EXHIBIT 99.1
[LOGO]
VASCULAR
SOLUTIONS
NEWS RELEASE
For Immediate Release: Monday, April 14, 2003 Contact:Howard Root, CEO
James Hennen, Director of Finance
Vascular Solutions, Inc.
(763)656-4300
VASCULAR SOLUTIONS ANNOUNCES FIRST QUARTER RESULTS
NET SALES INCREASE 6% WHILE SALES EXPENSES DECREASE BY
23% OVER PRIOR YEAR D-STAT NET SALES SURPASS $1
MILLION ON AN ANNUALIZED BASIS
FOUR NEW PRODUCTS ON SCHEDULE TO BE LAUNCHED IN SECOND HALF OF 2003
MINNEAPOLIS, Minnesota -- Vascular Solutions, Inc. (Nasdaq:VASC) today
announced results for its first quarter ended March 31, 2003. Net sales were
$2,968,284, an increase of 6% from net sales of $2,803,420 in the first quarter
of 2002.
The 6% increase in net sales occurred despite a 23% decrease in sales
and marketing expenses from the year-prior period. The company continues to
focus its direct sales force on efficiently maintaining and growing sales of its
Duett sealing device while broadening the launch of the D-Stat flowable hemostat
and launching the Acolysis thrombolysis product in international markets. Net
sales of the D-Stat flowable hemostat in the first quarter of 2003 increased to
$271,588.
Net loss for the first quarter of 2003 was $.20 per share, improved
from a net loss of $.27 per share in the first quarter of 2003.
"The first quarter kept us on pace for our primary goal of
profitability and substantial growth," commented Howard Root, Vascular
Solutions' CEO. "During the first quarter we grew our sales by 6% with a
substantially lower sales cost structure and, most importantly, we remain on
target to bring four new substantial products through the required regulatory
clearances for an expected worldwide launch in the second half of this year.
Continuing our effective cost controls, we also reduced our overall operating
expenses by 17% from the previous year's period," Mr. Root added.
Vascular Solutions reported continued progress during the first quarter
in its development of additional interventional medical devices. "The D-Stat
Dry(TM) bandage and the D-Stat Radial products have now been submitted for
regulatory approval in both the U.S. and CE markets, with expected launches in
the second half of 2003," stated Mr. Root. "In addition, during the first
quarter we completed our development of the Pronto(TM) extraction catheter in
conjunction with Dr. Pedro Silva of Milan, Italy for the rapid mechanical
extraction of soft thrombus. We are in the process of completing our CE mark
regulatory work on the Pronto to launch it in international markets early in the
second half of 2003, and later in the year in the U.S.. Finally, during the
first quarter we completed our development of the Vari-Lase(TM) endovenous laser
product for the rapidly growing treatment of superficial venous reflux,
otherwise known as varicose veins. Our 510(k) for the Vari-Lase product has been
submitted to the FDA for regulatory clearance, with our expectation that the
Vari-Lase should be launched early in the second half of the year through our
existing direct sales force in the U.S.," commented Mr. Root.
Vascular Solutions will host a live webcast starting at 3:30 p.m.,
Central Time today to discuss the information contained in this press release.
The live web cast may be accessed on the investor relations portion of our web
site at www.vascularsolutions.com. Web participants are encouraged to go to the
web site at least 15 minutes prior to the start of the call to download and
install any necessary audio software. An audio replay of the call will be
available until Friday, April 18th by dialing 1-800-642-1687 and entering
conference ID #9593020. A recording of the call will also be archived on the
investor relations portion of the company's web site, www.vascularsolutions.com
until Wednesday, April 30th. During the conference call the company may answer
one or more questions concerning business and financial developments and trends,
the company's view on earnings forecasts and new product development and
financial matters affecting the company, some of the responses to which may
contain information that has not been previously disclosed.
VASCULAR SOLUTIONS, INC.
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended
March 31,
2003 2002
(unaudited)
Net sales $ 2,968,284 $ 2,803,420
Cost of goods sold 1,222,591 1,206,918
Gross profit 1,745,693 1,596,502
Operating expenses:
Research and development 833,571 897,125
Clinical and regulatory 340,692 315,273
Sales and marketing 2,675,384 3,475,159
General and administrative 500,843 597,767
Amortization of purchased technology 54,375 --
Operating loss (2,659,172) (3,688,822)
Interest income 62,150 137,825
Net loss $ (2,597,022) $ (3,550,997)
Basic and diluted net loss per share $ (.20) $ (.27)
Shares used in computing basic and
diluted net loss per share 12,843,865 13,333,113
VASCULAR SOLUTIONS, INC.
CONDENSED BALANCE SHEETS
March 31, December 31,
2003 2002
(unaudited) (note)
ASSETS
Current assets:
Cash and cash equivalents $ 1,772,947 $ 1,835,059
Available for-sale-securities 11,625,320 14,914,444
Accounts receivable, net 1,438,314 1,357,946
Inventories 3,031,632 2,132,516
Prepaid expenses 388,867 326,773
Total current assets 18,257,080 20,566,738
Property and equipment, net 683,867 795,885
Intangible assets 863,220 917,595
Total assets $19,804,167 $22,280,218
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Total current liabilities $ 2,154,364 $ 1,910,985
Shareholders' equity:
Total shareholders' equity 17,649,803 $20,369,233
Total liabilities and shareholders' equity $19,804,167 $22,280,218
Note: Derived from the audited balance sheet at that date.
ABOUT VASCULAR SOLUTIONS
Vascular Solutions, Inc. is an interventional medical device company.
The company's primary product is the Duett sealing device which enables
interventional cardiologists and radiologists to rapidly seal the puncture site
following catheterization procedures such as angiography, angioplasty and
stenting. In February 2002 the Company commenced worldwide sales of its second
product, the D-Stat flowable hemostat, which is used in a wide variety of
interventional procedures for the local management of active bleeding. In April
2002 the Company acquired the Acolysis intravascular therapeutic ultrasound
product which is sold in international markets for the treatment of peripheral
occlusive arterial disease. Products in development include the D-Stat Dry
bandage for topical bleeding, the D-Stat Radial device for sealing punctures of
the radial artery, the next generation Mechanical Duett femoral artery sealing
device, the Pronto extraction catheter for acute thrombus removal and the
Vari-Lase endovenous laser kit for treatment of superficial venous reflux.
The information in this press release contains forward-looking
statements that involve risks and uncertainties. Our actual results could differ
materially from those anticipated in these forward-looking statements. Important
factors that may cause such differences include those discussed in our Annual
Report on Form 10-K for the year ended December 31, 2002 and other recent
filings with the Securities and Exchange Commission. The risks and uncertainties
include, without limitation, risks associated with our limited operating
history, adoption of our new sealing methodology, reliance on a sole product,
lack of profitability, exposure to possible product liability claims, the
development of new products by others, dependence on third party distributors in
international markets, doing business in international markets, limited
manufacturing experience, the availability of third party reimbursement, actions
by the FDA related to our products, and the loss of key vendors.
For further information, connect to www.vascularsolutions.com.
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