Exhibit 99.1
Contact: Michael Dale, President/CEO
Manny Villafana, Chairman
763/553-7736
763/553-1492 Fax
Minneapolis MN, July 29, 2003
ATS MEDICAL ANNOUNCES 2ND QUARTER RESULTS
MINNEAPOLIS, July 29, 2003 -- Michael D. Dale, President and CEO of ATS Medical,
Inc. (NASDAQ: ATSI) announced today that ATS Medical recorded sales of
$4,246,074 for the quarter ended June 30, 2003, compared to sales of $2,475,241
for the quarter ended June 30, 2002, representing an increase of 72%. For the
six months ended June 30, 2003 sales totaled $8,210,923 compared to $6,377,504
for the six months ended June 30, 2002, representing an increase of 29%. The net
loss for the quarter ended June 30, 2003 totaled $3,103,139 or $0.14 per share
compared to a net loss of $11,367,713 or $0.51 per share for the quarter ended
June 30, 2002. Included in the net loss for the quarter ended June 30, 2002 was
an impairment of technology license charge of $8,100,000.
Commented Mr. Dale, "We continue to be encouraged by our progress in rebuilding
and expanding our sales and marketing organization. At the end of second
quarter, despite having less than half our planned sales and marketing team
trained and in place, we were able to generate significant revenue growth in
both our International and North American markets. Specific to North America,
revenue increased 23% over first quarter of 2003, and 38% versus second quarter
2002. Looking forward, we feel confident that ATS will be able to grow 2003
total revenue by 25% versus 2002. In North America, we believe we can grow
revenue by at least 60% versus 2002, based on current productivity trends. For
the quarter ended June 2003, our cash position essentially remained unchanged at
$9.5 million. Given the very positive reception our initial hires have received
within the marketplace, we have decided to expand our originally planned number
of territories for 2003. We aim to complete this additional hiring and training
process by end of fourth quarter. In summary, as a company we could not be more
excited by our future prospects to establish the ATS Open Pivot(R) heart valve
as the standard of care for mechanical heart valves."
ATS Medical, Inc. manufactures and markets a pyrolytic carbon open pivot
mechanical heart valve. The Company's common stock is traded in the NASDAQ
National Market under the symbol "ATSI." The Company's website is
www.atsmedical.com.
This Press Release contains forward-looking statements that may include
statements regarding intent, belief or current expectations of the Company and
its management. Actual results could differ materially from those projected in
the forward looking statements as a result of a number of important factors,
including regulatory actions, competition, pricing pressures, supplier actions
and management of growth. For a discussion of these and other risks and
uncertainties that could affect the Company's activities and results, please
refer to the Company's filings with the Securities and Exchange Commission
including Exhibit 99.1 to its Form 10-Q for the quarter ended March 31, 2003.
ATS MEDICAL, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS (UNAUDITED)
<Table>
<Caption>
Three months ended Six months ended
June 30, June 30,
----------------------------- -----------------------------
REVENUES 2003 2002 2003 2002
------------ ------------ ------------ ------------
Net sales ....................................... $ 4,246,074 $ 2,475,241 $ 8,210,923 $ 6,377,504
Less cost of goods sold ......................... 3,248,279 2,324,011 5,996,450 5,014,922
------------ ------------ ------------ ------------
Gross profit ............................... 997,795 151,230 2,214,473 1,362,582
OPERATING EXPENSES
Research, development and engineering ........... 442,542 668,690 828,310 1,594,350
Sales and marketing ............................. 2,387,575 1,143,273 3,541,422 2,302,205
General and administrative ...................... 1,042,752 780,325 2,030,344 1,454,568
Impairment of technology license ................ 0 8,100,000 0 8,100,000
Reorganization expense .......................... 0 865,184 0 865,184
------------ ------------ ------------ ------------
Total expenses ............................. 3,872,869 11,557,472 6,400,076 14,316,307
------------ ------------ ------------ ------------
Operating loss ........................................ (2,875,074) (11,406,242) (4,185,603) (12,953,725)
Net Interest income (expense) ......................... (228,065) 38,529 (456,927) 102,640
------------ ------------ ------------ ------------
NET LOSS FOR THE PERIOD ............................. $ (3,103,139) $(11,367,713) $ (4,642,530) $(12,851,085)
============ ============ ============ ============
NET LOSS PER SHARE:
Basic and diluted ............................... $ (0.14) $ (0.51) $ (0.21) $ (0.58)
============ ============ ============ ============
Weighted average number of shares outstanding:
Basic and diluted ............................... 22,324,990 22,244,178 22,321,687 22,232,607
</Table>
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
<Table>
<Caption>
June 30, December 31,
2003 2002
----------- ------------
(unaudited)
CURRENT ASSETS
Cash, cash equivalents and short-term investments .............. $ 9,533,520 $ 9,973,888
Accounts receivable ............................................ 3,915,928 3,557,055
Inventories .................................................... 16,699,190 15,876,324
Prepaid expenses ............................................... 603,710 382,107
----------- -----------
Total current assets ....................................... 30,752,348 29,789,374
Furniture, machinery & equipment, less accumulated depreciation ...... 6,030,642 6,025,962
Other inventories .................................................... 31,000,000 37,000,000
Technology License ................................................... 18,500,000 18,500,000
Other assets ......................................................... 437,681 440,362
----------- -----------
TOTAL ASSETS ......................................................... $86,720,671 $91,755,698
=========== ===========
Current liabilities .................................................. $ 7,490,296 $ 8,114,455
Due to related party ................................................. 325,525 434,033
Long-term debt ....................................................... 9,400,000 9,080,000
Shareholders' equity ................................................. 69,504,850 74,127,210
----------- -----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY ............................. $86,720,671 $91,755,698
=========== ===========
</Table>