IRVINE, Calif., April 17, 2001 (PRIMEZONE) -- Interpore Cross International (Nasdaq:BONZ) today released financial results for the quarter ended March 31, 2001. The company reported that first quarter net sales declined slightly versus the same period in 2000, but indicated that they exceeded net sales reported for the third and fourth quarters of 2000.
Net sales for the first quarter of 2001 were $11.3 million, a 1% decrease compared to net sales of $11.4 million for the first quarter of 2000. Sales of orthobiologic products increased by 4% to $5.2 million, compared to $4.9 million in the first quarter last year. Within the orthobiologic products category, AGF(tm) products sales increased by 26% from $1.4 million to $1.8 million, and sales of synthetic bone products decreased by 5% from $3.5 million to $3.4 million. Spinal implant products sales of approximately $6.1 million decreased by 5% from $6.5 million in the first quarter of 2000.
Net income for the first quarter of 2001 was $1.0 million, or $.07 per diluted share, compared with net income for the first quarter in 2000 of $1.2 million, or $.08 per diluted share.
David C. Mercer, chairman and chief executive officer of Interpore Cross, commented on the operating results for the quarter: "While first quarter revenues were slightly below the amount reported for the first quarter of 2000, I'm pleased that they exceeded our revenues for the third and fourth quarters of last year. This resulted primarily from improved international sales and sales of our C-Tek(tm) Anterior Cervical Plate system, which was launched in the first quarter."
Joseph A. Mussey, president and chief operating officer, provided an update on the company's new product development: "Demand for our C-Tek system continues to be strong, and considering that our vendors have had some difficulty in meeting our initial inventory build requirements, first quarter sales of the C-Tek were better than expected. I'm also happy to report that 510(k) applications have been filed with the FDA for both our GEO(tm) Structure vertebral body replacement device and our TPS(tm) Telescopic Plate Spacer(tm) for thoraco-lumbar applications."
As previously announced, the company is conducting a conference call with analysts to review the financial results today at 5 p.m. (EDT). Audio access to the conference call will be available through a live Webcast via a link provided in the Corporate & Financial/Events section of Interpore Cross' Website at www.interpore.com. The Webcast of Interpore Cross' conference call will also be available for replay through May 16, 2001 by accessing the same link.
Interpore Cross International is a medical device company that designs, manufactures and markets spinal implant devices and orthobiologic products on a worldwide basis. The spinal products are used to treat degenerative conditions, deformities and trauma of the spine. The orthobiologic products are used for bone and soft tissue repair in orthopedic and other applications.
Certain statements in this release are forward-looking and may involve risks and uncertainties, including, but not limited to: the ability of the company to achieve estimated sales levels; product demand and market acceptance risks; risks that future sales growth may decline; risks that the company will not receive regulatory approval of products; risks that agents or distributors will be unsuccessful in sales of products; risks that joint venture partners will devote insufficient time or resources to the sale of our products; risks related to the development of future products; the risk of intellectual property litigation; and the impact of competitive products. Additional information on factors that could affect the company's financial results and growth prospects is disclosed in the company's reports filed from time to time with the Securities and Exchange Commission.
INTERPORE CROSS INTERNATIONAL
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended
March 31,
2000 2001
~unaudited~
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Net sales $11,443 $11,281
Cost of goods sold 3,552 3,362
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Gross profit 7,891 7,919
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Operating expenses:
Research and development 1,187 1,597
Selling and marketing 3,840 4,002
General and administrative 1,123 1,024
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Total operating expenses 6,150 6,623
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Income from operations 1,741 1,296
Interest and other income, net 155 336
Income before taxes 1,896 1,632
Income tax provision 739 628
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Net income $ 1,157 $ 1,004
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Net income per share:
Basic $ .08 $ .07
Diluted $ .08 $ .07
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Shares used in computing
net income per share:
Basic 13,715 14,424
Diluted 15,040 14,626
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
Dec. 31 Mar. 31
2000 2001
~unaudited~
--------- ----------
Assets
Cash and short-term
investments $14,610 $15,952
Other current assets 25,302 25,259
Property, plant and
equipment, net 1,509 1,359
Other assets 3,812 3,789
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Total assets $45,233 $46,359
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Liabilities & Stockholders'
Equity
Current liabilities $ 3,375 $ 3,494
Long-term liabilities -- --
Stockholders' equity 41,858 42,865
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Total liabilities &
stockholders' equity $45,233 $46,359
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