Full Year Fourth Full Year Fourth
2007 Qtr. 2007 2006 Qtr. 2006
-------- -------- -------- --------
GAAP net income (loss) $ 15,186 $ 12,835 $ (1,508) $ 1,461
-------- -------- -------- --------
InScope gain (22,860) (22,860) - -
-------- -------- -------- --------
Tax on InScope gain 3,000 3,000 - -
-------- -------- -------- --------
Compensation expenses (FAS123R) 5,651 1,672 5,213 1,078
-------- -------- -------- --------
IP Litigation expenses 5,222 2,452 1,077 383
-------- -------- -------- --------
Early repayment to OCS (effect on
COG) 4,843 4,843 - -
-------- -------- -------- --------
Adjustment to Early repayment to
OCS (effect on net R&D) 734 734 - -
-------- -------- -------- --------
Non-GAAP net income $ 11,776 $ 2,678 $ 4,782 $ 2,922
-------- -------- -------- --------
Non-GAAP EPS $ 0.38 $ 0.09 $ 0.16 $ 0.10
-------- -------- -------- --------
2008 Guidance
The company expects full year 2008 revenues to be between $130 million and
$136 million. The Company expects Non-GAAP fully diluted EPS of between
$0.44 and $0.52. Non-GAAP EPS
estimates exclude $0.23 of compensation expenses (FAS 123R) and between
$0.16 and $0.26 of legal expenses related to the Company's patent
litigation with Olympus.
Conference Call / Webcast Information
U.S. Call / Webcast
Given Imaging will host a conference call in English at 9:00am ET on
Thursday, February 21. To participate in this teleconference, please dial
(888) 213-3754 fifteen minutes before the conference is scheduled to begin.
Callers outside of the U.S. should dial (913) 312-0940. The call will also
be webcast live at www.givenimaging.com. A replay of the call will be
available for two weeks on the company's website, or until March 5, 2008 by
dialing (888) 203-1112. Callers outside of the U.S. should dial (719)
457-0820. The replay participant code is 4788458.
Hebrew Call
A conference call in Hebrew will take place on February 21 at 2:00pm Israel
time, 7am ET. To access this call, please dial +972 3 9180609 ten minutes
before the conference is scheduled to begin. A replay of the call will be
available from February 24 until February 26 by dialing +972 3 9255948.
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 a number of 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; the Agile™ patency capsule to
determine the free passage of the PillCam capsule in the GI tract and the
PillCam COLON video capsule to visualize the colon that has been cleared
for marketing in the European Union. More than 650,000 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 operating subsidiary companies in the United
States, Germany, France, Japan and Australia. Given Imaging's largest
shareholders include Elron Electronic Industries (NASDAQ & TASE: ELRN). For
more information, visit http://www.givenimaging.com.
Use of Non-GAAP Measures
This press release provides financial measures for net income and basic and
diluted earnings per share that exclude stock-based compensation expense
and patent litigation expenses and are therefore not calculated in
accordance with generally accepted accounting principals (GAAP). Management
believes that these non-GAAP financial measures provide meaningful
supplemental information regarding our performance that enhances
management's and investors' ability to evaluate the Company's net income
and earnings per share and to compare it with historical net income and
earnings per share prior to the adoption of FAS 123R and the beginning of
our patent litigation in the U.S.
The presentation of this non-GAAP financial information is not intended to
be considered in isolation or as a substitute for the financial information
prepared and presented in accordance with GAAP. Management uses both GAAP
and non-GAAP measures when evaluating the business internally and therefore
felt it is important to make these non-GAAP adjustments available to
investors.
