TranS1 Inc. Reports Operating Results for the First Quarter of 2012, Issues Second Quarter 2012 Guidance
WILMINGTON, N.C., May 8, 2012 (GLOBE NEWSWIRE) — TranS1 Inc. TSON -5.60% , a medical device company focused on designing, developing and marketing products to treat degenerative conditions of the spine affecting the lower lumbar region, today announced its financial results for the first quarter ended March 31, 2012.
Comparison of Selected Financial Results (in
millions, except per share data)
Three Months
Ended March
31,
--------------
2012 2011
------ ------
Total revenue $ 3.8 $ 5.1
Net loss (5.8) (5.7)
Net loss per common share (0.21) (0.27)
Revenues were $3.8 million in the first quarter of 2012, representing a 26% decrease from revenues of $5.1 million in the first quarter of 2011. Domestic revenues were $3.5 million in the first quarter of 2012, compared to $4.6 million in the first quarter of 2011. Gross margin was 73.6% in the first quarter of 2012 as compared to 74.7% in the first quarter of 2011.
Net loss was $5.8 million in the first quarter of 2012, compared to a net loss of $5.7 million in the first quarter of 2011. Net loss per common share was $0.21 in the first quarter of 2012 compared to a net loss per share of $0.27 in the first quarter of 2011.
Cash and cash-equivalents were $38.5 million as of March 31, 2012.
“In the first quarter we made significant progress in securing physician reimbursement, driving adoption of the VEO(TM) direct lateral system and furthering our clinical research program,” said Ken Reali, President and Chief Executive Officer of TranS1. “We are also focused on investing in the business to leverage the implementation of the Category I code for AxiaLIF(R) in January 2013.”
TranS1 Outlook
For the second quarter ending June 30, 2012, the Company expects total revenues in the range of $3.3 – $3.7 million.
Conference Call
TranS1 will host a conference call today at 4:30 pm ET to discuss its first quarter financial results. To listen to the conference call on your telephone, please dial (877) 881-2183 for domestic callers and (970) 315-0453 for international callers approximately ten minutes prior to the start time. The call will be concurrently webcast. To access the live audio broadcast or the archived recording, use the following link at http://ir.trans1.com/events.cfm .
About TranS1 Inc.
TranS1 is a medical device company focused on designing, developing and marketing products to treat degenerative conditions of the spine affecting the lower lumbar region. TranS1 currently markets the AxiaLIF family of products for single and two level lumbar fusion, the VEO lateral access and interbody fusion system and the Vectre(TM) and Avatar(TM) posterior fixation systems for lumbar fixation supplemental to AxiaLIF fusion. TranS1 was founded in May 2000 and is headquartered in Wilmington, North Carolina. For more information, visit www.trans1.com .
Forward Looking Statements
This press release includes statements relating to our efforts to gain favorable coverage decisions for our products that are based on our current beliefs and assumptions. These statements constitute “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control, and which may cause results to differ materially from expectations. Factors that could cause our results to differ materially from those described include, but are not limited to, the pace of adoption of our product technology by spine surgeons, the outcome of coverage and reimbursement decisions by the government and third party payors, the success of our continuing product development efforts, the effect on our business of existing and new regulatory requirements, uncertainty surrounding the outcome of the matters relating to the subpoena issued to the Company by the Department of Health and Human Services, Office of Inspector General, stockholder class action lawsuits, and other economic and competitive factors. For a discussion of the most significant risks and uncertainties associated with TranS1’s business, please review the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2011. You are cautioned not to place undue reliance on these forward looking statements, which are based on TranS1’s expectations as of the date of this press release and speak only as of the date of this press release. We undertake no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise.
TranS1 Inc.
Consolidated Statements of Operations and
Comprehensive Loss
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
----------------------
2012 2011
---------- ----------
Revenue $ 3,782 $ 5,130
Cost of revenue 997 1,296
---------- ----------
Gross profit 2,785 3,834
---------- ----------
Operating expenses:
Research and development 1,333 1,582
Sales and marketing 5,299 6,383
General and administrative 1,881 1,613
---------- ----------
Total operating expenses 8,513 9,578
---------- ----------
Operating loss (5,728) (5,744)
Other income (expense), net (30) 18
---------- ----------
Net loss $ (5,758) $ (5,726)
========== ==========
Other comprehensive income
(loss):
Foreign currency translation
adjustments -- 8
---------- ----------
Comprehensive loss $ (5,758) $ (5,718)
========== ==========
Net loss per common share -
basic and diluted $ (0.21) $ (0.27)
========== ==========
Weighted average common
shares outstanding - basic
and diluted 27,245 20,886
========== ==========
TranS1 Inc.
Consolidated Balance Sheets
(in thousands)
(Unaudited)
December
March 31, 31,
2012 2011
--------- ---------
Assets
Current assets:
Cash and cash equivalents $ 38,467 $ 38,724
Short-term investments -- 6,027
Accounts receivable, net 2,390 2,522
Inventory 4,675 4,525
Prepaid expenses and other
assets 485 680
--------- ---------
Total current assets 46,017 52,478
Property and equipment, net 2,014 1,554
--------- ---------
Total assets $ 48,031 $ 54,032
========= =========
Liabilities and
Stockholders' Equity
Current liabilities:
Accounts payable $ 2,614 $ 3,303
Accrued expenses 1,304 1,203
--------- ---------
Total current
liabilities 3,918 4,506
Noncurrent liabilities 34 26
Stockholders' equity
Common stock 3 3
Additional paid-in capital 158,740 158,403
Accumulated other
comprehensive income
(loss) 13 13
Accumulated deficit (114,677) (108,919)
--------- ---------
Total stockholders'
equity 44,079 49,500
--------- ---------
Total liabilities and
stockholders' equity $ 48,031 $ 54,032
========= =========
TranS1 Inc.
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three Months Ended
March 31,
--------------------
2012 2011
--------- ---------
Cash flows from operating activities:
Net loss $ (5,758) $ (5,726)
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation 207 148
Stock-based compensation 331 379
Allowance for excess and obsolete
inventory 12 240
Provision for bad debts (41) 25
Loss on sale of fixed assets 30 --
Changes in operating assets and
liabilities:
(Increase) decrease in accounts
receivable 173 56
(Increase) decrease in inventory (162) (522)
(Increase) decrease in prepaid expenses 195 (89)
Increase (decrease) in accounts payable (689) (10)
Increase (decrease) in accrued expenses 109 (479)
--------- ---------
Net cash used in operating activities (5,593) (5,978)
--------- ---------
Cash flows from investing activities:
Purchases of property and equipment (697) (69)
Purchases of investments -- (16,102)
Sales and maturities of investments 6,027 4,009
--------- ---------
Net cash provided by (used in) investing
activities 5,330 (12,162)
--------- ---------
Cash flows from financing activities:
Proceeds from exercise of stock options 6 12
--------- ---------
Net cash provided by financing activities 6 12
--------- ---------
Effect of exchange rate changes on cash
and cash equivalents -- 8
--------- ---------
Net increase (decrease) in cash and cash
equivalents (257) (18,120)
Cash and cash equivalents, beginning of
period 38,724 24,461
--------- ---------
Cash and cash equivalents, end of period $ 38,467 $ 6,341
========= =========
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: TranS1 Inc.
CONTACT: Investors:
TranS1 Inc.
Joseph P. Slattery, 910-332-1700
Executive Vice-President and Chief Financial Officer
or
Westwicke Partners
Mark Klausner, 443-213-0501
trans1@westwicke.com
