Exhibit 99.1
Possis Medical, Inc. Reports Fourth-Quarter and Full-Year Results;
Quarterly Revenue and Earnings in Line with Guidance
MINNEAPOLIS--(BUSINESS WIRE)--Sept. 20, 2006--Possis Medical, Inc.
(NASDAQ:POSS), today reported sales of $16.0 million for the fiscal
fourth quarter ended July 31, 2006, versus $16.3 million in the
year-ago period, and up from $15.2 million sequentially in the fiscal
2006 third quarter.
The company reported fourth-quarter net income, on a generally
accepted accounting principles (GAAP) basis, of $479,000, or $0.03 per
diluted share. This includes stock-based compensation expense of
$710,000, net of tax, or $0.04 per diluted share, due to the
implementation of SFAS 123(R). Net income prior to fiscal 2006 did not
include stock-based compensation expense.
Non-GAAP (pro forma) net income, adjusted to eliminate the effect
of stock-based compensation expense for the fiscal 2006 fourth quarter
was $1.2 million, or $0.07 per diluted share. This compares with net
income of $1.3 million, or $0.07 per diluted share, in the fourth
quarter of fiscal 2005, and with non-GAAP net income of $542,000, or
$0.03 per diluted share, sequentially in the third quarter of fiscal
2006. Please refer to the non-GAAP "Consolidated Statements of Income
and Comprehensive Income" included in this press release, as well as
the table reconciling net income per diluted share on a GAAP basis to
net income per share on a non-GAAP basis.
Possis Medical's fiscal 2006 fourth-quarter revenue and GAAP net
income were within the range of its previously issued expectations.
"While fiscal 2006 proved to be a challenging year for Possis, we
ended the year on a promising note: meeting our expectations for the
fourth quarter and delivering solid sequential increases," said Robert
G. Dutcher, CEO of Possis Medical. "At other times in our past, we
have endured difficult operational periods and emerged stronger due to
our focus, prudent financial management and superior technology. We
enter fiscal 2007 with a strong cash position, a full product
pipeline, promising new clinical science and the continued commitment
to research and development needed for growth."
Earlier in fiscal 2006, turnover in the Possis' sales force
contributed to sales execution issues. According to Dutcher, the
company has restructured both the sales force and its compensation
plan. The new structure will increase the number of quota-carrying
territories and strengthen overall sales expertise. Additionally, the
new compensation plan is designed to attract and retain talent and
maximize incremental sales growth. Possis is currently in the process
of training new hires and expects to be fully staffed and trained by
the end of September. Going forward, the company expects to return to
a more normal level of turnover in its sales force.
For the fiscal year ended July 31, 2006, sales totaled $61.9
million, versus $65.1 million in the prior year. Net income for the 12
months was $809,000, or $0.05 per diluted share, on a GAAP basis,
including stock-based compensation expense of $3.0 million, net of
tax, or $0.17 per diluted share. Non-GAAP (pro forma) net income
totaled $3.8 million, or $0.21 per diluted share, compared to $6.2
million, or $0.34 per diluted share, for fiscal 2005.
In the fiscal 2006 fourth quarter, Possis sold 29 AngioJet(R)
Drive Units worldwide and 22 in the U.S. Total U.S. drive units in the
field, which contributes to catheter sales, increased to 1,672 at the
end of the fiscal 2006 fourth quarter from 1,645 units at the end of
the fiscal 2006 third quarter. The average catheter utilization rate
per installed drive unit, a measure of recurring usage, improved
sequentially to 7.1 in the fourth quarter compared to 6.6 in the third
quarter. Catheter utilization was 8.2 in the fourth quarter of fiscal
2005.
"Even with the interventional medical community eagerly awaiting
approval of our next-generation AngioJet drive unit, the Ultra
Console, we continued to deliver meaningful drive unit sales during
the fourth quarter. We expect the Ultra Console to help generate new
growth for our AngioJet business going forward," said Dutcher.
The company's gross profit margin was 71.5 percent in the fourth
quarter, versus 74.1 percent in the year-ago fourth quarter. For the
year, Possis' gross profit margin was 72.3 percent, versus 73.9
percent in fiscal 2005. The quarterly and full-year decreases were
primarily due to lower sales volume. Average selling prices remained
firm across the company's product lines.
