BURLINGTON, Mass., Aug. 1 /PRNewswire-FirstCall/ -- LeMaitre Vascular, Inc. , a provider of peripheral vascular devices and implants, today announced Q2 2007 financial results. Revenues for Q2 2007 were $10.3 million, a quarterly record, and an increase of 18% versus Q2 2006.
Q2 2007 revenues increased 46% in the Company’s Endovascular and Dialysis Access category and 8% in the Vascular category, while revenues decreased 3% in the General Surgery category. Sales growth was driven in part by the continued acceleration of the endovascular procedure market, productivity gains from recently hired sales representatives, direct marketing efforts, and the distribution of the Powerlink stent graft in Europe.
For Q2 2007, the Company reported a gross margin of 73.8%, versus 69.6% in Q2 2006. Q2 2006 results included a one time inventory charge of $277,000 resulting from the shutdown of the Expedial dialysis graft product line. The Company ended Q2 2007 with $27.9 million in cash and marketable securities, compared with $28.6 million at the end of Q1 2007.
George W. LeMaitre, Chairman and CEO said, “I am pleased to report that we continue to deliver on our plan. We posted solid sales gains in Q2 2007 and have improved our year-over-year sales growth rate in each of the last three quarters. During Q2 2007 we also received approval from the FDA for our pivotal UNITE abdominal stent graft trial, enabling Dr. Karthikeshwar Kasirajan to implant our first UNITE stent graft at Emory University Hospital. In addition, the Company was able to effectively control its bottom line in Q2 2007, despite continuing to invest in its sales and R&D efforts.”
The operating loss for Q2 2007 was $447,000, compared to an operating loss of $1,050,000 for Q2 2006. Q2 2007 operating losses were primarily due to increased sales force and R&D expenditures, as well as the costs associated with being a public company. Q2 2006 operating losses included an impairment charge of $406,000 for the Expedial product line write-down, as well as a $147,000 restructuring charge from the consolidation of the Company’s Phoenix facility.
The Company reported net income of $227,000 for Q2 2007, or $0.01 per basic and diluted share, compared to a net loss of $1,089,000, or $0.14 per basic and diluted share, for Q2 2006. Q2 2007 net income benefited from interest income of $344,000, as well as a significant tax benefit related to the Company’s Japanese subsidiary.
Sales and marketing expenses for Q2 2007 increased 23% to $4,737,000 from $3,865,000 for Q2 2006. The Company ended Q2 2007 with 48 sales representatives, compared to 37 at the end of Q2 2006.
For Q2 2007, general and administrative expenses increased by 27% over Q2 2006, to $2,206,000, primarily due to the higher costs associated with being a publicly-traded company.
R & D expenses increased 14% to $1,118,000 for Q2 2007, compared to $985,000 for Q2 2006. The increase was driven largely by the hiring of additional product development engineers and related product development expenses.
Business Outlook
The Company reaffirmed prior 2007 revenue guidance of $39.5-$41.0 million. The Company also expects to record a net loss in 2007 based on the further development of its sales force, as well as increased investment in R&D. The Company reiterated its goal of achieving profitability by the end of 2008. In addition, the Company expects to employ 50-55 sales representatives in Q1 2008. The Company’s guidance for future financial performance does not include the impact of any potential acquisitions.
Conference Call Reminder
Management will conduct a conference call at 5:00 p.m. EDT today to review the Company’s financial results. The conference call will be broadcast live over the internet. Individuals who are interested in listening to the webcast should log on to the Company’s website at http://www.lemaitre.com/investor . The conference call may also be accessed by dialing 866-761-0749 (1-617-614-2707 for international callers) using passcode: 41292671. For interested individuals unable to join the live conference call, a replay will be available on the Company’s website.
About LeMaitre Vascular
LeMaitre Vascular is a provider of devices for the treatment of peripheral vascular disease. We develop, manufacture and market disposable and implantable vascular devices to address the needs of vascular surgeons and interventionalists. The Company’s devices and implants are used to treat peripheral vascular disease; a condition that we estimate affects more than 20 million people worldwide.
Well-known to vascular surgeons, the Company’s diversified portfolio of peripheral vascular devices and implants consists of brand name products including the EndoFit and UniFit stent grafts, the Expandable LeMaitre Valvulotome, the Pruitt-Inahara Carotid Shunt and the AnastoClip Vessel Closure System.
LeMaitre and the LeMaitre Vascular logo are trademarks of LeMaitre Vascular, Inc., registered in the U.S. and other countries. This press release contains other trademarks and trade names of the Company and other third parties, which are the properties of their respective owners.
For more information about the Company, please visit http://www.lemaitre.com .
