Aug 12 2011
PLC Systems Inc. (OTCBB: PLCSF), a company focused on innovative medical device technologies, today reported financial results for the three- and six month periods ended June 30, 2011. These results only include the company's RenalGuard® operations, since PLC completed the sale of its transmyocardial revascularization (TMR) business to Novadaq Corp. during the first quarter of 2011. Results from the TMR business are reflected in discontinued operations for all periods presented.
Second quarter 2011 total revenues were $398,000, compared to $249,000 in the second quarter of 2010, a marked improvement over the $57,000 reported in the first quarter this year. The net loss from continuing operations for the second quarter of 2011 was $541,000, or $0.02 per basic and diluted share, compared to a net loss from continuing operations of $869,000, or $0.03 per basic and diluted share, in the second quarter of 2010. During the first quarter of 2011, PLC announced that it had secured up to $6 million in convertible secured debt financing from an institutional investor, of which $4 million, less financing costs of $530,000, was received at the initial closing in February 2011.
Mark R. Tauscher, President and Chief Executive Officer of PLC Systems Inc., stated, "I am pleased to see that in the second quarter this year, as we anticipated, we were successful in reviving RenalGuard sales in the European Union to levels higher than we produced in any quarter last year. We believe we are now in a better position from which to add more distributors, expand market penetration and develop meaningful sales traction in the European market, and other countries where RenalGuard is already available. Thanks to our improved financial position and the positive scientific data produced in two separate Italian clinical trials, we fully intend to attack all opportunities with a new focused sales and marketing approach in order to increase use of RenalGuard and expand the number of healthcare institutions at which it is available."
He added, "At the same time, we have also completed most of the steps required to recommence the U.S. pivotal trial for RenalGuard in order to gain approval from the FDA to market and sell RenalGuard in the U.S. We look forward to announcing our first sites and first enrolled patients in this important trial in the coming months."
Financial Update
As of June 30, 2011, PLC reported $4,059,000 in cash and equivalents, an increase of $2,735,000 from the Company's cash position as of December 31, 2010. The increased cash position reflects the net proceeds from the sale of the TMR business and the secured convertible debt financing.
During the second quarter of 2011, PLC shipped 455 single-use RenalGuard disposable sets and 14 RenalGuard consoles internationally, compared to 180 RenalGuard single-use disposable sets and five consoles that shipped in the second quarter of 2010. As a result, RenalGuard revenues increased $102,000, or 58%, in the second quarter of 2011 as compared to the same period in 2010. OEM revenues increased $48,000, or 67%, in the second quarter of 2010, reflecting primarily the recognition of revenue related to transactions that were previously deferred. The OEM assets were sold in May 2010 and all transactions previously deferred have been recognized in full.
Sales, General and Administrative costs decreased to $667,000 in the second quarter of 2011, from $839,000 in the second quarter of 2010. This decrease reflects the impact of decreased compensation expenses in the current year period resulting from 2010 workforce reductions and the departure of the company's former Chief Financial Officer. Research & Development expenses increased to $373,000 in the second quarter of 2011, from $113,000 in the second quarter of 2010. This increase reflects the higher costs associated with preparations for the Company's U.S. clinical trial of RenalGuard.
Six Months Results
For the six months period in 2011, PLC reported revenues of $455,000, compared to $516,000 in the same period of 2010. Net loss from continuing operations for the first six months of 2011 was $5,560,000, or a loss of $0.18 per basic and diluted share, compared to a net loss from continuing operations of $2,088,000, or a loss of $0.07 per share, in the same period last year.
Recent Events
Karen Raus, Controller and Principal Financial Officer of PLC, is leaving the company effective today for a CFO position at another company. The company has launched a search for a new principal financial officer.
Effective August 15, 2011, PLC is moving to a new, smaller facility, in Milford, Massachusetts, recognizing its lower space requirements and saving significant costs over the long-term.
SOURCE PLC Systems Inc.