MINNEAPOLIS, Aug. 10 /PRNewswire-FirstCall/ -- 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 first fiscal
quarter ended June 30, 2010.
The results were highlighted by a 7% global sales growth
driven by a 69% growth in U.S. Macroplastique product sales and the
return to overall sales growth in Europe.
"We generated improved financial performance during our fiscal
first quarter as our team began the preparations for the relaunch
of the Urgent PC system with the January
2011 availability of the new CPT code," said David Kaysen, President & CEO of Uroplasty,
Inc. "While reimbursement rates for the Urgent PC procedure
have not yet been established and a specific new CPT code number
has not yet been assigned, we continue to expect both to be
published in the Federal Register by the Centers for Medical and
Medicare Services (CMS) sometime in October or early November 2010. Meanwhile, our sales team
continued to generate strong sales growth for Macroplastique
products in the U.S., and we increased overall sales in
Europe by 3% and in local currency
by approximately 10%. In anticipation of increased sales and
marketing and working capital requirements resulting from the
relaunch, we raised approximately $14.9
million through a public offering after quarter end," Mr.
Kaysen added.
Fiscal First Quarter Results for the Period Ended
June 30, 2010
Net sales for the three months ended June
30, 2010 were $3,036,000, an
increase of 7% versus $2,826,000 for
the same quarter of fiscal 2010. Excluding the translation
impact of fluctuations in foreign currency exchange rates, sales
increased by approximately 10%.
Sales to customers in the U.S. for the three months ended
June 30, 2010 were $1,622,000, an 11% increase, compared to
$1,460,000 for the year-ago quarter.
Urgent PC sales of $897,000
declined slightly from $1,028,000 for
the year-ago quarter. The slight decline in Urgent PC sales
was offset by an increase in sales of Macroplastique.
Macroplastique sales of $712,000 increased 69% from $421,000 for the year-ago quarter.
Net sales to customers outside of the U.S. for the three months
ended June 30, 2010 were $1,413,000, an increase of 3%, compared to
$1,366,000 for the same period ending
June 30, 2009. Excluding the
translation impact of fluctuations in foreign currency exchange
rates, sales increased by approximately 10%.
Operating loss for the first fiscal quarter ended June 30, 2010 was $925,000 compared to an operating loss of
$1,372,000 for the year-ago quarter.
Net loss for the first fiscal quarter ended June 30, 2010 was $929,000, or $0.06
per diluted share, versus a net loss of $1,366,000, or $0.09 per diluted share for the year-ago
quarter.
At June 30, 2010, cash and cash
equivalents, and short-term investments were $7.3 million, which includes approximately
$2.2 million of net proceeds from the
exercise of warrants to purchase 886,000 shares of the Company's
common stock. Subsequent to the quarter end, in a public
offering of common shares, the Company issued an additional 4.6
million shares at $3.50 per share,
for net proceeds of approximately $14.9
million. The proceeds are expected to be used to
expand the U.S. sales and marketing organizations to support the
Urgent PC business, and for clinical studies, working capital and
general corporate purposes. Including the shares offered in
the public offering, the company now has 20.5 million common shares
outstanding.
"The first component of our plan for relaunch of the Urgent PC
system in the U.S. was to raise funds for investing in expanded
sales and marketing resources," continued Mr. Kaysen. "This
step was completed in mid July with the public offering of our
common shares. Today we have in excess of $20 million of cash and cash equivalents on hand.
To educate the market about Urgent PC and the CPT code, we
are beginning to implement plans to nearly double our U.S. sales
force from the current 16 field reps and four managers to 31 field
reps, four field reimbursement specialists and four managers by
November.
"If reimbursement rates are adequate, our goal is to capture
some portion of the market for patients who cannot tolerate, and
discontinue, the drug regimens commonly used to treat symptoms of
overactive bladder. We also intend to explore the emerging
opportunity in the U.S. to treat fecal incontinence using the
Urgent PC. The Urgent PC is already CE-marked for treatment
of fecal incontinence and our increased OUS sales during the fiscal
first quarter can be partially attributed to increased Urgent PC
business in Europe for the
treatment of fecal incontinence. In summary, we remain quite
excited about the opportunities ahead for our company, and are
focused on executing plans that fully capitalize on those
opportunities," Mr. Kaysen concluded.
Conference Call
Uroplasty will host an audio conference call today at
3:30 pm Central, 4:30 pm Eastern, to review the financial results
for the first fiscal quarter ended June 30,
2010. David Kaysen, President
and Chief Executive Officer and Medi
Jiwani, Vice President, Chief Financial Officer and
Treasurer will host the call. Individuals wishing to participate in
the conference call should dial 888-549-7750. An audio replay will
be available for 30 days following the call at 800-406-7325
(domestic) or 303-590-3030 (international), with the passcode
4337016#.
About Uroplasty, Inc.
