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West
Berlin, NJ (November 14, 2006)—EP MedSystems, Inc.,
(NASDAQ: EPMD),
a market leader in electrophysiology products used
to diagnose and treat certain types of cardiac
rhythm disorders, today announced financial results
for the three and nine months ended September 30,
2006.
Revenues for the third quarter were $3,799,000, an
increase of 15% over second quarter revenue, and a
decrease of 11% from the $4,270,000 reported for the
prior year third quarter. The net loss for the
quarter was $1,692,000, compared to the $1,849,000
reported in 2005. The basic and diluted loss per
share for the three months ended September 30, 2006
was ($0.06), which compared to ($0.07) for the
comparable period in 2005.
For the
nine months ended September 30, 2006, revenues were
$11,189,000, a decrease of 10% from the $12,501,000
reported in the same period last year. The net loss
for the nine months ended September 30, 2006 was
$5,400,000 or ($0.19) per basic and diluted share,
compared to $4,422,000 or ($0.17) per basic and
diluted share in the prior year. The 2006 operating
results include $729,000 of share-based compensation
as a result of the Company’s adoption of Financial
Accounting Standards Board Statement 123R, which
requires the expensing of options.
The
Company finished the quarter with cash and cash
equivalents of $10,000,000.
The
Company also announced today the launch of its
NurseMate™ computer review station. The NurseMate™,
recently cleared by the United States Food and Drug
Administration, allows a separate user to easily
review, monitor and edit patient data active on the
EP-WorkMate®
recording system during an EP procedure. It also
allows the physician to easily create, print and
distribute comprehensive reports for hospital
records and referring physicians. By enabling remote
access to all lab staff, the NurseMate station can
enhance EP procedure efficiency.
Earlier
this month, the Company had also announced the
signing of a Settlement Agreement with the Bureau of
Industry and Security of the United States
Department of Commerce to close issues related to
its shipment of products to restricted countries in
2004 and earlier.
David
Bruce, EP MedSystems’ new President and Chief Executive Officer commented,
“With the recent settlement with the Department of
Commerce export issues, we can increase our focus on
the significant opportunity for the company in the
growing EP market and the intracardiac ultrasound
catheter imaging business.”
“Our
electronics and software business has been softer
with the decline in our sales of the integrated
Boston Scientific RPM™ navigation product not fully
offset by growth in our core EP-WorkMate®
recording system products. We expect to boost this
line of business with the launch of two new
extensions to this product line – the NurseMate™
remote station and the MapMate™ interface that links
patient data in our WorkMate system to the leader in
navigation system installations, the CARTO™ product
from the Biosense Webster division of J&J. These two
product line extensions substantially add to our
product offering, are meeting a significant need of
our physician customers, and can be sold at the same
time in one package with our other electrophysiology
products. “
Corporate
Conference Call
EP
MedSystems’ management will host a conference call
today, November 14, 2006, at 4:30 p.m. EDT (1:30
p.m. PDT) to review the third quarter financial
results and other corporate events. David Bruce,
President and CEO will host the call and take part
in a Q & A session.
The
call can be accessed by dialing (800) 218-8862 and
giving the company name, “EP MedSystems”.
Participants are asked to call the number
approximately 10 minutes before the conference call
begins. A replay of the conference call will be
available two hours after the call for the following
five days by dialing (800) 405-2236 and entering the
following pass code: 11076610#.
The
call can also be accessed live on the web at
www.epmedsystems.com in the investor relations
area of the site.
About EP MedSystems:
EP MedSystems develops and
markets cardiac electrophysiology ("EP") products
used to diagnose and treat certain cardiac rhythm
disorders. The Company's EP product line includes
the EP-WorkMate® Electrophysiology Workstation with
RPM(TM) Real-time Position Management(TM) navigation
technology, the EP-4(TM) Computerized Cardiac
Stimulator, fixed and deflectable diagnostic
electrophysiology catheters and related disposable
supplies, the ALERT® System and ALERT family of
internal cardioversion catheters, and the ViewMate®
intracardiac ultrasound catheter imaging system. For
more information, visit our website at
www.epmedsystems.com.
Forward Looking Statements:
This Release may contain
certain statements of a forward-looking nature
relating to future events or the future financial
performance of the Company. Forward-looking
statements include information concerning our
possible or assumed future results of operations and
statements preceded by, followed by or including the
words "believes", "expects", "anticipates",
"intends", "plans", "estimates", "see opportunities"
or similar expressions. Such forward-looking
statements are based on our management's beliefs and
assumptions and on information currently available
to our management. Such forward-looking statements
are only predictions and are subject to risks and
uncertainties that could cause actual results or
events to differ materially and adversely from the
events discussed in the forward-looking statements.
Factors that could cause or contribute to such
differences include, but are not limited to, EP
MedSystems' history of losses, uncertainty of market
acceptance of our products and level of sales,
uncertainty of future profitability and future
liquidity needs, possible costs, fines or penalties
that may be incurred in connection with government
inquiries and investigations and risks regarding
regulatory approvals and demand for new and existing
products, as stated in the Company's Annual Report
filed on Form 10-K and Quarterly Reports filed on
Form 10-Q.
EP MedSystems cautions investors
and others to review the cautionary statements set
forth in this press release and in EP MedSystems'
reports filed with the Securities and Exchange
Commission and cautions that other factors may prove
to be important in affecting the EP MedSystems'
business and results of operations. Readers are
cautioned not to place undue reliance on this press
release and other forward-looking statements, which
speak only as of the date of this release. EP
MedSystems undertakes no obligation to publicly
release the results of any revisions to these
forward-looking statements that may be made to
reflect events or circumstances after the date of
this report or to reflect the occurrence of
unanticipated events.
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