EXHIBIT 99.1
Contact: Michael Dale, President/CEO
Jack Judd, Chief Financial Officer
763/553-7736
EVC Group, Inc.
Doug Sherk, Jennifer Beugelmans
415/896-6820
FOR IMMEDIATE RELEASE
ATS MEDICAL REPORTS FINAL FOURTH QUARTER AND FULL YEAR 2004 RESULTS
Full Year Revenue Grows 52% to $28 Million
US Open Pivot(R) Open Heart Center Accounts Now Total 330
Total Open Pivot Valve Implants Surpass 100,000
Company Provides Guidance for 2005
MINNEAPOLIS, Feb. 17, 2005 -- ATS Medical, Inc. (Nasdaq: ATSI), developer,
manufacturer and marketer of a variety of cardiac surgery product and services,
including the ATS Open Pivot(R) mechanical heart valve, today reported that
sales for the fourth quarter of 2004 increased 28% to $7.2 million, compared
with sales of $5.6 million for the fourth quarter of 2003. The net loss for the
fourth quarter of 2004 was $5.4 million compared with a net loss of $8.3 million
in the fourth quarter of 2003. Included in the net loss amounts in the fourth
quarters of 2004 and 2003 are $0.8 million and $4.4 million, respectively,
relating to a lower of cost or market inventory adjustment.
For the full year ended December 31, 2004 sales increased 52% to $28 million
compared with sales of $18.5 million reported during for the full year ended
December 31, 2003. Net loss for 2004 was $16.6 million which compared with a net
loss of $13.3 million reported for 2003. The net loss for 2004 was adversely
impacted by approximately $0.8 million in factory production ramp-up costs
recognized as cost of goods sold. Net loss for 2003 was positively impacted by a
$2.6 million gain on extinguishment of debt.
Michael D. Dale, President and CEO of ATS Medical, commented, "We are pleased
with the progress and success we have achieved toward reaching our long-term
goals. At the beginning of 2004 we outlined a strategy to grow our U.S. market
presence, continue to build mindshare for our superior mechanical valve and
build our portfolio of products for the cardiac surgeon. During the fourth
quarter we have successfully grown U.S. sales 39% compared with last year and
nearly doubled our domestic market share to 10% while growing our international
market share to 14%. In addition, we have also significantly grown our presence
in U.S. open heart centers to 330, compared with 183 at the end of 2003. We
believe that this success coupled with the fact that more than 100,000 Open
Pivot heart valves have been implanted into patients underscores the superiority
of our technology as well as our opportunity to grow our position as a leader in
the mechanical heart valve market.
"In addition, in 2004 we began to execute on our plan to leverage our cardiac
surgery business platform," continued Mr. Dale. "Our agreement with CryoCath,
which provides us access to their surgical cryotherapy products for the ablation
of cardiac arrhythmias, will equip our sales force with an additional
product to bring to the cardiac surgeon. This agreement officially started on
January 1, 2005 and we would expect it to begin to contribute to revenue
materially beginning in the second quarter. We also remain very excited about
the potential of our PARSUS(TM) technology and expect it to develop into another
important product in our portfolio. Looking ahead, we will continue to explore
other strategic new business development opportunities, and anticipate reporting
additional news on such efforts in the coming year.
"Finally, we have also executed on our strategy to begin producing our own
pyrolytic carbon components. We remain on target with our original estimates
regarding cost per component and our capacity and are now past the ramp-up phase
and into production. As we have outlined previously, our ability to lower our
manufacturing costs through our own production will be a driving force behind
our ability to achieve profitability in 2006," continued Mr. Dale.
"Looking ahead to 2005, we expect total sales for the year to grow between 20%
and 25% compared with 2004, to a range of $33 million to $35 million. We also
continue to expect that we will consume our remaining high cost pyrolytic carbon
inventory early in 2006 and reach our breakeven point in the first half of
2006," concluded Mr. Dale.
CONFERENCE CALL TODAY
ATS management will host a conference call and webcast today, February 17, 2005
at 4:30 p.m. ET to discuss its fourth quarter and full year 2004 financial
results, outlook for 2005 and current corporate developments. The dial in number
for the conference call is 800-366-3908 for domestic participants and
303-262-2194 for international participants.
A taped replay of the conference call will also be available beginning
approximately one hour after the call's conclusion and will remain available
through Midnight ET on Thursday, February 24, 2005 and can be accessed by
dialing 800-405-2236 for domestic callers and 303-590-3000 for international
callers, using the passcode 11023394#. A live webcast of the call can be
accessed at http://www.atsmedical.com by clicking on the Investors icon. The
webcast will also be archived on the company's website.
ABOUT ATS MEDICAL
ATS Medical manufactures and markets products and services focused on cardiac
surgery. It is headquartered in Minneapolis and is global in scope with sales in
more than 45 countries. The ATS Open Pivot heart valve has been implanted in
over 100,000 patients and utilizes a unique pivot design resulting in improved
performance and a lower risk profile. The ATS Medical web site is
www.atsmedical.com.
SAFE HARBOR
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 to
its Form 10-K for the year ended December 31, 2003.
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