Selling, general and administrative expenses (SG&A) increased by
$1.2 million from the same period last year, to $8.7 million in the
three months ended July 31, 2006. For the year, SG&A rose by $4.4
million from fiscal 2005, to $33.0 million. The increase in both the
quarter and full year are attributable primarily to SFAS 123(R)
stock-based compensation charges combined with marketing, clinical
study and field sales expenditures.
Fourth quarter 2006 research and development (R&D) spending
decreased by $540,000, from the prior-year period, to $2.3 million.
The prior-year period reflected high levels of spending to complete
development of the AngioJet Ultra Console. For fiscal 2006, R&D
spending increased by $400,000 to $10.9 million, due primarily to
stock-based compensation expense. R&D spending was 18 percent of
revenue in fiscal 2006, reaffirming Possis' ongoing commitment to
develop and bring new products to market.
The company reported that at July 31, 2006, cash, cash
equivalents, and marketable securities had increased to $48.1 million,
from $45.8 million at April 30, 2006. In fiscal 2006, Possis
repurchased approximately $3.2 million of its common shares. Possis
repurchased $550,000 of common stock in the most recent quarter. The
company expects to continue share repurchases in fiscal 2007 to help
offset stock-based compensation programs.
"Possis has a proven business model and strong balance sheet that
have allowed us to remain profitable in a challenging environment
while still investing aggressively in R&D," said Dutcher. "Because of
our R&D investments in fiscal 2006, we have a full product pipeline
that will provide the fuel for a return to growth in fiscal 2007 and
beyond."
Dutcher added, "Today, our market-leading AngioJet technology is
approved for use in three areas of the human body. Our goal moving
forward is to expand the use of AngioJet thrombectomy throughout the
body--including new areas such as treating deep vein thrombosis (DVT),
pulmonary embolism (PE) and ischemic stroke. In addition, we are
looking beyond our current thrombectomy markets and focusing on
introducing new products that address unmet needs in the broader
endovascular treatment market. These new products will come from
internal development efforts and possibly partnerships with other
companies."
Product Introduction and Development Update
GuardDOG(R) Occlusion System
Possis recently received 510(k) clearance from the FDA to use its
GuardDOG Occlusion System during treatment of peripheral vascular
disease. The GuardDOG System enables physicians to quickly and
effectively manage local blood flow while employing interventional
techniques and devices such as the AngioJet System to treat vascular
disease. Peripheral vascular disease is a potentially limb- and
life-threatening condition, and the GuardDOG Occlusion System provides
a new option for controlling local blood flow and facilitating
infusion of therapeutic or diagnostic fluids, as well as delivery of
interventional devices.
Possis is currently completing necessary production requirements
in preparation for market evaluations at select medical sites to
support full U.S. market release of the GuardDOG system by the end of
the 2006 calendar year.
Spiroflex(R) Catheter Family
Possis has a submission for coronary approval for the Spiroflex
catheter pending with FDA. Spiroflex is already marketed for
peripheral arterial thrombus. In addition, Possis recently added a new
member to the Spiroflex catheter family, the Spiroflex VG catheter.
The new model, designed to replace the company's existing XVG
catheter, is the first AngioJet catheter of its size to be offered in
a Rapid Exchange platform.
Utilizing its proprietary Spiroflex shaft technology, the
Spiroflex VG catheter benefits from several design improvements made
to the most recent generation of Possis Medical products. This new
catheter offers improved trackability inside the vessel and includes
tip and hub improvements found on the original Spiroflex catheter
released earlier in fiscal year 2006.
The Spiroflex VG catheter is now fully released for sale in the
U.S. for peripheral use, and the company will submit it for coronary
approval in the U.S. in the coming weeks. The Spiroflex has received
coronary CE mark approval, and application will soon be made for the
Spiroflex VG. Said Dutcher, "The combination of our family of
Spiroflex catheters and our new Ultra Console forms the
next-generation AngioJet system: a quick, effective and safe way to
remove thrombus."
