Exhibit 99.1
Contact: John Jordan
Director of Investor Relations
508-541-8800, ext. 145
PLC SYSTEMS REPORTS FIRST QUARTER RESULTS
Company Provides Milestones To Track Progress Of New Product Line
Franklin, MA, April 29, 2004 - PLC Systems Inc. (AMEX: PLC), a worldwide leader
in cardiac laser technologies, today reported financial results for the three
months ended March 31, 2004. First quarter total revenues increased to
$1,909,000 compared with $1,734,000 in the first quarter of 2003. The net loss
for the first quarter of 2004 was $350,000, or $.01 per share, compared to net
income of $15,000, or $.00 per share, in the first quarter of 2003.
During the first quarter, PLC Systems and Edwards Lifesciences Corporation
(NYSE:EW) announced that the two companies entered into an exclusive, multi-year
agreement to develop and manufacture Edwards' Optimaze surgical ablation system,
a cardiac laser technology designed to treat cardiac arrhythmias.
"PLC entered 2004 with a growth strategy to pursue opportunities that would
provide the company with product diversification," stated Mark R. Tauscher,
president and CEO of PLC Systems. "By executing our strategy, we have
positioned PLC for future growth. Our first quarter research and development
investments of $529,000 are a clear indication of our commitment to this
strategy. In February, we expanded our product portfolio by adding the Optimaze
system. This first step provides the foundation for the new PLC, a
multi-product company focused on creating innovative technologies for the
cardiac and vascular markets."
Prior to the expanded relationship between Edwards and PLC, Optimaze was an
ongoing program within Edwards. During the next three quarters, the research
and development, as well as the manufacturing of the entire Optimaze system,
will be transitioned to PLC. Edwards expects to introduce the Optimaze system
in the second half of 2004.
Tauscher commented on the new opportunity, "We are very pleased with the
progress of our new Optimaze project. We have been aggressive in ramping up our
capabilities to finish the research and development phase as well as positioning
ourselves to manufacture both the laser and disposable components of the
Optimaze system. In order to track our performance, we believe it is important
to establish project milestones that are expected to be completed in the next
three quarters. As we drive toward generating revenue in 2005, our key
objectives are as follows: infrastructure build out completed in the third
quarter; infrastructure validation completed in the fourth quarter; Optimaze
laser product release in the fourth quarter; and Optimaze disposable hand piece
product release in the first quarter of 2005."
Commenting on the first quarter TMR results, "During the first quarter, the
demand for our CO2 TMR laser system continued to be healthy, which is evident by
the number of new lasers shipped to hospitals and the conversion of previously
placed lasers into sales. We believe that the recently issued Society of
Thoracic Surgeons' practice guidelines for TMR will be a positive influence on
the adoption of the TMR therapy."
During the first quarter of 2004, PLC shipped eight next-generation CO2 Heart
Lasers (HL2) to United States hospitals through Edwards Lifesciences, PLC's
exclusive U.S. sales and marketing partner. Six of the eight HL2 shipments were
new lasers and two were redeployed lasers.
PLC ended the first quarter of 2004 with 163 CO2 Heart Lasers located at heart
centers throughout the U.S., comprised of 114 HL2 customers and 49 HL1
customers. As of March 31, 2004, PLC's U.S. laser base (HL1 and HL2) had
increased by more than 18 percent during the preceding twelve months
During the first quarter of 2004, a total of 427 disposable kits were shipped
worldwide. Edwards delivered 382 disposable kits to United States hospitals and
PLC shipped 45 disposable kits to international hospitals. In comparison, a
total of 413 disposable kits were delivered worldwide during the quarter ended
March 31, 2003.
Tauscher concluded, "Our vision is to build a world-class multi-product,
multi-platform medical technology company, focused on creating innovative
technologies for the cardiac and vascular markets. We are making great strides
toward this goal. We believe that our TMR business can and will continue to
grow. The Optimaze project is on course and should generate revenues for PLC in
early 2005. In addition, we continue to investigate additional business
opportunities that can provide greater revenue growth and diversification. By
executing our strategy, we believe PLC's future is bright."
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In conjunction with announcing first quarter results, PLC Systems will be
hosting a conference call today, April 29, at 11:00 a.m. Eastern Time. The call
may be joined via telephone by dialing (800) 884-5695 at least 5 minutes prior
to the start of the call. The passcode is: 33853126. A live Webcast of the
call will be available and accessible at the investor relations section of the
Company's Website at www.plcmed.com. A recording of the conference call will be
available for the next month on PLC's Website.
About PLC Systems Inc.
PLC Systems is a medical technology company specializing in innovative
technologies for the cardiac and vascular markets. Currently, the company is
focused on two unique laser therapies for the treatments of severe angina and
cardiac arrhythmias. Headquartered in Franklin, Mass., PLC pioneered the CO2
Heart Laser System that cardiac surgeons use to perform CO2 transmyocardial
revascularization (TMR) to alleviate symptoms of severe angina. For the cardiac
arrhythmia market, PLC is developing a surgical cardiac ablation laser
technology, known as the Optimaze. Additional company information can be found
at www.plcmed.com.
This press release contains "forward-looking" statements. For this purpose, any
statements contained in this press release that relate to prospective events or
developments are deemed to be forward-looking statements. Words such as
"believes," "anticipates," "plans," "expects," "will" and similar expressions
are intended to identify forward-looking statements. Our statements of our
objectives are also forward looking statements. While we may elect to update
forward-looking statements in the future, we specifically disclaim any
obligation to do so, even if our estimates change, and you should not rely on
these forward-looking statements as representing our views as of any date
subsequent to the date of this press release. Actual results could differ
materially from those indicated by such forward-looking statements as a result
of a variety of important factors, including we may be unable to successfully
develop products under our new agreement with Edwards and Edwards may be
unsuccessful in distributing these products, operational changes, competitive
developments may affect the market for our products, regulatory approval
requirements may affect the market for our products, we may be unable to
convince health care professionals and third party payers of the medical and
economic benefits of the CO2 Heart Lasers and the Optimaze System, and there can
be no assurance that all payers will reimburse health care providers who perform
TMR procedures or that reimbursement, if provided, will be adequate, and
additional risk factors described in our Report on Form 10-K for the year ended
December 31, 2003, and our other SEC reports.
PLC Systems, PLC Medical Systems, PLC and CO2 Heart Laser are trademarks of PLC
Systems Inc.
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PLC SYSTEMS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
March 31,
2004 2003
Revenues:
Product sales $ 1,531 $ 1,406
Placement and service fees 378 328
Total revenues 1,909 1,734
Cost of revenues:
Product sales 590 525
Placement and service fees 176 116
Total cost of revenues 766 641
Gross profit 1,143 1,093
Operating expenses:
Selling, general and administrative 990 856
Research and development 529 241
Total operating expenses 1,519 1,097
Loss from operations (376 ) (4 )
Other income, net 26 19
Net income (loss) $ (350 ) $ 15
Basic and diluted earnings (loss) per share $ (.01 ) $ .00
Average shares outstanding:
Basic 29,924 29,798
Diluted 29,924 29,811
CONDENSED BALANCE SHEET
March 31, December 31,
2004 2003
Cash and cash equivalents $ 10,880 $ 6,377
Total current assets 14,048 9,367
Total assets 14,562 9,849
Total current liabilities 2,710 1,962
Shareholders' equity 7,289 7,556
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