Back to GetFilings.com



Table of Contents
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 10-Q
 
x    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the Fiscal Quarter Ended June 30, 2002
 
¨    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from                  to                 .
 
Commission file number: 0-27596
 
CONCEPTUS, INC.
(Exact name of registrant as specified in its charter)
 
Delaware
   
94-3170244
(State or other jurisdiction of
incorporation or organization)
   
(I.R.S. Employer
Identification No.)
 
1021 Howard Avenue
San Carlos, CA 94070
(Address of principal executive offices)
 
Registrant’s telephone number, including area code: (650) 802-7240
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days.
 
Yes   X               No       
 
As of July 31, 2002, 21,222,405 shares of the registrant’s Common Stock were outstanding.
 

Table of Contents
 
CONCEPTUS, INC.
 
FORM 10-Q for the Three and Six Months Ended June 30, 2002
 
INDEX
 
         
Page
Part I.
   
Financial Information
     
Item 1.
   
Condensed Consolidated Financial Statements (Unaudited)
     
       
3
       
4
       
5
       
6
Item 2.
      
8
Item 3.
      
20
Part II.
   
Other Information
     
Item 1.
      
21
Item 2.
      
21
Item 3.
      
21
Item 4.
      
21
Item 5.
      
22
Item 6.
      
22
       
24

2

Table of Contents
 
PART 1:    FINANCIAL INFORMATION
 
ITEM 1.    Financial Statements
 
Conceptus, Inc.
 
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
 
    
June 30,
2002
     
December 31,
2001
  
Assets
                  
Current assets:
                  
Cash and cash equivalents
   
$
83,524
 
   
$
33,734
 
Short-term investments
   
 
3,967
 
   
 
—  
 
Restricted cash
   
 
69
 
   
 
69
 
Accounts receivable, net
   
 
509
 
   
 
247
 
Inventories, net
   
 
1,642
 
   
 
1,134
 
Other current assets
   
 
871
 
   
 
556
 
    
  
Total current assets
   
 
90,582
 
   
 
35,740
 
Property and equipment, net
   
 
1,888
 
   
 
1,658
 
Other assets
   
 
439
 
   
 
380
 
    
  
Total assets
   
$
92,909
 
   
$
37,778
 
    
  
Liabilities and stockholders’ equity
                  
Current liabilities:
                  
Accounts payable
   
$
1,830
 
   
$
1,809
 
Clinical trial accruals
   
 
279
 
   
 
422
 
Accrued compensation
   
 
1,413
 
   
 
1,025
 
Other accrued liabilities
   
 
1,122
 
   
 
861
 
    
  
Total current liabilities
   
 
4,644
 
   
 
4,117
 
Long-term clinical liabilities
   
 
374
 
   
 
486
 
    
  
Total liabilities
   
 
5,018
 
   
 
4,603
 
    
  
Stockholders’ equity:
                  
Common stock
   
 
63
 
   
 
49
 
Additional paid-in capital
   
 
185,564
 
   
 
118,348
 
Accumulated other comprehensive loss
   
 
(2
)
   
 
—  
 
Accumulated deficit
   
 
(97,734
)
   
 
(85,222
)
    
  
Total stockholders’ equity
   
 
87,891
 
   
 
33,175
 
    
  
Total liabilities and stockholders’ equity
   
$
92,909
 
   
$
37,778
 
    
  
 
The accompanying notes are an integral part of these condensed consolidated financial statements

3

Table of Contents
 
Conceptus, Inc.
 
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except per share amounts)
 
    
Three Months Ended
June 30,
     
Six Months Ended
June 30,
  
    
2002
     
2001
     
2002
     
2001
  
Net sales
   
$
406
 
   
$
163
 
   
$
682
 
   
$
163
 
    
  
  
  
Operating costs and expenses:
                                    
Cost of sales and start-up manufacturing costs
   
 
893
 
   
 
646
 
   
 
1,639
 
   
 
646
 
Research and development
   
 
2,348
 
   
 
1,676
 
   
 
4,330
 
   
 
3,865
 
Selling, general and administrative
   
 
3,999
 
   
 
2,343
 
   
 
7,213
 
   
 
4,397
 
    
  
  
  
Total operating costs and expenses
   
 
7,240
 
   
 
4,665
 
   
 
13,182
 
   
 
8,908
 
    
  
  
  
Operating loss
   
 
(6,834
)
   
 
(4,502
)
   
 
(12,500
)
   
 
(8,745
)
Other expenses
   
 
—  
 
   
 
—  
 
   
 
(314
)
   
 
—  
 
Interest and other income
   
 
177
 
   
 
215
 
   
 
302
 
   
 
402
 
    
  
  
  
Net loss
   
$
(6,657
)
   
$
(4,287
)
   
$
(12,512
)
   
$
(8,343
)
    
  
  
  
Basic and diluted net loss per share
   
$
(0.40
)
   
$
(0.32
)
   
$
(0.75
)
   
$
(0.67
)
    
  
  
  
Weighted-average shares used in computing basic and diluted net loss per share
   
 
16,806
 
   
 
13,300
 
   
 
16,640
 
   
 
12,521
 
    
  
  
  
 
The accompanying notes are an integral part of these condensed consolidated financial statements.