SafeSeal(TM) Hemostasis Patch
In June 2006, Possis Medical secured exclusive U.S. distribution
rights to the SafeSeal(TM) Hemostasis Patch, a topical wound dressing
that decreases the time needed to control bleeding from the puncture
made into a blood vessel to perform an endovascular procedure.
Since its launch, SafeSeal has achieved revenues of $148,000.
Possis estimates the total realizable market opportunity to be $45
million today and growing to $100 million by 2009.
The launch of the SafeSeal patch is part of Possis' increased
efforts to leverage its customer base and sales force by increasing
its catalog of endovascular treatment products beyond the AngioJet
system. Current Possis customers can benefit from an expanding catalog
of unique interventional products.
AngioJet Ultra Console
The AngioJet Ultra Console is the next-generation AngioJet Drive
Unit. Designed to create and monitor flow of the saline solution that
is delivered to the catheter tip, the Ultra Console provides
significantly more flexibility and an easier set-up process, making it
much simpler to operate than Possis' current drive unit.
Said Dutcher, "Our submission for the Ultra Console continues in
active review at the FDA, and we hope for approval in the next few
months. We're very excited about the potential of this unit--it is the
foundation that will help generate the next generation of growth for
our AngioJet thrombectomy business. We anticipate a full market launch
in fiscal 2007."
Clinical Science Update
During the year, Possis made significant progress on important new
clinical science. Initiatives centered on strengthening support for
the AngioJet system in its core markets, and developing its use in new
markets, including DVT and PE.
Journal of Invasive Cardiology Publishes New Results of AngioJet
Thrombectomy Use in High-Risk Patients
In July, important new observational studies of the AngioJet
Thrombectomy System for treating heart attack patients were published
as a supplement to The Journal of Invasive Cardiology. The supplement
detailed "real-world" results from five patient registries presented
by a panel of leading interventional cardiologists during the March
2006 annual convention of the American College of Cardiology (ACC).
These registry results led the panel to conclude in part that "use
of the AngioJet with primary percutaneous catheter-based intervention
(PCI) is safe and suggest, that the AngioJet may improve procedural
and clinical outcomes in a broad spectrum of real-world ST-elevation
myocardial infarction (STEMI) patients treated with primary PCI."
Said Dutcher, "This peer-reviewed Supplement is a valuable
compendium of clinical evidence that AngioJet thrombectomy in heart
attack patients with visible thrombus is safe and effective at rapidly
resolving the thrombus and restoring flow--and results in better
clinical outcomes. This is an important step in helping physicians
understand the clinical value AngioJet thrombectomy brings to the
treatment of coronary thrombus in a variety of settings."
As a further step, Possis is working with a leading clinical
researcher and trialist to combine all available AngioJet clinical
experience in treating acute coronary syndrome patients into a single
large clinical dataset suitable for a more sophisticated meta-analysis
of AngioJet safety and benefit in such patients. If successful, this
effort could be presented or published later in fiscal 2007.
Venus Applications
Beyond its current mechanical thrombectomy markets, Possis is
working with the FDA to secure the appropriate approvals to use
AngioJet thrombectomy to treat DVT. Initially, the company had
submitted an investigational device exemption (IDE) to the FDA for
permission to sponsor a clinical trial, called APEX-D. This remains in
active discussion with FDA. In addition, and partly in response to
this process, Possis has also filed a 510(k) seeking market clearance
for general venous use of the AngioJet Xpeedior(R) catheter, currently
marketed for peripheral arterial thrombus.
Said Dutcher, "A favorable reply from FDA would be an important
first step, giving us initial, general-market clearance for venous
use, from which future clinical study results could establish a more
compelling therapeutic benefit for AngioJet treatment of venous
thrombus."
JETSTENT
Possis' JETSTENT clinical trial has enrolled 114 patients to date,
triggering the first planned interim analysis that is now underway.
The intention of the interim analysis is to assure that patient
randomization to the two treatment arms is effective, that protocol
compliance is high, and that endpoints and other outcomes being
evaluated are appropriate.
