Conceptus(R) Updates 2011 Financial Guidance
December 08 2011 - 7:30AM
Conceptus, Inc. (Nasdaq:CPTS), developer of the
Essure® procedure, the leading non-surgical permanent birth control
method, today announced updated financial guidance for 2011.
The Company expects 2011 net sales to be in the range of $126
million to $128 million, compared with previous guidance for 2011
of $132 million to $136 million and 2010 net sales of $141 million.
As a result, the Company expects 2011 adjusted EBITDA levels to be
lower than the guidance range previously provided on October 25,
2011, but is not prepared to provide a specific update at this
time.
"We have experienced positive year-over-year domestic growth for
three consecutive months starting with September, which we
primarily attribute to improving OB/GYN patient visits and early
success with our direct-to-consumer advertising campaign," said
Gregory Lichtwardt, chief financial officer of
Conceptus. "However, U.S. sales growth in November was lower
than we had projected and we have decided to defer the regular
annual announcement of a price increase for next year which we
anticipate may change our customers' historical December buying
practices. Further, the continuing deterioration in the
European economic environment has resulted in increased softness in
procedure volumes in France and Spain, which are our two largest
overseas markets. While we remain bullish about the long-term
Essure business, we believe it is prudent to adjust our 2011 net
sales guidance at this time."
The Company expects to provide 2012 financial guidance in late
February concurrent with announcing full year 2011 financial
results.
In light of the guidance change and the Company's expectation
that it will no longer comply with certain financial covenants
under the Company's credit facility, the Company decided to
terminate the facility and avoid continuing to pay commitment fees
thereunder. There had been no draws to date under this
facility and there were no amounts outstanding. As of
September 30, 2011, the Company had cash, cash equivalents and
investments of $99.8 million. On February 15, 2012, holders of
$86.25 million aggregate principal amount of the Company's 2.25%
Convertible Senior Notes due 2027 have the right to require the
Company to repurchase all or a portion of their notes. While
the Company expects to use cash on hand to fund its repurchase
obligations with respect to such notes in February 2012, it may
consider alternatives to refinance a portion of these notes.
About the Essure® Procedure
The Essure procedure, FDA approved since 2002, is the first
permanent birth control method that can be performed in the comfort
of a physician's office in less than 10 minutes (average
hysteroscopic time) without hormones, cutting, burning or the risks
associated with general anesthesia or tubal ligation. Soft,
flexible inserts are placed in a woman's fallopian tubes through
the cervix without incisions. Over the next three months, the body
forms a natural barrier around and through the inserts to prevent
sperm from reaching the egg. Three months after the Essure
procedure, a doctor is able to perform an Essure Confirmation Test
to confirm that the inserts are properly placed and that the
fallopian tubes are fully blocked, allowing the patient to rely
upon Essure for permanent birth control.
The Essure procedure is 99.95% effective based on one year of
follow up with zero pregnancies reported in clinical trials, making
it the most effective form of permanent birth control on the
market. The procedure is covered by most insurance plans, and when
it is performed in a doctor's office the cost to the patient may be
as low as a simple co-pay. Essure has been proven and trusted by
physicians since 2002, with more than 570,000 women worldwide
having undergone the Essure procedure.
About Conceptus®, Inc.
Conceptus, Inc. is a leader in the design, development and
marketing of innovative solutions in women's healthcare. The
Company manufactures and markets the Essure procedure. The
Essure procedure is available in the United States, Europe,
Australia, New Zealand, Canada, Mexico, Central and South America
and the Middle East. The Company also promotes the GYNECARE
THERMACHOICE® Uterine Balloon Therapy System by ETHICON™ Women's
Health & Urology, a division of Ethicon, Inc., in U.S. OB/GYN
physician offices.
Please visit www.essure.com for more information on the Essure
procedure. Patients may call the Essure Information Center at
1-877-ESSURE-1 with questions or to find a physician in their
area.
The Conceptus, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7961
Forward Looking Statements
Except for the historical information contained herein, the
matters discussed in this press release include forward-looking
statements, the accuracy of which is subject to known and unknown
risks and uncertainties. These forward-looking statements
include, without limitation, discussions regarding projected net
sales and adjusted earnings before interest, taxes, depreciation,
amortization and stock-based compensation ("adjusted EBITDA") for
the full year 2011, the expected impact of ongoing macroeconomic
and insurance pressures on our growth in 2011, our ability to
market effectively to physicians and prospective patients,
the timing of our decision about domestic pricing for next
year, potential changes to our customers' buying practices and
alternatives regarding the refinancing of the Company's 2.25%
Convertible Senior Notes. These discussions and other
forward-looking statements included herein may differ significantly
from actual results. Such differences may be based upon factors
such as changes in strategic planning decisions by management,
re-allocation of internal resources, changes in the impact of
domestic and global macroeconomic pressures, reimbursement
decisions by insurance companies and domestic and foreign
governments, scientific advances by third parties, litigation
risks, attempts to repeal all or part of the Patient Protection and
Affordable Care Act of 2010, and the introduction of competitive
products, as well as those factors set forth in the Company's most
recent Annual Report on Form 10-K and most recent Quarterly Report
on Form 10-Q, and other filings with the Securities and Exchange
Commission. These forward-looking statements speak only as to
the date on which the statements were made. We undertake no
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events,
or otherwise.
© 2011 Conceptus, Inc.—All rights reserved.
CC-2975 7DEC11F
CONTACT: Investor Relations and Public Relations Contact:
Cindy Klimstra
(650) 962-4032
cindy_klimstra@conceptus.com
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