EDAP
TMS S.A. REPORTS 2002 FIRST QUARTER FINANCIAL RESULTS
- Strong European Acceptance of Ablatherm -
- Substantial Backlog for Core Lithotripsy Products -
Vaulx-en-Velin, France, May 15, 2002 - EDAP TMS S.A. (Nasdaq: EDAP),
a global leader in the development, marketing and distribution of a portfolio
of minimally-invasive medical devices for the treatment of urological diseases,
today reported financial results for the first quarter ended March 31, 2002.
EDAP TMS S.A. reported total revenues of EUR 5.1 million (USD 4.4 million) for the first quarter of 2002, compared to EUR 5.7 million (USD 5.2 million) for the first quarter 2001. Net sales were EUR 5.0 million (USD 4.3 million) compared to EUR 5.6 million (USD 5.1 million) for the same period a year earlier. The Company attributed the decline in revenues and net sales to the impact of transferring certain TUMT related manufacturing to Urologix in August of 2001.
Gross profit was
EUR 2.2 million (USD 1.9 million) as compared to EUR 2.4 million (USD 2.2 million)
in the first quarter of 2001. The Company reported an operating loss for the
three months ended March 31, 2002, of EUR 0.7 million (USD 0.6 million), compared
to a loss of EUR 0.3 million (USD 0.3 million) for the three months ending March
31, 2001. The Company recorded a net profit of EUR 1.2 million (USD 1.0 million)
or EUR 0.14 per diluted share (USD 0.12), as compared with a net profit of EUR
0.2 million (USD 0.2 million) or EUR 0.02 per diluted share (USD 0.02), for
the same quarter of the prior year. The net profit for the quarter is directly
attributable to income generated from the sale of common stock acquired in connection
with the sale of the TUMT division.
Eric Simon, EDAP's Chief Executive Officer, commented, "Our results in
the first quarter of 2002 are in line with our expectations and we believe that
it places the Company in a good position to meet the guidance we provided during
our 2001 fiscal year end report. At that time, we stated that in 2002 the Company
expects to double our 2001 Ablatherm related revenues of EUR 1.6 million. In
this quarter, we generated EUR 1.2 million related to our HIFU business, including
the sale of two units in Europe. To date, the acceptance and recognition of
Ablatherm in Europe has been very successful.
"Our total lithotripsy business, including the sale of four units during the quarter, contributed EUR 3.2 million to our total revenues. This business has a substantial backlog which is scheduled to be delivered over the balance of the year and includes our first Sonolith Praktis order in the United States.
"Finally, as a follow-up to the status of the Ablatherm primary protocol, after an initial meeting with a representative of the AUA, and prior to the Company's meeting with the FDA we are optimistic that the FDA will be receptive to a resubmission of a protocol that is acceptable to the Company," concluded Mr. Simon.
Separately, the Company announced that it will be exhibiting this year at the AUA meeting in Orlando, Florida beginning on May 26, 2002. Representatives of EDAP will be available at the Company's booth (Booth #821) to meet with interested parties and review the product lines.
EDAP TMS S.A., is the global leader in the development, production, marketing and distribution of a portfolio of minimally invasive medical devices primarily for the treatment of urological diseases. The Company currently produces and markets devices for the minimally invasive treatment of localized prostate cancer, using High Intensity Focused Ultrasound (HIFU) and the treatment of urinary tract stones using Extra-corporeal Shockwave Lithotripsy (ESWL). The Company also produces and markets in Japan and Italy devices for the non-surgical treatment of benign Prostate Hyperplasia (BPH) using Microwave Thermotherapy (TUMT). The Company is also developing HIFU for the treatment of certain other types of tumors. For more information, in the U.S., contact EDAP Technomed Inc., the Company's U.S. subsidiary located in Atlanta, GA, by phone at (770) 446-9950.
