IRVINE, Calif., May 15 Alsius Corporation(Nasdaq: ALUS), the worldwide leader in intravascular temperature management(IVTM(TM)) therapies for critically ill patients, today reported on itsfinancial results and business for the first quarter ended March 31, 2008.
Revenue for the first quarter of 2008 increased 25 percent to $2.5million, compared to $2.0 million in the first quarter of 2007. The increasein revenue was attributable to an increase in sales in the U.S. of 40 percentcompared to the first quarter of 2007.
"The first quarter results reflect increased U.S. awareness of ourintravascular temperature management products," said Bill Worthen, presidentand chief executive officer of Alsius. "We are pleased with our performancegiven that the first calendar quarter tends to be the softest in the hospitalcapital equipment market. We are also getting back on track for growth inEurope, where we expect the growth rate to exceed that of 2007."
Additional First Quarter 2008 Financial Results
In the first quarter of 2008, gross profit was $0.6 million, compared to$0.08 million in the first quarter of 2007. Total operating expenses in thefirst quarter of 2008 were $6.0 million compared to $4.4 million in the sameperiod of 2007. Included in the first quarter 2008 expenses were non-cash,stock compensation expenses of $1.0 million, compared to $0.1 million duringthe same period in 2007. The increase in total operating expenses for thefirst quarter of 2008 was primarily attributable to the growth in Alsius'direct sales force and marketing activities to support worldwide marketexpansion.
As a percentage of revenue, cost of revenue decreased to 76 percent ofsales for the first quarter 2008, from 96 percent of sales for the firstquarter 2007. The percentage decrease was primarily due to the realization ofcost reduction programs and higher average selling prices as a result of anincrease in sales in the U.S.
The net loss for the first quarter of 2008 decreased to $5.5 million, or$0.27 per share, from $6.4 million, or $0.58 per share, for the first quarterof 2007.
Cash and cash equivalents were $18.5 million at March 31, 2008, comparedto $24.4 million at December 31, 2007. Cash used for operating activitiesduring the first quarter was $5.5 million. In addition, the company repaid$0.8 million of debt, in the first quarter of 2008.
"As we continue to increase revenues from sales of our systems in theU.S., it is important to note that, at the end of the first quarter of 2008,the cumulative number of systems sold in the U.S. was approximately doublewhat it was at the end of the first quarter in 2007," added Mr. Worthen. "Inaddition, the total number of hospitals that have purchased three or moresystems has also doubled over the past year, and we continue to have a robustpipeline of leads. We see this as an important indicator of interest as westrive to penetrate the critical care market with our IVTM solution."
Alsius, headquartered in Irvine, Calif., is a medical device company thatdevelops, manufactures and sells proprietary products to precisely controlpatient temperature in hospital critical care settings. Controlling bodytemperature, through cooling and warming, is becoming the standard of care forpatients in select critical conditions and those undergoing a variety ofsurgical procedures. Alsius markets a comprehensive suite of catheter-basedintravascular temperature management products that address the need foreffective, accurate, easy-to-use and cost-effective control of bodytemperature in critical care patients. For more information, visithttp://www.alsius.com.
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