Exhibit 99.1
[LOGO]
NEWS RELEASE
For Immediate Release: Contact: Howard Root, CEO
Wednesday, October 15, 2003 James Hennen, Director of Finance
Vascular Solutions, Inc.
(763) 656-4300
VASCULAR SOLUTIONS ANNOUNCES THIRD QUARTER RESULTS
WORLDWIDE MARKET LAUNCH OF D-STAT(R) DRY EXCEEDS EARLY EXPECTATIONS
NEW VARI-LASE(TM) AND PRONTO(TM) PRODUCTS RECORD EARLY SALES GROWTH
SALES GUIDANCE RE-AFFIRMED FOR 2004 AT 100% ANNUAL GROWTH OVER 2003
MINNEAPOLIS, Minnesota -- Vascular Solutions, Inc. (Nasdaq:VASC) today
announced results for its third quarter ended September 30, 2003 and reported
the initial results of the market launch of its four new products for 2003.
Net sales during the third quarter were $2,708,626, a decrease of 11%
from net sales of $3,040,758 in the third quarter of 2002. The 11% decrease in
net sales was in line with the Company's focus on its very recent new product
introductions as well as its 23% decrease in sales and marketing expenses from
the year-prior period. During the third quarter the company launched the D-Stat
Dry bandage worldwide, the Pronto extraction catheter in Europe and the
Vari-Lase endovenous laser procedure kit in the U.S. The net loss for the third
quarter of 2003 was $2,385,268, improving from a net loss of $2,633,954 in the
third quarter of 2002 primarily due to lowered expenses in the sales and
marketing area.
"The most important event for Vascular Solutions in the third quarter
was the receipt of our 510(k) clearance on September 22nd from the FDA to allow
sales of our D-Stat Dry in the U.S.," commented Howard Root, Chief Executive
Officer of Vascular Solutions. "The early clinical and sales reaction to the
D-Stat Dry has been outstanding, with worldwide net sales of $39,850 in just the
last six business days of the third quarter and excellent reported clinical
outcomes. We believe that the D-Stat Dry product uniquely meets a number of
customer desires, and will be a rapidly growing product in our interventional
medical device portfolio."
The official market launch of the Vari-Lase endovenous laser product
line also commenced in late July, with net sales of $108,263 in the third
quarter. "The Vari-Lase business is starting nicely, with substantial customer
interest and growth potential," commented Mr. Root. The Company also received
its 510(k) clearance from the FDA on four additional configurations of the
Vari-Lase procedure kit that the Company expects to launch in the fourth
quarter. The Company also filed its 510(k) application for its Vari-Lase laser
console in September.
Net sales of the Pronto extraction catheter commenced in Europe in late
August, with initial sales of $11,455 in the third quarter. "The Pronto has
already demonstrated its clinical utility, with our market launch starting from
just a few European centers. In the fourth quarter we are expanding our
international launch and the reception has been very positive," commented Mr.
Root.
Finally, in September the Company received 510(k) clearance of its
D-Stat Radial product. "Before launching we observed that a design improvement
to the D-Stat Radial was needed to improve the product, which we are in the
process of making. This has slightly delayed our expected market launch of the
Radial from late September to the fourth quarter," added Mr. Root.
Vascular Solutions also re-affirmed its guidance on its sales estimates
for 2004. "We believe that our net sales for 2004 will increase by 100% or more
over net sales for 2003 to between $25 million and $30 million. Projected
revenue related to the new product introductions is estimated at between $8
million and $10 million for the D-Stat Dry, between $4 million and $6 million
for the Vari-Lase, between $2 million and $3 million for the Pronto and between
$500,000 and $1 million for the D-Stat Radial. We also continue to believe that
profitability is achieved at $7 million in quarterly net sales, based on
expected new product selling prices and gross margins."
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 Wednesday, October 22nd by dialing 1-800-642-1687 and entering
conference ID #3168480. 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, October 22nd. 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 Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
(unaudited) (unaudited)
Net sales $ 2,708,626 $ 3,040,758 $ 8,401,631 $ 9,172,707
Cost of goods sold 1,101,875 1,224,151 3,410,059 3,757,329
Gross profit 1,606,751 1,816,607 4,991,572 5,415,378
Operating expenses:
Research and development 884,421 817,850 2,788,527 2,571,214
Clinical and regulatory 385,231 330,865 1,134,388 1,025,440
Sales and marketing 2,217,466 2,870,147 7,274,791 9,458,240
General and administrative 480,547 520,616 1,428,717 1,606,578
Amortization of purchased technology 54,375 54,375 163,125 90,625
Operating loss (2,415,289) (2,777,246) (7,797,976) (9,336,719)
Interest income 30,021 143,292 132,685 408,629
Net loss $ (2,385,268) $ (2,633,954) $ (7,665,291) $ (8,928,090)
Basic and diluted net loss per share $ (.19) $ (.20) $ (.60) $ (.67)
Shares used in computing basic and
diluted net loss per share 12,836,099 13,368,006 12,832,065 13,360,889
VASCULAR SOLUTIONS, INC.
CONDENSED BALANCE SHEETS
September 30, December 31,
2003 2002
(unaudited) (note)
ASSETS
Current assets:
Cash and cash equivalents $ 1,823,575 $ 1,835,059
Available for-sale-securities 6,067,682 14,914,444
Accounts receivable, net 1,426,618 1,357,946
Inventories 3,224,587 2,132,516
Prepaid expenses 493,627 326,773
Total current assets 13,036,089 20,566,738
Property and equipment, net 759,505 795,885
Intangible assets 754,470 917,595
Total assets $14,550,064 $22,280,218
LIABILITIES AND SHAREHOLDERS' EQUITY
Total current liabilities: $ 1,825,496 $ 1,910,985
Shareholders' equity:
Total shareholders' equity $12,724,568 $20,369,233
Total liabilities and shareholders' equity $14,550,064 $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
with a focus on sealing technologies. The company's primary product is the
Duett(TM) sealing device which combines an easy-to-use balloon catheter delivery
mechanism with a biological procoagulant mixture to enable 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. New products introduced in the second half of 2003 consist of: the
Vari-Lase endovenous laser procedural kit used in the treatment of varicose
veins; the D-Stat Dry hemostatic bandage for the rapid control of topical
bleeding; the D-Stat Radial hemostat band for the control of bleeding following
catheterizations utilizing the radial artery in the wrist; and the Pronto
extraction catheter for the mechanical extraction of soft thrombus.
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.