Dr. Sianos' Experience
The company recently announced that Dr. Georgios Sianos at the
Thoraxcentre in Rotterdam, The Netherlands, presented compelling
results showing that AngioJet thrombectomy in heart attack patients
with large thrombus prior to treatment with drug eluting stents
markedly reduces the incidence of stent thrombosis in follow-up out to
two years. Dr. Sianos' results were presented this year at the May
2006 EuroPCR meeting in Paris, and most recently at the September
meeting of the European Society of Cardiology/World Congress of
Cardiology in Barcelona. They also will be presented at the October
Transcatheter Cardiovascular Therapeutics (TCT) conference in
Washington, DC, and in November at the American Heart Association
meeting in Chicago. Dr. Sianos' analyses have been submitted for
publication to the Journal of the American College of Cardiology.
According to Possis, new reports concerning the higher risk of
coronary blood clots forming after implantation of drug-eluting stents
(DES) present an exciting new opportunity to establish the value of
AngioJet thrombectomy in reducing stent thrombosis.
Noted Dutcher, "In June, the Wall Street Journal reported that
some U.S. hospitals are decreasing their use of drug-eluting stents
because of mounting concern over higher rates of late-stent thrombosis
among patients who receive them. In addition, a major stent
manufacturer confirmed that its recent internal re-analysis revealed a
statistically significant increase in late-stent thrombosis with its
drug eluting stents, compared to its bare-metal stents. And the U.S.
FDA has made recent statements describing its close monitoring of the
evolving situation as well. Clearly, this is an important issue and
finding a solution is critical."
Continued Dutcher, "The compelling and very favorable results
being reported by Dr. Sianos and his colleagues reinforce other
research that identifies thrombus as a significant risk factor for
subsequent major complications such as stent thrombosis. The results
also strongly suggest that for heart attack patients with large
thrombus, AngioJet thrombectomy before treatment with drug-eluting
stents provides safer long-term outcomes. We will vigorously pursue
additional future research opportunities to further explore this
important benefit."
Business Outlook
Looking ahead to fiscal 2007, Possis Medical anticipates sales in
the range of $70 million to $76 million, with gross margins in the
low-to-mid 70's, as a percent of sales. Non-GAAP (pro forma) net
income per diluted share for fiscal 2007 is estimated to range between
$0.34 and $0.48 per share. GAAP net income per diluted share, which
includes the impact of SFAS 123(R) stock-based compensation expense,
is expected to be in the range of $0.17 - to $0.31 per share.
The company anticipates first-quarter net sales of $15.5 million
to $16 million and non-GAAP (pro forma) net income, as adjusted to
eliminate SFAS 123(R) for stock-compensation expense, in the range
between breakeven and $.03 per diluted share. Possis expects to incur
a GAAP net loss, which includes SFAS 123(R), of between $.01 and $.04
per diluted share in the first quarter of fiscal 2007.
"Looking forward, we are excited by the momentum that we bring
into fiscal 2007. We will have a fully staffed and trained sales
force, a portfolio of core products and new products such as GuardDOG
that meet the needs of the broader thrombus management market. With
our solid financial platform, strong product pipeline, a focus on R&D
and a commitment to new clinical science, we're well positioned for
fiscal 2007," concluded Dutcher.
The company will host a conference call today, Wednesday, Sept.
20, 2006 at 9:30 am (CT). Bob Dutcher, Chairman & CEO, and Jules
Fisher, CFO, will discuss the fourth-quarter and full-year operating
results and their outlook for fiscal 2007.
To join the conference call, dial 1-888-889-7567 (international
1-517-645-6377) and give the password "conference." A replay of the
conference call will be available one hour after the call ends through
11:59 P.M. (CT) on September 27, 2006. To access the replay, dial
1-866-443-8013 (international 1-203-369-1124).
For individual investors, a Webcast of the conference call will be
available at www.possis.com under the "Investors" tab, or at
www.fulldisclosure.com. Institutional investors can access the Webcast
through a password-protected site at www.streetevents.com. An archived
Webcast of Possis' conference call will be available for 30 days.
Possis Medical, Inc. develops manufactures and markets pioneering
medical devices for the large and growing cardiovascular and vascular
treatment markets. The AngioJet Rheolytic Thrombectomy System is
marketed in the United States for blood clot removal from native
coronary arteries, leg arteries, coronary bypass grafts and AV
dialysis access grafts.
