Executive Summary
- Second quarter revenue reported at $4.4 million, up 9.7% sequentially.
- Guidance for fiscal year 2013 revenue reaffirmed at $16.0 million to $17.0 million.
MINNEAPOLIS, Feb. 5, 2013 (GLOBE NEWSWIRE) -- Urologix®, Inc. (Nasdaq:ULGX), the leading provider of in-office BPH therapy, today reported financial results for its fiscal year second quarter ended December 31, 2012.
Second quarter fiscal year 2013 revenue totaled $4.4 million, up 9.7% sequentially from the first quarter of fiscal year 2013 and down 6.4% compared to the second quarter of fiscal year 2012. The sequential increase in revenue was driven by approximately 10% growth in sales for both product lines, Cooled ThermoTherapyTM (CTT) and Prostiva Radio Frequency (RF) Therapy. Revenue declined compared to the second quarter of fiscal year 2012 due to lower sales in both product lines.
"Second quarter performance reflects improving execution of our sales strategy and stronger in-office procedure trends compared to the first quarter of fiscal year 2013," stated Greg Fluet, Chief Executive Officer. "We remain intently focused on leveraging our leading market share position, our expanded sales organization, and our innovative market development and patient education programs to drive top-line growth going forward."
As of December 31, 2012, the Company's cash balance was $4.9 million compared to $5.3 million as of September 30, 2012. Cash utilization in the quarter was $470,000. Our cash utilization benefited from the ability to defer $489,000 of payments for Prostiva product purchased during the quarter. In addition, we continue to defer payments due and accrued in prior periods related to Prostiva which are reflected in accounts payable and short term deferred acquisition payments on the balance sheet.
Gross profit for the second quarter of fiscal year 2013 was $2.2 million, or 51.4% of revenue, compared to $2.3 million, or 49.2% of revenue, in the second quarter of fiscal year 2012. Gross margin also increased sequentially compared to 50.8% in the first quarter of fiscal year 2013 due to improved production efficiencies. The change in gross margin compared to the prior year was due to increased production volumes that reduced the allocation of fixed manufacturing costs on a per-unit basis.
Total operating expense was $3.1 million for the second quarter of fiscal year 2013, representing an increase of 4.2% sequentially and a decline of 3.9% compared to the prior year period. The sequential increase in operating expense was related to increased investments in sales and marketing. The year-over-year decrease in total operating expense of 3.9% was driven by a non-cash gain of $215,000 in the second quarter of fiscal year 2013 and lower general and administrative expenses compared to the second quarter of fiscal year 2012. Excluding this non-cash gain, total operating expense increased 2.9% compared to the second quarter of fiscal year 2012. The increase in operating expense, excluding the non-cash gain, was again related to our investments in sales and marketing activities.
For the second quarter of fiscal year 2013, Urologix reported a net loss of $970,000, or $0.05 per diluted share, compared to a net loss of $1.1 million, or $0.08 per diluted share, in the second quarter of fiscal year 2012. The change in net loss in the second quarter of fiscal year 2013 was driven primarily by the non-cash gain of $215,000 due to a change in the fair value of the acquisition consideration. The net loss this quarter represented a modest sequential improvement over the net loss of $1.1 million, or $0.05 per share, in the first quarter of fiscal 2013. The sequential improvement in net loss this quarter was driven primarily by higher sales and gross profit compared to the prior quarter.
Guidance
The Company reaffirms the fiscal year 2013 total revenue guidance range of approximately $16.0 million to $17.0 million.
Earnings Call Information
Urologix will host a conference call with the financial community to discuss fiscal year 2013 second quarter results on Tuesday, February 5, 2013 at 4:00 p.m. Central Standard Time. To listen to the call, please dial 1-866-578-5788 and enter the Participant Passcode 18011408 at least 10 minutes prior to the call. A live webcast of the call will be available through the investor relations section of the Company's website at www.urologix.com and available for replay approximately two hours after the completion of the call.
About Urologix
Urologix, Inc., based in Minneapolis, develops, manufactures, markets and distributes minimally invasive medical products for the treatment of obstruction and symptoms due to Benign Prostatic Hyperplasia (BPH). Urologix' Cooled ThermoTherapy™ produces targeted microwave energy combined with a unique cooling mechanism to protect healthy tissue and enhance patient comfort. The Prostiva® RF Therapy System distributed by Urologix delivers radio frequency energy directly into the prostate destroying prostate tissue, reducing constriction of the urethra, and thereby relieving BPH symptoms. Both of these therapies provide safe, effective and lasting relief of the symptoms and obstruction due to BPH. Prostiva® is a registered trademark of Medtronic, Inc., used under license. All other trademarks are the property of Urologix.
If you'd like more information on this topic, please contact Brian Smrdel at (763) 475-7696 or bsmrdel@urologix.com or to learn more about Urologix and its products and services, visit their website at www.urologix.com.
The Urologix, Inc. logo is available at www.urologix.com/clinicians/resource-library.php.