Forward-Looking Statements
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 the Company’s business that are not historical facts may be “forward-looking statements” that involve risks and uncertainties. Specifically, statements regarding the Company’s financial guidance for 2007 and 2008, and its operational objectives for 2007, and enrollment in the Company’s UNITE abdominal stent graft clinical study, are forward-looking statements involving risks and uncertainties. The Company’s Q2 2007 interim financial statements, as discussed in this release, are preliminary and unaudited, and subject to adjustment. Forward-looking statements are based on management’s current, preliminary expectations and are subject to risks and uncertainties that could cause actual results to differ from the results predicted include, but are not limited to, risks related to product demand and market acceptance of the Company’s products, the significant competition the Company faces from other companies, technologies and alternative medical procedures, the Company’s ability to expand its sales force, particularly in markets where the Company thinks it is currently underrepresented, the Company’s ability to expand its product offerings through internal development or acquisition, the Company’s ability to realize the anticipated benefits of its acquisitions, disruption at the Company’s single manufacturing facility, the Company’s lack of experience with and general uncertainty related to seeking regulatory approvals for its products, particularly in the United States, potential claims of third parties that the Company’s products infringe their intellectual property rights and the risks and uncertainties described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, under the heading “Risk Factors” filed with the SEC, and available on its investor relations website at http://www.lemaitre.com and on the SEC’s website at http://www.sec.gov, and in subsequent SEC filings. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. The Company 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.
Financial Statements LEMAITRE VASCULAR, INC CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (amounts in thousands, except share data) (unaudited) For the three For the six months ended: months ended: June 30, June 30, June 30, June 30, 2007 2006 2007 2006 Net sales $10,315 $8,760 $20,198 $17,331 Cost of sales 2,702 2,665 5,215 4,926 Gross profit 7,613 6,095 14,983 12,405 Operating expenses: Sales and marketing 4,737 3,865 9,548 7,114 General and administrative 2,206 1,742 4,576 3,514 Research and development 1,118 985 2,272 1,781 Restructuring charges (1) 147 5 178 Impairment charge - 406 7 406 Total operating expenses 8,060 7,145 16,408 12,993 Loss from operations (447) (1,050) (1,425) (588) Other income (expense): Interest income (expense) 344 (54) 696 (100) Other income 28 86 53 131 Total other income 372 32 749 31 Loss before income taxes (75) (1,018) (676) (557) Provision (benefit) for income taxes (302) 71 (274) 162 Net income (loss) $227 $(1,089) $(402) $(719) Net income (loss) per share of common stock: Basic $0.01 $(0.14) $(0.03) $(0.11) Diluted $0.01 $(0.14) $(0.03) $(0.11) Weighted average shares outstanding: Basic 15,378 8,539 15,358 8,496 Diluted 15,760 8,539 15,358 8,496 LEMAITRE VASCULAR, INC CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands) June 30, 2007 December 31, 2006 (unaudited) (audited) Assets Current assets: Cash and cash equivalents $12,474 $15,391 Marketable securities 15,459 15,417 Accounts receivable, net 6,080 5,060 Inventories 7,335 6,081 Other current assets 1,344 1,692 Total current assets 42,692 43,641 Property and equipment, net 2,352 2,389 Goodwill 9,161 8,853 Other intangibles, net 1,864 1,930 Other assets 159 150 Total assets $56,228 $56,963 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $1,311 $818 Accrued expenses 3,562 4,528 Current portion of capital leases - 32 Total current liabilities 4,873 5,378 Deferred tax liabilities 833 833 Other long-term liabilities 26 53 Total liabilities 5,732 6,264 Stockholders’ equity: Common stock 155 153 Additional paid-in capital 60,706 60,504 Accumulated deficit (10,348) (9,946) Accumulated other comprehensive income 68 73 Less: Treasury stock (85) (85) Total stockholders’ equity 50,496 50,699 Total liabilities and stockholders’ equity $56,228 $56,963 LEMAITRE VASCULAR, INC SELECTED NET SALES INFORMATION (amounts in thousands) (unaudited) For the three months ended: June 30, 2007 June 30, 2006 $ % $ % Net Sales by Product Category: Endovascular & Dialysis $3,672 36% $2,522 29% Vascular 5,660 55% 5,222 59% General Surgery 983 9% 1,016 12% Total Net Sales $10,315 100% $8,760 100% Net Sales by Geography United States and Canada $6,074 59% $5,595 64% Outside the United States and Canada 4,241 41% 3,165 36% $10,315 100% $8,760 100% For the six months ended: June 30, 2007 June 30, 2006 $ % $ % Net Sales by Product Category: Endovascular & Dialysis $7,045 35% $4,849 28% Vascular 11,234 56% 10,494 61% General Surgery 1,919 9% 1,988 11% Total Net Sales $20,198 100% $17,331 100% Net Sales by Geography United States and Canada $11,996 59% $11,118 64% Outside the United States and Canada 8,202 41% 6,213 36% $20,198 100% $17,331 100%
LeMaitre Vascular, Inc.
CONTACT: J.J. Pellegrino, Chief Financial Officer of LeMaitre Vascular,Inc., +1-781-221-2266 Ext. 106, jpellegrino@lemaitre.com
