REDWOOD CITY, Calif., Dec. 6 /PRNewswire-FirstCall/ -- FoxHollow Technologies, Inc. , today announced financial results for the third quarter and the nine-month period ended September 30, 2004. The Company also announced the filing today of its Quarterly Report with the Securities and Exchange Commission on Form 10-Q.
Net revenue in the third quarter of 2004 was $11.6 million, a 55% increase over the $7.5 million reported for the second quarter of 2004. For the third quarter of last year, net revenue was $650,000. Net revenue is derived from sales of the Company’s SilverHawk(TM) Plaque Excision System, a minimally-invasive device for the treatment of peripheral artery disease (PAD).
The Company reported a net loss of $7.4 million, or $6.83 per share, in the third quarter of 2004, compared with a net loss of $8.8 million for the second quarter of 2004 and $3.2 million for the third quarter of 2003. Included in these results are non-cash, stock-based compensation expenses of $1.8 million for the third quarter of 2004, $1.2 million for the second quarter of 2004 and $385,000 for the third quarter of 2003.
Robert Thomas, President and Chief Executive Officer, stated, “We are very pleased with FoxHollow’s accomplishments during the third quarter. In addition to the continued robust growth in SilverHawk sales, we also saw significant increases in our gross margin and manufacturing capacity.”
“Six-month follow up data from TALON, a national outcomes study, was presented for the first time and showed a clinical reintervention rate among the 162 lesions treated with the SilverHawk of 11%, a very compelling outcome compared to traditional treatments for PAD. This data, along with favorable reimbursement and procedural ease, will further accelerate market penetration,” he added.
For the nine months ended September 30, 2004, FoxHollow’s net revenue was $23.9 million, compared with $876,000 recorded in the same period last year. The Company’s net loss for the nine months ended September 30, 2004 was $22.4 million, compared with $9.3 million for the corresponding period in the prior year. Included in these results are non-cash, stock-based compensation expenses of $4.0 million for the first nine months of 2004 and $939,000 for the corresponding period of 2003.
As of September 30, 2004 the Company’s cash, cash equivalents and short-term investments balance was $12.6 million. On October 28, 2004, the Company sold 4.5 million shares of its common stock at $14.00 per share in its initial public offering. Additionally, on October 29, 2004, the underwriters exercised their over-allotment option to purchase 675,000 shares at $14.00 per share. Proceeds from the offering after deducting underwriting discounts and commissions but before expenses were $67.4 million.
The Company will not be conducting a conference call to discuss third quarter results, as these results were previously summarized in the Company’s final prospectus as filed with the Securities and Exchange Commission on October 27, 2004.
About FoxHollow Technologies, Inc.
FoxHollow Technologies, Inc. develops and markets minimally invasive plaque excision devices for the treatment of peripheral artery disease (PAD). An estimated 12 million people in the U.S. are thought to suffer from PAD with 2.5 million patients currently diagnosed. PAD results from plaque that accumulates in the arteries and blocks blood flow in the legs. These blockages can result in severe pain for patients and very limited physical mobility. The SilverHawk System is a minimally invasive method of removing the obstructive plaque and restoring blood flow to the legs and feet. For more information, please visit our website at http://www.foxhollowtech.com/.
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this press release regarding FoxHollow’s business which are not historical facts may be “forward looking statements” that involve risks and uncertainties. Specifically, statements concerning FoxHollow’s ability to penetrate the PAD market based on early clinical results, are forward-looking statements within the meaning of the Safe Harbor. Forward-looking statements are based on management’s current, preliminary, expectations and are subject to risks and uncertainties, which may cause FoxHollow’s actual results to differ materially from the statements contained herein. FoxHollow’s third quarter financial results, as discussed in this release, are preliminary and unaudited, and subject to adjustment. Further information on potential risk factors that could affect FoxHollow’s business and its financial results are detailed in its filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q as filed with the Securities and Exchange Commission on December 6, 2004. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. FoxHollow undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date they were made, or to reflect the occurrence of unanticipated events.
Contacts: Matt Ferguson Chief Financial Officer 650-421-8501 mferguson@foxhollowtech.com Duke Rohlen Investor Relations 650-421-8655 investorrelations@foxhollowtech.com Leslie Trigg Media Relations 650-421-8539 ltrigg@foxhollowtech.com FOXHOLLOW TECHNOLOGIES, INC. CONDENSED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2004 2003 2004 2003 Net revenue $11,581 $650 $23,853 $876 Cost of revenue (1) 6,977 1,024 17,134 2,004 Gross profit (loss) 4,604 (374) 6,719 (1,128) Operating expenses: Research and development (1) 1,539 1,137 4,502 4,642 Selling, general and administrative (1) 10,547 1,756 24,754 3,683 Total operating expenses 12,086 2,893 29,256 8,325 Loss from operations (7,482) (3,267) (22,537) (9,453) Interest and other income 61 41 117 151 Interest and other expense -- (2) (2) (35) Net loss (7,421) (3,228) (22,422) (9,337) Dividend related to beneficial conversion feature of convertible preferred stock -- -- (15,977) (24) Net loss attributable to common stockholders $(7,421) $(3,228) $(38,399) $(9,361) Net loss per common share: Basic and diluted $(6.83) $(5.57) $(46.04) $(16.22) Weighted-average number of shares used in per common share calculations: Basic and diluted 1,087 580 834 577 (1) Includes the following stock- based compensation charges: Cost of revenue $209 $24 $347 $67 Research and development 120 50 293 171 Selling, general and administrative 1,460 311 3,377 701 $1,789 $385 $4,017 $939 FOXHOLLOW TECHNOLOGIES, INC. CONDENSED BALANCE SHEETS (in thousands) (unaudited) September 30, December 31, 2004 2003 Assets Current assets: Cash and cash equivalents $11,089 $2,637 Short-term investments 1,499 4,874 Accounts receivable, net of allowance for doubtful accounts of $297 5,592 866 at September 30, 2004 and $39 at December 31, 2003. Inventories, net 4,701 1,223 Deferred cost of revenue 33 78 Prepaid expenses and other current assets 1,298 215 Total current assets 24,212 9,893 Property and equipment, net 3,196 1,424 Other assets 555 99 Total assets $27,963 $11,416 Liabilities, Convertible Preferred Stock and Stockholders’ Deficit Current liabilities: Accounts payable $4,725 $1,559 Accrued liabilities 3,792 878 Deferred revenue 45 90 Total liabilities 8,562 2,527 Convertible preferred stock, $0.001 par value per share (Liquidation preference: $79,269 at September 30, 2004) 78,642 49,998 Stockholders’ deficit: Common stock, $0.001 par value per share 1 1 Additional paid-in capital 23,045 6,183 Deferred stock-based compensation, net (16,245) (3,673) Accumulated deficit (66,042) (43,620) Total stockholders’ deficit (59,241) (41,109) Total liabilities, convertible preferred stock and stockholders’ deficit $27,963 $11,416
FoxHollow Technologies, Inc.
CONTACT: Matt Ferguson, Chief Financial Officer, +1-650-421-8501, ormferguson@foxhollowtech.com, or Duke Rohlen, Investor Relations,+1-650-421-8655, or investorrelations@foxhollowtech.com, or Leslie Trigg,Media Relations, +1-650-421-8539, or ltrigg@foxhollowtech.com, all ofFoxHollow Technologies, Inc.
Web site: http://www.foxhollowtech.com/
