TriPath Imaging Announces Updated Financial Guidance for 2006
January 11 2006 - 9:30AM
PR Newswire (US)
Company Raises EPS Estimate for Full Year 2006 BURLINGTON, N.C.,
Jan. 11 /PRNewswire-FirstCall/ -- TriPath Imaging, Inc.
(NASDAQ:TPTH) today announced that it has raised its estimate for
earnings per share (EPS) for full year 2006 to $0.19 to $0.22. The
updated financial guidance for 2006, as well as preliminary results
for the fourth quarter and full year 2005, will be discussed later
today by Paul R. Sohmer, M.D., TriPath Imaging's Chairman,
President and CEO in a presentation that he will make at the Eighth
Annual Needham Growth Conference at the New York Palace Hotel in
New York City. An audio web cast of the presentation will be
available live online at 4:00 p.m. EST via TriPath Imaging's Web
site at http://www.tripathimaging.com/ and will be archived for at
least two weeks. The Company has increased its estimate for EPS for
full year 2006 as it now anticipates that reductions in research
and development costs associated with the completion of a number of
development related activities will partially offset increased
expenses related to initiation of clinical trials for its new
molecular products for breast cancer staging and cervical cancer
screening. The Company also estimates that operating income
generated from its Commercial Operations operating segment, which
reflects its cytology business, will range from approximately $28
million to $30 million for the full year 2006, an approximately 30
to 40% increase from that generated in 2005. In providing updated
guidance for 2006, the Company also affirmed its previous guidance
for the full year 2005 and indicated that it expects revenues of
approximately $86 million and EPS of approximately $0.15 to $0.17
for the full year ending on December 31, 2005. The Company
indicated that it anticipates revenues of approximately $102
million to $105 million for full year 2006, an approximately 20%
increase in revenues from 2005. The Company plans to release its
2005 results before the market opens on January 31, 2006 following
which it will host a conference call to discuss these results as
well as details regarding its expectations for 2006. The estimated
financial results contained in this announcement for the Company's
full year 2005 and 2006 guidance are preliminary, and are subject
to the final closing of its financial books and the completion of
customary quarter-end review procedures, as well as other factors
discussed herein relating to forward-looking statements. Final
financial results may vary. Also, the Company's guidance for 2006
does not incorporate the impact of expensing stock-based
compensation under FAS 123(R), which the Company adopted beginning
January 1, 2006, because the Company at this time cannot predict
with certainty the impact of equity-based compensation expense for
2006. TriPath Imaging, Inc., headquartered in Burlington, North
Carolina, develops, manufactures, markets and sells innovative
solutions to improve the clinical management of cancer, including
detection, diagnosis, staging and treatment. TriPath Oncology, a
wholly owned subsidiary of TriPath Imaging, develops and manages
the market introduction of molecular diagnostic and pharmacogenomic
products and services for malignant melanoma and cancers of the
cervix, breast, ovary and prostate. Investors are cautioned that
statements in this press release that are not strictly historical
statements constitute forward-looking statements which involve
risks and uncertainties that could cause actual results and
outcomes to differ materially from what is expressed in those
forward-looking statements. Such forward-looking statements
include, without limitation, those regarding forecasted full year
2005 and 2006 results. Important factors that may affect such
forward-looking statements specifically and TriPath Imaging's
operating results generally include, without limitation: TriPath's
expected fourth quarter and year end results could differ from
amounts anticipated after the final closing of the financial books
and completion of customary year end audit procedures; TriPath
Imaging may not receive revenues when or in the amounts
anticipated; TriPath Imaging may be unable to increase sales and
revenues at its historical rates; may be unable to increase its
penetration of the large commercial laboratory segment to the
extent it expects, and may not achieve revenues to the degree
expected from the sale of reagents and instrument systems derived
from its molecular oncology development program; the impact on
profitability of expensing stock based compensation under FAS
123(R) may be material; TriPath Imaging's expanding sales and
marketing presence may not have the expected impact; expenses may
exceed expectations and TriPath Imaging may not maintain
profitability; TriPath Imaging's results and profitability in any
particular period may be impacted by the timing of certain non-cash
sales discounts that TriPath Imaging will record in connection with
the vesting of certain warrants; changes in general economic
conditions or the healthcare industry may occur that adversely
affect TriPath Imaging's customers' purchasing plans; TriPath
Oncology may be unable to successfully develop and commercialize
products and services when anticipated; TriPath Imaging's products
may not achieve or maintain market acceptance to the degree
anticipated; competition and competitive pricing pressures may
limit TriPath Imaging's flexibility with respect to the pricing of
its products; TriPath Imaging may need to obtain additional
financing in the future; TriPath Imaging may not be able to develop
and to protect adequately its proprietary technology; TriPath
Imaging and TriPath Oncology's products may not receive FDA or
other required regulatory approval when expected, if at all; and
other risks detailed in TriPath Imaging's filings with the
Securities and Exchange Commission, including those described in
TriPath Imaging's Annual Report on Form 10-K for the year ended
December 31, 2004. Contact: Stephen P. Hall Chief Financial Officer
336-290-8721 DATASOURCE: TriPath Imaging, Inc. CONTACT: Stephen P.
Hall of TriPath Imaging, Inc., +1-336-290-8721 Web site:
http://www.tripathimaging.com/
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