EX-99.1 3 dex991.htm EARNINGS RELEASE OF CYTYC CORPORATION EARNINGS RELEASE OF CYTYC CORPORATION

 

Exhibit 99.1

 

Contact:

 

Robert Bowen, Chief Financial Officer

   

Anne Rivers, Investor Relations

   

Jeff Keene, Healthcare Media

   

Cytyc Corporation: 978-266-3010

   

www.cytyc.com

 

   

Leslie Wolf-Creutzfeldt/Lauren Levine

   

Media: Sean Leous

   

FD Morgen-Walke: 212-850-5600

 

   

Lloyd Benson/Shanti Skiffington

   

Schwartz Communications: 781-684-0770

 

FOR IMMEDIATE RELEASE

 

CYTYC REPORTS STRONG FIRST QUARTER 2003 RESULTS

EPS Grows 23 Percent on Revenue Growth of 7 Percent

 

Boxborough, MA, April 23, 2003 — Cytyc Corporation (Nasdaq:CYTC) today announced results for the first quarter ended March 31, 2003. Revenues for the quarter rose 7 percent to $72.6 million compared to $68.0 million in the first quarter of 2002. Earnings per share increased 23 percent to $0.17 compared to $0.14 reported in the first quarter of 2002. Net income increased 12 percent to $19.8 million compared to $17.6 million in the first quarter of 2002.

 

Patrick J. Sullivan, Cytyc’s chairman, president, and chief executive officer, commented, “We are pleased with our strong operating and financial performance throughout the quarter, and we reached several important milestones in our growth initiatives. Clinical support for the ThinPrep® Pap Test continues to build throughout the world and insurance reimbursement continues to expand for the FirstCyte Breast Test.”

 

“During the quarter, the Scottish Cervical Cancer Screening Programme selected the ThinPrep Pap Test as the exclusive technology for conversion of all cervical screening centers in Scotland. In the U.K., the National Institute for Clinical Excellence (NICE) Appraisals Committee issued a preliminary evaluation report recommending the use of liquid-based cytology as the primary means of collecting samples in the cervical screening program in England and Wales.” Mr. Sullivan added, “We also announced expanded insurance coverage for the FirstCyte Breast Test with the addition of Blue Cross Blue Shield of Oklahoma, Coventry Health Care and the Cleveland Clinic Health System Employee Plan. In addition, we have been notified that the U.S. Food and Drug Administration (FDA) has successfully completed its facility inspection, and we eagerly await final regulatory approval of the ThinPrep® Imaging System.”

 

Mr. Sullivan concluded, “We are focused on continuing U.S. conversion to the ThinPrep Pap Test, launching the ThinPrep Imaging System, increasing adoption of the FirstCyte Breast Test for breast cancer risk assessment, capitalizing on international opportunities, and evaluating business development opportunities to leverage our technology and distribution channel.”

 

-more-


 

Cytyc Reports Strong First Quarter 2003 Results

Page 2

 

Cytyc management will discuss first quarter results, business highlights and future expectations during a conference call on April 23, at 5:00 p.m. (Eastern). The call will be hosted by Patrick Sullivan, chairman, president, and chief executive officer, Robert Bowen, vice president and chief financial officer, Christopher Bleck, vice president of commercial operations, and Daniel Levangie, president and chief executive officer of Cytyc Health Corporation. A live webcast of the call may be accessed at Cytyc’s website, http://ir.cytyc.com, and the event will be available for replay at this site approximately two hours following the call until May 2, 2003. Those without web access may access the call by dialing 212-346-6565. A telephonic replay of the call will be available through May 2, 2003, by dialing 402-977-9140 (Access Code: 21140167).

 

Cytyc Corporation develops, manufactures, and markets products for medical diagnostic applications primarily focused on women’s health. The ThinPrep® System is widely used for cervical cancer screening and is the platform from which the Company has launched its expansion into breast cancer risk assessment with the FirstCyte Breast Test. The ThinPrep System consists of the ThinPrep® 2000 Processor, ThinPrep® 3000 Processor, and related reagents, filters, and other supplies. Cytyc is traded on The Nasdaq Stock Market under the symbol CYTC.

