Wilson Greatbatch Technologies, Inc. Announces Record Results for Second Quarter of 2002


CLARENCE, N.Y., July 31, 2002 (PRIMEZONE) -- Wilson Greatbatch Technologies, Inc. ("WGT" or "the Company") (NYSE:GB), a leading developer and manufacturer of power sources and components used in pacemakers and other implantable medical devices and specialty batteries for non-medical applications, today reported record revenues and net income for the second quarter of 2002.

2nd Quarter Revenues and Net Income

Total revenues were a record $38.3 million, an increase of 16% over the same quarter of last year. The total revenue growth over the same quarter of last year comprised an increase of 22% for the medical technology product lines and a decrease of 5% for commercial power sources. Net income was a record $3.6 million, or $0.17 per diluted share, an increase of 35% over the same quarter of last year. Effective January 1, 2002, as required under new accounting rules, the Company stopped amortizing goodwill and certain other intangible assets, which decreased amortization expense by $1.0 million and accounted for a $0.03 increase in earnings per diluted share for the quarter.

Revenue Summary

The following table summarizes the Company's revenues by product line for the 2nd Quarters of 2002 and 2001 (in thousands):


                                       2002           2001
                                       ----           ----
                                      2nd Qtr        2nd Qtr
                                      -------        -------
 Product Lines
 -------------
 Medical Technology:
  Medical Batteries:
   Pacemakers                          $ 5,185        $ 6,673
   ICDs                                  7,188          5,214
   Other                                   675            192
                                       -------        -------
    Total Medical Batteries             13,048         12,079
 Capacitors                              5,550          4,348
 Components                             13,040          9,505
                                       -------        -------
   Total Medical Technology             31,638         25,932
 Commercial Power Sources                6,690          7,055
                                       -------        -------
 Total Revenues                        $38,328        $32,987
                                       =======        =======

Commenting on the reported revenues, Edward F. Voboril, the Company's Chairman, President and Chief Executive Officer said, "Overall, we are pleased with our second quarter revenues, which were a record and substantially in line with our internal expectations. As I stated during April, we expected the first half of 2002 to be challenging due to softness in certain markets. However, we experienced continued strong growth in our Implantable Cardioverter Defibrillator (ICD) batteries and components product lines. Sales of ICD batteries grew during the quarter by 38% compared to last year. The Cardiac Rhythm Management (CRM) market demand for high-energy devices remains very robust. Furthermore, medical component sales increased by 37% over the prior year second quarter, driven largely by the June 2001 acquisition of Greatbatch-Sierra."

Profit & Loss Summary

The following table summarizes selected profit & loss (P&L) statement amounts for the 2nd Quarters in 2002 and 2001 (in thousands):


                                        2002          2001
                                        ----          ----
                                       2nd Qtr       2nd Qtr
                                       -------       -------
 Selected P&L Amounts
 --------------------
 Gross Profit                          $15,599       $14,609
 Gross Margin                               41%           44%

 SG&A Expenses                         $ 5,354       $ 4,534
 SG&A Expenses as % of Revenues             14%           14%

 RD&E Expenses                         $ 3,390       $ 3,371
 RD&E Expenses as % of Revenues              9%        10%

"Our gross margin declined during the 2nd quarter by three percentage points from the same quarter of last year. The decline resulted primarily from production issues at our Greatbatch-Sierra business, which manufactures filtered feedthroughs. We have invested heavily in management time addressing these issues, and we believe that most of these matters have been resolved and that future margins for filtered feedthroughs will increase to their target levels, which are similar to those that we generate in other product lines," Voboril continued.

"While our gross margin declined, we paid close attention to our operating costs and expenses. We held our selling, general and administrative (SG&A) expenses to 14% of total revenue flat with the same quarter of last year. Our research, development and engineering (RD&E) expenses were 9% of total revenue, a decline of one percentage point over the same quarter of last year. As a result, our net income reached a record $3.6 million for the quarter," Voboril added.

Outlook for Remainder of 2002

"Our outlook for the remainder of the year is positive. We have strong momentum with respect to order flow heading into the third quarter. We also recently completed the acquisition of Globe Tool and Manufacturing, and its revenues will be consolidated with the Company's revenues subsequent to its July 9, 2002 acquisition date. We currently anticipate total revenues for 2002 to be in the range of $160 to $165 million and diluted earnings per share will be in the range of $0.75 to $0.80," Voboril concluded.

About Wilson Greatbatch Technologies

Wilson Greatbatch Technologies, Inc. (NYSE:GB) is a leading developer and manufacturer of power sources, wet tantalum capacitors, cases and precision engineered components and subassemblies used in implantable medical devices and other demanding applications. The Company has operations in New York, Maryland, Massachusetts, Nevada and Minnesota. Additional information about the Company is available at www.greatbatch.com.

Conference Call

Mr. Voboril and Lawrence P. Reinhold, the Company's Executive Vice President and Chief Financial Officer, will discuss second quarter 2002 financial results in a conference call scheduled for today, Wednesday July 31, at 4:30 p.m. EDT. Investors will have the opportunity to listen to the conference call on the Internet at www.vcall.com/Eventpage.asp?ID=81945. To listen to the conference call via the Internet, please go to the website at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available two hours after the call and will remain available on the Internet until the next conference call.

