MINNEAPOLIS, Nov. 9 /PRNewswire-FirstCall/ -- Uroplasty, Inc. today reported sales of $1.8 million for the second quarter of fiscal 2007 ended September 30, 2006, up 13%, or $206,000, from $1.6 million for the same quarter in the prior year. For the six months ended September 30, 2006, sales of $3.5 million increased $324,000, or 10%, from $3.2 million for the same period in the prior year. Net loss for the second quarter was $2.2 million, or $0.28 per diluted share, compared to a net loss for the same quarter in the prior year of $0.7 million, or $0.11 per diluted share. Net loss for the six months ended September 30, 2006 was $3.4 million, or $0.46 per diluted share, compared to a net loss for the same period in the prior year of $2.2 million, or $0.33 per diluted share.
David B. Kaysen, Uroplasty’s President and CEO said, “We are beginning to see positive results from our now almost fully-staffed U.S. field sales organization consisting of five employed regional sales managers and a fully-trained group of 67 independent sales representatives. Sales to customers in the U.S. more than doubled to 14% of total revenue in the second quarter of fiscal 2007, up from 6% of total revenue in the first quarter of 2007.” Kaysen added, “I am encouraged with the sequential growth in revenue in the U.S. We introduced in the U.S. in late September the second generation model of our Urgent(R) PC neurostimulation device for treatment of overactive bladder symptoms and expect to see continued sequential growth in the U.S. We are already seeing positive results from this product in our markets outside of the U.S.”
Kaysen continued, “We recently announced receiving from the U.S. Food and Drug Administration pre-market approval for our Macroplastique(R) Implants for the treatment of stress urinary incontinence. We have a long history of success with this product in Europe and expect to begin marketing it in the U.S. in early 2007. We also announced that we retained Craig-Hallum Capital Group LLC to act as our selling agent in connection with a public offering of up to $12 million of our common stock.”
UROPLASTY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2006 March 31, 2006 (unaudited) Assets Total current assets 4,655,586 4,798,841 Property, plant, and equipment, net 1,425,102 1,079,438 Intangible assets, net 358,491 411,604 Deferred tax assets 159,743 111,361 Total assets $6,598,922 $6,401,244 Liabilities and Shareholders’ Equity Total current liabilities 2,714,458 2,131,788 Long-term debt - less current maturities 450,000 389,241 Deferred rent - less current portion 231,082 - Accrued pension liability 641,598 473,165 Total liabilities 4,037,138 2,994,194 Total shareholders’ equity 2,561,784 3,407,050 Total liabilities and shareholders’ equity $6,598,922 $6,401,244 UROPLASTY, INC. AND SUBSIDIARIES CONDENSED Consolidated Statements of Operations (Unaudited) Three Months Ended Six Months Ended September 30, September 30, 2006 2005 2006 2005 Net sales $1,760,771 $1,554,955 $3,524,980 $3,200,608 Cost of goods sold 452,857 462,317 1,008,372 883,145 Gross profit 1,307,914 1,092,638 2,516,608 2,317,463 Operating expenses 2,789,395 2,580,281 5,581,045 4,565,476 Operating loss (1,481,481) (1,487,643) (3,064,437) (2,248,013) Other income (expense) Interest income 18,308 27,616 37,815 54,996 Interest expense (10,483) (4,515) (16,465) (9,324) Warrant benefit (expense) (700,412) 701,718 (372,680) 15,423 Other 2,337 (7,206) 33,549 (8,405) (690,250) 717,613 (317,781) 52,690 Loss before income taxes (2,171,731) (770,030) (3,382,218) (2,195,323) Income tax expense (benefit) (12,841) (34,314) 17,911 2,706 Net loss $(2,158,890) $(735,716) $(3,400,129) $(2,198,029) Basic and diluted loss per common share $(0.28) $(0.11) $(0.46) $(0.33) Weighted average common shares outstanding: Basic and diluted 7,784,118 6,853,783 7,376,900 6,603,887
Uroplasty, Inc., headquartered in Minnetonka, Minnesota, with wholly-owned subsidiaries in The Netherlands and the United Kingdom, is a medical device company that develops, manufactures and markets innovative, proprietary products for the treatment of voiding dysfunctions. Uroplasty’s minimally invasive products treat urinary incontinence and overactive bladder symptoms. We believe that our company is uniquely positioned because we offer a broad and diverse set of products to address the various preferences of doctors and patients, as well as the quality of life issues presented by voiding dysfunctions.
Uroplasty currently offers three medical devices for the treatment of incontinence and overactive bladder symptoms. Uroplasty’s products include:
-- Macroplastique(R), a minimally invasive, implantable soft tissue bulking agent for the treatment of stress urinary incontinence. When Macroplastique is injected into tissue around the urethra, it stabilizes and “bulks” tissues close to the urethra, thereby providing the surrounding muscles with increased capability to control the release of urine. -- I-Stop(TM), a minimally invasive biocompatible, polypropylene, tension-free sling for the treatment of female urinary incontinence. The I-Stop sling can correct stress urinary incontinence by providing tension-free hammock-type support for the urethra to prevent its downward movement and the associated leakage of urine. -- The Urgent(R) PC neuromodulation system, a minimally invasive device designed for office-based treatment of overactive bladder symptoms of urge incontinence, urinary urgency and urinary frequency. This product uses percutaneous tibial nerve stimulation to deliver an electrical pulse that travels to the sacral nerve plexus, a control center for bladder function.
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements. This press release contains forward-looking statements, which reflect our views regarding future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties, including those identified below, which could cause actual results to differ materially from historical results or those anticipated. The words “aim,” “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions, which indicate future events and trends, identify forward-looking statements. Actual future results and trends may differ materially from historical results or those anticipated depending upon a variety of factors, including, but not limited to: the effect of government regulation, including when and if we receive approval for marketing products in the United States; the impact of international currency fluctuations on our cash flows and operating results; the impact of technological innovation and competition; acceptance of our products by physicians and patients, our historical reliance on a single product for most of our current sales; our ability to commercialize our recently licensed product lines; our intellectual property and the ability to prevent competitors from infringing our rights; the ability to receive third party reimbursement for our products; the results of clinical trials; our continued losses and the possible need to raise additional capital in the future; our ability to manage our international operations; our ability to hire and retain key technical and sales personnel; our dependence on key suppliers; future changes in applicable accounting rules; and volatility in our stock price. We cannot assure that we can profitably market Macroplastique in the U.S. or will successfully raise funds in our proposed public offering.
FOR FURTHER INFORMATION: visit Uroplasty’s web page at http://www.uroplasty.com or contact Mr. Kaysen.
UROPLASTY, INC. David B. Kaysen, President / CEO 5420 Feltl Road Minnetonka, Minnesota 55343 Tel: 952.426.6140 Fax: 952.426.6199 E-mail: dave.kaysen@uroplasty.com
Uroplasty, Inc.
CONTACT: David B. Kaysen, President - CEO, of Uroplasty, Inc., Tel:+1-952-426-6140, or Fax: +1-952-426-6199, or E-mail:dave.kaysen@uroplasty.com
Web site: http://www.uroplasty.com/
