EX-99.2 3 0003.txt PRESS RELEASE DATED OCTOBER 17, 2000 Exhibit 99.2 FOR IMMEDIATE RELEASE Contact: Cheryl R. Johnson Edwin B. Cordell Vice President, Investor Relations Chief Financial Officer NOVOSTE CORPORATION NOVOSTE CORPORATION (770) 717-6052 (770) 717-6053 Novoste Reports Third Quarter 2000 Financial Results NORCROSS, GA., October 17, 2000 - Novoste Corporation (Nasdaq: NOVT) today announced that for the quarter ended September 30, 2000, net sales reached a record $1,446,000, a 155% increase over net sales of $567,000 in the third quarter of 1999. For the nine months ended September 30, 2000, net sales totaled $3,584,000, compared to $1,205,000 during the first nine months of 1999. The increase in net sales was due to growing catheter utilization in certain key markets, such as Germany, and continued geographic expansion of sales. Additionally, these revenues reflect the implementation of SEC Staff Accounting Bulletin (SAB) 101 effective January 1, 2000, which clarifies the requirements for recognition of certain site installation revenues. For the three months ended September 30, 2000, the Company reported a net loss of $8,705,000, or $(0.54) per share, compared to a net loss of $8,066,000, or $(0.57) per share, for the same period last year. For the nine months ended September 30, 2000, the net loss was $23,033,000, or $(1.50) per share, compared to a net loss of $23,567,000 or $(1.79) per share for the corresponding period in 1999. The increase in net loss for the quarter was attributable to higher operating expenses associated with preparation for U.S. market launch of the Beta-Cath(TM) System and with expanding international sales coverage. The slight decrease in net loss for the nine-month period was due to lower clinical trial expenses in 2000 compared to 1999. The cumulative effect of the implementation of SAB 101 on the Company's net income was insignificant. As of September 30, 2000, Novoste had $71 million in cash and cash equivalents to fund its operations. William A. Hawkins, President & CEO of Novoste, remarked, "We were pleased to report record revenues this quarter, especially in light of the weakened euro and summer holidays in Europe. As expected, Novoste's net loss increased this period as we began building our U.S. sales force in anticipation of domestic market launch of the Beta-Cath(TM) System. With the recent receipt of the approvable letter from the FDA, this launch is likely to occur prior to our previous expectations." Issuance of an approvable letter means that the FDA has reviewed the Company's premarket approval application, as well as its own Advisory Committee's report and recommendation, and that the FDA is prepared to approve the application, pending Novoste's compliance with specific final conditions. Mr. Hawkins commented further, "Later this week, Novoste will have a major presence at the Transcatheter Cardiovascular Therapeutics (TCT) meeting in Washington, D.C. We plan on announcing interim results of the START 40 Trial during the conference, as well as hosting several symposia dedicated to vascular brachytherapy." The Company will host a conference call at 10:00 a.m. Eastern on Tuesday, October 17, 2000, to discuss the third quarter results. You may access the conference call on the Internet at either: 1) novoste.com (in the "Investor/Media" section), or 2) streetevents.com. The RealPlayer 7 software is required to listen to the audio stream; a link to the Real Networks Web site is provided on the sites mentioned above to download the free software. Novoste Corporation, based in Atlanta, Ga., is a leader in the emerging field of vascular brachytherapy to reduce the incidence of restenosis. The company's Beta-Cath(TM) System is commercially available in the European Union and other countries outside the U.S. For more information on the Beta-Cath(TM) System or Novoste, please call (770) 717-0904 or visit the company's web site at www.novoste.com. The forward-looking statements included in this news release reflect management's best judgment based on factors currently known. Actual results may differ materially from those projected in these forward-looking statements based upon risks and uncertainties, including the demonstration of safety and efficacy of the Beta-Cath(TM) System, receipt and timing of FDA and other regulatory approvals, and other risks detailed in documents filed by Novoste with the SEC including its S-3 registration statement and Forms 10-K, 10-Q and 8-K. - FINANCIAL HIGHLIGHTS TO FOLLOW - NOVOSTE CORPORATION CONDENSED STATEMENT OF OPERATIONS (unaudited)
Three Months Ended September 30, Nine Months Ended September 30, 2000 1999 2000 1999 ------------ ------------ ------------ ------------ Net Revenue (1) $ 1,445,527 $ 566,872 $ 3,583,575 $ 1,204,699 Cost of Sales 977,146 539,777 2,594,894 1,216,943 ------------ ------------ ------------ ------------ Gross Margin 468,381 27,095 988,681 (12,244) ------------ ------------ ------------ ------------ Operating expenses Research and development 5,248,267 6,115,556 13,974,188 17,950,943 Sales and marketing 3,171,584 1,678,437 8,528,790 4,519,703 General and administrative 1,855,862 917,379 4,271,017 2,731,284 ------------ ------------ ------------ ------------ Total operating expenses 10,275,713 8,711,372 26,773,995 25,201,930 ------------ ------------ ------------ ------------ Loss from operations (9,807,332) (8,684,277) (25,785,314) (25,214,174) Interest income 1,102,550 618,007 2,752,457 1,647,630 ------------ ------------ ------------ ------------ Net loss $ (8,704,782) $ (8,066,270) $(23,032,857) $(23,566,544) ============ ============ ============ ============ Net loss per share $ (0.54) $ (0.57) $ (1.50) $ (1.79) ============ ============ ============ ============ Shares used in computing net loss per share 16,005,921 14,134,862 15,382,341 13,170,928 ============ ============ ============ ============
CONDENSED BALANCE SHEETS (unaudited)
September 30, December 31, 2000 1999 ------------- ------------ ASSETS Current assets Cash, cash equivalents and short-term investments $70,927,361 $41,423,692 Other current assets 3,960,684 2,968,873 ----------- ----------- Total current assets 74,888,045 44,392,565 Other assets 9,489,821 4,974,837 ----------- ----------- Total assets $84,377,866 $49,367,402 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $ 7,894,214 6,302,558 Stockholders' equity 76,483,652 43,064,844 ----------- ----------- Total liabilities and stockholders' equity $84,377,866 $49,367,402 =========== ===========
(1) The impact of SAB 101 on Net Revenue for the three months ended September 30, 2000 was insignificant. The impact on Net Revenue for the nine months ended September 30, 2000 was an increase of $238,110. # # #