RITA Medical Systems Announces Third Quarter, Nine-Month Results
RITA Medical Systems, Inc. (Nasdaq: RITA) today announced results for its third quarter and nine months ended September 30, 2002. U.S. sales for this year's third quarter increased 64 percent when compared to the year-earlier period. Worldwide sales increased 20 percent over the year-earlier period.
Sales for the third quarter of 2002 were $4.5 million with a net loss of $2.7 million, or a loss per share of $0.18, compared to sales in the prior year's third quarter of $3.7 million with a net loss of $3.1 million, or a loss per share of $0.21. U.S. sales for the third quarter were 77 percent of total sales, up from 56 percent of sales for the same period in 2001 and
73 percent of sales for the second quarter of 2002. Disposable sales for the
third quarter of this year represented 79 percent of total sales, up from
71 percent in the previous quarter.
Gross margin in the third quarter of 2002 increased to 61 percent from
60 percent in the same period last year. This increase was principally due to higher margin U.S. sales and higher average selling prices of the Company's disposable devices.
Barry Cheskin, RITA's President and Chief Executive Officer, commented, Third quarter results showed strong operational progress. The loss per share narrowed considerably from $0.25 in this year's second quarter to $0.18 in this year's third quarter. This follows from positive gross margin trends and operating expenses being held tightly under control. Top line was impacted by the traditional summer slowdown, as expected, as well as by the previously reported temporary disruption in the supply of an accessory device used with our products, which we expect to be resolved by year end.
Cheskin added, Since the last earnings release, the company achieved several very significant milestones. We got clearance from the FDA for our new bone application, opening up a large new market for us in addition to our core liver cancer market. We had survival data presented at the American College of Surgeons which showed that patients with unresectable liver cancer had a survival rate at three years which was around 4-6 times greater with RITA than without it. We had a favorable decision from the U.S. Patent and Trademark Office on our patent interference with Boston Scientific. In addition, we also got approval in Japan for our second generation disposable product.
The balance sheet at September 30, 2002, showed cash, equivalents, and
marketable securities of $15.3 million, a current ratio of 6.3:1, total assets
of $27.1 million, shareholders' equity of $23.3 million and no long-term debt.
Webcast Information
Management will host a conference call to be broadcast live on the Internet today at 11:30 a.m. EDT (Eastern). Those interested in listening to the live webcast may do so by going to the Investors/Calendar of Events section of the Company's website at http://www.ritamedical.com / or at http://www.viavid.com /.
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 and metastatic bone 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, 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. In October 2002, RITA again became the first
radiofrequency ablation company to receive specific FDA clearance, this time,
for the palliation of pain associated with metastatic lesions involving bone.
The Company has sold over 40,000 of its disposable devices throughout the
world.
The statements in this news release related to the Company's plans to extend the technology to applications beyond the liver and the company's projections of the market potential related to liver and non-liver applications are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties could include, but are not limited to, the Company's dependence on timely market acceptance of the RITA system, the outcome of current patent actions, the Company's history of operating losses and expectation that it will continue to incur significant operating expenses over the next several years, significant competition in the Company's industry, alternative therapies which could prove to be superior to the RITA system, the Company's lack of long-term clinical data, the Company's inability to protect its intellectual property, potential intellectual property lawsuits, the company's dependence on international revenues, the Company's dependence on third-party distributors including two primary international distributors, relationships with third-party distributors that could negatively affect the Company's sales and the need to establish reimbursement from payors in the United States and internationally. Further 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, for RITA Medical Systems, Inc.; or Don Stewart, Chief Financial
Officer of RITA Medical Systems, Inc., +1-650-314-3400, dstewart@ritamed.com .
RITA MEDICAL SYSTEMS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share data, unaudited)
Three Months Ended Nine Months EndedSeptember 30, September 30,
2002 2001 2002 2001Sales $4,454 $3,707 $13,679 $10,780
Cost of goods sold 1,730 1,472 5,773 4,912Gross profit 2,724 2,235 7,906 5,868
development 1,218 1,627 3,882 4,837Operating expenses
Research and
and administrative 4,311 4,016 14,837 11,539Selling, general
expenses 5,529 5,643 18,719 16,376Total operating
Loss from operations (2,805) (3,408) (10,813) (10,508)
Interest income and
other expense, net 85 324 368 1,309Net loss $(2,720) $(3,084) $(10,445) $(9,199)
basic and diluted $(0.18) $(0.21) $(0.70) $(0.64)Net loss per share,
per share 14,996 14,406 14,816 14,299Shares used in
computing basic and
diluted net loss
Sales $4,454 $3,707 $13,679 $10,780Financial data exclusive
of amortization of
deferred stock-based
compensation:
Gross Profit 2,720 2,377 7,958 6,386Net Loss (2,663) (2,687) (10,107) (7,782)
2002 2001RITA MEDICAL SYSTEMS, INC.
CONDENSED BALANCE SHEETS
(In thousands, unaudited)
September 30, December 31,
Cash and cash equivalents $9,484 $7,297Assets
Current assets:
Marketable securities 5,766 11,887Accounts and notes receivable, net 3,966 5,056
Inventories, net 3,096 3,645Prepaid assets and other current assets 1,205 1,282
Total current assets 23,517 29,167Investments -- 4,353
Long term notes receivable, net 414 --Property and equipment, net 1,586 1,934
Other assets 1,562 380Total Assets $27,079 $35,834
Accounts payable and accrued liabilities $3,692 $3,497Liabilities and stockholders' equity
Current liabilities:
Current portion of long term obligations 45 192Total current liabilities 3,737 3,689
Long term obligations -- --Stockholders' equity 23,342 32,145
Total liabilities and stockholders' equity $27,079 $35,834
Make Your Opinion Count - Click Here
http://tbutton.prnewswire.com/prn/11690X66546569
SOURCE RITA Medical Systems, Inc.
-0- 10/23/2002
/CONTACT: investors, Matt Clawson, matt@allencaron.com , or media, Len Hall, len@allencaron.com , both of Allen & Caron Inc, 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 HEA
SU: ERN CCA
EC-GC
-- LAW032 --
9771 10/23/2002 07:30 EDT http://www.prnewswire.com