Attached files
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| 8-K - FORM 8-K DATED JANUARY 25, 2011 - UROLOGIX INC | urologix110392_8k.htm |
| EX-99.2 - CERTAIN REMARKS OF BRIAN J. SMRDEL - UROLOGIX INC | urologix110392_ex99-2.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Urologix Reports Results
For Fiscal Year 2011 Second Quarter
MINNEAPOLIS — January 25, 2011 — Urologix®, Inc. (NASDAQ:ULGX), the manufacturer and marketer of minimally invasive Cooled ThermoTherapy™ (CTT), the durable and effective in-office treatment for patients suffering from benign prostatic hyperplasia (BPH), today reported financial results for the second quarter of its fiscal year 2011 that ended December 31, 2010.
Fiscal year 2011 second-quarter revenue was $3.3 million, down 1 percent from the $3.4 million reported in the first quarter of fiscal year 2011 and down 18 percent compared to the $4.1 million reported for the same period of the prior fiscal year. The sequential decrease in revenue was largely due to reduced order volume from our current customer base. There has been no material difference in the percentage of overall catheter revenue derived from our various sales channels (direct, mobile, third party mobile) compared with the first quarter of fiscal year 2011. On a year-over-year basis, the sales comparison is impacted by the temporary market withdrawal of a competitive product.
For its fiscal year 2011 second quarter, Urologix posted a net loss of $712,000, or $0.05 per diluted share, on revenue of $3.3 million. This compares to a net loss of $708,000, or $0.05 per diluted share, in the first quarter of fiscal year 2011 and a net loss of $273,000, or $0.02 per diluted share, in the second quarter of the prior fiscal year.
“We are pleased that Medicare has stabilized reimbursement for the next twelve months as we enter our third fiscal quarter and the beginning of a new calendar year,” stated Stryker Warren jr, CEO. “With the improved clarity on reimbursement and a reportedly improving economy we must be able to leverage our sales force to drive growth. We are committed to succeeding this quarter in growing our revenue by continuing to present Urologix’ Cooled ThermoTherapy to urologists as the early therapeutic choice to treat BPH patients versus chronic medication.”
The Company’s cash utilization was $413,000 for the quarter ended December 31, 2010, compared to a utilization of $1.0 million in the first quarter of fiscal year 2011. Historically, cash utilization is greatest in the first quarter as a number of annual payments are made during that period. In the second quarter of the prior fiscal year, the Company generated $22,000 in cash. The difference compared to the same period of fiscal year 2010 is mainly due to the comparative reduction in revenue previously mentioned. The Company’s cash balance was $4.3 million as of December 31, 2010, which management considers sufficient to fund working capital and capital resource needs beyond the next twelve months. The Company has no debt.
Gross profit for the fiscal year 2011 second quarter was $1.8 million, or 56 percent of revenue, compared to $1.8 million, or 55 percent of revenue, for the first quarter of fiscal year 2011 and $2.3 million, or 57 percent of revenue, in the second quarter of fiscal year 2010. The primary reason for the margin differential compared to the second quarter of fiscal year 2010 is the result of fixed costs being allocated over fewer units built due to decreased production targets that reflect the lower demand in the second quarter of fiscal year 2011.
Operating expense in the second quarter of fiscal year 2011 increased $37,000, or 2 percent, when compared to the first quarter of fiscal year 2011 primarily as a result of an increase in sales and marketing expense due to wages, training and travel costs for new members of our sales team. The Company continued its investment in research and development in the second quarter of fiscal year 2011, an increase of 2 percent compared to the first quarter of fiscal year 2011, but a 33 percent increase in expenditures compared to the second quarter of fiscal year 2010. Compared to the second quarter of fiscal 2010, operating expense decreased 2 percent.
“Our immediate focus remains unchanged: expand the in-office BPH market by promoting and providing CTT as an effective, durable and safe non-surgical alternative to BPH drugs,” said Mr. Warren. “While the second quarter’s revenue did not satisfy our objective, Urologix’ potential opportunity is significant enough that successful execution in developing the market should generate revenue growth, positive cash flow and meaningful shareholder value.”
Earnings Call Information
Urologix will host a conference call with the financial community to discuss fiscal year 2011 second quarter results on Tuesday, January 25, 2011 at 4:00 p.m. Central Daylight Time. To listen to the call, please dial 1-866-362-4831 and enter the Participant Passcode 10194653 at least 10 minutes prior to the call. A live webcast of the call will be available through the investor relations section of the Company’s website at www.urologix.com and available for replay approximately two hours after the completion of the call.
About Urologix
Urologix, Inc., based in Minneapolis, develops, manufactures and markets minimally invasive medical products for the treatment of urological disorders. The Company has developed and offers non-surgical, anesthesia-free, catheter-based treatments that use a proprietary cooled microwave technology for the treatment of benign prostatic hyperplasia (BPH), a condition that affects more than 23 million men worldwide. Urologix’ products include the CoolWave® and Targis® control units and the CTC Advance™, Targis® and Prostaprobe® catheter families. All of Urologix’ products utilize Cooled ThermoTherapy™ - targeted microwave energy combined with a unique cooling mechanism to protect healthy tissue and enhance patient comfort - and provide safe, effective, lasting relief of the symptoms of BPH.
Forward Looking Statements
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “estimate” or “continue” or comparable terminology are intended to identify forward-looking statements. Such forward looking statements include, for example, statements about the Company’s future revenue and operating performance, about the effect of changes in its sales organization, the adequacy of its cash balance, or about the development and marketing of new products. The statements made by the Company are based upon management’s current expectations and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include the risk factors described in the Company’s Annual Report on Form 10-K for the year ended June 30, 2010 and other factors set forth in the Company’s filings with the Securities and Exchange Commission.
