BURLINGTON, Mass., Nov. 5 /PRNewswire-FirstCall/ -- LeMaitre
Vascular, Inc. (NASDAQ:LMAT) (the "Company"), a provider of
peripheral vascular devices and implants, today announced Q3 2007
financial results. Revenues for Q3 2007 were $10.1 million, an
increase of 19% over Q3 2006. Q3 2007 revenues increased 33% in the
Company's Endovascular and Dialysis Access category, 15% in the
Vascular category, and 3% in the General Surgery category. Sales
growth was driven by the continued acceleration of the endovascular
procedure market, relatively strong sales within the vascular
category, productivity gains from recently hired sales
representatives, and the distribution of the Powerlink stent graft
in Europe. For Q3 2007, the Company reported a gross margin of
74.7%, versus 73.3% in Q3 2006. The Company ended Q3 2007 with
$25.6 million in cash and marketable securities, compared with
$27.9 million at the end of Q2 2007. On September 20, 2007, the
Company acquired the assets of Vascular Architects, a company that
marketed and sold a suite of five instruments for Remote
Endarterectomy ("RE"), as well as a helical covered stent. RE is a
minimally invasive procedure for the removal of plaque, typically
in the superficial femoral artery in the thigh. The $2.8 million
all-cash purchase price represents a 1.6 multiple of Vascular
Architects' annual revenues of $1.8 million. Also during Q3 2007,
LeMaitre Vascular announced plans to launch a direct sales force in
Italy in January 2008. The Company has sold its products in Italy
through Serom Medical Technologies srl since 1993. LeMaitre
Vascular and Serom agreed to terminate Serom's exclusive rights
effective January 25, 2008, in exchange for the payment of an
undisclosed sum. The Company believes that Serom's hospital-level
sales of LeMaitre Vascular products were approximately 1.9 million
euros in 2006. George W. LeMaitre, Chairman and CEO said, "This was
another solid quarter for LeMaitre Vascular. We continued to post
strong top-line growth while keeping operating expenses under
control. Additionally, we completed a meaningful acquisition and
furthered our European 'go-direct' strategy. With regard to
Vascular Architects, we are happy to combine a suite of unique
vascular products with our dedicated vascular surgery sales force.
Going direct in Italy will allow us to control our sales channel in
the fifth largest vascular market in the world." The operating loss
for Q3 2007 was $1,541,000, compared to operating income of
$342,000 for Q3 2006. The Q3 2007 operating loss was due to a
$1,054,000 charge related to distributor buyouts, increased sales
force and R&D expenditures, and the costs associated with being
a public company. The Company reported a net loss of $1,354,000, or
$0.09 per basic and diluted share for Q3 2007, compared to net
income of $221,000, or $0.01 per basic and diluted share, for Q3
2006. The Q3 2007 net loss benefited from interest income of
$359,000, as well as a $221,000 foreign exchange gain. Sales and
marketing expenses for Q3 2007 increased 30% to $4,583,000 from
$3,525,000 for Q3 2006. The Company ended Q3 2007 with 58 sales
representatives, compared to 36 at the end of Q3 2006. For Q3 2007,
general and administrative expenses increased by 52% over Q3 2006,
from $1,536,000 to $2,341,000, primarily due to the higher costs
associated with being a publicly traded company. Q3 2006 was the
Company's last full quarter as a private company. R & D
expenses increased 42% to $1,144,000 for Q3 2007, compared to
$805,000 for Q3 2006. The increase was driven largely by the hiring
of additional product development engineers and related product
development expenses. Business Outlook The Company narrowed its
2007 revenue guidance from $39.8-$41.3 million to $40.5-$41.3
million. The Company continues to expect a net loss in 2007 due to
investments in its sales force and R&D. The Company expects to
employ 55 to 60 sales representatives in Q1 2008. The Company will
give its annual 2008 guidance at its next quarterly conference
call. LeMaitre Vascular's guidance for future financial performance
does not include the impact of any potential acquisitions.
