-- First Quarter 2007 Revenues Increase 14% Compared to First Quarter
2006 Revenues
-- Pillcam SB Sales Increase by 19% Over First Quarter 2006
-- $0.1 Million Net Income Compared to Net Loss of $3.0 Million in Q1
2006
-- $1.2 Million Non-GAAP Net Income Compared to $1.7 Million Net Loss in
Q1 2006
-- Company Refines 2007 Revenue Guidance to Higher End of Range
Given Imaging Ltd. (Recent Highlights
-- In April, Japan's Ministry of Health, Labor and Wealth approved
PillCam SB Capsule and equipment for sale and marketing.
-- Given Imaging signed a global strategic agreement with Fujinon
Corporation to collaborate on research and development, sourcing and non-
exclusive distribution activities.
-- Wisconsin Physicians Service (WPS), the Medicare Part B Carrier for
Wisconsin, Illinois, Michigan and Minnesota expanded its coverage policy
for capsule endoscopy of the small bowel. The revised policy states that
PillCam SB can be used as a primary diagnostic tool to evaluate patients
with suspected but undiagnosed Crohn's disease, small bowel tumors and
malabsorption syndrome. Wisconsin Physicians Service serves approximately 3
million Medicare beneficiaries.
First Quarter Webcast Information
Given Imaging will host a conference call tomorrow, May 8, 2007, at 9:00
a.m. Eastern time to discuss first quarter 2007 results. To participate in
the teleconference, please dial (877) 704-5384 fifteen minutes before the
conference begins. International callers should dial (913) 312-1297. The
call will also be webcast live at www.givenimaging.com. A replay of the
call will be available for thirty days on the company's website, or until
May 22, 2007 by dialing 888-203-1112. International callers should dial
719-457-0820. The replay participant code is 8820442.
Given Imaging Financial Community Meeting
Given Imaging will host a meeting with members of the financial community
in New York on Thursday, May 24 at 12:00pm. Management will review
business objectives and goals and provide an update on the company's
PillCam platform of products; PillCam SB, PillCam ESO and PillCam COLON.
In addition, leading gastroenterologists will present key capsule endoscopy
data presented at Digestive Disease Week, taking place earlier in the week.
The event will be webcast live at www.givenimaging.com.
About Given Imaging Ltd.
Given Imaging is redefining gastrointestinal diagnosis by developing,
producing and marketing innovative, patient-friendly products for detecting
gastrointestinal disorders. The company's technology platform is the
PillCam™ Platform, featuring the PillCam video capsule, a disposable,
miniature video camera contained in a capsule, which is ingested by the
patient, a sensor array, data recorder and RAPID® software. Given Imaging
has three commercially available capsules: the PillCam SB video capsule to
visualize the entire small intestine which is currently marketed in the
United States and in more than 60 other countries; the PillCam ESO video
capsule to visualize the esophagus; and the Agile™ patency capsule to
determine the free passage of the PillCam capsule in the GI tract. The
PillCam COLON video capsule to visualize the colon has been cleared for
marketing in the European Union, and multi-center clinical trials are
underway in Europe and the U.S. A capsule to visualize the stomach is under
development. More than 500,000 patients worldwide have benefited from the
PillCam capsule endoscopy procedure. Given Imaging's headquarters,
manufacturing and R&D facilities are located in Yoqneam, Israel; it has
direct sales and marketing operations in the United States, Germany and
France, and local offices in Japan, Spain and Australia. For more
information, visit http://www.givenimaging.com.
This press release contains forward-looking statements within the meaning
of the "safe harbor" provisions of the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements include, but are not
limited to, projections about our business and our future revenues,
expenses and profitability. Forward-looking statements may be, but are not
necessarily, identified by the use of forward-looking terminology such as
"may," "anticipates," "estimates," "expects," "intends," "plans,"
"believes," and words and terms of similar substance. Forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual events, results, performance, circumstances or
achievements of the Company to be materially different from any future
events, results, performance, circumstances or achievements expressed or
implied by such forward-looking statements. Factors that could cause
actual events, results, performance, circumstances or achievements to
differ from such forward-looking statements include, but are not limited
to, the following: (1) satisfactory results of clinical trials with PillCam
Colon (2) our ability to receive regulatory clearance or approval to market
our products or changes in regulatory environment, (3) our success in
implementing our sales, marketing and manufacturing plans, (4) protection
and validity of patents and other intellectual property rights, (5) the
impact of currency exchange rates, (6) the effect of competition by other
companies, (7) the outcome of future litigation, including patent
litigation with Olympus Corporation, (8) the reimbursement policies for our
product from healthcare payors, (9) quarterly variations in operating
results, (10) the possibility of armed conflict or civil or military unrest
in Israel, and (11) other risks and factors disclosed in our filings with
the U.S. Securities and Exchange Commission, including, but not limited to,
risks and factors identified under such headings as "Risk Factors,"
"Cautionary Language Regarding Forward-Looking Statements" and "Operating
Results and Financial Review and Prospects" in the Company's Annual Report
on Form 20-F for the year ended December 31, 2005. You are cautioned not
to place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. Except for the Company's
ongoing obligations to disclose material information under the applicable
securities laws, it undertakes no obligation to release publicly any
revisions to any forward-looking statements, to report events or to report
the occurrence of unanticipated events.
