Exhibit 99.1
Agency Contact:
Neil Berkman Associates
(310) 277-5162
info@BerkmanAssociates.com
FOR IMMEDIATE RELEASE
Company Contact:
Chris Chavez, President & CEO
(972) 309-8000
www.ANS-medical.com
Advanced Neuromodulation Systems
Second Quarter Net Income Increases 48%
On 43% Increase in Record Neuro Sales
First Half Net Income Increases 50% On 44% Increase In Record Neuro Sales
DALLAS, TEXAS, July 26, 2004 —Advanced Neuromodulation Systems, Inc. (ANS) (NASDAQ:ANSI)announced today that net income for the second quarter of 2004 increased 48% to a new record, driven by a 43% increase in sales of ANS’ neuromodulation products for the treatment of chronic pain. For the first half, net income increased 50% on a 44% increase in record neuro sales.
Second Quarter Results
First Half Results
Operations Review
Advanced Neuromodulation Systems Second Quarter Net Income Increased 48%
On 43% Increase in Record Neuro Sales
July 26, 2004
Page Two
Chavez added, “During the second quarter, as planned, we filed with the FDA for approval of our first generation rechargeable IPG, and expect to file for approval of a second rechargeable IPG in the fourth quarter. We continue to believe strongly that pain practitioners will demand the right product for the right indication — one size does not fit all — and that offering a full array of SCS devices, including RF, nonrechargeable IPGs and rechargeable IPGs, will be important in the future of this therapy. We have also commenced a limited release of our very thin and steerable Axxess lead and expect a broader launch in the fourth quarter. We are also pleased to announce that we have successfully moved into our new corporate headquarters facility located at 6901 Preston Road, Plano, Texas.”
Management Updates Guidance for 2004
Conference Call
About Advanced Neuromodulation Systems
“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995:
tables attached) v#36xx
ADVANCED NEUROMODULATION SYSTEMS, INC. and SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2004 | 2003 | 2004 | 2003 | |||||||||||||
Net revenue | $ | 30,487,851 | $ | 22,324,461 | $ | 57,120,714 | $ | 41,995,052 | ||||||||
Cost of revenue | 8,371,311 | 7,051,279 | 15,336,843 | 13,932,970 | ||||||||||||
Gross profit | 22,116,540 | 15,273,182 | 41,783,871 | 28,062,082 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 9,454,727 | 6,330,144 | 18,018,773 | 11,490,052 | ||||||||||||
Research and development | 2,869,660 | 2,352,468 | 5,184,610 | 4,044,899 | ||||||||||||
General and administrative | 2,706,956 | 1,866,333 | 5,023,696 | 3,632,251 | ||||||||||||
Amortization of intangibles | 623,773 | 450,338 | 1,198,647 | 805,272 | ||||||||||||
15,655,116 | 10,999,283 | 29,425,726 | 19,972,474 | |||||||||||||
Income from operations | 6,461,424 | 4,273,899 | 12,358,145 | 8,089,608 | ||||||||||||
Other income (expense): | ||||||||||||||||
Foreign currency transaction loss | (25,506 | ) | — | (54,853 | ) | — | ||||||||||
Investment and other income | 229,842 | 294,472 | 481,171 | 576,127 | ||||||||||||
204,336 | 294,472 | 426,318 | 576,127 | |||||||||||||
Income before income taxes | 6,665,760 | 4,568,371 | 12,784,463 | 8,665,735 | ||||||||||||
Income taxes | 2,342,348 | 1,645,256 | 4,492,460 | 3,122,806 | ||||||||||||
Net income | $ | 4,323,412 | $ | 2,923,115 | $ | 8,292,003 | $ | 5,542,929 | ||||||||
Basic income per share: | ||||||||||||||||
Net income | $ | 0.22 | $ | 0.15 | $ | 0.41 | $ | 0.29 | ||||||||
Number of basic shares | 20,107,481 | 19,118,414 | 20,018,213 | 18,868,663 | ||||||||||||
Diluted income per share: | ||||||||||||||||
Net income | $ | 0.21 | $ | 0.14 | $ | 0.39 | $ | 0.27 | ||||||||
Number of diluted shares | 21,047,875 | 20,471,865 | 21,158,756 | 20,232,006 | ||||||||||||
ADVANCED NEUROMODULATION SYSTEMS, INC. and SUBSIDIARIES
Condensed Consolidated Balance Sheets
June 30, | December 31, | |||||||
2004 | 2003 | |||||||
(Unaudited) | (Audited) | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and marketable securities | $ | 89,558,475 | $ | 94,802,122 | ||||
Receivable, trade net | 23,043,458 | 17,892,416 | ||||||
Receivable, interest and other | 798,363 | 259,687 | ||||||
Inventories | 22,979,016 | 22,113,159 | ||||||
Deferred income taxes | 1,427,072 | 1,423,228 | ||||||
Income tax receivable | 392,926 | 1,324,001 | ||||||
Prepaid expenses and other current assets | 2,036,420 | 1,007,244 | ||||||
Total current assets | 140,235,730 | 138,821,857 | ||||||
Net property, plant and equipment | 30,143,197 | 21,150,010 | ||||||
Minority equity investments in preferred stock | 1,104,000 | 1,104,000 | ||||||
Goodwill, patents, trademarks, purchased technology & other assets, net | 35,761,174 | 33,730,420 | ||||||
Total assets | $ | 207,244,101 | $ | 194,806,287 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,090,554 | $ | 5,717,222 | ||||
Accrued salary and employee benefit costs | 2,385,160 | 4,045,361 | ||||||
Accrued commissions | 1,708,647 | 1,424,471 | ||||||
Deferred revenue | 166,136 | 503,093 | ||||||
Warranty reserve | 179,788 | 294,290 | ||||||
Other accrued expenses | 275,053 | 400,159 | ||||||
Total current liabilities | 7,805,338 | 12,384,596 | ||||||
Deferred income taxes | 3,728,536 | 3,389,255 | ||||||
Non-current deferred revenue | 832,431 | 907,513 | ||||||
Total stockholders’ equity | 194,877,796 | 178,124,923 | ||||||
Total liabilities and stockholders’ equity | $ | 207,244,101 | $ | 194,806,287 | ||||