Exhibit 99.2
FOR IMMEDIATE RELEASE
Contact: Cheryl R. Johnson Edwin B. Cordell
Vice President, Investor Relations Chief Financial Officer
NOVOSTE CORPORATION NOVOSTE CORPORATION
(770) 717-6052 (770) 717-6053
Novoste Reports Third Quarter 2000 Financial Results
NORCROSS, GA., October 17, 2000 - Novoste Corporation (Nasdaq: NOVT) today
announced that for the quarter ended September 30, 2000, net sales reached a
record $1,446,000, a 155% increase over net sales of $567,000 in the third
quarter of 1999. For the nine months ended September 30, 2000, net sales totaled
$3,584,000, compared to $1,205,000 during the first nine months of 1999. The
increase in net sales was due to growing catheter utilization in certain key
markets, such as Germany, and continued geographic expansion of sales.
Additionally, these revenues reflect the implementation of SEC Staff Accounting
Bulletin (SAB) 101 effective January 1, 2000, which clarifies the requirements
for recognition of certain site installation revenues.
For the three months ended September 30, 2000, the Company reported a net loss
of $8,705,000, or $(0.54) per share, compared to a net loss of $8,066,000, or
$(0.57) per share, for the same period last year. For the nine months ended
September 30, 2000, the net loss was $23,033,000, or $(1.50) per share, compared
to a net loss of $23,567,000 or $(1.79) per share for the corresponding period
in 1999. The increase in net loss for the quarter was attributable to higher
operating expenses associated with preparation for U.S. market launch of the
Beta-Cath(TM) System and with expanding international sales coverage. The slight
decrease in net loss for the nine-month period was due to lower clinical trial
expenses in 2000 compared to 1999. The cumulative effect of the implementation
of SAB 101 on the Company's net income was insignificant. As of September 30,
2000, Novoste had $71 million in cash and cash equivalents to fund its
operations.
William A. Hawkins, President & CEO of Novoste, remarked, "We were pleased to
report record revenues this quarter, especially in light of the weakened euro
and summer holidays in Europe. As expected, Novoste's net loss increased this
period as we began building our U.S. sales force in anticipation of domestic
market launch of the Beta-Cath(TM) System. With the recent receipt of the
approvable letter from the FDA, this launch is likely to occur prior to our
previous expectations." Issuance of an approvable letter means that the FDA has
reviewed the Company's premarket approval application, as well as its own
Advisory Committee's report and recommendation, and that the FDA is prepared to
approve the application, pending Novoste's compliance with specific final
conditions.
Mr. Hawkins commented further, "Later this week, Novoste will have a major
presence at the Transcatheter Cardiovascular Therapeutics (TCT) meeting in
Washington, D.C. We plan on announcing interim results of the START 40 Trial
during the conference, as well as hosting several symposia dedicated to vascular
brachytherapy."
The Company will host a conference call at 10:00 a.m. Eastern on Tuesday,
October 17, 2000, to discuss the third quarter results. You may access the
conference call on the Internet at either: 1) novoste.com (in the
"Investor/Media" section), or 2) streetevents.com. The RealPlayer 7 software is
required to listen to the audio stream; a link to the Real Networks Web site is
provided on the sites mentioned above to download the free software.
Novoste Corporation, based in Atlanta, Ga., is a leader in the emerging field of
vascular brachytherapy to reduce the incidence of restenosis. The company's
Beta-Cath(TM) System is commercially available in the European Union and other
countries outside the U.S. For more information on the Beta-Cath(TM) System or
Novoste, please call (770) 717-0904 or visit the company's web site at
www.novoste.com.
The forward-looking statements included in this news release reflect
management's best judgment based on factors currently known. Actual results may
differ materially from those projected in these forward-looking statements based
upon risks and uncertainties, including the demonstration of safety and efficacy
of the Beta-Cath(TM) System, receipt and timing of FDA and other regulatory
approvals, and other risks detailed in documents filed by Novoste with the SEC
including its S-3 registration statement and Forms 10-K, 10-Q and 8-K.
- FINANCIAL HIGHLIGHTS TO FOLLOW -
NOVOSTE CORPORATION
CONDENSED STATEMENT OF OPERATIONS
(unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2000 1999 2000 1999
------------ ------------ ------------ ------------
Net Revenue (1) $ 1,445,527 $ 566,872 $ 3,583,575 $ 1,204,699
Cost of Sales 977,146 539,777 2,594,894 1,216,943
------------ ------------ ------------ ------------
Gross Margin 468,381 27,095 988,681 (12,244)
------------ ------------ ------------ ------------
Operating expenses
Research and development 5,248,267 6,115,556 13,974,188 17,950,943
Sales and marketing 3,171,584 1,678,437 8,528,790 4,519,703
General and administrative 1,855,862 917,379 4,271,017 2,731,284
------------ ------------ ------------ ------------
Total operating expenses 10,275,713 8,711,372 26,773,995 25,201,930
------------ ------------ ------------ ------------
Loss from operations (9,807,332) (8,684,277) (25,785,314) (25,214,174)
Interest income 1,102,550 618,007 2,752,457 1,647,630
------------ ------------ ------------ ------------
Net loss $ (8,704,782) $ (8,066,270) $(23,032,857) $(23,566,544)
============ ============ ============ ============
Net loss per share $ (0.54) $ (0.57) $ (1.50) $ (1.79)
============ ============ ============ ============
Shares used in computing net loss
per share 16,005,921 14,134,862 15,382,341 13,170,928
============ ============ ============ ============
CONDENSED BALANCE SHEETS
(unaudited)
September 30, December 31,
2000 1999
------------- ------------
ASSETS
Current assets
Cash, cash equivalents and short-term investments $70,927,361 $41,423,692
Other current assets 3,960,684 2,968,873
----------- -----------
Total current assets 74,888,045 44,392,565
Other assets 9,489,821 4,974,837
----------- -----------
Total assets $84,377,866 $49,367,402
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 7,894,214 6,302,558
Stockholders' equity 76,483,652 43,064,844
----------- -----------
Total liabilities and stockholders' equity $84,377,866 $49,367,402
=========== ===========
(1) The impact of SAB 101 on Net Revenue for the three months ended September
30, 2000 was insignificant. The impact on Net Revenue for the nine months
ended September 30, 2000 was an increase of $238,110.
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