WEST BERLIN, N.J.--(BUSINESS WIRE)--May 6, 2004--EP MedSystems, Inc. (NASDAQ: EPMD - News), a market leader in electrophysiology products used to diagnose and treat certain types of cardiac rhythm disorders, today announced financial results for the three months ended March 31, 2004. Revenue for the quarter increased 26% to $2,884,000 from the $2,291,000 reported in three months ended March 31, 2003. The gross margin for the three months ended March 31, 2004 increased to 58%, compared to 49% for the comparable period in 2003. The net loss for the quarter decreased 39% to $1,466,000, when compared to $2,390,000 reported in 2003. The basic and diluted loss per share for the three months ended March 31, 2004, was $0.06 which compared to $0.14 for the comparable period in 2003.
During the first quarter the Company repaid the principal and accrued interest of approximately $2,900,000, which was due under a promissory note payable to Medtronic, Inc. The Company finished the quarter with cash and cash equivalents, including restricted cash, of $8,084,000, as compared to $2,862,000 at March 31, 2003.
Reinhard Schmidt, EP MedSystems' President and Chief Executive Officer commented, "We are pleased with the growth for the first quarter of 2004 over the same period in 2003. We continue to see the positive impact of our new products, as well as strong initial sales through our alliance partners. New product sales in the U.S also had a positive impact on gross margins for the quarter."
Reinhard Schmidt further commented, "In addition, we received market clearance from the FDA to start selling deflectable electrophysiology catheters in the United States, and we expect these products to contribute to growth in the second half of this year. We finished the first quarter with a strong backlog and remain optimistic for continued growth in 2004."
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‰ Stimulator, 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 . EP MedSystems’ 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 Release contains certain statements of a forward-looking nature relating to future events and the future financial performance of EP MedSystems including, but not limited to financial forecasts for the year 2003 and beyond, and acceptance of our products in the EP marketplace sector. 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”, or similar expressions. Such forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. It must be noted that such forward-looking statements involve assumptions. 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; and risks regarding regulatory approvals and demand for new and existing products, as stated in the Company's Annual report filed on Form 10-KSB and quarterly reports filed on Form 10-QSB.
EP MedSystems cautions investors and others to review the cautionary statements set for in this 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 under reliance on the 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.
EP MEDSYSTEMS, INC.
SELECTED FINANCIAL DATA
(Unaudited)
Three Months Ended
March 31,
-------------------------
Income Statement Data 2004 2003
------------ ------------
Net Sales $2,884,000 $2,291,000
Cost of products sold 1,213,000 1,162,000
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Gross Profit 1,671,000 1,129,000
Operating expenses
Sales and marketing 1,581,000 1,318,000
General and administrative 723,000 543,000
Research and development 601,000 594,000
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Total operating expenses 2,905,000 2,455,000
Loss from operations (1,234,000) (1,326,000)
Interest expense, net (232,000) (64,000)
Interest expense, debt conversion
-- (1,000,000)
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Net Loss $(1,466,000) $(2,390,000)
============ ============
Basic and diluted loss per share
$(0.06) $(0.14)
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Weighted Average
Shares Outstanding 23,234,914 16,627,667
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Balance Sheet Data At March 31, At March 31,
2004 2003
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Cash and cash equivalents (including
restricted cash) $8,084,000 $2,862,000
Working capital 10,353,000 4,807,000
Total assets 17,174,000 9,862,000
Total liabilities 6,446,000 7,010,000
Shareholder's equity 10,728,000 2,852,000
