RITA Comments on Impact of Temporary Infusion Pump Supply Issue
RITA Medical Systems, Inc. (Nasdaq: RITA) announced today that it was experiencing a supply disruption with an accessory infusion pump used with its StarBurst™ XLi disposable devices. As a result, system sales to new customers as well as conversions of existing customers to the StarBurst XLi are being delayed. The company indicated that it is in the process of working with its existing supplier to resolve the issue and is currently qualifying an alternative supplier as well. The company expects that there will be an adequate supply of pumps by the end of the quarter.
Don Stewart, RITA Chief Financial Officer, said, We saw a modest impact from this issue on our third quarter sales, which were $4.5 million, though our EPS remained within our expectations at a loss of $0.18. We believe there will be a more significant impact on fourth quarter sales, which are expected to be approximately $3.5-4.0 million. After that point, we expect sales growth to return towards recent historical growth rates.
About RITA Medical Systems, Inc.
RITA Medical Systems develops, manufactures and markets innovative
products for patients with solid cancerous or benign tumors. The proprietary
RITA system uses radiofrequency energy to heat tissue to a high enough
temperature to ablate it or cause cell death. While the Company's current
focus is on liver cancer, the Company believes that its minimally invasive
technology may in the future be applied to other types of tumors, including
tumors of the lung, bone, breast, uterus, prostate and kidney. The Company
has received regulatory clearance in major markets worldwide, including the
United States. In March 2000, RITA became the first radiofrequency ablation
company to receive specific FDA clearance for unresectable liver lesions in
addition to its previous general FDA clearance for the ablation of soft
tissue. The Company has sold approximately 40,000 of its disposable devices
throughout the world.
The statements in this news release related to the company's sales projections, the resolution of its supply problems and its plans to extend its technology to applications beyond the liver are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Information regarding these and other risks is included in the Company's filings with the Securities and Exchange Commission.
RITA and StarBurst are trademarks of RITA Medical Systems, Inc.
For further information, please contact investors, Matt Clawson,
matt@allencaron.com, or media, Len Hall, len@allencaron.com both of Allen &
Caron Inc, +1-949-474-4300, for RITA Medical Systems, Inc.; or Don Stewart,
Chief Financial Officer of RITA Medical Systems, Inc., +1-650-314-3400,
dstewart@ritamed.com.
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SOURCE RITA Medical Systems, Inc.
-0- 10/18/2002
/CONTACT: investors, Matt Clawson, matt@allencaron.com, or media, Len Hall, len@allencaron.com both of Allen & Caron Inc, +1-949-474-4300, for RITA Medical Systems, Inc.; or Don Stewart, Chief Financial Officer of RITA Medical Systems, Inc., +1-650-314-3400, dstewart@ritamed.com/
/Web site: http://www.ritamedical.com /
(RITA)
CO: RITA Medical Systems, Inc.
ST: California
IN: MTC BIO
SU: ERP
JA-CM
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