UPI (MM)

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UNITED STATES

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

 

(Exact name of registrant as specified in its charter)

(State or other jurisdiction of

incorporation or organization)

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(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 2.02.

Results of Operations and Financial Condition

 

On July 24, 2014, Uroplasty, Inc. published a press release providing information regarding its results of operations and financial condition for the quarter ended June 30, 2014.

 

Item 9.01.

Financial Statements and Exhibits

 

Exhibit 99

Press Release Dated July 24, 2014

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

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Exhibit 99

 

 

Uroplasty Reports Fiscal First Quarter Results

~ Urgent PC Sales Up 19% in Fiscal First Quarter ~

~Fiscal 2015 Guidance Reaffirmed~

 

MINNEAPOLIS, July 24, 2014 -- Uroplasty, Inc. (NASDAQ: UPI), a medical device company that develops, manufactures and markets innovative proprietary products to treat voiding dysfunctions, today reported financial results for the fiscal 2015 first quarter ended June 30, 2014.

Global revenue for the Company’s Urgent^® PC Neuromodulation System grew 19% to $4.1 million, as compared to $3.4 million in the first quarter of the prior year.  Total revenue for the fiscal first quarter of 2015 was $6.4 million, up 9% from the same quarter in the prior year.

“First quarter results met our overall expectations, and we are reaffirming our full-year guidance today for fiscal 2015,” said Rob Kill, President and Chief Executive Officer of Uroplasty.  “Global Urgent PC revenue exceeded our expectations, with stronger than expected growth in our international business.  Macroplastique revenue was down slightly in the quarter, yet we continue to expect that for the full year, revenue from this product line will be similar to the past fiscal year.  Continued improvement in sales force productivity, the expansion of our clinical support team to twelve individuals from the current six and our development of additional distribution channels are expected to drive Urgent PC sales growth as we look forward.  At the same time, we continue to invest in our fecal incontinence clinical development program and are examining strategies to provide our sales organization with additional products that meet the unmet needs of our customer base,” continued Mr. Kill.

The Company generated a gross margin of 87.6% in the recent fiscal first quarter compared with 87.2% in the same quarter a year ago.  Operating expenses for the period totaled $7.8 million compared to $6.7 million in the same quarter last year.  Selling, general and administrative costs increased $0.7 million primarily due to full staffing of the sales team in the current quarter as well as the expense related to the six clinical specialists the Company added throughout the prior fiscal year.  R&D costs increased $0.4 million due to higher clinical study activity as well as certain one-time costs related to management changes in the current quarter.

The operating loss of $2.2 million in the fiscal first quarter compares with a $1.6 million operating loss in the same quarter last year.  Excluding non-cash charges for share-based compensation and depreciation and amortization expense, the non-GAAP operating loss was $1.8 million in the first quarter of fiscal 2015, compared with a $1.5 million non-GAAP operating loss in the year ago period. At June 30, 2014, cash, cash equivalents and cash investments totaled $10.6 million.

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For the full-year fiscal 2015 the Company continues to expect revenue growth in the range of nine to twelve percent, approximately fifteen percent growth in global Urgent PC sales, and slightly higher gross margins on a year-over-year basis.

Conference Call

Uroplasty will host a conference call and webcast today at 4:30 p.m. Eastern Time (3:30 p.m. Central Time) to discuss these results. Rob Kill, President and Chief Executive Officer, and Brett Reynolds, Chief Financial Officer, will host the call. Individuals wishing to participate in the conference call should dial 888-505-4375. No passcode is necessary.  To access a live webcast of the call, go to Uroplasty’s website at www.uroplasty.com and click on the Investor Relations section.

An audio replay will be available for 30 days following the call at 888-203-1112 with the passcode 7876225.  An archived webcast will also be available at investor.uroplasty.com.

About Uroplasty, Inc.

Forward-Looking Information

Statements contained in this release that relate to future events are forward-looking statements under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations of future events and often can be identified by words such as “continues,” “expects,” “intends,” “should,” “will,” “may,” “believes,” “could,” “hopes,” “objective,” “looking ahead,” “future,” other words of similar meaning or the use of future dates. Uncertainties and risks may cause our actual results to be materially different than those expressed in or implied by our forward-looking statements. Such uncertainties and risks include, among others, that we cannot be certain that we will ever achieve sustained profitability, that the rate of reimbursement for PTNS treatments will be adequate to justify the cost of our product, that other Medicare carriers or private payers will provide coverage for this treatment or that existing carriers and payers will not change their coverage decisions, and that the rate of adoption of our products by new customers will continue.  More detailed information on these and other factors that could affect our actual results are described in our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. We undertake no obligation to update our forward-looking statements.