Conference Call Reminder Management will conduct a conference call
at 5:00 p.m. EST today to review the Company's financial results
and its expectations regarding future financial performance and
business outlook. The conference call will be broadcast live over
the internet. Individuals who are interested in listening to the
webcast should log on to the Company's website at
http://www.lemaitre.com/investor. The conference call may also be
accessed by dialing 866-831-6272 (1-617-213-8859 for international
callers) using passcode 85202968. For interested individuals unable
to join the live conference call, a replay will be available on the
Company's website. About LeMaitre Vascular LeMaitre Vascular is a
provider of devices for the treatment of peripheral vascular
disease. We develop, manufacture, and market disposable and
implantable vascular devices to address the needs of vascular
surgeons and interventionalists. The Company's devices and implants
are used to treat peripheral vascular disease; a condition that we
estimate affects more than 20 million people worldwide. Well-known
to vascular surgeons, the Company's diversified portfolio of
peripheral vascular devices and implants consists of brand-name
products, including the EndoFit and UniFit stent grafts, the
Expandable LeMaitre Valvulotome, the Pruitt-Inahara Carotid Shunt,
and the AnastoClip Vessel Closure System. LeMaitre and the LeMaitre
Vascular logo are trademarks of LeMaitre Vascular, Inc., registered
in the U.S. and other countries. This press release contains other
trademarks and trade names of the Company and other third parties,
which are the properties of their respective owners. For more
information about the Company, please visit
http://www.lemaitre.com/. Forward-Looking Statements This press
release contains forward-looking statements within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995.
Statements in this press release regarding the Company's business
that are not historical facts may be "forward-looking statements"
that involve risks and uncertainties. Specifically, statements
regarding the Company's financial guidance for 2007 and 2008, its
operational objectives for 2007, its acquisition of Vascular
Architects, and its direct sales strategy in Italy and the rest of
Europe are forward-looking statements involving risks and
uncertainties. The Company's Q3 2007 interim financial statements,
as discussed in this release, are preliminary and unaudited, and
subject to adjustment. Forward-looking statements are based on
management's current, preliminary expectations and are subject to
risks and uncertainties that could cause actual results to differ
from the results predicted. These risks and uncertainties include,
but are not limited to, the demand for and market acceptance of the
Company's products; the significant competition the Company faces
from other companies, technologies, and alternative medical
procedures; the Company's ability to expand its sales force,
particularly in Italy and other markets where the Company thinks it
is currently underrepresented; the extent to which the Company is
able to retain the existing customer base and sales network in
countries in which the Company converts from a distribution model
to a direct sales approach; the Company's ability to expand its
product offerings through internal development or acquisition and
to integrate acquired products into its business; the Company's
ability to realize the anticipated benefits of its acquisition of
Vascular Architects and other acquisitions; disruption at the
Company's single manufacturing facility; the general uncertainty
related to seeking regulatory approvals for the Company's products,
particularly in the United States; potential claims of third
parties that the Company's products infringe their intellectual
property rights; and the risks and uncertainties described in the
Company's Annual Report on Form 10-K for the year ended December
31, 2006, under the heading "Risk Factors," which has been filed
