Conor Medsystems Announces Third Quarter 2006 Financial Results
MENLO PARK, Calif., Nov. 8 /PRNewswire-FirstCall/ — Conor Medsystems, Inc. (Nasdaq: CONR) today announced results of operations for the quarter ended September 30, 2006.
Conor reported a net loss for the third quarter of 2006 of $10.1 million, or $0.28 per share, compared to a net loss of $14.6 million, or $0.44 per share, for the three months ended September 30, 2005. For the nine months ended September 30, 2006, Conor reported a net loss of $39.8 million, or $1.15 per share, compared to a net loss of $38.1 million, or $1.16 per share, for the nine months ended September 30, 2005.
Revenues from product sales were $10.7 million for the third quarter of 2006, compared to $1.0 million for the third quarter of 2005. For the nine months ended September 30, 2006, revenues were $26.4 million, compared to $1.4 million for the nine months ended September 30, 2005.
Research and development expenses increased to $11.2 million in the third quarter of 2006 from $7.7 million in the third quarter of the prior year, primarily due to higher payroll expenses associated with an increased number of research and development personnel, expenditures for Conor's clinical trials and non-cash stock-based compensation expense. Research and development expenses for the nine months ended September 30, 2006 were $38.3 million, compared to $21.8 million for the same period in 2005.
General and administrative expenses were $6.0 million for the third quarter of 2006 compared to $6.4 million for the three months ended September 30, 2005. General and administrative expenses for the nine months ended September 30, 2006 were $17.2 million, compared to $16.5 million for the same period in 2005.
Conference Call and Webcast Information
Frank Litvack, M.D., Chairman and Chief Executive Officer, Michael Boennighausen, Chief Financial Officer, and members of the Conor Medsystems executive management team will host a conference call at 5:00 p.m. Eastern Time today to discuss Conor's operating and financial results and provide updates on the company's commercialization efforts, clinical trials, product development activities, litigation and other business matters.
To access the live audio broadcast or the subsequent archived recording, visit the webcast section of the company's website located at www.conormed.com. Please log on to Conor's website several minutes prior to the start of the presentation to ensure adequate time for any software download that may be necessary. A replay of the web cast will remain at this location until such time as the company reports its financial results for the fourth quarter of 2006.
The webcast is also being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.fulldisclosure.com and institutional investors can access the call via www.streetevents.com. The dial-in number for the conference call is 800-901-5217 in the U.S., 617-786-2964 outside the U.S., and the participant passcode is 45404076.
About Conor Medsystems
Conor Medsystems, Inc. develops innovative controlled vascular drug delivery technologies and has initially focused on the development of drug- eluting stents to treat coronary artery disease. For further information about Conor and controlled vascular delivery, visit www.conormed.com.
CoStar® is not available for sale in the U.S. CoStar is an investigational device limited by federal law to investigational use.
Conor Medsystems, Inc. | ||||
Three months ended | Nine months ended | |||
| 2006 | 2005 | 2006 | 2005 | |
| Product sales | $10,701 | $1,045 | $26,420 | $1,369 |
| Cost of sales (1) | 4,786 | 2,303 | 13,654 | 3,144 |
| Gross margin | 5,915 | (1,258) | 12,766 | (1,775) |
Operating expenses: Research and development (1) | 11,181 | 7,722 | 38,322 | 21,828 |
General and administrative (1) | 6,005 | 6,375 | 17,236 | 16,544 |
Total operating expenses | 17,186 | 14,097 | 55,558 | 38,372 |
| Loss from operations | (11,271) | (15,355) | (42,792) | (40,147) |
| Interest income | 1,256 | 841 | 2,567 | 2,309 |
| Other income (expense), net | (43) | (49) | 454 | (297) |
| Net loss | (10,058) | (14,563) | (39,771) | (38,135) |
| Basic and diluted net loss per share | $(0.28) | $(0.44) | $(1.15) | $(1.16) |
| Shares used to compute basic and diluted net loss per share | 36,170 | 33,170 | 34,436 | 32,903 |
| (1) Includes non-cash stock-based compensation expense as follows: | ||||
| Cost of sales | $246 | $— | $594 | $— |
| Research and development | 1,989 | 1,536 | 6,666 | 3,820 |
| General and administration | 1,850 | 1,756 | 5,371 | 5,317 |
| Total | $4,085 | $3,292 | $12,631 | $9,137 |
Consolidated Balance Sheet Data | ||
| September 30, 2006 | December 31, 2005 | |
| Cash and cash equivalents | $132,543 | $78,470 |
| Working capital | 134,469 | 69,513 |
| Total assets | 157,210 | 92,070 |
| Long-term liabilities | 239 | 334 |
| Accumulated deficit | (142,908) | (103,137) |
| Total stockholders' equity | 144,413 | 78,723 |
SOURCE Conor Medsystems, Inc. 11/08/2006
CONTACT: investors, Michael Boennighausen, Chief Financial Officer of
Conor Medsystems, Inc., +1-650-614-4100; or media, Karen L. Bergman of BCC
Partners, +1-650-575-1509, for Conor Medsystems, Inc.
Web site: http://www.conormed.com
(CONR)