Given Imaging Ltd. and its Consolidated Subsidiaries
Consolidated Balance Sheets
In thousands except share data
March 31, December 31,
------------ ------------
2007 2006
------------ ------------
(Unaudited) (Audited)
------------ ------------
Assets
Current assets
Cash and cash equivalents $ 30,011 $ 44,510
Short-term investments 26,440 17,245
Accounts receivable:
Trade (Net of provisions for doubtful debts
of $600 and of $787 as of March 31, 2007 and
December 31, 2006, respectively) 16,748 18,887
Other 2,208 1,463
Inventories 17,387 18,168
Prepaid expenses 1,766 1,340
Deferred taxes 1,613 1,374
Advances to suppliers 125 82
------------ ------------
Total current assets 96,298 103,069
------------ ------------
Deposits 487 469
Assets held for severance benefits 2,210 1,984
Marketable Securities 39,796 34,769
Fixed assets, at cost, less accumulated
depreciation 14,351 14,811
Other assets, at cost, less accumulated
amortization 3,077 3,075
------------ ------------
Total Assets $ 156,219 $ 158,177
------------ ------------
Liabilities and shareholders' equity
Current liabilities
Current installments of obligation under
capital lease $ 30 $ 13
Accounts payable
Trade 4,436 5,550
Other 12,182 14,620
Deferred revenue 4,338 3,871
------------ ------------
Total current liabilities 20,986 24,054
------------ ------------
Long-term liabilities
Deferred income 19,986 20,411
Obligation under capital lease, net - 20
Liability for employee severance benefits 2,655 2,407
------------ ------------
Total long-term liabilities 22,641 22,838
------------ ------------
Total liabilities 43,627 46,892
------------ ------------
Minority interest 3,274 3,499
------------ ------------
Shareholders' equity
Share capital:
Ordinary Shares, NIS 0.05 par value each
(90,000,000 shares authorized; 28,694,666 and
28,641,291 shares Issued and fully paid as of
March 31, 2007 and December 31, 2006,
respectively) 336 335
Additional paid-in capital 157,657 156,197
Capital reserve 2,166 2,166
Accumulated deficit (50,841) (50,912)
------------ ------------
Total shareholders' equity 109,318 107,786
------------ ------------
Total liabilities and shareholders' equity $ 156,219 $ 158,177
============ ============
Given Imaging Ltd. and its Subsidiaries
Consolidated Statements of Operations
In thousands except share and per share data
Three month period ended
March 31, Year ended
-------------------------- December 31,
2007 2006 2006
------------ ------------ ------------
(Unaudited) (Unaudited) (Audited)
------------ ------------ ------------
Revenues $ 23,052 $ 20,268 $ 95,029
Cost of revenues 6,022 5,140 24,154
------------ ------------ ------------
Gross profit 17,030 15,128 70,875
------------ ------------ ------------
Operating expenses
Research and development, gross (2,783) (3,046) (12,678)
Royalty bearing grants 93 - 1,867
------------ ------------ ------------
Research and development, net (2,690) (3,046) (10,811)
Sales and marketing expenses (11,506) (12,693) (50,732)
General and administrative
expenses (3,943) (3,726) (16,027)
------------ ------------ ------------
Total operating expenses (18,139) (19,465) (77,570)
------------ ------------ ------------
Operating loss (1,109) (4,337) (6,695)
Financing income, net 1,202 959 3,980
------------ ------------ ------------
Profit (loss) before taxes on
income 93 (3,378) (2,715)
Taxes on income (247) 271 (127)
------------ ------------ ------------
Loss before minority share (154) (3,107) (2,842)
Minority share in losses of
subsidiary 225 61 1,334
------------ ------------ ------------
Net profit (loss) $ 71 $ (3,046) $ (1,508)
============ ============ ============
Basic profit (loss) per Ordinary
Share $ 0.00 $ (0.11) $ (0.05)
============ ============ ============
Diluted profit (loss) per
Ordinary Share $ 0.00 $ (0.11) $ (0.05)
============ ============ ============
Weighted average number of
Ordinary Shares used to
compute basic profit (loss)
per Ordinary share 28,659,520 27,978,210 28,053,849
============ ============ ============
Weighted average number of
Ordinary Shares used to
compute diluted profit (loss)
per Ordinary share 30,503,871 27,978,210 28,053,849
============ ============ ============
Contact Information: For further information contact: Fern Lazar/David Carey Lazar Partners Ltd. 1-(866) GIVEN-IR Email Contact/ Email Contact