with the SEC and is available on the Company's investor relations
website at http://www.lemaitre.com/ and on the SEC's website at
http://www.sec.gov/, and in subsequent SEC filings. Undue reliance
should not be placed on forward-looking statements, which speak
only as of the date they are made. The Company undertakes no
obligation to update publicly any forward-looking statements to
reflect new information, events, or circumstances after the date
they were made, or to reflect the occurrence of unanticipated
events. Financial Statements LEMAITRE VASCULAR, INC (NASDAQ:LMAT)
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (amounts in
thousands, except share data) (unaudited) For the three months For
the nine months ended: ended: September 30 September 30 2007 2006
2007 2006 Net sales $10,144 $8,540 $30,342 $25,871 Cost of sales
2,563 2,279 7,778 7,205 Gross profit 7,581 6,261 22,564 18,666
Operating expenses: Sales and marketing 4,583 3,525 14,131 10,639
General and administrative 2,341 1,536 6,917 5,050 Research and
development 1,144 805 3,416 2,586 Distributor termination costs
1,054 - 1,054 - Restructuring charges - 53 5 231 Impairment charge
- - 7 406 Total operating expenses 9,122 5,919 25,530 18,912 Income
(loss) from operations (1,541) 342 (2,966) (246) Other income
(expense): Interest income (expense) 359 (175) 1,054 (275) Other
income 221 21 275 152 Total other income (loss) 580 (154) 1,329
(123) Income (loss) before income taxes (961) 188 (1,637) (369)
Provision (benefit) for income taxes 393 (33) 119 129 Net income
(loss) $(1,354) $221 $(1,756) $(498) Net income (loss) per share of
common stock: Basic $(0.09) $0.01 $(0.11) $(0.09) Diluted $(0.09)
$0.01 $(0.11) $(0.09) Weighted average shares outstanding: Basic
15,410 8,497 15,376 8,497 Diluted 15,410 8,904 15,376 8,497
LEMAITRE VASCULAR, INC (NASDAQ:LMAT) CONDENSED CONSOLIDATED BALANCE
SHEETS (amounts in thousands) September 30, December 31, 2007 2006
(unaudited) (audited) Assets Current assets: Cash and cash
equivalents $7,752 $15,391 Marketable securities 17,885 15,417
Accounts receivable, net 6,221 5,060 Inventories 8,146 6,081 Other
current assets 1,096 1,692 Total current assets 41,100 43,641
Property and equipment, net 2,435 2,389 Goodwill 11,096 8,853 Other
intangibles, net 2,302 1,930 Other assets 162 150 Total assets
$57,095 $56,963 Liabilities and Stockholders' Equity Current
liabilities: Accounts payable $1,349 $818 Accrued expenses 5,391
4,528 Current portion of capital leases 0 32 Total current
liabilities 6,740 5,378 Deferred tax liabilities 833 833 Other
long-term liabilities 17 53 Total liabilities 7,590 6,264
Stockholders' equity: Common stock 155 153 Additional paid-in
capital 61,014 60,504 Accumulated deficit (11,702) (9,946)
Accumulated other comprehensive income 123 73 Less: Treasury stock
(85) (85) Total stockholders' equity 49,505 50,699 Total
liabilities and stockholders' equity $57,095 $56,963 LEMAITRE
VASCULAR, INC (NASDAQ:LMAT) SELECTED NET SALES INFORMATION (amounts
in thousands) (unaudited) For the three months ended: September 30
2007 2006 Net Sales by Product Category: $ % $ % Endovascular &
Dialysis $3,211 32% $2,412 28% Vascular 5,982 59% 5,203 61% General
Surgery 951 9% 925 11% $10,144 100% $8,540 100% Net Sales by
Geography: United States and Canada $6,236 61% $5,478 64% Outside
the United States and Canada 3,908 39% 3,062 36% $10,144 100%
$8,540 100% For the nine months ended: September 30 2007 2006 Net
Sales by Product Category: $ % $ % Endovascular & Dialysis
$10,256 34% $7,260 28% Vascular 17,216 57% 15,702 61% General
Surgery 2,870 9% 2,909 11% $30,342 100% $25,871 100% Net Sales by
Geography: United States and Canada $18,232 60% $16,595 64% Outside
the United States and Canada 12,110 40% 9,276 36% $30,342 100%
$25,871 100% DATASOURCE: LeMaitre Vascular, Inc. CONTACT: J.J.
Pellegrino, Chief Financial Officer of LeMaitre Vascular, Inc.,
+1-781-221-2266, ext. 106, Web site: http://www.lemaitre.com/
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