 

Cytyc and ThinPrep are registered trademarks of Cytyc Corporation and FirstCyte is a trademark for which federal registration has been applied.

 

Forward-looking statements in this press release are made pursuant to the provisions of Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release which are not strictly historical statements, including, without limitation, statements relating to the Company’s financial condition, operating results and future economic performance, and management’s expectations regarding future growth opportunities, product acceptance and business strategy, constitute forward-looking statements. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties, which could cause actual outcomes and results to differ materially from those statements. Risks and uncertainties include, among others, dependence on key personnel and proprietary technology, uncertainty of product development efforts, management of growth, risks associated with competition and competitive pricing pressures, risks associated with the FDA regulatory approval processes and any healthcare reimbursement policies, and other risks detailed in the Company’s filings with the Securities and Exchange Commission, including under the heading “Certain Factors Which May Affect Future Results” in its 2002 Annual Report on Form 10-K filed with the Commission. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date they were made. The Company disclaims any obligation to publicly update or revise any such statements to reflect any change in Company expectations or events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.


 

Cytyc Reports Strong First Quarter 2003 Results

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Cytyc Corporation

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

    

March 31,

2003


    

December 31,

2002


 

Assets

                 

Current assets:

                 

Cash and investment securities

  

$

172,999

 

  

$

163,744

 

Accounts receivable, net

  

 

39,741

 

  

 

34,066

 

Inventories

  

 

12,373

 

  

 

11,012

 

Other current assets

  

 

4,131

 

  

 

2,046

 

    


  


Total current assets

  

 

229,244

 

  

 

210,868

 

    


  


Property and equipment, net

  

 

28,289

 

  

 

27,281

 

Other assets, net

  

 

119,731

 

  

 

123,477

 

    


  


Total Assets

  

$

377,264

 

  

$

361,626

 

    


  


Liabilities and Stockholders’ Equity

                 

Current liabilities

  

$

44,044

 

  

$

36,585

 

Non-current liabilities

  

 

70

 

  

 

313

 

Stockholders’ equity:

                 

Capital stock

  

 

396,021

 

  

 

393,245

 

Treasury stock

  

 

(108,340

)

  

 

(92,717

)

Accumulated other comprehensive income

  

 

2,291

 

  

 

776

 

Retained earnings

  

 

43,178

 

  

 

23,424

 

    


  


Total stockholders’ equity

  

 

333,150

 

  

 

324,728

 

    


  


Total Liabilities and Stockholders’ Equity

  

$

377,264

 

  

$

361,626

 

    


  



 

Cytyc Reports Strong First Quarter 2003 Results

Page 4

 

Cytyc Corporation

Consolidated Statements of Income

(in thousands, except per share data)

(unaudited)

 

    

Three Months Ended

    

March 31,

    

2003


    

2002


Net sales

  

$

72,620

 

  

$

68,035

Cost of sales

  

 

12,367

 

  

 

12,610

    


  

Gross profit

  

 

60,253

 

  

 

55,425

    


  

Operating expenses:

               

Research and development

  

 

2,955

 

  

 

4,190

Sales and marketing

  

 

18,908

 

  

 

17,084

General and administrative

  

 

6,069

 

  

 

6,715

    


  

Total operating expenses

  

 

27,932

 

  

 

27,989

    


  

Income from operations

  

 

32,321

 

  

 

27,436

Other income, net:

               

Interest income

  

 

728

 

  

 

899

Other income (expense)

  

 

(112

)

  

 

49

    


  

Total other income, net

  

 

616

 

  

 

948

    


  

Income before provision for income taxes

  

 

32,937

 

  

 

28,384

Provision for income taxes

  

 

13,183

 

  

 

10,786

    


  

Net income

  

$

19,754

 

  

$

17,598

    


  

Net income per common and potential common share:

               

Basic

  

$

0.17

 

  

$

0.14

    


  

Diluted

  

$

0.17

 

  

$

0.14

    


  

Weighted average common and potential common shares outstanding:

               

Basic

  

 

113,418

 

  

 

121,780

    


  

Diluted

  

 

115,305

 

  

 

126,017