Company's heart valve therapy products, consisting of mechanical valves, tissue valves and repair products, was up 18.8% on a year-over-year basis to $10.7 million. The growth reflected a 17.4% increase in mechanical valve revenue and a 70.4% increase in valve repair revenue. Revenue from products and services other than the Company's mechanical valves represented 34% of total revenue during the first quarter of 2008 compared with 23% in the first quarter of 2007.
Gross profit margin for the first quarter of 2008 set another quarterly record of 60.3% compared with 57.8% for the first quarter of 2007. Gross margin improvements were the result of lower product costs and increased contribution of new products. The prior record gross margin was 58.2% in the fourth quarter of 2007.
"Our strong first quarter revenue growth and milestone achievement of gross profit exceeding 60% for the first time demonstrates continued progress towards our twin goals of attaining positive cash flow and profitability," said Michael Dale, Chairman, President and Chief Executive Officer. "While sales of our existing mechanical heart valve and cryoablation products have been strong, we are very excited about the outlook for incremental future revenues from our most recent introductions as well as products in the pipeline. In particular, we believe our new CryoMaze products and supporting clinical plans have the potential to expand less invasive treatments of atrial fibrillation with excellent outcomes."
"Our first quarter performance was especially strong with most of the upside coming from our existing products," continued Mr. Dale. "We began the launch of our new products, specifically the 3f Aortic Bioprosthesis and the Open Pivot AP360 Mechanical Heart Valve, towards the end of the quarter so we've yet to see an appreciable revenue impact from these introductions. We expect meaningful revenue from these products to begin in the second quarter and grow sequentially throughout the year. We are confident that the combination of robust growth from existing products and increasing contribution from new products will result in another landmark year for ATS. Furthermore, as top line growth continues, we fully expect the increased leverage will enable enhanced financial performance."
Additional Financial Results
The operating loss for the first quarter of 2008 was $3.6 million compared with an operating loss of $4.4 million in the first quarter of 2007. The net loss for the first quarter of 2008 was $2.4 million, or $0.04 per share, compared with $4.8 million, or $0.11 per share in the first quarter of 2007.
Revised 2008 Revenue Outlook
For the full year 2008 the Company now expects revenue to be in a range of $62 to $66 million versus its previous guidance of $60 to $64 million.
Conference Call Today
ATS management will host a conference call today, May 5, 2008 at 5:00 p.m. ET to discuss its first 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 11112192#.
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, 2007 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, 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/