Certain statements in this press release constitute
"forward-looking statements" within the meaning of Federal Securities
Laws. Some of these statements relate to estimated future revenue,
gross margins, expenses and earnings per share, regulatory approvals,
new product introductions and indications, clinical initiatives, and
sales force productivity and turnover. These statements are based on
our current expectations and assumptions, and entail various risks and
uncertainties that could cause actual results to differ materially
from those expressed in such forward-looking statements, such as, the
effectiveness of our sales and marketing efforts in re-establishing
coronary product usage, our ability to effectively manage new product
development timelines, the effectiveness of our initiatives to reduce
sales force turnover and improve productivity, and our ability to
generate suitable clinical registry data to support growing use of the
AngioJet in coronary applications. A discussion of these and other
factors that could impact the Company's future results are set forth
in the cautionary statements included in the Company's Form 10-K for
the year ended July 31, 2005, filed with the Securities and Exchange
Commission.
This release includes non-GAAP (pro forma) net income, non-GAAP
(pro forma) net income per share data, and non-GAAP (pro forma) key
business indicators, and other non-GAAP line items from the
Consolidated Statements of Income and Comprehensive Income, including
cost of medical products, operating expenses (including selling,
general and administrative, and research and development), and
provision for income taxes. These measures are not in accordance with,
or an alternative for, generally accepted accounting principles and
may be different from non-GAAP (pro forma) measures used by other
companies. Possis believes that the presentation of non-GAAP (pro
forma) net income, non-GAAP (pro forma) net income per share data,
non-GAAP (pro forma) key business indicators and other non-GAAP line
items from the Consolidated Statements of Income and Comprehensive
Income, when shown in conjunction with the corresponding GAAP
measures, provides useful information to management and investors
regarding financial and business trends relating to its financial
condition and results of operations. Possis further believes that
where the adjustments used in calculating non-GAAP (pro forma) net
income and non-GAAP (pro forma) net income per share are based on
specific identified charges that impact different line items in the
statements of income (including cost of medical products, selling,
general and administrative and research and development expense), that
it is useful to investors to know how these specific line items in the
statements of income are affected by these adjustments. In particular,
as Possis begins to apply SFAS 123(R), it believes that it is useful
to investors to understand how the expenses associated with the
application of SFAS 123(R) are reflected on its Consolidated
Statements of Income and Comprehensive Income.
POSSIS MEDICAL, INC. CONSOLIDATED STATEMENTS
OF INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
Three Months Ended Twelve Months Ended
------------------------- -------------------------
July 31, July 31, July 31, July 31,
2006 2005 2006 2005
------------ ------------ ------------ ------------
Product sales..... $16,049,769 $16,280,480 $61,879,378 $65,053,329
Cost of sales and
other expenses:
Cost of medical
products....... 4,581,390 4,223,856 17,114,312 16,966,874
Selling, general
and
administrative. 8,675,864 7,498,389 32,990,441 28,625,132
Research and
development.... 2,330,225 2,870,227 10,907,289 10,501,719
------------ ------------ ------------ ------------
Total cost of
sales and
other
expenses.... 15,587,479 14,592,472 61,012,042 56,093,725
------------ ------------ ------------ ------------
Operating income.. 462,290 1,688,008 867,336 8,959,604
Interest income. 516,852 360,921 1,812,900 1,274,149
Loss on sale of
securities..... (12,150) (13,327) (148,476) (114,401)
------------ ------------ ------------ ------------
Income before
income taxes..... 966,992 2,035,602 2,531,760 10,119,352
Income tax
provision........ 487,948 758,048 1,723,159 3,963,934
------------ ------------ ------------ ------------
Net income........ 479,044 1,277,554 808,601 6,155,418
Other
comprehensive
loss, net of tax:
Unrealized gain
(loss) on
securities....... 9,000 (108,000) (89,000) (104,000)
------------ ------------ ------------ ------------
Comprehensive
income........... $488,044 $1,169,554 $719,601 $6,051,418
============ ============ ============ ============
Weighted average
number of common
shares
outstanding:
Basic........ 17,181,540 17,303,812 17,223,562 17,616,072
Diluted...... 17,490,821 17,822,780 17,824,739 18,310,906
Net income per
common share:
Basic........ $0.03 $0.07 $0.05 $0.35
============ ============ ============ ============
Diluted...... $0.03 $0.07 $0.05 $0.34
============ ============ ============ ============
Note: Net income for the three and twelve months ended July 31,
2006 includes stock-based compensation expense of $710,000 and
$2,962,000, net of tax, due to the implementation of SFAS 123(R).
