-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QOFQpVy/3WNBWl+kU6xsqky0SUvVeMLs0tFMEG4o26pLWvMVUsmxlR3QbS+KaMl2 gGtEL9/QI9Rx1fhYgY3mpg== 0001047469-99-006983.txt : 19990224 0001047469-99-006983.hdr.sgml : 19990224 ACCESSION NUMBER: 0001047469-99-006983 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990223 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990223 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PLC SYSTEMS INC CENTRAL INDEX KEY: 0000879682 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] IRS NUMBER: 043153858 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-11388 FILM NUMBER: 99547772 BUSINESS ADDRESS: STREET 1: 10 FORGE PK CITY: FRANKLIN STATE: MA ZIP: 02038 BUSINESS PHONE: 5085418800 MAIL ADDRESS: STREET 1: 10 FORGE PARK CITY: FRANKLIN STATE: MA ZIP: 02038 8-K 1 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) February 23, 1999 ------------------------------ PLC SYSTEMS INC. - ------------------------------------------------------------------------------- (Exact name of Registrant as specified in charter) British Columbia - ------------------------------------------------------------------------------- (State or other jurisdiction of incorporation) 1-11388 04-3153858 - --------------------------- ------------------------------------- (Commission File Number) (IRS Employee Identification No.) 10 Forge Park, Franklin, Massachusetts 02038 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (508) 541-8800 --------------------------- Not Applicable - ------------------------------------------------------------------------------- (Former name or former address, if changed since last report) THIS DOCUMENT CONSISTS OF 6 PAGES. Item 5. OTHER EVENTS. News Release dated February 23, 1999, filed as Exhibit 20.1 to this Current Report on Form 8-K, is incorporated by reference herein. Item 7. EXHIBITS.
Exhibit Number Description - ----------------- -------------------------------------------------------- 20.1 News Release dated February 23, 1999.
2 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. PLC SYSTEMS INC. ---------------------------------------- (Registrant) Date: February 23, 1999 By: /s/ ROBERT SVIKHART ------------------------------------ Robert Svikhart Chief Financial Officer and Treasurer EXHIBIT INDEX
Exhibit Page Number Description Number - -------- -------------------------------------------------------- ------ 20.1 News Release dated February 23, 1999. 4
3 EX-20.1 2 EXHIBIT 20.1 EXHIBIT 20.1 FOR IMMEDIATE RELEASE: - --------------------- Contacts: PLC Systems Inc. Noonan/Russo Communications, Inc. Robert Svikhart (212) 696-4455 Chief Financial Officer Meredith Milewicz, ext. 228 508-541-8800, ext. 153 Heather Hennessy, ext. 274 news@noonanrusso.com PLC REPORTS RESULTS FOR FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 1998 FRANKLIN, MA, FEBRUARY 23, 1999 - PLC SYSTEMS INC. (AMEX: PLC), a leader in transmyocardial revascularization (TMR), today reported results for the fourth quarter and year ended December 31, 1998. Total revenues for the quarter ended December 31, 1998 were $2,453,000 compared to $2,046,000 in the fourth quarter of 1997. The net loss for the quarter ended December 31, 1997 was $3,259,000, or $0.17 per share, compared to a net loss of $5,123,000, or $0.28 per share, in the fourth quarter of 1997. Total revenues for the year ended December 31, 1998 were $5,693,000 compared to $8,941,000 in 1997. The net loss for the year ended December 31, 1998 was $16,603,000, or $0.86 per share, based on 19.2 million weighted average shares outstanding, compared with a net loss of $14,404,000, or $0.84 per share, based on 17.1 million weighted average shares outstanding, for the year ended December 31, 1997. Cash and equivalents were $4,846,000. "We continued our trend toward profitability in the fourth quarter," said William C. Dow, president and chief executive officer of PLC. "Fourth quarter revenue increased more than 50% from the third quarter and operating expenses remained flat, resulting in a reduction of nearly 20% in our quarterly loss. Perhaps more importantly, we reduced our burn rate by more than 25%." "We were pleased with our sales activity in the fourth quarter," added Dow. "We completed 13 transactions with new and existing customers, including a new shipment to the Peoples Republic of China, the sale of an existing system in Germany and contract extensions at two leading domestic teaching hospitals." At December 31, 1998, PLC had an installed base of 111 systems worldwide, all of which have 4 been designed to be used exclusively in TMR procedures. These systems have been used in more than 4,300 TMR procedures worldwide, which represents the largest number of procedures performed on a single system in