Uroplasty, Inc., headquartered in Minnetonka, Minnesota, with wholly-owned
subsidiaries in The Netherlands
and the United Kingdom, is a
medical device company that develops, manufactures and markets
innovative proprietary products for the treatment of voiding
dysfunctions. Our focus is the continued commercialization of our
Urgent PC system, which we believe is the only FDA-approved
minimally invasive nerve stimulation device designed for
office-based treatment of urinary urgency, urinary frequency and
urge incontinence – symptoms often associated with overactive
bladder.
We also offer Macroplastique Implants, an injectable urethral
bulking agent for the treatment of adult female stress urinary
incontinence primarily due to intrinsic sphincter deficiency. For
more information on the company and its products, please visit
Uroplasty, Inc. at www.uroplasty.com.
Forward-Looking Information
This press release contains forward-looking statements, that
reflect our best estimates regarding future events and financial
performance. These forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ
materially from our anticipated results. We discuss in detail the
factors that may affect the achievement of our forward-looking
statements in our Annual Report on Form 10-K filed with the SEC. In
particular, we cannot be certain that the CPT Code for the PTNS
procedures in which Urgent PC is used will be timely published,
that the rate of reimbursement for such procedures will be adequate
to justify the cost of our product, that the amount and rate at
which we apply funds to expand our sales force will be justified by
increased sales, that larger competitors will not introduce
products or pharmaceuticals that target the portion of the market
for which Urgent PC is designed, that sales of our Macroplastique
product will continue to increase, that percutaneous nerve
stimulation will ever be an accepted, and FDA cleared, procedure
for the treatment of fecal incontinence, or that if it is, it will
be reimbursed by private and governmental payers, or that any of
the other risks identified in our 10-K will not adversely effect
our expectations as described in these forward-looking statements
.
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For Further
Information:
Uroplasty, Inc.
David Kaysen, President and CEO,
or
Medi Jiwani, Vice President,
CFO, and Treasurer
952.426.6140
|
EVC Group
Doug Sherk
(Investors)
415.896.6820
Chris Gale (Media)
646.201.5431
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UROPLASTY, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Unaudited)
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Three Months
Ended
June 30,
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2010
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2009
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
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|
|
|
|
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Net sales
|
$3,035,499
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|
$2,825,929
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|
|
|
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Cost of goods sold
|
510,696
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|
551,970
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|
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|
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|
|
|
|
|
|
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|
Gross profit
|
2,524,803
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|
2,273,959
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|
|
|
|
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|
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Operating expenses
|
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General and
administrative
|
850,317
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|
848,551
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Research and
development
|
400,629
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|
527,815
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Selling and marketing
|
1,988,526
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2,057,288
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Amortization
|
210,768
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|
211,813
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|
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|
3,450,240
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|
3,645,467
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|
|
|
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Operating loss
|
(925,437)
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|
(1,371,508)
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|
|
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|
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|
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Other income
(expense)
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|
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|
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Interest income
|
13,628
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|
31,399
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|
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Interest expense
|
(1,947)
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|
(7,907)
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Foreign currency exchange gain
(loss)
|
1,790
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(7,330)
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Other, net
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(192)
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|
(2,183)
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|
13,279
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|
13,979
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Loss before income
taxes
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(912,158)
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|
(1,357,529)
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|
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Income tax expense
|
17,150
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|
8,245
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|
|
|
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|
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|
|
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Net loss
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$(929,308)
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$(1,365,774)
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Basic and diluted loss per
common share
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$(0.06)
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$(0.09)
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Weighted average common shares
outstanding:
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Basic and diluted
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15,307,000
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14,937,771
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UROPLASTY, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Unaudited)
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June 30, 2010
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March 31, 2010
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Assets
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Current assets:
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Cash and cash
equivalents & short-term investments
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$7,308,781
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$5,811,269
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Accounts
receivable, net
|
1,218,573
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|
1,287,440
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Inventories
|
448,589
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|
341,497
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Income tax receivable
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-
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|
23,820
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Other
|
333,389
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|
237,321
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Total current assets
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9,309,332
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7,701,347
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Property, plant, and equipment,
net
|
1,134,454
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|
1,230,771
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Intangible assets,
net
|
2,322,328
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2,533,095
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Deferred tax assets
|
100,530
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|
108,530
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Total assets
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$12,866,644
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$11,573,743
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Liabilities and Shareholders'
Equity
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Current liabilities:
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Accounts
payable
|
$571,531
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|
$485,594
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Current portion – deferred rent
|
35,000
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35,000
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Income tax payable
|
14,963
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10,000
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Accrued
liabilities:
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Compensation
|
786,962
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|
903,057
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Other
|
304,818
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|
212,028
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Total current
liabilities
|
1,713,274
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|
1,645,679
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Deferred rent – less current
portion
|
103,693
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|
112,500
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Accrued pension
liability
|
590,705
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|
601,037
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Total liabilities
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2,407,672
