FRANKLIN, Mass., August 2 /PRNewswire-FirstCall/ --- PLC Systems Inc. , a company focused on innovative cardiac and vascular medical device-based technologies, today reported financial results for the three and six month periods ended June 30, 2007.
Second quarter 2007 total revenues were $1,932,000 compared with $1,943,000 in the second quarter of 2006. The net loss for the second quarter of 2007 was $363,000, or $0.01 per diluted share, compared to net income of $72,000, or $0.00 per diluted share, in the second quarter of 2006.
“We are pleased with our progress during the second quarter of 2007, working with our new exclusive marketer and distributor for our TMR business in the U.S., Novadaq Technologies, Inc. While the transition to Novadaq only began late in March 2007, together we and Novadaq shipped six HL2 laser systems in total, and our kit shipments were about level with last quarter as well,” said Mark R. Tauscher, president and chief executive officer of PLC Systems. “Novadaq’s expanded U.S. sales force has enhanced its ability to sell our TMR systems by utilizing an integrated approach to the heart surgeon customer base, marketing Novadaq’s innovative SPY(R) Intra-Operative Imaging System with TMR. The results from this past quarter support this strategy.”
He added, “We are optimistic about future sales growth for TMR by Novadaq, enabling PLC to focus more resources on the clinical trials and preparations for commercialization of our new product initiative, the RenalGuard Therapy(TM) and RenalGuard System.. We are continuing to enroll patients in our pilot clinical trial, and remain enthusiastic about our market opportunity in enabling at-risk patients to avoid Contrast-Induced Nephropathy (CIN).
During the second quarter of 2007, PLC shipped six CO2 Heart Lasers (HL2) to U.S. hospitals through Novadaq. Five of these shipments were new HL2 lasers and one was a redeployed unit. PLC ended the second quarter of 2007 with 162 HL2 CO2 Heart Lasers located at heart centers throughout the U.S. During the second quarter of 2007, a total of 454 disposable kits were shipped worldwide by Novadaq and PLC. Novadaq delivered 429 of these kits to U.S. hospitals and PLC shipped 25 disposable kits to international customers. In comparison, a total of 457 and 547 disposable kits were delivered worldwide during the first quarter of 2007 and the second quarter of 2006, respectively.
Cash and short term investments at the end of the second quarter of 2007 totaled $8,645,000, down from $10,034,000 at the end of December 2006, reflecting increased expenses associated with the RenalGuard(TM) clinical trials and market development activities.
Six Months’ Results
For the first half of 2007, PLC reported total revenues of $3,425,000 compared to $3,832,000 in the same period in 2006. The net loss for the 2007 first half was $1,049,000, or $0.03 per diluted share, compared to net income of $1,363,000, or $0.04 per diluted share, in the first six months of 2006, a period that also included a $1.4 million gain on the sale of PLC’s Optiwave disposable manufacturing rights to Edwards Lifesciences Corporation.
Conference Call
PLC Systems will host a conference call today, August 2, 2007 at 11:00 a.m. ET to discuss these matters. The call may be joined by dialing (866) 543- 6411, or internationally, (617) 213-8900, at least five minutes prior to the start of the call. The passcode is: 11606819. A live webcast of the call will be accessible at the investor relations section of the Company’s website at www.plcmed.com. An archived webcast of the conference call will be available beginning one hour after the completion of the call in the same location. A replay of the call can also be accessed telephonically by dialing 888-286-8010, or internationally 617-801-6888, using passcode 96499216, from 1:00 p.m. ET on August 2, 2007 through midnight on August 9, 2007.
About PLC Systems Inc.
PLC Systems Inc. is a medical technology company specializing in innovative technologies for the cardiac and vascular markets. Headquartered in Franklin, Mass., PLC pioneered the CO2 Heart Laser System, which cardiac surgeons use to perform CO2 transmyocardial revascularization (TMR) to alleviate symptoms of severe angina. CO2 TMR offers a treatment option for angina patients who suffer from severe coronary artery disease. The CO2 Heart Laser is the world’s first TMR angina relief device approved by both the U.S. Food and Drug Administration and Japanese Ministry of Health, Labor and Welfare. The company recently initiated clinical studies for its RenalGuard Therapy and RenalGuard System(TM). RenalGuard’s matched fluid replacement system is designed for interventional cardiology and radiology patients undergoing diagnostic and therapeutic imaging procedures where contrast agents are administered.
Additional company information can be found at www.plcmed.com.
This press release contains “forward-looking” statements. For this purpose, any statements contained in this press release that relate to prospective events or developments are deemed to be forward-looking statements. Words such as “believes,” “anticipates,” “plans,” “expects,” “will” and similar expressions are intended to identify forward-looking statements. Our statements of our objectives are also forward-looking statements. While we may elect to update forward-looking statements in the future, we specifically disclaim any obligation to do so, even if our estimates change, and you should not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release. Actual results could differ materially from those indicated by such forward-looking statements as a result of a variety of important factors, including that Novadaq may be unsuccessful in selling our products, the transition period following Novadaq’s new role as our exclusive US distributor may adversely affect our revenues, we and Novadaq may be unable to convince health care professionals and third party payers of the medical and economic benefits of performing TMR, there can be no assurance that all payers will reimburse health care providers who perform TMR procedures or that reimbursement, if provided, will be adequate, we may not receive necessary regulatory approvals to market our RenalGuard product, the clinical trials for that product may not be successful, the RenalGuard product may not be commercially accepted, operational changes, competitive developments may affect the market for our products, regulatory approval requirements may affect the market for our products, and additional risk factors described in our Report on Form 10-K for the year ended December 31, 2006, and our other SEC reports.
PLC Systems, PLC Medical Systems, PLC and CO2 Heart Laser, RenalGuard, RenalGuard Therapy and RenalGuard System are trademarks of PLC Systems Inc.
Edwards Lifesciences is a trademark of Edwards Lifesciences Corporation. Novadaq and SPY are trademarks of Novadaq Technologies, Inc. PLC SYSTEMS INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006 Revenues: Product sales $1,520 $1,577 $2,654 $3,057 Service fees 412 366 771 775 Total revenues 1,932 1,943 3,425 3,832 Cost of revenues: Product sales 562 554 1,148 1,065 Service fees 213 168 421 348 Total cost of revenues 775 722 1,569 1,413 Gross profit 1,157 1,221 1,856 2,419 Operating expenses: Selling, general and administrative 1,076 804 2,089 1,684 Research and development 556 458 1,047 991 Total operating expenses 1,632 1,262 3,136 2,675 Gain on the sale of manufacturing rights - - - 1,432 Income (loss) from operations (475) (41) (1,280) 1,176 Other income, net 112 113 231 187 Net income (loss) $(363) $72 $(1,049) $1,363 Basic income (loss) per share $(0.01) $0.00 $(0.03) $0.05 Diluted income (loss) per share $(0.01) $0.00 $(0.03) $0.04 Average shares outstanding: Basic 30,311 30,092 30,311 30,086 Diluted 30,311 30,731 30,311 30,657 CONDENSED BALANCE SHEET June 30, December 31, 2007 2006 Cash and short-term investments $8,645 $10,034 Total current assets 11,566 12,802 Total assets 11,978 13,176 Total current liabilities 3,184 2,953 Shareholders’ equity 6,156 7,129 Contact: Mary T. Conway Conway Communications 617-244-9682 mtconway@att.net
PLC Systems Inc.
CONTACT: Mary T. Conway of Conway Communications, +1-617-244-9682,mtconway@att.net
Web site: http://www.plcmed.com//