the industry. "Looking forward, we are encouraged by HCFA's decision to provide reimbursement for TMR and the favorable assessment by the Blue Cross and Blue Shield Technology Evaluation Center," added Dow. "We anticipate significant growth during 1999." Transmyocardial revascularization (TMR) using The Heart Laser System is performed on a beating heart, generally through a small left chest incision. The Heart Laser System is synchronized to the patient's heartbeat and is used to create between 20 and 40 channels through oxygen-deprived muscle, into the heart's left ventricle. It is believed this allows blood to flow into the heart muscle again, despite blocked arteries. TMR is intended for patients with severe angina refractory to medical management who cannot be adequately treated by other revascularization procedures, such as coronary artery bypass graft (CABG) or percutaneous transluminal coronary angioplasty (PTCA). The FDA's approval was based upon findings from clinical trials of significant reductions in angina, increases in myocardial perfusion and improvement in quality of life measurements among patients with severe angina. TMR using The Heart Laser System is considered less invasive heart surgery. It usually involves a small left chest incision; generally does not necessitate a blood transfusion; and, because it isperformed on a beating heart, does not require the use of a heart lung machine. Recovery is potentially quicker, less traumatic and less costly than in open-heart procedures. PLC Systems Inc. is a cardiac revascularization company that is pioneering, developing and supplying the systems and components for TMR. Although not an FDA approved indication, the Company is also investigating TMR as a potential adjunct to cardiac bypass surgery. PLC, founded in 1981, is located in Franklin, Massachusetts. NOTE: CERTAIN OF THE ABOVE STATEMENTS MAY BE FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND UNCERTAINTIES. ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE INDICATED BY SUCH FORWARD-LOOKING STATEMENTS AS A RESULT OF A VARIETY OF FACTORS, INCLUDING COMPETITIVE DEVELOPMENTS, REGULATORY APPROVAL REQUIREMENTS, THE ABILITY TO CONVINCE HEALTH CARE PROFESSIONALS AND THIRD PARTY PAYERS OF THE MEDICAL AND ECONOMIC BENEFITS OF THE HEART LASER SYSTEM, NO ASSURANCE THAT ALL PAYERS WILL REIMBURSE HEALTH CARE PROVIDERS WHO PERFORM TMR PROCEDURES OR THAT REIMBURSEMENT, IF PROVIDED, WILL BE ADEQUATE, AND RISK FACTORS DESCRIBED IN THE COMPANY'S ANNUAL REPORT, SEC FORM 10-K FOR FISCAL YEAR ENDED DECEMBER 31, 1997, AND THE COMPANY'S OTHER SEC REPORTS. (FINANCIAL TABLE FOLLOWS) 5 PLC SYSTEMS INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data)
Three Months Ended Year Ended December 31, December 31, ------------------- --------------------- 1998 1997 1998 1997 ---- ---- ---- ---- Revenues: Product sales. . . . . . . . . . . . . $ 1,527 $ 1,281 $ 3,088 $ 5,687 Placement and service fees . . . . . . 926 765 2,605 3,254 ------- ------- -------- ------- Total revenues. . . . . . . . . . . 2,453 2,046 5,693 8,941 Cost of revenues: Product sales. . . . . . . . . . . . . 910 826 1,945 2,721 Placement and service fees . . . . . . 643 971 2,622 2,595 ------- ------- -------- ------- Total cost of revenues. . . . . . . 1,553 1,797 4,567 5,316 Gross profit . . . . . . . . . . . . . . 900 249 1,126 3,625 Operating expenses: Selling, general and administrative. . 3,397 3,638 13,718 13,049 Research and development . . . . . . . 875 1,761 4,468 5,158 ------- ------- -------- ------- Total operating expenses . . . . . . 4,272 5,399 18,186 18,207 Loss from operations . . . . . . . . . . (3,372) (5,150) (17,060) (14,582) Other income: Interest income, net . . . . . . . . . . 46 172 379 346 Other income . . . . . . . . . . . . . . 63 - 63 - Income (loss) from foreign currency, net. . . . . . . . . . . . . 4 (145) 15 (168) ------- ------- -------- ------- Net loss . . . . . . . . . . . . . . . . $(3,259) $(5,123) $(16,603) $(14,404) ------- ------- -------- ------- ------- ------- -------- ------- Basic and diluted loss per share . . . . $ (.17) $ ( .28) $ (.86) $ (.84) Shares used to compute basic and diluted loss per share. . . . . . . . 19,635 18,170 19,218 17,050
CONDENSED BALANCE SHEET (In thousands)
December 31, December 31, 1998 1997 ------------ ------------ Cash, cash equivalents and marketable securities. . . . . . . . . $4,846 $16,329 Total current assets . . . . . . . . . . 10,608 20,680 Total assets . . . . . . . . . . . . . . 16,257 27,017 Total current liabilities, excluding Convertible Debentures . . . . . . . . 5,537 7,887 Convertible Debentures . . . . . . . . . 934 3,819 Shareholders' equity . . . . . . . . . . 10,662 19,009
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