EP MEDSYSTEMS REPORTS 46% IMPROVEMENT IN NET LOSS
ON 28% INCREASE IN REVENUES FOR SECOND QUARTER
MT. ARLINGTON, NJ (August 5, 2002) -- EP MedSystems, Inc. (NASDAQ: EPMD) today announced the results from its second quarter ended June 30, 2002. Revenue increased 28% compared to the second quarter 2001, from $2,413,000 to $3,095,000. The net loss decreased from $1,171,000 to $634,000, reflecting a 46% improvement due to improved gross margins and continued cost containment.
For the six months ended June 30, 2002, revenues rose 36% as compared to the six months ended June 30, 2001, from $4,482,000 to $6,084,000. The net loss for these periods decreased 45% to $1,336,000 from $2,445,000.
Reinhard Schmidt, EPMD’s President, commented, “We are quite pleased with our results for the quarter. While we have been making strong progress in all areas of our company, we have maintained focus on our basic operations and financial performance. Our margins are up, our costs are consistent, and the total number of workstations and catheter products sold during the quarter exceeded our expectations. We now have close to 500 EP-WorkMates installed worldwide, which serves as a robust technology platform for our new products which we expect to be on the market in the very near future. The hard work of our dedicated employees has positioned us well for continued growth and future profitability. In addition to the continued improvement in financial results, a number of operating goals have been reached: resolution of the FDA facility audit and GMP approval on the pending ALERT PMA, CE (European) regulatory approval on the increased functionality of the ALERT platform, successful passing of the electrical testing and trials of our pending intracardiac ultrasound platform, and improved manufacturing processes around our catheter platform. The next quarter should be as exciting as we continue to see a strong backlog and as we complete our regulatory filings on a number of new products and hopefully see approvals from earlier filings.”
EP MedSystems develops and markets cardiac electrophysiology (“EP”) products used to diagnose and treat certain disorders of cardiac rhythm. The Company’s EP product line includes the EP-WorkMate® Electrophysiology Workstation, the EP-3‰ Stimulator, diagnostic electrophysiology catheters, internal cardioversion catheters and related disposable supplies. EPMD’s shareholders include Medtronic (NYSE: MDT), Century Medical, EGS Partners, 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 or the future financial performance of the Company. 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, the Company’s history of losses, uncertainty of future profitability and future liquidity needs; and risks regarding demand for new and existing products.
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 that other factors may prove to be important in affecting the Company's business and results of operations. Readers are cautioned not to place undue reliance on the interview and other forward-looking statements, which speak only as of the date of this release. 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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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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Income
Statement Data |
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2002 |
|
2001 |
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2002 |
|
2001 |
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Net Sales |
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$3,095,000 |
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$2,413,000 |
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$6,084,000 |
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$4,482,000 |
|
|
|
1,303,000 |
|
1,131,000 |
|
2,528,000 |
|
2,082,000 |
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Gross Profit |
|
1,792,000 |
|
1,282,000 |
|
3,556,000 |
|
2,400,000 |
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Operating expenses |
|
|
|
|
|
|
|
|
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Sales and marketing |
|
1,085,000 |
|
1,184,000 |
|
2,193,000 |
|
2,286,000 |
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General and administrative |
|
461,000 |
|
524,000 |
|
1,039,000 |
|
1,080,000 |
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Research and development |
|
832,000 |
|
652,000 |
|
1,558,000 |
|
1,299,000 |
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Loss from operations |
|
(586,000) |
|
(1,078,000) |
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(1,234,000) |
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(2,265,000) |
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|
|
|
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|
|
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Interest expense, net |
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(53,000) |
|
(80,000) |
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(107,000) |
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(170,000) |
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Other income, net |
|
5,000 |
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(13,000) |
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5,000 |
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(10,000) |
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Net Loss |
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$(634,000) |
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$(1,171,000) |
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$(1,336,000) |
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$(2,445,000) |
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|
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Basic and diluted loss per share |
|
$(0.04) |
|
$(0.09) |
|
$(0.09) |
|
$(0.19) |
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Weighted Average |
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|
|
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|
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Shares Outstanding |
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14,838,377 |
|
13,668,923 |
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14,673,804 |
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12,882,236 |
| Balance Sheet Data |
At June 30,
2002 |
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At June 30,
2001 |
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Cash and cash equivalents |
$1,611,000
|
$1,482,000
|
|
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Working capital |
5,518,000
|
|
5,393,000
|
|
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Total assets |
10,381,000
|
|
10,469,000
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|
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Total liabilities |
6,018,000
|
|
5,824,000
|
|
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Shareholder's equity |
4,363,000
|
|
4,645,000
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For Further Information Contact:
Joseph M. Turner, CFO
(973) 398-2800
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