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) our ability to obtain
reimbursement for our product from government and commercial 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, 2006. 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 subsidiaries
Consolidated Balance Sheets
(In thousands except per share data)
December 31
---------------------------
2006 2007
Assets
Current assets
Cash and cash equivalents $ 44,510 $ 37,103
Short-term investments 17,245 23,191
Accounts receivable:
Trade, net 18,887 23,315
Other 1,463 10,385
Inventories 18,168 15,960
Advances to suppliers 82 190
Deferred taxes 1,374 1,350
Prepaid expenses 1,340 1,289
------------ ------------
Total current assets 103,069 112,783
Deposits 469 892
Assets held for employees' severance payments 1,984 3,007
Marketable securities 34,769 41,629
Fixed assets, at cost, less accumulated
depreciation 14,811 15,422
Intangible assets, at cost, less accumulated
amortization 3,075 3,583
------------ ------------
Total Assets $ 158,177 $ 177,316
============ ============
December 31
---------------------------
2006 2007
Liabilities and shareholders' equity
Current liabilities
Current installments of obligation under
capital lease $ 13 $ 121
Accounts payable:
Trade 5,550 7,275
Other 14,620 21,012
Deferred income 3,871 9,379
------------ ------------
Total current liabilities 24,054 37,787
------------ ------------
Long-term liabilities
Deferred income 20,411 -
Obligation under capital lease 20 448
Liability in respect of employees' severance
payments 2,407 3,490
------------ ------------
Total long-term liabilities 22,838 3,938
------------ ------------
Total liabilities 46,892 41,725
------------ ------------
Commitments and contingencies
Minority interest 3,499 1,996
Shareholders' equity
Share capital:
Ordinary Shares, NIS 0.05 par value each
(90,000,000 shares authorized as of December
31, 2006 and 2007, 28,641,291 and 29,241,785
shares issued and fully paid as of
December 31, 2006 and 2007, respectively) 335 343
Additional paid-in capital 156,197 166,813
Capital reserve 2,166 2,166
Accumulated deficit (50,912) (35,727)
------------ ------------
Total shareholders' equity 107,786 133,595
------------ ------------
Total liabilities and shareholders' equity $ 158,177 $ 177,316
============ ============
Given Imaging Ltd. and its subsidiaries
Consolidated Statements of Operations
(In thousands except share and per share data)
Year ended December 31,
-------------------------------------
2005 2006 2007
----------- ----------- -----------
Revenues $ 86,776 $ 95,029 $ 112,868
Cost of revenues (22,070) (24,154) (29,721)
Early repayment of royalty bearing
government grants - - (4,843)
----------- ----------- -----------
Gross profit 64,706 70,875 78,304
----------- ----------- -----------
Operating expenses
Research and development, gross (8,833) (12,678) (12,847)
Royalty bearing government grants 1,244 1,867 1,242
----------- ----------- -----------
Research and development, net (7,589) (10,811) (11,605)
Sales and marketing (43,281) (50,732) (55,446)
General and administrative (9,657) (16,027) (20,981)
Termination of marketing agreement - - 22,860
Other - - (422)
----------- ----------- -----------
Total operating expenses (60,527) (77,570) (65,594)
----------- ----------- -----------
Operating profit (loss) 4,179 (6,695) 12,710
Financial income, net 762 3,980 5,520
----------- ----------- -----------
Profit (loss) before taxes on income
and minority share 4,941 (2,715) 18,230
Income Tax benefit (expense) 286 (127) (4,548)
----------- ----------- -----------
Profit (loss) before minority share 5,227 (2,842) 13,682
Minority share in losses of
subsidiary 1,116 1,334 1,503
----------- ----------- -----------
Net profit (loss) $ 6,343 $ (1,508) $ 15,185
=========== =========== ===========
Earning (loss) per share
Basic Earning (loss) per Ordinary
Share $ 0.23 $ (0.05) $ 0.52
=========== =========== ===========
Diluted Earning (loss) per Ordinary
Share $ 0.21 $ (0.05) $ 0.49
=========== =========== ===========
Weighted average number of Ordinary
Shares used to compute basic profit
(loss) per Ordinary Share 27,781,223 28,053,849 28,961,968
=========== =========== ===========
Weighted average number of Ordinary
Shares used to compute diluted
Earning (loss) per Ordinary Share 29,695,164 28,053,849 31,030,458
=========== =========== ===========
Contact Information: For further information contact: Fern Lazar/David Carey Lazar Partners Ltd. 1-866-GIVEN-IR