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2,359,216
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Total shareholders'
equity
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10,458,972
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9,214,527
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Total liabilities and
shareholders' equity
|
$12,866,644
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$11,573,743
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UROPLASTY, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
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Three Months
Ended
June 30,
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2010
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2009
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Cash flows from operating
activities:
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Net loss
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$(929,308)
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$(1,365,774)
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Adjustments
to reconcile net loss to net cash used in operating
activities:
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Depreciation and
amortization
|
284,053
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284,040
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Loss on disposal of
equipment
|
192
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|
2,186
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Share-based consulting
expense
|
6,664
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-
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Share-based compensation
expense
|
69,603
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|
172,649
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Deferred income taxes
|
(2,147)
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|
(969)
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Deferred
rent
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(8,750)
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(8,750)
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Changes in operating assets and
liabilities:
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Accounts
receivable
|
18,935
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(54,213)
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Inventories
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(127,155)
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|
30,618
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Other
current assets and income tax receivable
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(76,681)
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(106,949)
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Accounts
payable
|
90,699
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(87,783)
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Accrued
liabilities
|
(9,192)
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|
(414,828)
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Accrued
pension liability, net and income tax payable
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39,837
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|
35,291
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Net cash used in operating
activities
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(643,250)
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(1,514,482)
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Cash flows from investing
activities:
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Proceeds from sale of short-term
investments
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500,000
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-
|
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Purchase of short-term
investments
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(3,000,000)
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|
(1,000,000)
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Purchases of property, plant and
equipment
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(40,519)
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(16,487)
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Net cash used in investing
activities
|
(2,540,519)
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|
(1,016,487)
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Cash flows from financing
activities:
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|
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Proceeds from warrant and option
exercise
|
2,211,250
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-
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Net cash provided by financing
activities
|
2,211,250
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|
-
|
|
|
|
|
|
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Effect of exchange rates on cash
and cash equivalents
|
(29,969)
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|
18,319
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|
|
|
|
|
|
Net decrease in cash and
cash equivalents
|
(1,002,488)
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|
(2,512,650)
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Cash and cash equivalents at
beginning of period
|
2,311,269
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|
3,276,299
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Cash and cash equivalents at end
of period
|
$1,308,781
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|
$763,649
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|
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Supplemental disclosure of cash
flow information:
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Cash received(paid) during the
period for income taxes
|
$8,034
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|
$(7,908)
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|
|
|
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|
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Non-GAAP Financial Measures: The following table
reconciles our operating loss calculated in accordance with
accounting principles generally accepted in the U.S. (GAAP) to
non-GAAP financial measures that exclude non-cash charges for
share-based compensation, and depreciation and amortization
expenses from gross profit, operating expenses and operating loss.
The non-GAAP financial measures used by management and
disclosed by us are not a substitute for, or superior to, financial
measures and consolidated financial results calculated in
accordance with GAAP, and you should carefully evaluate our
reconciliations to non-GAAP. We may calculate our non-GAAP
financial measures differently from similarly titled measures used
by other companies. Therefore, our non-GAAP financial
measures may not be comparable to those used by other companies.
We have described the reconciliations of each of our non-GAAP
financial measures described above to the most directly comparable
GAAP financial measures.
We use these non-GAAP financial measures, and in particular
non-GAAP operating loss, for internal managerial purposes and
incentive compensation for senior management because we believe
such measures are one important indicator of the strength and the
operating performance of our business. Analysts and investors
frequently ask us for this information. We believe that they
use such measures to evaluate the overall operating performance of
companies in our industry, including as a means of comparing
period-to-period results and as a means of evaluating our results
with those of other companies.
Our non-GAAP operating loss during the three months ended
June 30, 2010 and 2009 was
approximately $565,000 and
$915,000, respectively. The
decline in the non-GAAP operating loss is attributed primarily to
an increase in sales and gross margin rate.
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Three Months
Ended
June 30,
|
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|
|
2010
|
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2009
|
|
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|
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Gross Profit
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
$2,524,803
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|
$2,273,959
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% of sales
|
83%
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80%
|
|
|
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|
|
Share-based
compensation
|
4,484
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|
13,544
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Depreciation expense
|
15,698
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|
14,150
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|
|
|
|
|
Non-GAAP gross profit
|
2,544,985
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|
2,301,653
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|
|
|
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Operating Expenses
|
|
|
|
|
|
|
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GAAP operating
expenses
|
3,450,240
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|
3,645,467
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Share-based
compensation
|
71,783
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|
159,105
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|
|
|
|
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Depreciation expense
|
57,587
|
|
58,077
|
|
|
|
|
|
Amortization expense
|
210,768
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|
211,813
|
|
|
|
|
|
Non-GAAP operating
expenses
|
3,110,102
|
|
3,216,472
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Operating Loss
|
|
|
|
|
|
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|
|
GAAP operating loss
|
(925,437)
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|
(1,371,508)
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|
|
|
|
|
Share-based
compensation
|
76,267
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|
172,649
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|
|
|
|
|
Depreciation expense
|
73,285
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|
72,227
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|
|
|
|
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Amortization expense
|
210,768
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|
211,813
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|
|
|
|
|
Non-GAAP operating
loss
|
$(565,117)
|
|
$(914,819)
|
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SOURCE Uroplasty, Inc.
Copyright . 10 PR Newswire