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Company Achieves
Record Quarterly Revenue on 29% Growth
West Berlin, NJ (March 13, 2008)--EP MedSystems, Inc.
(NASDAQ: EPMD),
Today reported its financial
results for the fourth quarter and full fiscal year
ending December 31, 2007. The Company reported
record quarterly revenue of $5.6 million,
representing a 29% increase over the $4.4 million
achieved during the fourth quarter of 2006. Total
revenue for the twelve months ended December 31,
2007 was $18.9 million, a 21 % increase over the
twelve months ended December 31, 2006.
Ultrasound revenue grew by 92% as compared to the
fourth quarter of 2006, and by 59% to $2.0 million
compared to fiscal 2006. Cash on hand at December
31, 2007 was $5.6 million, as compared to $5.6
million at September 30, 2007 and $7.7 million at
December 31, 2006.
David Bruce, President and
Chief Executive Officer, commented, “We achieved
another quarterly revenue record and a new annual
revenue record thanks to the continued growth of our
EP-WorkMate® platform combined with our ViewMate® II
ultrasound system and ViewFlex® catheter products.
In addition, during the fourth quarter, we took
further steps to align our assets and operations
with our focus on these higher growth business lines
going forward.”
In
the fourth quarter, the Company discontinued low
growth product lines and distribution operations,
and wrote down inventory related to discontinued
products resulting in realignment charges of
approximately $1.3 million, or $.04 per share, of
which approximately $940,000 were non-cash items.
Gross margin was 50% in the fourth quarter and 61%
for the full year of 2007. Excluding business
realignment charges, adjusted gross margin was 65%
in each of the fourth quarter and the twelve months
ended December 31, 2007, compared to 60% in the
fourth quarter and 61% for fiscal 2006.
The Company’s net loss was
$2.1 million, or $.07 per share, for the fourth
quarter of 2007, and $5.5 million, or $.18 per
share, for fiscal 2007. After excluding business
realignment charges, adjusted net loss in the fourth
quarter was $787,000, or $0.03 per share, and $4.2
million, or $0.14 per share, for the full year ended
December 31, 2007. See the attached reconciliation
of the Company’s non-GAAP adjusted diluted earnings
per share to the Company’s GAAP diluted earnings per
share.
David Bruce commented, “In 2007 we made significant
progress growing revenue to record levels,
penetrating the ultrasound catheter market,
substantially increasing customer satisfaction with
our products and services, and developing new
products for 2008. Beginning this month we have
started shipping our WorkMate® 4.0 products with
ClearWave™ technology delivering a significant
improvement in clarity of signals, a top factor
considered when customers select an EP Recording
System.
Non-GAAP
Financial Measures
The
Company provides adjusted net earnings and adjusted
earnings per share because we believe that in order
to properly understand the Company’s short-term and
long-term financial results, investors may wish to
consider the impact of certain adjustments (such as
asset impairment charges, write-offs of assets
related to discontinued products and headcount
reductions). These adjustments result from facts and
circumstances that vary in frequency and impact on
the Company’s results of operations. EP MedSystems’
management uses adjusted net earnings and adjusted
earnings per share to evaluate the operational
performance of the Company as well as to compare
results of current periods to prior periods.
Non-GAAP financial measures used by the Company may
be calculated differently from, and therefore may
not be comparable to, similarly titled measures used
by other companies. Investors should consider non-GAAP
measures in addition to, and not as a substitute
for, or superior to, financial performance measures
prepared in accordance with GAAP.
Conference Call:
We have scheduled a
conference call for 4:30 pm EST today, March 13,
2008, to discuss the financial results for the
fourth quarter and full year of 2007. The call is
open to all listeners and will be followed by a
question and answer session. To access the live
conference call, dial (800) 366-8058 and give the
company name “EP MedSystems.” An audio replay of the
conference call will be accessible starting two
hours following the live event. Access to the replay
is available through March 27, 2008 by dialing (800)
405-2236 (access code 11110436#)
About EP MedSystems:
EP MedSystems develops, manufactures and markets a
line of products for use in the cardiac rhythm
management or electrophysiology (“EP”) market which
are used for visualization, diagnosis and treatment
of cardiac rhythm disorders. The Company's EP
product line includes the EP-WorkMate® computerized
electrophysiology workstation and the EP-4™
Computerized Cardiac Stimulator, with options to
incorporate the MapMate® Navigation Interface, the
NurseMate™ Remote Review Charting Station, and
products linking our systems to hospital IT
networks. In addition, our intracardiac echo (ICE)
ultrasound catheter system, including our ViewFlex®
intracardiac imaging catheters and ViewMate® II
ultrasound imaging system, is used for live
visualization of devices and anatomy during catheter
based procedures in EP and interventional
cardiology. For more
information, visit our website at
www.epmedsystems.com.
Forward-Looking
Statements:
This news release
contains forward-looking statements within the
meaning of the Private Securities Litigation Reform
Act of 1995 that involve risks and uncertainties.
Such forward-looking statements include the
expectations, plans and prospects for the Company,
including the future market success of our ICE
products, anticipated regulatory approvals and
future product launches. The statements made by the
Company are based upon management’s current
expectations and are subject to certain risks and
uncertainties that could cause actual results to
differ materially from those described in the
forward-looking statements. These risks and
uncertainties include market conditions and other
factors beyond the Company’s control and the risk
factors and other cautionary statements described in
the Company’s filings with the SEC, including those
described in the Company’s Form 10-K and Quarterly
Reports on Form 10-Q. The Company does not intend to
update these statements and undertakes no duty to
any person to provide any such update under any
circumstance.
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