TranS1 Inc. Reports Operating Results for the Third Quarter of 2012, Issues Fourth Quarter 2012 Guidance
Nov 8, 2012 (Menafn - GlobeNewswire via COMTEX) --
- Third Quarter Revenues Were 3.2 Million -
- Net Loss Per Share Was 0.22 for the Quarter -
WILMINGTON, N.C., Nov. 8, 2012 (GLOBE NEWSWIRE) -- TranS1 Inc. TSON, a medical device company focused on designing, developing and marketing products to treat degenerative conditions of the spine affecting the lower lumbar region, today announced its financial results for the third quarter ended September 30, 2012.
Comparison of Selected Financial Results (in
millions, except per share data)
Three Months
Ended September
30,
-----------------
20122011
---------------
Total revenue 3.2 4.7
Net loss(5.9)(3.3)
Net loss per common share(0.22)(0.16)
Revenues were 3.2 million in the third quarter of 2012, representing a 32% decrease from revenues of 4.7 million in the third quarter of 2011. Domestic revenues were 2.9 million in the third quarter of 2012, compared to 4.3 million in the third quarter of 2011. Gross margin was 73.8% in the third quarter of 2012 as compared to 77.8% in the third quarter of 2011.
Net loss was 5.9 million in the third quarter of 2012, compared to a net loss of 3.3 million in the third quarter of 2011. Net loss per common share was 0.22 in the third quarter of 2012 compared to a net loss per share of 0.16 in the third quarter of 2011.
Cash and cash-equivalents were 27.2 million as of September 30, 2012.
"In the third quarter we made significant progress on our key operational goals including further reimbursement clarity, expanding clinical publications and driving adoption of the VEO direct lateral system," said Ken Reali, President and Chief Executive Officer of TranS1. "We have commenced the re-launch activities for AxiaLIF in the fourth quarter as we await the activation of our Category I code on January 1st. Through continued execution on our operational goals and our re-launch plan we look forward to achieving revenue growth as we gain market share in the minimally invasive lumbar spinal fusion market."
TranS1 Outlook
For the fourth quarter ending December 31, 2012, the Company expects total revenues in the range of 3.8 - 4.2 million.
Conference Call
TranS1 will host a conference call today at 4:30 pm ET to discuss its third quarter financial results. To listen to the conference call on your telephone, please dial (877) 881-2183 for domestic callers and (970) 315-0453 for international callers approximately ten minutes prior to the start time. The call will be concurrently webcast. To access the live audio broadcast or the archived recording, use the following link at http://ir.trans1.com/events.cfm.
About TranS1 Inc.
TranS1 is a medical device company focused on designing, developing and marketing products to treat degenerative conditions of the spine affecting the lower lumbar region. TranS1 currently markets the AxiaLIF(R) family of products for single and two level lumbar fusion, the VEO(TM) lateral access and interbody fusion system and the Vectre(TM) posterior fixation system for lumbar fixation supplemental to AxiaLIF fusion. TranS1 was founded in May 2000 and is headquartered in Wilmington, North Carolina. For more information, visit www.trans1.com.
Forward Looking Statements
This press release includes statements relating to our efforts to gain favorable coverage decisions for our products that are based on our current beliefs and assumptions. These statements constitute "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control, and which may cause results to differ materially from expectations. Factors that could cause our results to differ materially from those described include, but are not limited to, the pace of adoption of our product technology by spine surgeons, the outcome of coverage and reimbursement decisions by the government and third party payors, the success of our continuing product development efforts, the effect on our business of existing and new regulatory requirements, uncertainty surrounding the outcome of the matters relating to the subpoena issued to the Company by the Department of Health and Human Services, Office of Inspector General, stockholder class action lawsuits, and other economic and competitive factors. For a discussion of the most significant risks and uncertainties associated with TranS1's business, please review the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2011 and subsequent reports. You are cautioned not to place undue reliance on these forward looking statements, which are based on TranS1's expectations as of the date of this press release and speak only as of the date of this press release. We undertake no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise.
TranS1 Inc.
Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except per share amounts)
(Unaudited)
Three Months EndedNine Months Ended
September 30,September 30,
----------------------------------------------
2012201120122011
------------------------------------------
Revenue 3,198 4,696 10,441 15,163
Cost of revenue8381,0442,7473,513
------------------------------------------
Gross profit2,3603,6527,69411,650
------------------------------------------
Operating expenses:
Research and development1,3611,0473,9373,841
Sales and marketing4,4534,60215,12416,656
General and administrative2,2971,2986,4034,522
------------------------------------------
Total operating expenses8,1116,94725,46425,019
------------------------------------------
Operating loss(5,751)(3,295)(17,770)(13,369)
Other income (expense), net(114)(32)(146)7
------------------------------------------
Net loss (5,865) (3,327) (17,916) (13,362)
==========================================
Other comprehensive loss:
Foreign currency translation
adjustments1(12)12
------------------------------------------
Comprehensive loss (5,864) (3,339) (17,915) (13,360)
==========================================
Net loss per common share -
basic and diluted (0.22) (0.16) (0.66) (0.64)
==========================================
Weighted average common
shares outstanding - basic
and diluted27,27521,28827,25821,031
==========================================
TranS1 Inc.
Consolidated Balance Sheets
(in thousands)
(Unaudited)
SeptemberDecember
30,31,
20122011
------------------
Assets
Current assets:
Cash and cash equivalents 27,233 38,724
Short-term investments--6,027
Accounts receivable, net2,0762,522
Inventory5,1634,525
Prepaid expenses and other
assets387680
------------------
Total current assets34,85952,478
Property and equipment, net2,2911,554
------------------
Total assets 37,150 54,032
==================
Liabilities and
Stockholders' Equity
Current liabilities:
Accounts payable 2,626 3,303
Accrued expenses1,7231,203
------------------
Total current
liabilities4,3494,506
Noncurrent liabilities8626
Stockholders' equity
Common stock33
Additional paid-in capital159,533158,403
Accumulated other
comprehensive income
(loss)1413
Accumulated deficit(126,835)(108,919)
------------------
Total stockholders'
equity32,71549,500
------------------
Total liabilities and
stockholders' equity 37,150 54,032
==================
TranS1 Inc.
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three Months EndedNine Months Ended
September 30,September 30,
------------------------------------------
2012201120122011
--------------------------------------
Cash flows from operating activities:
Net loss (5,865) (3,327) (17,916) (13,362)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation321163794473
Stock-based compensation3023181,0621,254
Allowance for excess and obsolete inventory37164109512
Provision (reversal of provision) for bad
debts1046(27)87
Loss on disposal of fixed assets2314826149
Changes in operating assets and
liabilities:
(Increase) decrease in accounts
receivable(33)314473156
(Increase) decrease in inventory(57)71(747)(867)
(Increase) decrease in prepaid expenses145110294140
Increase (decrease) in accounts payable(932)(212)(678)(316)
Increase (decrease) in accrued expenses102(4)581(701)
--------------------------------------
Net cash used in operating activities(5,739)(2,309)(15,794)(12,575)
--------------------------------------
Cash flows from investing activities:
Purchases of property and equipment(436)(99)(1,793)(436)
Purchases of investments------(16,102)
Sales and maturities of investments--8,0426,02716,096
--------------------------------------
Net cash provided by (used in) investing
activities(436)7,9434,234(442)
--------------------------------------
Cash flows from financing activities:
Net proceeds from issuance of common stock--18,274--18,274
Proceeds from exercise of stock options--4868187
--------------------------------------
Net cash provided by financing activities--18,3226818,461
--------------------------------------
Effect of exchange rate changes on cash and
cash equivalents1(12)12
--------------------------------------
Net increase (decrease) in cash and cash
equivalents(6,174)23,944(11,491)5,446
Cash and cash equivalents, beginning of
period33,4075,96338,72424,461
--------------------------------------
Cash and cash equivalents, end of period 27,233 29,907 27,233 29,907
======================================
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: TranS1 Inc.
CONTACT: Investors:
TranS1 Inc.
Joseph P. Slattery, 910-332-1700
Executive Vice-President and Chief Financial Officer
or
Westwicke Partners
Mark Klausner, 443-213-0501
trans1@westwicke.com
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