Net income for the three and twelve months ended July 31, 2005 did
not include stock-based compensation expense under SFAS 123(R). The
table below reflects net income and diluted net income per share for
the three and twelve months ended July 31, 2006 compared with the
three and twelve months ended July 31, 2005 including the pro forma
stock-based compensation expense as follows:
Three Months Ended Twelve Months Ended
------------------------- -------------------------
July 31, July 31, July 31, July 31,
2006 2005 2006 2005
------------ ------------ ------------ ------------
Net income - as
reported. $1,277,554 $6,155,418
Stock-based
compensation
expense, net of
tax - as
reported. 1,210,000 3,169,000
------------ ------------ ------------ ------------
Net (loss) income,
including the
effect of stock-
based
compensation
expense. $479,044 $67,554 $808,601 $2,986,418
============ ============ ============ ============
Diluted net income
per share - as
reported. $0.07 $0.34
Stock-based
compensation
expense, net of
tax, as reported. (0.07) (.017)
------------ ------------ ------------ ------------
Diluted net (loss)
income per share,
including the
effect of stock-
based
compensation
expense. $0.03 $0.00 $0.05 $0.16
============ ============ ============ ============
POSSIS MEDICAL, INC. AND SUBSIDIARIES
NON-GAAP (PRO FORMA) CONSOLIDATED STATEMENTS OF
INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)
Three Months Ended Twelve Months Ended
------------------------- -------------------------
July 31, July 31, July 31, July 31,
2006 2005 2006 2005
------------ ------------ ------------ ------------
Product sales..... $16,049,769 $16,280,480 $61,879,378 $65,053,329
Cost of sales and
other expenses:
Cost of medical
products....... 4,484,390 4,223,856 16,696,312 16,966,874
Selling, general
and
administrative. 8,095,864 7,498,389 30,711,441 28,625,132
Research and
development.... 2,147,225 2,870,227 10,142,289 10,501,719
------------ ------------ ------------ ------------
Cost of sales
and other
expenses.... 14,727,479 14,592,472 57,550,042 56,093,725
------------ ------------ ------------ ------------
Operating income.. 1,322,290 1,688,008 4,329,336 8,959,604
Interest income. 516,852 360,921 1,812,900 1,274,149
Loss on sale of
securities..... (12,150) (13,327) (148,476) (114,401)
------------ ------------ ------------ ------------
Income before
income taxes..... 1,826,992 2,035,602 5,993,760 10,119,352
Provision for
income taxes..... 637,948 758,048 2,223,159 3,963,934
------------ ------------ ------------ ------------
Net income........ 1,189,044 1,277,554 3,770,601 6,155,418
Other
comprehensive
income, net of
tax:
Unrealized gain
(loss) on
securities....... 9,000 (108,000) (89,000) (104,000)
------------ ------------ ------------ ------------
Comprehensive
income........... 1,198,044 $1,169,554 3,681,601 $6,051,418
============ ============ ============ ============
Weighted average
number of common
shares
outstanding:
Basic........ 17,181,540 17,303,812 17,223,562 17,616,072
Diluted...... 17,490,821 17,822,780 17,824,739 18,310,906
Net income per
common share:
Basic........ $0.07 $0.07 $0.22 $0.35
============ ============ ============ ============
Diluted...... $0.07 $0.07 $0.21 $0.34
============ ============ ============ ============
Note: The impact of SFAS 123(R) is excluded from the three and
twelve months ending July 31, 2006; the three and twelve months ending
July 31, 2005, is shown as reported.
