MINNEAPOLIS, Feb. 12 /PRNewswire-FirstCall/ -- Uroplasty, Inc. today reported record sales of $2.2 million for the third quarter of fiscal 2007 ended December 31, 2006, up 36%, or $566,000, from $1.6 million for the same quarter in the prior year. For the nine months ended December 31, 2006, sales of $5.7 million increased $890,000, or 19%, from $4.8 million for the same period in the prior year. Net loss for the third fiscal quarter was $563,000, or $0.07 per diluted share, compared to a net loss for the same quarter in the prior year of $658,000, or $0.10 per diluted share. Net loss for the nine months ended December 31, 2006 was $4.0 million, or $0.51 per diluted share, compared to a net loss for the same period in the prior year of $2.9 million, or $0.43 per diluted share.
David B. Kaysen, Uroplasty's President and CEO said, "We are extremely pleased with our record sales performance in the third quarter of fiscal 2007, which reflects solid performance in all of our geographical areas. We are getting the expected traction in the U.S. now that we have on-board a full complement of fully-trained sales representatives. We expect the U.S. market to continue to fuel our growth. Sales of $396,000 in the third quarter of fiscal 2007 to customers in the U.S. showed continued sequential growth, and were up from $253,000 in the previous quarter. Through nine months ended December 31, 2006, sales to customers in the U.S. accounted for 13% of the consolidated sales, up from one percent for the same period a year ago."
Kaysen added, "Our continued focus on our Urgent(R) PC neuromodulation system for treatment of overactive bladder symptoms has shown positive results in the U.S. and Europe. In addition, in January we launched in the U.S. our Macroplastique(R) Implants product for the treatment of stress urinary incontinence, now that we have received FDA pre-market approval."
Kaysen continued, "As previously announced, in December 2006 we closed on the follow-on public offering of $4.9 million of our common stock. We plan to use the proceeds from the offering to fund operations and for working capital purposes, primarily for continued growth of our U.S. business."
UROPLASTY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS December 31, March 31, 2006 2006 (unaudited) Assets Total current assets 8,227,904 4,798,841 Property, plant, and equipment, net 1,429,199 1,079,438 Intangible assets, net 333,281 411,604 Deferred tax assets 188,455 111,361 Total assets $10,178,839 $6,401,244 Liabilities and Shareholders' Equity Total current liabilities 2,115,530 2,131,788 Long-term debt - less current maturities 445,920 389,241 Deferred rent - less current portion 222,732 - Accrued pension liability 742,083 473,165 Total liabilities 3,526,265 2,994,194 Total shareholders' equity 6,652,574 3,407,050 Total liabilities and shareholders' equity $10,178,839 $6,401,244 UROPLASTY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended December 31, December 31, 2006 2005 2006 2005 Net sales $2,158,273 $1,592,526 $5,683,253 $4,793,134 Cost of goods sold 752,181 391,163 1,760,553 1,274,308 Gross profit 1,406,092 1,201,363 3,922,700 3,518,826 Operating expenses General and administrative 732,498 859,321 2,443,897 2,294,752 Research and development 424,987 700,203 1,758,350 2,361,609 Selling and marketing 1,301,575 852,483 3,837,858 2,321,122 2,459,060 2,412,007 8,040,105 6,977,483 Operating loss (1,052,968) (1,210,644) (4,117,405) (3,458,657) Other income (expense) Interest income 15,776 52,511 53,592 107,507 Interest expense (8,671) (12,767) (25,136) (22,091) Warrant benefit 522,995 560,048 150,315 575,471 Foreign currency exchange gain (loss) 4,413 (7,374) 34,376 (15,779) Other - 438 3,585 438 534,513 592,856 216,732 645,546 Loss before income taxes (518,455) (617,788) (3,900,673) (2,813,111) Income tax expense 44,802 39,942 62,713 42,648 Net loss $(563,257) $(657,730) $(3,963,386) $(2,855,759) Basic and diluted loss per common share $(0.07) $(0.10) $(0.51) $(0.43) Weighted average common shares outstanding: Basic and diluted 8,555,586 6,878,251 7,766,463 6,695,674 ***
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, including urinary and fecal incontinence, overactive bladder and vesicoureteral reflux.
The Urgent(R) PC Neuromodulation System is a proprietary, minimally invasive nerve stimulation device designed for office-based treatment of overactive bladder symptoms of urge incontinence, urinary urgency and urinary frequency. Application of neuromodulation therapy targets specific nerve tissue and disrupts the signals that lead to the symptoms of overactive bladder. Uroplasty sells the Urgent PC system in the United States, in Canada and in countries recognizing the CE mark. Outside the United States, the Urgent PC is also indicated for the treatment of fecal incontinence.
The I-STOP(TM) Mid-Urethral Sling is a biocompatible, tension-free sling used to treat female stress urinary incontinence. The I-STOP sling provides a hammock-like support for the urethra to prevent urine leakage associated with activities such as coughing, laughing, lifting or jumping. Uroplasty sells the I-STOP Sling in the United Kingdom and in the United States.
Macroplastique(R) Implants, Uroplasty's patented soft tissue bulking agent, is used to treat both female and male urinary incontinence and to treat vesicoureteral reflux in children. When Macroplastique is injected into tissue, it stabilizes and "bulks" the tissue, providing the surrounding muscles with increased capability to control the flow of urine. Additionally, Uroplasty markets soft tissue bulking agents for specific indications such as PTQ(TM) Implants for the treatment of fecal incontinence, VOX(R) Implants for the treatment of vocal cord rehabilitation and Bioplastique(R) for augmentation or restoration of soft tissue defects in plastic surgery indications. Uroplasty sells Macroplastique in the United States and in countries throughout the world. Uroplasty sells its other bulking products outside the United States.
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. The Company's financial performance for the third quarter of fiscal 2007 and nine months ended December 31, 2006 are not indicative of future performance. Uroplasty undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties.
FOR FURTHER INFORMATION: visit Uroplasty's web page at http://www.uroplasty.com or contact David Kaysen, President and CEO or Medi Jiwani, Vice President, CFO and Treasurer.
UROPLASTY, INC. 5420 Feltl Road Minnetonka, Minnesota 55343 Tel: 952.426.6140 Fax: 952.426.6199
Uroplasty, Inc.CONTACT: David Kaysen, President and CEO, or Medi Jiwani, Vice President,CFO and Treasurer, of Uroplasty, Inc., +1-952-426-6140, Fax:+1-952-426-6199
Web site: http://www.uroplasty.com/
