Business Services Industry
CORRECTION/HEART TECHNOLOGY CORRECTS "COST-OF-GOODS-SOLD" FIGURE IN FINANCIAL EARNINGS NEWS RELEASE; gross profit figure also affected by this change
Business Wire, April 20, 1995
--(BUSINESS WIRE)--April 20, 1995--In BW1069 (HEART-TECHNOLOGY) reports ninth consecutive quarterly revenue increase, the cost-of-goods sold figure should read...$6,812,000 (instead of $6,698,000). The gross profit figure now reads...$10,708,000 (instead of $10,822,000).
Following is a repeat of the corrected news release: -0- ( BW)(HEART-TECHNOLOGY)(HRTT) HEART TECHNOLOGY REPORTS NINTH CONSECUTIVE QUARTERLY REVENUE INCREASE
Business Editors
REDMOND, Wash.--(BUSINESS WIRE)--April 20, 1995--Heart Technology Inc. (OTC:HRTT) today reported revenue of $17,520,000 for the first quarter ended March 31, 1995, a 60% increase over 1994 first quarter revenue of $10,927,000 and the ninth consecutive increase in quarterly revenue.
Net income -- after taxes -- for first quarter was $2,118,000, or $0.12 per share, compared to 1994's first quarter net income -- reported on an untaxed basis -- of $661,000, or $0.04 per share.
Due to an increase in production and the expansion of its field sales staff, the company accelerated its domestic physician training to meet the continuing demand for the Rotablator(r) system in coronary applications. By the end of 1994, production rates had increased to more than 75,000 units on an annualized basis, enough to meet current 1995 sales expectations, while ensuring adequate inventory. The company added 12 field sales representatives and clinical specialists in the U.S. bringing total field sales staff to 46.
By increasing its physician training program, the company certified almost 200 doctors to use the coronary Rotablator system in the first quarter. Today, approximately 900 trained cardiologists use the Rotablator system at more than 325 hospitals and medical centers in the U.S.
On April 11, the Food and Drug Administration (FDA) began its re-inspection of the company's facility, a result of issues raised by the FDA in its October 1994 Warning Letter. During the past two quarters, the company reassigned significant engineering, manufacturing and regulatory resources to resolve these issues, and to upgrade its regulatory systems to meet anticipated FDA and international standards. "We expect to successfully complete this re-inspection and look forward to refocusing our engineering resources back to product development," said David C. Auth, chief executive officer.
Other highlights of the first quarter included enrolling the initial patients in the first of two major comparative clinical trials sponsored by Heart Technology. Both trials are designed to scientifically measure the impact of Rotablator therapy on restenosis rates in comparison to balloon angioplasty. Expected to last from 18 to 24 months, each trial will measure acute results, and require six month angiography and clinical follow-up.
A successful new coronary stent had a modest impact on Rotablator system sales over the past two quarters, but Auth said he believes the two devices will prove to be complementary therapies, allowing more patients -- particularly high risk patients -- to avoid coronary bypass surgery. Several individual studies later this year will evaluate the use of these technologies in tandem.
Heart Technology manufactures and distributes the Rotablator system, which uses a catheter with a rapidly spinning diamond-coated tip to remove plaque from blocked arteries. -0-
Heart Technology Inc.
Condensed Financial Statements
Statement of Operations (unaudited)
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