POSSIS MEDICAL, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
July 31, July 31,
ASSETS 2006 2005
------------ ------------
CURRENT ASSETS:
Cash and cash equivalents................. $3,505,796 $5,257,244
Marketable securities..................... 44,610,130 39,169,811
Trade receivables (less allowance for
doubtful accounts and returns of $572,000
and $669,000, respectively).............. 8,356,776 8,274,839
Inventories............................... 5,915,950 5,830,204
Prepaid expenses and other assets......... 1,663,322 1,158,214
Deferred tax assets....................... 1,331,000 1,042,000
------------ ------------
Total current assets.................... 65,382,974 60,732,312
PROPERTY AND EQUIPMENT, net................. 5,090,198 4,879,221
DEFERRED TAX ASSET, net..................... 10,756,000 12,113,949
OTHER ASSETS................................ 723,262 425,914
------------ ------------
TOTAL ASSETS................................ $81,952,434 $78,151,396
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade accounts payable.................... $2,040,367 $1,355,402
Accrued salaries, wages, and commissions.. 3,468,961 3,212,525
Other liabilities......................... 2,715,421 2,468,669
------------ ------------
Total current liabilities............... 8,224,749 7,036,596
OTHER LIABILITIES........................... 823,975 526,914
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock-authorized, 100,000,000
shares of $0.40 par value each; issued
and outstanding, 17,173,504 and
17,326,487 shares, respectively.......... 6,858,730 6,930,595
Additional paid-in capital................ 77,378,276 75,710,188
Accumulated other comprehensive loss...... (329,000) (240,000)
Retained deficit.......................... (11,004,296) (11,812,897)
------------ ------------
Total shareholders' equity.............. 72,903,710 70,587,886
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY.. $81,952,434 $78,151,396
============ ============
AngioJet System Key Business Indicators
- ----------------------------------------------------------------------
Q4-05 Q1-06 Q2-06 Q3-06 Q4-06
- ----------------------------------------------------------------------
U.S. AngioJet Revenue -
$(000) $15,609 $15,029 $14,582 $14,748 $15,258
- ----------------------------------------------------------------------
U.S. Drive Units Sold 40 42 28 46 22
- ----------------------------------------------------------------------
U.S. Drive Units in the
Field 1,509 1,560 1,600 1,645 1,672
- ----------------------------------------------------------------------
U.S. Catheter Utilization 8.2 7.5 7.0 6.6 7.1
- ----------------------------------------------------------------------
Gross Margin % 74.1% 72.7% 74.2% 71.1% 71.5%
- ----------------------------------------------------------------------
EPS Diluted $0.07 $0.01 $0.02 ($0.02) $0.03
- ----------------------------------------------------------------------
Comparison of Net Income Per Diluted Share Including the Effect of
Stock-Based Compensation Expense Under SFAS 123(R) and SFAS 123
- ----------------------------------------------------------------------
Net Income Per Diluted Share Q4-05 Q1-06 Q2-06 Q3-06 Q4-06
- ----------------------------------------------------------------------
Net income per diluted share -
as reported for prior
periods (1) $0.07 N/A N/A N/A N/A
- ----------------------------------------------------------------------
Stock-based compensation
expense, net of tax, per
share (2) $(0.07) $(0.04) $(0.04) $(0.05) $(0.04)
- ----------------------------------------------------------------------
Net income (loss) per share
including the effect of
stock-based compensation
expense (3) $0.00 $0.01 $0.02 $(0.02) $0.03
- ----------------------------------------------------------------------
Notes:
1. Net income and net income per share prior to fiscal 2006 did
not include stock-based compensation expense under SFAS 123.
2. Stock-based compensation expense and stock-based compensation
expense per share prior to fiscal 2006 is calculated based on
SFAS 123 as previously disclosed in Possis' financial
statement footnotes.
3. Net income (loss) and net income (loss) per share prior to fiscal
2006 represents pro forma information based on SFAS 123 as
previously disclosed in Possis' financial statement footnotes.
CONTACT: Possis Medical, Inc., Minneapolis
Jules L. Fisher, 763-450-8011
Jules.Fisher@possis.com