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		Three Months Ended June 30
		2014				2013
Net sales		$	6,384,629			$	5,840,841
Cost of goods sold			791,311				748,047
Gross profit			5,593,318				5,092,794
Operating expenses
General and administrative			1,577,368				1,580,763
Research and development			909,444				479,660
Selling and marketing			5,272,621				4,627,409
Amortization			8,326				6,648
			7,767,759				6,694,480
Operating loss			(2,174,441	)			(1,601,686	)
Other income (expense)
Interest income			3,012				9,264
Foreign currency exchange gain (loss)			911				(2,695	)
			3,923				6,569
Loss before income taxes			(2,170,518	)			(1,595,117	)
Income tax expense			19,814				14,175
Net loss		$	(2,190,332	)		$	(1,609,292	)
Basic and diluted net loss per common share		$	(0.10	)		$	(0.08	)
Weighted average common shares outstanding:
Basic and diluted			21,675,524				20,784,900

		June 30, 2014				March 31, 2014
Assets
Current assets:
Cash and cash equivalents		$	10,221,690			$	8,681,609
Short-term investments			400,000				3,451,086
Accounts receivable, net			2,614,655				2,875,275
Inventories			609,877				517,217
Other			536,830				507,299
Total current assets			14,383,052				16,032,486
Property, plant, and equipment, net			980,412				997,609
Intangible assets, net			111,654				119,980
Prepaid pension assets			-				855
Deferred tax assets			146,609				150,116
Total assets		$	15,621,727			$	17,301,046

Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable		$	954,832			$	904,879
Current portion – deferred rent			-				2,917
Income tax payable			24,429				21,922
Accrued liabilities:
Compensation			2,094,907				1,999,966
Other			423,428				479,373
Total current liabilities			3,497,596				3,409,057
Deferred rent – less current portion			25,832				171
Accrued pension liability			715,807				678,118
Total liabilities			4,239,235				4,087,346
Total shareholders’ equity			11,382,492				13,213,700
Total liabilities and shareholders’ equity		$	15,621,727			$	17,301,046

		Three Months Ended June 30
		2014				2013
Cash flows from operating activities:
Net loss		$	(2,190,332	)		$	(1,609,292	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			72,584				87,013
Loss (gain) on disposal of equipment			1,249				(5,881	)
Amortization of premium on marketable securities			343				3,342
Share-based compensation expense			323,304				16,044
Deferred income tax expense			2,205				2,178
Deferred rent			22,744				(9,263	)
Changes in operating assets and liabilities:
Accounts receivable, net			263,078				60,458
Inventories			(92,649	)			39,773
Other current assets			(30,323	)			23,110
Accounts payable			49,797				264,500
Accrued compensation			94,249				19,415
Accrued liabilities			(65,795	)			383,436
Accrued pension liability			44,081				40,073
Net cash used in operating activities			(1,505,465	)			(685,094	)
Cash flows from investing activities:
Proceeds from maturity of available-for-sale marketable investments			3,050,000				1,000,000
Purchases of held-to-maturity marketable investments			-				820,000
Purchases of property, plant and equipment			(52,739	)			(189,789	)
Proceeds from sale of property, plant and equipment			-				6,080
Net cash provided by investing activities			2,997,261				1,636,291
Cash flows from financing activities:
Proceeds from exercise of  stock options			48,600				-
Net cash provided by financing activities			48,600				-
Effect of exchange rates on cash and cash equivalents			(315	)			9,312
Net increase in cash and cash equivalents			1,540,081				960,509
Cash and cash equivalents at beginning of period			8,681,609				3,533,864
Cash and cash equivalents at end of period		$	10,221,690			$	4,494,373
Supplemental disclosure of cash flow information:
Cash paid during the period for income tax		$	38,700			$	17,770

						Expense Adjustments
		GAAP				Share-based Expense				Depreciation				Amortization				Non-GAAP
Three Months Ended June 30, 2014
Gross Profit		$	5,593,000			$	13,000			$	5,000			$	-			$	5,611,000
% of sales			87.6	%															87.9	%
Operating Expenses
General & administrative			1,577,000				(212,000	)			(39,000	)			-				1,326,000
Research and development			909,000				(18,000	)			(1,000	)			-				890,000
Selling and marketing			5,273,000				(80,000	)			(20,000	)			-				5,173,000
Amortization			8,000				-				-				(8,000	)			-
			7,767,000				(310,000	)			(60,000	)			(8,000	)			7,389,000
Operating Loss		$	(2,174,000	)		$	323,000			$	65,000			$	8,000			$	(1,778,000	)
Three Months Ended June 30, 2013
Gross Profit		$	5,093,000			$	8,000			$	9,000			$	-			$	5,110,000
% of sales			87.2	%															87.5	%
Operating Expenses
General & administrative			1,581,000				79,000				(51,000	)			-				1,609,000
Research and development			480,000				(14,000	)			(1,000	)			-				465,000
Selling and marketing			4,627,000				(73,000	)			(19,000	)			-				4,535,000
Amortization			7,000				-				-				(7,000	)			-
			6,695,000				(8,000	)			(71,000	)			(7,000	)			6,609,000
Operating Loss		$	(1,602,000	)		$	16,000			$	80,000			$	7,000			$	(1,499,000	)