Forward Looking Statements
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "estimate" or "continue" or comparable terminology are intended to identify forward-looking statements. Such forward looking statements include, for example, the effectiveness of the Company's sales and marketing strategies and organization, the Company's future revenue and operating performance, or about the development and marketing of new products. The statements made by the Company are based upon management's current expectations and are subject to certain risks and uncertainties that could cause the 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 Annual Report on Form 10-K for the year ended June 30, 2012 and other documents filed with the Securities and Exchange Commission.
| Urologix, Inc. | ||||
| Statements of Operations | ||||
| (Unaudited, in thousands, except per share data) | ||||
|
Three Months Ended December 31, |
Six Months Ended December 31, |
|||
| 2012 | 2011 | 2012 | 2011 | |
| Sales | $4,354 | $4,653 | $8,324 | $7,795 |
| Cost of goods sold | 2,117 | 2,364 | 4,072 | 4,091 |
| Gross profit | 2,237 | 2,289 | 4,252 | 3,704 |
| Costs and expenses: | ||||
| Sales and marketing | 2,007 | 1,675 | 3,724 | 3,039 |
| General and administrative | 646 | 900 | 1,383 | 1,780 |
| Research and development | 602 | 588 | 1,218 | 1,069 |
| Change in value of acquisition consideration | (215) | -- | (369) | -- |
| Amortization expense | 26 | 26 | 52 | 39 |
| Total costs and expenses | 3,066 | 3,189 | 6,008 | 5,927 |
| Operating loss | (829) | (900) | (1,756) | (2,223) |
| Interest expense | (127) | (213) | (249) | (269) |
| Foreign currency exchange gain/(loss) | 2 | -- | (3) | -- |
| Loss before income taxes | (954) | (1,113) | (2,008) | (2,492) |
| Income tax expense | 16 | 6 | 32 | 11 |
| Net loss | $ (970) | $ (1,119) | $ (2,040) | $ (2,503) |
| Net loss per common share--basic | $ (0.05) | $ (0.08) | $ (0.10) | $ (0.17) |
| Net loss per common share--diluted | $ (0.05) | $ (0.08) | $ (0.10) | $ (0.17) |
| Weighted average number of common shares outstanding--basic | 20,835 | 14,744 | 20,507 | 14,735 |
| Weighted average number of common shares outstanding--diluted | 20,835 | 14,744 | 20,507 | 14,735 |
| Urologix, Inc. | ||
| Balance Sheets | ||
| (Unaudited, in thousands) | ||
| December 31, | June 30, | |
| 2012 | 2012 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $4,879 | $1,899 |
| Accounts receivable, net | 2,201 | 2,132 |
| Inventories | 2,033 | 1,448 |
| Prepaids and other current assets | 246 | 290 |
| Total current assets | 9,359 | 5,769 |
| Property and equipment: | ||
| Property and equipment | 12,018 | 12,006 |
| Less accumulated depreciation | (11,273) | (11,144) |
| Property and equipment, net | 745 | 862 |
| Other intangible assets, net | 2,137 | 2,262 |
| Goodwill | 3,036 | 3,115 |
| Long-term inventories | 678 | 663 |
| Other assets | 5 | 5 |
| Total assets | $15,960 | $12,676 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $4,975 | $3,376 |
| Accrued compensation | 668 | 732 |
| Deferred income | 10 | 7 |
| Short-term deferred acquisition payment | 2,906 | 2,395 |
| Other accrued expenses | 682 | 779 |
| Total current liabilities | 9,241 | 7,289 |
| Deferred tax liability | 57 | 35 |
| Long-term deferred acquisition payment | 4,017 | 4,613 |
| Other accrued liabilities | 94 | 113 |
| Total liabilities | 13,409 | 12,050 |
| Shareholders' equity: | ||
| Common stock | 207 | 147 |
| Additional paid-in capital | 119,110 | 115,205 |
| Accumulated deficit | (116,766) | (114,726) |
| Total shareholders' equity | 2,551 | 626 |
| Total liabilities and shareholders' equity | $15,960 | $12,676 |
| Urologix, Inc. | ||
| Condensed Statements of Cash Flows | ||
| (Unaudited, in thousands) | ||
| Six Months Ended | ||
| December 31, | ||
| 2012 | 2011 | |
| Operating Activities: | ||
| Net loss | $ (2,040) | $ (2,503) |
| Adjustments to reconcile net loss to net cash used for operating activities: | ||
| Depreciation and amortization | 339 | 325 |
| Employee stock-based compensation expense | 151 | 199 |
| Provision for bad debts | 23 | -- |
| Loss on disposal of assets | 7 | 10 |
| Accretion expense on deferred acquisition payments | 284 | 269 |
| Net adjustment to acquisition consideration | (369) | -- |
| Deferred income taxes | 22 | -- |
| Change in operating items, net of acquisition: | ||
| Accounts receivable | (92) | (853) |
| Inventories | (577) | (38) |
| Prepaids and other assets | 44 | (10) |
| Accounts payable | 1,599 | 1,279 |
| Accrued expenses and deferred income | (177) | 277 |
| Net cash used for operating activities | (786) | (1,045) |
| Investing Activities: | ||
| Purchase of property and equipment | (36) | (31) |
| Acquisition of business | -- | (500) |
| Purchases of intellectual property | (12) | -- |
| Net cash used for investing activities | (48) | (531) |
| Financing Activities: | ||
| Proceeds from stock option exercises | -- | 87 |
| Issuance of common stock | 3,814 | -- |
| Net cash provided by financing activities | 3,814 | 87 |
| Net decrease in cash and cash equivalents | 2,980 | (1,489) |
| Cash and cash equivalents: | ||
| Beginning of period | 1,899 | 3,061 |
| End of period | $4,879 | $1,572 |
| Supplemental cash-flow information | ||
| Income taxes paid during the period | $15 | $11 |
| Net amount of inventory transferred to property and equip. | $56 | $144 |
| Non-cash consideration for acquisition | $ -- | $6,532 |