TriPath Imaging Reports EPS of $0.04 in First Quarter of 2006
April 27 2006 - 9:00AM
PR Newswire (US)
24% Increase in Revenues Drove 89% Improvement in Net Income from
Q1 2005 BURLINGTON, N.C., April 27 /PRNewswire-FirstCall/ --
TriPath Imaging, Inc. (NASDAQ:TPTH) today reported first quarter
revenues of $24.0 million, a 24% increase from the first quarter of
2005, gross profit of $16.1 million, a 19% increase from the first
quarter of 2005, and net income of $1.7 million or $0.04 per
diluted share, an 89% improvement from the net income of $925,000
or $0.02 per diluted share in the first quarter of 2005. Worldwide
sales of SurePath(R) reagents and disposables increased 23% from
the first quarter of 2005 and accounted for 77% of total revenues
in the first quarter of 2006. The number of SurePath(R) tests sold
worldwide increased 43%. Revenues generated from SurePath(R) sales
in the U.S. grew 20% from the first quarter of 2005. The number of
SurePath(R) tests sold in the U.S. increased 33% primarily as a
result of a 92% increase in SurePath tests sold to the large
commercial laboratories. Sales of SurePath(R) reagents and
disposables outside the U.S. increased 35% from the first quarter
of 2005. Worldwide sales of instruments increased 38% from the
first quarter of 2005 and accounted for 12% of total revenues in
the first quarter of 2006. Revenue growth from the sale of
molecular diagnostic products accounted for approximately 6% of the
Company's growth from the first quarter of 2005. Total operating
income increased approximately 103% to $1.7 million for the first
quarter of 2006. Operating income in the Commercial Operations
segment improved approximately 41% over the first quarter of 2005
and represented 29% of segment revenues. Cash and cash equivalents
at March 31, 2006 were $23.1 million. In the first quarter of 2006
the Company generated positive cash flow for the seventh
consecutive quarter. "We are right on track," said Paul R. Sohmer,
M.D., Chairman, President and CEO of TriPath Imaging, Inc. "We
continued to demonstrate the fundamental strength of our cervical
cancer screening business. We also continued to move our developing
molecular products into research studies, clinical trials, and the
marketplace. It was a very productive quarter and a good start to
the year." Dr. Sohmer continued, "We grew our revenues by 24% from
the first quarter of 2005 on increased sales of both our reagents
and instruments, including our cytology and histology imaging
systems; we generated net income of more than $ 1.7 million, an 89%
improvement from the first quarter of 2005; we continued to
leverage our commercial operating infrastructure to drive operating
income from our cervical cancer screening business to $ 6.8
million, a 41% improvement from the first quarter of 2005; we
received FDA 510(k) clearance to expand the VIAS testing menu to
include Ki-67; we launched our Class I IHC for ProEx C detection of
aberrant S phase induction in tissue biopsy samples, and; we
initiated external research studies employing our ELISA based
research use only reagents for ovarian screening." Dr. Sohmer
concluded, "Given the strength of our performance in the first
quarter, we are confident that we are on track to achieve our
financial, commercial and development goals for 2006." Conference
Call Details TriPath Imaging's management will host a conference
call today at 11:00 a.m. ET to discuss the Company's first quarter
financial results, business highlights and future expectations. The
call will be available by dialing (888) 344-3716. International
participants should call (706) 634-4926. For interested parties
unable to participate during the live call, a telephone replay will
be available beginning two hours after the completion of the call
until May 4, 2006. To access this replay, U.S. participants should
call (800) 642-1687. International participants should call (706)
645-9291. Individuals accessing the replay must enter the
conference call ID number 8156948. A live web cast and replay of
TriPath Imaging's call will also be available online at
http://www.tripathimaging.com/. 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 molecular diagnostic products 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
related to our planned product introductions, product development
efforts and our continued growth. Important factors that may affect
TriPath Imaging's operating results include, without limitation:
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; TriPath Imaging may be unable to
increase its penetration of the large commercial laboratory segment
to the extent it expects while maintaining its business within its
traditional customer base, and may not achieve revenues to the
degree expected from the sale of reagents and instrument systems
derived from its molecular oncology development program; TriPath
Imaging's expanded sales and marketing presence may not have the
expected impact; 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; expenses may exceed expectations
and TriPath Imaging may not maintain profitability; changes in
general economic conditions or the healthcare industry may occur
that adversely affect TriPath Imaging's customers' purchasing
plans; 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 Oncology and
its collaborators may not prioritize or launch products as or when
expected; 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, 2005. Contact Stephen P. Hall Chief Financial Officer
336-290-8721 TriPath Imaging, Inc. Condensed Consolidated
Statements of Operations (In thousands, except per share data)
(Unaudited) Three months ended March 31, 2006 2005 Revenues $24,042
$19,327 Cost of revenues 7,905 5,779 Gross Profit 16,137 13,548
Operating expenses: Research and development 3,594 3,129 Regulatory
1,111 752 Selling and marketing 6,182 4,942 General and
administrative 3,564 3,895 14,451 12,718 Operating income 1,686 830
Interest income 234 100 Interest expense Net income before income
taxes Income taxes (4) (5) 1,916 925 (171) - Net income $1,745 $925
Earnings per common share Basic $0.05 $0.02 Diluted $0.04 $0.02
Weighted-average common shares outstanding Basic 38,361 38,155
Diluted 39,230 39,258 TriPath Imaging, Inc. Condensed Consolidated
Balance Sheets (In thousands) March 31, December 31, 2006 2005
(unaudited) (audited) Assets Current assets: Cash and cash
equivalents $23,059 $22,457 Accounts receivable Net investment in
sales-type leases 16,195 15,647 1,108 828 Inventory 12,443 12,564
Other current assets 2,808 1,676 Total current assets 55,613 53,172
Customer-use assets 8,019 8,044 Property and equipment 4,787 4,556
Other assets 2,011 2,362 Net investment in sales-type leases, net
of current portion 1,978 1,807 Intangible assets 6,805 7,027 Total
assets $79,213 $76,968 Liabilities and stockholders' equity Current
liabilities and deferred revenue $10,998 $10,911 Long-term
liabilities 96 98 Total liabilities 11,094 11,009 Stockholders'
equity: Common stock and additional paid-in capital 292,282 291,944
Accumulated other comprehensive income 88 11 Accumulated deficit
(224,170) (225,915) Treasury stock (81) (81) Total stockholders'
equity 68,119 65,959 Total liabilities and stockholders' equity
$79,213 $76,968 DATASOURCE: TriPath Imaging, Inc. CONTACT: Stephen
P. Hall, Chief Financial Officer of TriPath Imaging, Inc.,
+1-336-290-8721 Web site: http://www.tripathimaging.com/
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