4

Table of Contents
 
Conceptus, Inc.
 
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
 
    
Six Months Ended
June 30,
  
    
2002
     
2001
  
Cash flows from operating activities
                  
Net loss
   
$
(12,512
)
   
$
(8,343
)
Adjustments to reconcile net loss to net cash used in operating activities:
                  
Depreciation and amortization
   
 
567
 
   
 
342
 
Stock compensation expense
   
 
93
 
   
 
91
 
Changes in operating assets and liabilities:
                  
Accounts receivable
   
 
(262
)
   
 
(163
)
Inventories
   
 
(508
)
   
 
(416
)
Other current assets
   
 
(315
)
   
 
(393
)
Other assets
   
 
(59
)
   
 
(64
)
Accounts payable
   
 
21
 
   
 
531
 
Accrued liabilities
   
 
394
 
   
 
(919
)
    
  
Net cash used in operating activities
   
 
(12,581
)
   
 
(9,334
)
    
  
Cash flows from investing activities
                  
Purchase of investments
   
 
(6,939
)
   
 
(4,255
)
Maturities of investments
   
 
2,972
 
   
 
6,326
 
Capital expenditures
   
 
(797
)
   
 
(477
)
    
  
Net cash provided by (used in) investing activities
   
 
(4,764
)
   
 
1,594
 
    
  
Cash flows from financing activities
                  
Proceeds from issuance of common stock, net
   
 
67,138
 
   
 
10,836
 
    
  
Net cash provided by financing activities
   
 
67,138
 
   
 
10,836
 
    
  
Effect of foreign exchange rate changes on cash
   
 
(3
)
   
 
—  
 
    
  
Net increase in cash and cash equivalents
   
 
49,790
 
   
 
3,096
 
Cash and cash equivalents at beginning of period
   
 
33,734
 
   
 
4,621
 
    
  
Cash and cash equivalents at end of period
   
$
83,524
 
   
$
7,717
 
    
  
 
The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Table of Contents
 
CONCEPTUS, INC.
 
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
1.    Basis of Presentation
 
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the instructions to Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation have been included.
 
The balance sheet at December 31, 2001 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. This financial data should be reviewed in conjunction with the audited consolidated financial statements and related notes included in the Company’s Form 10-K for the year ended December 31, 2001. The results of operations for the three and six months ended June 30, 2002 may not necessarily be indicative of the operating results for the full 2002 fiscal year or any other future interim periods.
 
2.    Inventories
 
Inventories are stated at the lower of cost or market. Cost is based on actual costs computed on a first-in, first-out basis. The components of inventories consist of the following:
 
(in thousands)
   
June 30, 2002
     
  December 31,   2001
Raw materials
   
$
265
     
$
416
Work-in-process
   
 
991
     
 
664
Finished products
   
 
386
     
 
54
    
    
Total
   
$
1,642
     
$
1,134
    
    
 
3.    Stockholder’s Equity
 
On June 26, 2002, the Company completed a follow-on public offering in which it sold 4.5 million shares of common stock for $16.00 per share. The net proceeds to the Company from the sale of the shares were approximately $66.8 million, net of underwriting discounts, commissions and other offering costs.
 
On July 24, 2002, the underwriters exercised the over-allotment option related to the follow-on public offering completed in June 2002, and the Company issued an additional 135,000 shares of common stock at $16.00 per share. The net proceeds to the Company from the sale of the additional shares were approximately $2.0 million after underwriting discounts and commissions.
 
4.    Computation of Net Loss Per Share
 
Basic net loss per share is computed using the weighted average number of common shares outstanding during the period. Diluted net loss per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during each period. Under the

6

Table of Contents
 
CONCEPTUS, INC.
 
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
requirements for calculating basic net loss per share, the effect of potentially dilutive securities such as stock options are excluded. Basic and diluted net loss per share are equivalent for all periods presented due to the Company’s net loss position.
 
During all periods presented, the Company had securities outstanding, which could potentially dilute basic earnings per share in the future, but were excluded from the computation of diluted net loss per share, as their effect would have been antidilutive. These outstanding securities consisted of stock options of 3,080,9