This press release
contains, in addition to historical information, forward-looking statements
that involve risks and uncertainties. These include statements regarding the
Company's growth and expansion plans. Such statements are based on management's
current expectations and are subject to a number of uncertainties and risks
that could cause actual results to differ materially from those described in
the forward-looking statements. Factors that may cause such a difference include,
but are not limited to, those described in the Company's filings with the Securities
and Exchange Commission.
EDAP
TMS S.A.
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Three
Months Ended :
|
Three
Months Ended :
|
||||||
March
31,
2002 Euros |
March
31,
2001 Euros |
March
31,
2002 $US |
March
31,
2001 $US |
||||
Net sales of medical equipment |
2,548
|
1,777
|
2,205
|
1,618
|
|||
Net sales of spare parts, supplies and services |
2,455
|
3,845
|
2,125
|
3,501
|
|||
|
|
|
|
||||
NET SALES |
5,003
|
5,622
|
4,330
|
5,119
|
|||
Other revenues |
77
|
74
|
67
|
68
|
|||
|
|
|
|
||||
TOTAL REVENUES |
5,080
|
5,696
|
4,397
|
5,187
|
|||
Cost of sales |
(2,926)
|
(3,291)
|
(2,533)
|
(2,996)
|
|||
|
|
|
|
||||
GROSS PROFIT |
2,154
|
2,405
|
1,864
|
2,191
|
|||
Research & development expenses |
(779)
|
(905)
|
(674)
|
(824)
|
|||
S, G & A expenses |
(2,087)
|
(1,813)
|
(1,807)
|
(1,650)
|
|||
|
|
|
|
||||
Total operating expenses |
(2,866)
|
(2,718)
|
(2,481)
|
(2,474)
|
|||
OPERATING PROFIT (LOSS) |
(712)
|
(313)
|
(617)
|
(283)
|
|||
Interest (expense) income, net |
64
|
(39)
|
55
|
(35)
|
|||
Currency exchange gains (loss), net |
(28)
|
663
|
(23)
|
603
|
|||
Other income (loss), net |
2,039
|
71
|
1,765
|
65
|
|||
|
|
|
|
||||
INCOME (LOSS) BEFORE TAXES AND MINORITY INTEREST |
1,363
|
382
|
1,180
|
350
|
|||
Income tax (expense) credit |
(204)
|
(204)
|
(177)
|
(186)
|
|||
|
|
|
|
||||
NET INCOME (LOSS) |
1,159
|
178
|
1,003
|
164
|
|||
|
|
|
|
||||
Earning per share - Basic |
0.15
|
0.02
|
0.13
|
0.02
|
|||
Average number of shares used in computation of EPS |
7,740,106
|
7,784,850
|
7,740,106
|
7,784,850
|
|||
Earning per share - Diluted |
0.14
|
0.02
|
0.12
|
0.02
|
|||
Average number of shares used in computation of EPS |
8,220,735
|
8,083,258
|
8,220,735
|
8,083,258
|
NOTE: Translated for convenience of the reader to U.S. dollars at the year 2002 average three months noon buying rate of 1 Euro = 0.8656 USD, and year 2001 average three months noon buying rate of 1 Euro = 0.9105 USD.
EDAP
TMS S.A.
|
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March
31,
2002 Euro |
December
31,
2001 Euros |
March
31,
2002 $US |
December
31,
2001 $US |
||||
Cash, cash equivalents and short term investments |
20,061
|
19,361
|
17,487
|
17,233
|
|||
Investments available for sale |
2,022
|
9,686
|
1,763
|
8,622
|
|||
Total assets |
45,840
|
53,114
|
39,958
|
47,277
|
|||
Shareholders' Equity |
35,516
|
38,909
|
30,959
|
34,633
|
NOTE: Translated for convenience of the reader to U.S. dollars at the noon buying rate of 1 Euro = 0.8717 USD, on March 31, 2002 and at the noon buying rate of 1 Euro = 0.8901 USD, on December 31, 2001.