Contact: Brian J. Smrdel, Chief Financial Officer, (763) 475-7696
- Financials Follow -
Urologix, Inc.
Statements of Operations
(Unaudited, in thousands, except per share data)
| Three Months Ended December 31, |
Six Months Ended December 31, |
||||||||||||
| 2010 | 2009 | 2010 | 2009 | ||||||||||
| Sales | $ | 3,321 | $ | 4,064 | $ | 6,673 | $ | 7,917 | |||||
| Cost of goods sold | 1,473 | 1,735 | 2,996 | 3,449 | |||||||||
| Gross profit | 1,848 | 2,329 | 3,677 | 4,468 | |||||||||
| Costs and expenses: | |||||||||||||
| Selling, general and administrative | 2,013 | 2,193 | 3,999 | 4,570 | |||||||||
| Research and development | 556 | 418 | 1,102 | 860 | |||||||||
| Total costs and expenses | 2,569 | 2,611 | 5,101 | 5,430 | |||||||||
| Operating loss | (721 | ) | (282 | ) | (1,424 | ) | (962 | ) | |||||
| Interest income | — | — | 1 | — | |||||||||
| Loss before income taxes | (721 | ) | (282 | ) | (1,423 | ) | (962 | ) | |||||
| Income tax expense (benefit) | (9 | ) | (9 | ) | (3 | ) | (12 | ) | |||||
| Net loss | $ | (712 | ) | $ | (273 | ) | $ | (1,420 | ) | $ | (950 | ) | |
| Net loss per common share--basic | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.10 | ) | $ | (0.07 | ) | |
| Net loss per common share--diluted | $ | (0.05 | ) | $ | (0.02 | ) | $ | (0.10 | ) | $ | (0.07 | ) | |
| Weighted average number of common shares outstanding--basic | 14,548 | 14,506 | 14,553 | 14,493 | |||||||||
| Weighted average number of common shares outstanding--diluted | 14,548 | 14,506 | 14,553 | 14,493 | |||||||||
Urologix, Inc.
Balance Sheets
(Unaudited, in thousands)
| Dec. 31, 2010 |
June 30, 2010 |
||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 4,288 | $ | 5,702 | |||
| Accounts receivable, net | 1,600 | 1,378 | |||||
| Inventories | 1,640 | 1,498 | |||||
| Prepaids and other current assets | 190 | 139 | |||||
| Total current assets | 7,718 | 8,717 | |||||
| Property and equipment: | |||||||
| Property and equipment | 11,667 | 11,669 | |||||
| Less accumulated depreciation | (10,732 | ) | (10,655 | ) | |||
| Property and equipment, net | 935 | 1,014 | |||||
| Identifiable intangible assets, net | 112 | 123 | |||||
| Other assets | 251 | 349 | |||||
| Total assets | $ | 9,016 | $ | 10,203 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 726 | $ | 434 | |||
| Accrued compensation | 443 | 875 | |||||
| Deferred income | 100 | 169 | |||||
| Other accrued expenses | 611 | 519 | |||||
| Total current liabilities | 1,880 | 1,997 | |||||
| Other accrued liabilities | 150 | — | |||||
| Total liabilities | 2,030 | 1,997 | |||||
| Shareholders’ equity: | |||||||
| Common stock | 144 | 144 | |||||
| Additional paid-in capital | 114,560 | 114,360 | |||||
| Accumulated deficit | (107,718 | ) | (106,298 | ) | |||
| Total shareholders’ equity | 6,986 | 8,206 | |||||
| Total liabilities and shareholders’ equity | $ | 9,016 | $ | 10,203 | |||
Urologix, Inc.
Condensed Statements of Cash Flows
(Unaudited, in thousands)
| Six Months Ended December 31, |
|||||||
| 2010 | 2009 | ||||||
| Operating Activities: | |||||||
| Net loss | $ | (1,420 | ) | $ | (950 | ) | |
| Adjustments to reconcile net loss to net cash used for operating activities: | |||||||
| Depreciation and amortization | 309 | 422 | |||||
| Employee stock-based compensation expense | 200 | 257 | |||||
| Provision for bad debts | (36 | ) | 10 | ||||
| Loss on disposal of assets | 10 | 2 | |||||
| Change in operating items: | |||||||
| Accounts receivable | (186 | ) | (326 | ) | |||
| Inventories | (180 | ) | (77 | ) | |||
| Prepaids and other assets | 47 | (56 | ) | ||||
| Accounts payable | 292 | 21 | |||||
| Accrued expenses and deferred income | (259 | ) | (283 | ) | |||
| Net cash used for operating activities | (1,223 | ) | (980 | ) | |||
| Investing Activities: | |||||||
| Purchase of property and equipment | (190 | ) | (51 | ) | |||
| Purchases of intellectual property | (1 | ) | — | ||||
| Net cash used for investing activities | (191 | ) | (51 | ) | |||
| Financing Activities: | |||||||
| Proceeds from stock option exercises | — | 10 | |||||
| Net cash provided by financing activities | — | 10 | |||||
| Net decrease in cash and cash equivalents | (1,414 | ) | (1,021 | ) | |||
| Cash and cash equivalents: | |||||||
| Beginning of period | 5,702 | 7,032 | |||||
| End of period | $ | 4,288 | $6,011 | ||||
| Supplemental cash-flow information | |||||||
| Income taxes paid during the period | $ | 5 | $ | 4 | |||
| Net amount of inventory transferred to property and equipment | $ | 38 | $ | 218 | |||