IMMEDIATE RELEASE April 28, 2005
CONTACTS:
Brent Larson, Tim Ryan,
Vice President / CFO The Trout Group
614 793 7500 212 477 9007
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NEOPROBE ANNOUNCES FIRST QUARTER RESULTS
First Quarter Device Sales Increase 20% Over Prior Year
Business Update Provided and Conference Call Scheduled
DUBLIN, Ohio--(BUSINESS WIRE)--April 28, 2005--Neoprobe Corporation
(OTCBB:NEOP), a diversified developer of innovative oncology and cardiovascular
surgical and diagnostic products, today announced consolidated operating results
for the first quarter of 2005. First quarter results included net sales of
devices of $1.5 million compared to $1.2 million for the first quarter of 2004.
In addition, Neoprobe reported a net loss of $1 million or $0.02 per share
compared to a loss of $589,000 or $0.01 per share for the comparable period in
2004. The net loss for the first quarter of 2005 included $453,000 in non-cash
charges consisting primarily of interest and other charges related to the
financing that was completed in December 2004 compared to total non-cash charges
of $205,000 for the first quarter of 2004.
Brent Larson, Neoprobe's Vice President, Finance & CFO, said, "Our first
quarter device sales improved compared to the prior year due primarily to a
slight strengthening in gamma device prices and increased extended service
contract sales activity through our primary gamma device marketing partner. The
improvement in sales prices and increased extended service contract sales,
coupled with the impact of design improvements to our neo2000(R) gamma device
line completed in early 2004, contributed to an overall increase in gross
margins on device sales to 62% of net sales compared to 56% of net sales in the
prior year."
David Bupp, Neoprobe's President & CEO, said, "The feedback we are
receiving from clinicians following the release of our redesigned Quantix/OR(TM)
probe has been positive. Our efforts over the coming weeks and months related to
the Quantix(R) product line are focused on reactivating and expanding our
distributor network following the recent release of the redesigned system."
Operating expenses during the quarter increased slightly over the prior
year due primarily to increased development efforts related to Lymphoseek(TM)
and the technology assessment of our activated cellular therapy (ACT) technology
being conducted by our subsidiary, CIRA Biosciences, Inc. (CIRA Bio). Increases
in development activities in these areas were offset by decreases in development
expenses related to our device product lines and other development efforts
compared to the prior year.
Year-to-date milestones:
-- Received 501(k) and CE Mark clearances to market redesigned
Quantix/OR system
-- Established corporate Investigational New Drug (IND) application for
Lymphoseek and submitted multi-center clinical protocol and related
materials to FDA under the IND
-- Licensed methodology patents strengthening RIGS(R) intellectual
property estate
-- Expanded Lymphoseek license to cover photodynamic and ultrasound
applications
-- Received positive independent technology assessment of CIRA Bio's
ACT platform
Bupp continued, "Our activities in the first quarter have set the stage
for what we believe will be an exciting year for Neoprobe on a number of fronts.
Our strategy is to leverage our strong base business in medical devices as we
advance our radiopharmaceutical and cellular therapy initiatives."
Neoprobe's president and CEO, David Bupp, and vice president and CFO,
Brent Larson, and Dr. John Ridihalgh, chief scientific officer of Neoprobe's
subsidiary, CIRA Biosciences, Inc., will provide a business update and discuss
the Company's first quarter 2005 results via a conference call scheduled for
11:00 AM EDT tomorrow, Friday, April 29, 2005. Participants may dial-in by
calling 1-877-407-9205 from the United States and Canada or by calling
1-201-689-8054 internationally. A replay of the call will be available for one
week by calling 1-877-660-6853 (PIN#150307) from the United States and Canada or
by calling 1-201-612-7415 internationally.
About Neoprobe
Neoprobe is a biomedical company focused on enhancing patient care and
improving patient outcome by meeting the critical intraoperative diagnostic
information needs of physicians and therapeutic treatment needs of patients.
Neoprobe currently markets the neo2000(R) line of gamma detection systems that
are widely used by cancer surgeons and is commercializing the Quantix(R) line of
blood flow measurement products developed by its subsidiary, Cardiosonix Ltd. In
addition, Neoprobe holds significant interests in the development of related
biomedical systems and radiopharmaceutical agents including Lymphoseek(TM) and
RIGScan(R) CR. Neoprobe's recently formed subsidiary, CIRA Biosciences, Inc., is
also advancing a patient-specific cellular therapy technology platform called
ACT. Neoprobe'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. www.neoprobe.com
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, anticipated clinical and regulatory pathways, 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 of its product, reliance on
third party manufacturers, accumulated deficit, future capital needs,
uncertainty of capital funding, dependence on limited product line and
distribution channels, competition, limited marketing and manufacturing
experience, risks of development of new products, regulatory risks 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.
NEOPROBE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2005 2004
(unaudited)
----------- -----------
Assets:
Cash and cash equivalents $ 5,421,172 $ 9,842,658
Available-for-sale securities 3,475,911 --
Other current assets 2,027,982 1,594,286
Intangible assets, net 2,419,369 2,519,109
Other non-current assets 1,375,842 1,409,842
----------- -----------
Total assets $14,720,276 $15,365,895
=========== ===========
Liabilities and stockholders' equity:
Current liabilities $ 1,047,132 $ 1,009,936
Notes payable, net of discounts 5,603,347 5,491,494
Warrant liability -- 2,560,307
Other liabilities 150,280 140,328
Stockholders' equity 7,919,517 6,163,830
----------- -----------
Total liabilities and stockholders' equity $14,720,276 $15,365,895
=========== ===========
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
March 31, March 31,
2005 2004
(unaudited) (unaudited)
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Revenues:
Net sales $ 1,465,887 $ 1,225,617
License revenue and other -- 200,000
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Total revenues 1,465,887 1,425,617
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Cost of goods sold 563,323 540,142
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Gross profit 902,564 885,475
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Operating expenses:
Research and development 638,445 583,100
Selling, general and administrative 836,115 813,393
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Total operating expenses 1,474,560 1,396,493
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Loss from operations (571,996) (511,018)
Increase in warrant liability (142,427) --
Other expenses, net (288,348) (77,559)
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Net loss $ (1,002,771) $ (588,577)
============ ============
Loss per common share:
Basic $ (0.02) $ (0.01)
Diluted $ (0.02) $ (0.01)
Weighted average shares outstanding:
Basic 58,317,098 53,049,534