MONTREAL, May 12 /PRNewswire-FirstCall/ - CryoCath(R) Technologies Inc., the global leader in cryotherapy products to treat cardiac arrhythmias, today announced financial results for the second quarter, ended March 31, 2008.
"This has been a strong quarter from a commercial point of view, topped off with achieving some outstanding milestones in the weeks following." said Jan Keltjens, President and CEO of CryoCath. "The uptake of Arctic Front in Europe and other markets is strong and is fuelling global growth. Achieving the 270 consented patients milestone in the STOP AF trial is a significant step towards achieving our goal of U.S. approval. We are looking forward to completing therapies and obtaining 12-month follow-up data from the trial in the second calendar quarter of 2009. Supported by the successful financing, we can move full steam ahead and drive commercial expansion of Arctic Front, create the required capacity increase and support ongoing innovation."
Financial Results
The Company's total revenue reached $10.2 million in the second quarter of fiscal 2008, a 9.3% decline as compared to $11.3 million for the corresponding period in 2007, including sales from the divested surgical business of $3.8 million. For the six-month period ending March 31, 2008, total revenues were $18.9 million, a 11.3% decline as compared to $21.3 million in the same period a year ago, including sales from the divested surgical business of $7.3 million.
EP disposable revenues for the second quarter were $6.7 million, or a growth of 21.9% as compared to $5.5 million for the second quarter of 2007. U.S. sales of these products were $3.0 million, as compared to $3.6 million. This 17.2% decline was impacted by negative movements in exchange rate of 13.6%. OUS sales of these products were $3.7 million as compared to $1.9 million, or a growth of 98%.
Other EP revenues, which consist of console sales and rentals, as well as various accessories and services, for the second quarter were $3.5 million, a 82.9% growth, as compared to $1.9 million for the second quarter of 2007. US sales of these products were $2.0 million, a 39.8% increase as compared to $1.4 million. OUS sales of these products were $1.5 million, as compared to $0.5 million.
Gross profits for the second quarter of fiscal 2008 were $5.5 million, 54.0% of sales compared with $7.1 million or 63.4% of sales in the second quarter of fiscal 2007. On a six-month year-to-date basis, gross margins were $10.0 million or 53.0% of sales, versus $13.2 million or 62.2% of sales from the same period a year ago. The difference is primarily due to volume loss due to the surgical portfolio divestiture combined with a product mix in favor of lower margin consoles which are showing rapid growth ahead of disposable sales growth.
Net research and development expenses for the quarter ended March 31, 2008 were $3.4 million compared to $2.7 million in the same quarter last year. On a six-month year-to-date basis, R&D expenses were $5.6 million compared to $4.8 million in the same period in 2007. The change is entirely related to the acceleration of enrollment in our STOP AF IDE pivotal trial.
The Company's sales and marketing expenses for the second quarter of 2008 decreased to $5.4 million compared to $6.4 million in the same period last year. On a six-month year-to-date basis, sales and marketing expenses were $9.7 million versus $11.9 million for the same period a year ago. The change is a result of the surgical portfolio divestiture with the elimination of commissions and fees combined with increasing efficiencies in the sales and marketing process.
Administrative expenses for the second quarter of 2008 were $2.7 million compared with $2.3 million for the same period last year. On a six-month year-to-date basis, administrative expenses were $5.4 million versus $3.9 million for the same period a year ago. The change is primarily related to investments in resources to build a robust infrastructure required to support rapid, sustainable growth while continuing the required programs on controls and compliance.
CryoCath's net loss for the second quarter ended March 31, 2008 is $6.1 million or ($0.16) per share from a loss of $6.0 million or ($0.16) per share in the second quarter of fiscal 2007.
Operating burn for the second quarter was $5.4 million versus $3.6 million in the second quarter of 2007. On a six-month year-to-date basis, the operating burn was $10.3 million compared to $5.3 million in 2007. EBITDA for the quarter was at ($4.4) million, a decrease of ($0.3) million compared to prior year period. On a year-to-date basis, EBITDA decreased by ($2.9) million to a total of ($8.9) million as compared to a loss of ($6.0) million prior year.
The Company, as of March 31, 2008, had access to approximately $15.9 million in cash and borrowing facilities as compared to $19.4 million at the end of December, 2007.
The Company will host a conference call to discuss the second quarter and provide an update on its business Monday, May 12, at 4:30 PM (EST.) The call will be audio-cast live from CryoCath's website and archived for 90 days.
CryoCath - www.cryocath.com - is a medical technology company that leads the world in cryotherapy products to treat cardiac arrhythmias. With a priority focus on providing physicians with a complete solution of catheter products to treat cardiac arrhythmias, CryoCath has multiple products approved in the U.S., across Europe and several ROW countries. The Company is developing additional products to expand its pipeline of products to treat cardiac arrhythmias.
This press release includes "forward-looking statements" that are subject to risks and uncertainties, including with respect to the timing of regulatory trials and their outcome. For information identifying legislative or regulatory, economic, climatic, currency, technological, competitive and other important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, see CryoCath's annual report available at www.sedar.com under the heading Risks and Uncertainties in the Management's Discussion and Analysis section.
CONTACT: visit our website at www.cryocath.com, or contact: Michael Moore,
Investor Relations, Phone: (416) 815-0700 ext. 241, Fax: (416) 815-0080,
E-mail: mmoore@equicomgroup.com
