COLORADO SPRINGS, Colo., Jan. 8 /PRNewswire-FirstCall/ -- Spectranetics Corporation announced today that it has entered into a lease agreement with Corporate Office Properties Trust for a 75,000 square foot building in northern Colorado Springs, with expansion rights of an additional 40,000 square feet on the same property, at Spectranetics’ option, during the first four years of the lease.
Spectranetics’ current U.S. operations, which cover approximately 65,000 square feet in four separate buildings in Colorado Springs, will be consolidated into the new facility in two phases. All research and development, clinical studies, regulatory, marketing, sales support and administrative functions are expected to move to the new facility in the first half of 2007, following the completion of tenant improvements. All manufacturing and related support functions will move to the new facility no later than one year thereafter. This phased approach allows for the proper planning necessary to move its current manufacturing operations and the construction of a new 13,000 square foot clean room, which is twice the size of the current clean room.
“Our new leased facility is an important part of our growth plans and we look forward to the space utilization efficiencies associated with having all employees under one roof. The new facility addresses our immediate need for space for non-manufacturing personnel, an expanded manufacturing clean room, and further expansion of an additional 40,000 square feet, if needed,” said John G. Schulte, Spectranetics’ president and chief executive officer.
Pre-tax incremental costs associated with the new lease are estimated to be in the range of $900,000 to $1,200,000, or $0.03 to $0.04 per diluted share in 2007, a portion of which relates to maintaining dual facilities during the twelve to fifteen month transition period to the new facility.
Certain of the current facilities have varying remaining lease terms, the longest of which is through December 31, 2010. Spectranetics will seek to minimize the financial obligations associated with these lease terms and will explore various alternatives with the landlord, including a sublease with a new tenant.
About Spectranetics
Spectranetics is a medical device company that develops, manufactures and markets single-use medical devices used in minimally invasive surgical procedures within the cardiovascular system in conjunction with its proprietary excimer laser system. Excimer laser technology delivers relatively cool ultraviolet energy to ablate or remove arterial blockages including plaque, calcium and thrombus. We believe our CVX-300(R) excimer laser is the only system approved in the United States, Europe, Japan, and Canada for use in multiple, minimally invasive cardiovascular procedures. These procedures include atherectomy, which is a procedure to remove arterial blockages in the peripheral or coronary vasculature, and the removal of infected, defective or abandoned cardiac lead wires from patients with pacemakers or implantable cardiac defibrillators, or ICDs, which are electronic devices that regulate the heartbeat.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on current assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties may include increasing price and product competition, increased pressure on expense levels resulting from expanded marketing and clinical activities, uncertain success of the Company’s strategic direction, dependence on new product development, intellectual property claims of third parties, availability of inventory from suppliers, the receipt of FDA approval to market new products or applications and the timeliness of any approvals, the potential size of market opportunities associated with new products, market acceptance of new products or applications, product defects, price volatility due to the initiation or cessation of coverage, or changes in ratings, by securities analysts. For a further list and description of such risks and uncertainties that could cause the actual results, performance or achievements of the Company to be materially different from any anticipated results, performance or achievements, please see the Company’s previously filed SEC reports. Spectranetics disclaims any intention or obligation to update or revise any financial projections or forward-looking statements, whether as a result of new information, future events or otherwise.
Spectranetics and CVX-300 are registered trademarks of The Spectranetics Corporation.
COMPANY CONTACT: INVESTOR & MEDIA CONTACTS: Spectranetics Corporation Lippert/Heilshorn & Associates, Inc. Guy Childs, Chief Financial Officer Bruce Voss (719) 633-8333 Don Markley (310) 691-7100 www.spectranetics.comwww.lhai.com
Spectranetics Corporation
CONTACT: Guy Childs, Chief Financial Officer of Spectranetics Corporation,+1-719-633-8333; or Bruce Voss, or Don Markley, both of Lippert/Heilshorn &Associates, Inc., +1-310-691-7100, for Spectranetics Corporation
