EXHIBIT 99
IMMEDIATE RELEASE JULY 31, 2003
CONTACTS:
DAVID BUPP JONATHAN FASSBERG,
PRESIDENT & CEO THE TROUT GROUP
614 793 7500 212 477 9007
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NEOPROBE ANNOUNCES SECOND QUARTER RESULTS
Quarterly Revenue Increases by 49% and Operating Results Significantly Improve
DUBLIN, OHIO - July 31, 2003 -- Neoprobe Corporation (OTCBB: NEOP), a
diversified developer of innovative oncology and cardiovascular surgical and
diagnostic products, announced today consolidated operating results for the
second quarter of 2003. Second quarter result highlights included revenues of
$1.9 million compared to $1.3 million in the second quarter of 2002. In
addition, the company reported a net loss of $79,000 or $0.00 per share compared
to a loss of $871,000 or $0.02 per share in the 2002 comparable period. For the
six months ended June 30, 2003, revenues increased by 47% to $3.4 million
compared to $2.3 million in the comparable period in 2002. The net operating
loss for the first six months of 2003 decreased to $558,000 compared to a net
loss of $1.7 million for the comparable period in 2002.
David Bupp, Neoprobe's president & CEO said, "The operating results for the
second quarter reflect a continuation of the positive trends for our gamma
surgery business and of the impact of our constant vigilance in controlling
expenses. Revenues for the quarter were principally generated from the shipment
of gamma surgery products as we are in the initial stages of launching the
Quantix(TM) blood flow products. Quantix product revenues from demonstration
unit shipments were approximately $200,000 for the quarter. Total operating
expenses for the second quarter of 2003 were $1.2 million compared to $1.4
million in the second quarter of 2002. Operating expenses for the second quarter
of 2003 included $107,000 of non-cash expense for the amortization of
intangibles compared to $97,000 in the similar period for 2002."
Bupp stated that the following initiatives were completed during the second
quarter:
o Expanded Quantix product distributor network in Europe;
o Commenced Quantix/ORTM assessment at leading cardiovascular institutes
in Switzerland;
o Initiated clinical evaluation of LymphoseekTM in prostate cancer and
reported clinical results of breast cancer trial in peer review
journal paper;
o Received shareholder consent to increase number of authorized shares
of common stock;
o Responded to questions concerning 510(k) submission for Quantix/OR;
and,
o Attended international and domestic trade shows for the introduction
of Quantix neurosurgery and cardiovascular surgery products to
distributors and medical professionals.
In conclusion, Bupp said, "Second quarter financial results exceeded our
internal expectations and the Neoprobe team is working to build on that
momentum. We now expect gamma device sales for 2003 to exceed our earlier
guidance of a 25 - 30% increase over 2002. However, we do expect that short-term
demand fluctuations from our distributor will cause third quarter gamma product
revenues to be below second quarter revenues. Also, while we anticipate that the
revenue contribution of the Quantix products will increase during the second
half of 2003 both from demonstrator and end-customer shipments, the current
delay in the clearance of the 510(k) application for the Quantix/OR may mean
that total blood flow product revenues for the year may be somewhat below our
initial projections of $1 million for the year."
ABOUT NEOPROBE
Neoprobe develops and provides innovative surgical and diagnostic products that
enhance patient care by meeting the critical decision making needs of healthcare
professionals. Neoprobe's current line of gamma detection systems is widely used
for intraoperative lymphatic mapping (ILM), an emerging standard of care
technology for breast cancer and melanoma. Neoprobe also holds significant
interests in the development of related biomedical systems and agents. The
Company's strategy is to deliver superior growth and shareholder return by
maximizing its strong position in gamma detection technologies and diversifying
into new, synergistic biomedical markets through continued investment and
selective acquisitions. With the December 31, 2001 acquisition of Cardiosonix
Ltd., Neoprobe has expanded its product portfolio to include blood flow
measurement products. Cardiosonix is a development stage company that is in the
process of obtaining regulatory clearance to begin the clinical evaluation and
commercial sale of products. Cardiosonix' products are designed to be used by
neurosurgeons, cardiovascular surgeons and critical care physicians.
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NEOPROBE CORPORATION
Add-2
Statements in this news release, which relate to other than strictly historical
facts, such as statements about the Company's plans and strategies, expectations
for future financial performance, new and existing products and technologies,
and markets for the Company's products, are forward-looking statements. The
words "believe," "expect," "anticipate," "estimate," "project," and similar
expressions identify forward-looking statements that speak only as of the date
hereof. Investors are cautioned that such statements involve risks and
uncertainties that could cause actual results to differ materially from
historical or anticipated results due to many factors including, but not limited
to, the Company's continuing operating losses, uncertainty of market acceptance,
reliance on third party manufacturers, accumulated deficit, future capital
needs, uncertainty of capital funding, dependence on limited product line and
exclusive distributor, competition, limited marketing and manufacturing
experience, and other risks detailed in the Company's most recent Annual Report
on Form 10-KSB and other Securities and Exchange Commission filings. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements.
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NEOPROBE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2003 2002
(unaudited)
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Assets
Cash and cash equivalents $ 368,703 $ 700,525
Other current assets 2,762,857 2,389,562
Intangible assets, net 3,139,626 3,366,328
Other non-current assets 564,194 623,426
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Total assets $6,835,380 $7,079,841
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Liabilities and stockholders' equity
Current liabilities, excluding deferred revenue $1,477,000 $1,016,365
Deferred revenue 1,351,089 1,637,485
Other liabilities 208,434 465,855
Stockholders' equity 3,798,857 3,960,136
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Total liabilities and stockholders' equity $6,835,380 $7,079,841
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
(unaudited) (unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Revenues:
Net sales $ 1,637,060 $ 905,941 $ 2,940,706 $ 1,641,245
License revenue and other 252,655 359,442 488,045 684,442
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Total revenues 1,889,715 1,265,383 3,428,751 2,325,687
------------ ------------ ------------ ------------
Cost of goods sold 775,727 727,135 1,614,789 1,244,828
------------ ------------ ------------ ------------
Gross profit 1,113,988 538,248 1,813,962 1,080,859
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Operating expenses:
Research and development 437,815 697,431 856,584 1,237,187
Selling, general and administrative 721,506 724,640 1,475,589 1,575,264
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Total operating expenses 1,159,321 1,422,071 2,332,173 2,812,451
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Loss from operations (45,333) (883,823) (518,211) (1,731,592)
Other (expenses) income, net (34,039) 12,663 (39,729) 15,307
------------ ------------ ------------ ------------
Net loss $ (79,372) $ (871,160) $ (557,940) $ (1,716,285)
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Loss per common share:
Basic $ (0.00) $ (0.02) $ (0.01) $ (0.05)
Diluted $ (0.00) $ (0.02) $ (0.01) $ (0.05)
Weighted average shares outstanding:
Basic 38,458,009 36,023,659 38,403,202 36,016,403
Diluted 38,458,009 36,023,659 38,403,202 36,016,403