EP MEDSYSTEMS REPORTS 2003 FIRST QUARTER RESULTS
AND RECEIVES CE APPROVAL FOR ALERT® CS/RA
West Berlin, NJ (May 12, 2003)--EP MedSystems, Inc. (NASDAQ: EPMD), a market leader in electrophysiology products used to diagnose and treat certain types of cardiac rhythm disorders, today announced sales for the three months ended March 31, 2003 of $2,291,000 compared to the three months ended March 31, 2002, of $2,989,000. The net loss for the quarter was $1,390,000, compared to $702,000 in 2002. The basic and diluted loss per share for the three months ended March 31, 2003 was $0.08 and $0.05 for the comparable period in 2002.
The Company also announced, on May 9, 2003, it received regulatory approval from its European Notified Body for the ALERT® CS/RA. The ALERT® CS/RA catheter system is intended to replace existing electrophysiology catheters by allowing the EP Physician not only to perform routine diagnostic procedures, but also to easily convert atrial fibrillation to normal heart rhythm during the procedures. The ALERT® CS/RA catheters are used in conjunction with the ALERT® Companion, a programmable bi-phasic energy source for internal cardioversion. Internal cardioversion allows the physician to treat atrial fibrillation at energy levels far less than external cardioversion. This approval follows the approval from the European Notified Body to sell the ViewMate® intracardiac ultrasound catheter system last week.
Reinhard Schmidt, EP MedSystems' President and Chief Executive Officer commented,"we are pleased with our accomplishments over the last 90 days, which included the favorable resolution of the NASDAQ listing uncertainty and product approvals in Europe for both the ALERT® CS/RA catheter system and the ViewMate® intracardiac ultrasound catheter system. These new product approvals should contribute to faster revenue growth in the second half of this year. We have started to expand our investment in sales and marketing to support these recent approvals, while beginning to adjust our development costs, as these products complete their worldwide regulatory approvals. With the approval of the new disposable products in Europe, we hope to see fewer fluctuations in quarterly revenue then we experience currently with sales generated primarily from capital equipment. In the first quarter of 2003, we experienced a slip in closing a number of EP-WorkMate® sales in the United States, which resulted in a shortfall in sales versus our goals. A number of these transactions have closed since the end of the quarter, and we expect to return to historical levels of growth next quarter.
EP MEDSYSTEMS, INC. SELECTED FINANCIAL DATA (Unaudited)
| |
|
Three Months Ended |
| |
|
March 31, |
|
Income Statement Data |
|
2003 |
|
2002 |
|
Net Sales |
|
$2,291,000 |
|
$2,989,000 |
|
Cost of products sold |
|
1,162,000 |
|
1,225,000 |
|
Gross Profit |
|
1,129,000 |
|
1,764,000 |
|
Operating expenses |
|
|
|
|
|
Research and development |
|
594,000 |
|
726,000 |
|
Sales and marketing |
|
1,318,000 |
|
1,108,000 |
|
General and administrative |
|
543,000 |
|
577,000 |
|
Loss from operations |
|
(1,326,000) |
|
(647,000) |
|
Interest expense, net |
|
(64,000) |
|
(55,000) |
|
Net Loss |
|
$(1,390,000) |
|
$(702,000) |
| |
|
|
|
|
|
Basic and diluted loss per share |
|
$(0.08) |
|
$(0.05) |
| |
|
|
|
|
|
Weighted Average |
|
|
|
|
|
Shares Outstanding |
|
16,627,667 |
|
14,507,402 |
|
Balance Sheet Data |
|
At March 31, 2003 |
|
At March 31, 2002 |
|
Cash and cash equivalents |
|
$2,862,000 |
$1,858,000 |
|
Working capital |
|
4,807,000 |
|
3,738,000 |
|
Total assets |
|
9,862,000 |
|
11,103,000 |
|
Total liabilities |
|
7,010,000 |
|
6,096,000 |
|
ShareholderÕs equity |
|
2,852,000 |
|
5,007,000 |
About EP MedSystems, Inc.
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, the EP-3(TM) Stimulator, diagnostic electrophysiology catheters and related disposable supplies, the ALERT® System and related internal cardioversion catheters and the ViewMate® intracardiac ultrasound catheter system. EPMD's shareholders include Medtronic (NYSE: MDT), Boston Scientific Corporation (NYSE: BSX), EGS Private Healthcare Partnership, H & Q Lifesciences, and Cardiac Capital LLC. For more information, visit our Website at www.epmedsystems.com.
This press release contains certain statements of a forward-looking nature relating to future events or the future financial performance of the Company including, but not limited to financial forecasts for the year 2003. 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 results and events discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company’s history of losses, uncertainty of future profitability and future liquidity needs; and risks regarding regulatory approvals and demand for new and existing product as stated in the Company's annual report filed on Form 10-KSB and quarterly reports filed on form 10-QSB.
The Company cautions investors and others to review the cautionary statements set forth in this Release and in the Company's reports filed with the Securities and Exchange Commission and cautions. The Company 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 anticipated events.
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