MINNEAPOLIS, Nov. 2 /PRNewswire-FirstCall/ -- Uroplasty, Inc. , a medical device company that develops, manufactures and markets innovative proprietary products to treat voiding dysfunctions, today reported financial results for the second fiscal quarter ended September 30, 2009.
“While our fiscal second quarter and first half financial performance is below year-ago results, we are encouraged by the continued strong growth of our U.S. Macroplastique product sales,” continued Mr. Kaysen. “Sales of our Macroplastique product in the U.S. through six months of our current fiscal year have about doubled in each quarter over the corresponding year-ago quarter. At the same time, Urgent PC sales in the U.S., while continuing to be challenged by the uncertain insurance reimbursement environment, have stabilized at about $1 million per quarter in each of the last two quarters. While European sales continue to be impacted by a competitive product launch, we saw growth in sales in the second fiscal quarter from distributors in two major European markets which had recorded a decline in the first fiscal quarter. At the same time, with the SUmiT clinical study expenses largely behind us, and our vigilant efforts to manage expenses to conserve cash, we have adequate liquidity to meet our needs for the next 12 months.”
Net sales for the three months ended September 30, 2009 were $3.0 million versus $3.9 million for the second quarter of fiscal 2009. Net sales for the six months ended September 30, 2009 were $5.8 million versus $8.4 million for same period a year ago.
Sales to customers outside of the U.S. for the three months ended September, 2009 were $1.5 million, down from $1.7 million in the year-ago period. Excluding the translation impact of fluctuations in foreign currency exchange rates, sales decreased by approximately 5%. The second fiscal quarter is normally the weakest of the year for the Company’s international business. The sales decrease as compared to last year is mainly attributed to increased competition from a newly-introduced product competitive with Uroplasty’s Macroplastique.
Net loss for the second fiscal quarter ended September 30, 2009 was $875,000, or $0.06 per diluted share, versus a net loss of $561,000, or $0.04 per diluted share for the second quarter of last year. For the first half of fiscal 2010, the net loss was $2.2 million, or $0.15 per diluted share as compared with a net loss for the first half of fiscal 2009 of $968,000, or $0.06 per diluted share.
“Looking ahead, we expect U.S. sales of Macroplastique to continue to grow during the remainder of the fiscal year as we expect to benefit from our increased sales and marketing effort,” continued Mr. Kaysen. “However, we do not expect that we will be able to return to significant sales growth or return to the historic sales level of Urgent PC in the U.S. until a new listed CPT code is assigned and payors create coverage policies that provide adequate reimbursement.
Conference Call
Uroplasty will host an audio conference call today at 3:30 pm Central, 4:30 pm Eastern, to review the financial results for the second fiscal quarter of 2010. David Kaysen, President and Chief Executive Officer and Medi Jiwani, Vice President, Chief Financial Officer and Treasurer will host the call. Individuals wishing to participate in the conference call should dial 866-561-1721 (domestic) or 480-629-9868 (international). An audio replay will be available for 30 days following the call at 800-406-7325 (domestic) or 303-590-3030 (international), with the passcode 4171526#.
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. Our focus is the continued commercialization of our Urgent PC system, which we believe is the only FDA-approved minimally invasive nerve stimulation device designed for office-based treatment of urinary urgency, urinary frequency and urge incontinence - symptoms often associated with overactive bladder.
Forward-Looking Information
This press release contains forward-looking statements, which reflect our best estimates regarding future events and financial performance. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from our anticipated results. We discuss in detail the factors that may affect the achievement of our forward-looking statements in our Annual Report on Form 10-K filed with the SEC. Further, we cannot assure you that our SUmiT clinical trial will produce favorable results, that even if it does produce favorable results third-party payors will provide or continue to provide coverage and reimbursement, or reimburse the providers an amount sufficient to cover their costs and expenses, or that we will timely obtain, or even succeed at all at obtaining, a specific “listed” CPT reimbursement code from the AMA for Urgent PC treatments. We further cannot assure that reimbursement or other issues will not further impact our fiscal 2010 results.
Non-GAAP Financial Measures: The following table reconciles our financial results calculated in accordance with accounting principles generally accepted in the U.S. (GAAP) to non-GAAP financial measures that exclude non-cash charges for share-based compensation, and depreciation and amortization expenses from gross profit, operating expenses and operating loss. The non-GAAP financial measures used by management and disclosed by us are not a substitute for, or superior to, financial measures and consolidated financial results calculated in accordance with GAAP, and you should carefully evaluate our reconciliations to non-GAAP. We may calculate our non-GAAP financial measures differently from similarly titled measures used by other companies. Therefore, our non-GAAP financial measures may not be comparable to those used by other companies. We have described the reconciliations of each of our non-GAAP financial measures above to the most directly comparable GAAP financial measures.
Our non-GAAP operating loss of approximately $475,000 for the three months ended September 30, 2009 was greater than the $98,000 operating loss in same period in fiscal 2009. Our non-GAAP operating loss was approximately $1,390,000 for the six months ended September 30, 2009 compared to an operating income of $8,000 in same period fiscal in 2009. We attribute the increased operating loss primarily to the decrease in sales and a lower gross margin rate, offset partially by a decrease in cash operating expenses.
CONTACT: David Kaysen, President and CEO, or Medi Jiwani, Vice President,
CFO, and Treasurer, both of Uroplasty, Inc., +1-952-426-6140; or Doug
Sherk, Investors, +1-415-896-6820, or Chris Gale, Media, +1-646-201-5431,
both of EVC Group for Uroplasty
Web site: http://uroplasty.com/