Forward-Looking Statements

Some of the statements in this press release and other written and oral statements made from time to time by the company and its representatives are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended, and involve a number of risks and uncertainties. These statements can be identified by terminology such as "may", "will", "should", "could", "expects", "intends", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are based on the company's current expectations. The company's actual results could differ materially from those stated or implied in such forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements include, among others, the following matters affecting the Company: dependence upon a limited number of customers; product obsolescence; inability to market current or future products; pricing pressure from customers; reliance on third party suppliers for raw materials; products and subcomponents; fluctuating operating results; inability to maintain high quality standards for our products; challenges to our intellectual property rights; product liability claims; inability to successfully consummate and integrate acquisitions; unsuccessful expansion into new markets; competition; inability to obtain licenses to key technology; regulatory changes or consolidation in the healthcare industry; and other risks and uncertainties described in the company's Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission. The company assumes no obligation to update forward-looking information in this press release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.


                 Wilson Greatbatch Technologies, Inc.
           Condensed Consolidated Statements of Operations
                             (Unaudited)
               (In thousands except per share amounts)

                          Three Months Ended       Six Months Ended
                          -------------------     -------------------
                          June 28,    June 29,    June 28,    June 29,
                            2002        2001        2002        2001
                          -------     -------     -------     -------
 Revenues                 $38,328     $32,987     $74,631     $62,558
 Cost of goods sold        22,729      18,378      43,080      33,938
                          -------     -------     -------     -------
 Gross profit              15,599      14,609      31,551      28,620
 Gross margin                  41%         44%         42%         46%

 Selling, general
  and administrative
  expenses                  5,354       4,534      11,010       8,314
 Research, development
  and engineering costs,
  net                       3,390       3,371       7,044       6,559
 Intangible amortization      886       1,711       1,772       3,350
                          -------     -------     -------     -------
 Operating income           5,969       4,993      11,725      10,397
 Interest expense             713         742       1,604       1,470
 Interest income             (135)        (14)       (280)        (30)
 Other expense, net            38          26          65          85
                          -------     -------     -------     -------
 Income before income
  taxes and extraordinary
  loss                      5,353       4,239      10,336       8,872
 Provision for income
  taxes                     1,767       1,590       3,411       3,304
                          -------     -------     -------     -------
 Income before
  extraordinary loss        3,586       2,649       6,925       5,568
 Extraordinary loss on
  retirement of debt,
  net of tax                    0           0           0      (2,994)
                          -------     -------     -------     -------
 Net income               $ 3,586     $ 2,649     $ 6,925     $ 2,574
                          =======     =======     =======     =======
 Basic earnings (loss)
  per share:
   Income before
    extraordinary loss    $  0.17     $  0.14     $  0.33     $  0.30
   Extraordinary loss
    on retirement of debt    0.00        0.00        0.00       (0.16)
                          -------     -------     -------     -------
      Net income          $  0.17     $  0.14     $  0.33     $  0.14
                          =======     =======     =======     =======

 Diluted earnings (loss)
  per share:
   Income before
    extraordinary loss    $  0.17     $  0.14     $  0.33     $  0.29
   Extraordinary loss
    on retirement of debt    0.00        0.00        0.00       (0.16)
                          -------     -------     -------     -------
      Net income          $  0.17     $  0.14     $  0.33     $  0.13
                          =======     =======     =======     =======
 Weighted average shares
  outstanding
   Basic                   20,928      18,713      20,900      18,713
   Diluted                 21,255      19,102      21,261      19,081

                 Wilson Greatbatch Technologies, Inc.
                Condensed Consolidated Balance Sheets
                             (Unaudited)
                            (In thousands)

                                                June 28,  December 28,
                                                  2002        2001
                                                --------    --------
 ASSETS

 Current assets:
  Cash and cash equivalents                     $ 40,302    $ 43,272
  Accounts receivable, net                        18,834      17,373
  Inventories                                     30,789      29,026
  Prepaid expenses and other current assets        1,168       2,316
  Deferred income taxes                            2,888       2,888
                                                --------    --------
     Total current assets                         93,981      94,875

 Property, plant and equipment, net               48,266      44,149
 Intangible assets, net                          135,003     137,135
 Deferred income taxes                             5,417       5,417
 Other assets                                      3,030       1,944
                                                --------    --------
     Total assets                               $285,697    $283,520
                                                ========    ========
 LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:
  Accounts payable                              $  3,211    $  6,553
  Accrued expenses and other
   current liabilities                            11,652      13,721
  Current maturities of long-term
   obligations                                    13,500      13,005
                                                --------    --------
     Total current liabilities                    28,363      33,279

 Long-term obligations                            57,897      61,397
                                                --------    --------
     Total liabilities                            86,260      94,676
                                                --------    --------
 Stockholders' equity:
   Common stock                                       21          21
   Capital in excess of par value                203,214     200,880
   Accumulated deficit                            (2,010)     (8,935)
   Treasury stock, at cost                        (1,788)     (3,122)
                                                --------    --------
      Total stockholders' equity                 199,437     188,844
                                                --------    --------
 Total liabilities and stockholders' equity     $285,697    $283,520
                                                ========    ========


            

Coordonnées