Physiometrix, Inc. Announces First-Quarter Financial Results
May 05 2004 - 9:00AM
PR Newswire (US)
Physiometrix, Inc. Announces First-Quarter Financial Results
Transition to New Sales Force Complete NO. BILLERICA, Mass., May 5
/PRNewswire-FirstCall/ -- Physiometrix, Inc. (Nasdaq-SCM: PHYX)
announced today financial results for the first quarter ended March
31, 2004. For the first quarter ended March 31, 2004, revenues were
$197,194, compared with revenues of $238,744 for the same period in
2003. The net loss for the first quarter of 2004 was $(2,479,999),
or $(0.19) per share, including a non-cash expense of $1,046,080
related to the derivative accounting treatment of unregistered
warrants issued in our common stock financing completed in December
2003, which raised gross proceeds of approximately $8.2 million. In
accordance with EITF 00-19, Accounting for Derivative Financial
Instruments Indexed to, and Potentially Settled in, a Company's Own
Stock, the warrants are included as a liability and valued at fair
market value until the Company meets the criteria under EITF 00-19
for permanent equity. The registration of the shares underlying the
warrants occurred on February 5th and consequently the company has
classified the value of such shares as permanent equity under EITF
00-19, commencing on the effective date of the registration
statement, February 5, 2004. The first quarter loss in 2004
compares with a net loss of $(1,189,469), or $(0.14) per share, for
the same period in 2003. "Although our first quarter results may be
disappointing to our shareholders, in reality, the results reflect
the transition to our new sales force at Baxter, which is now
complete. The final training and launch occurred late in January,
so we experienced down time during the quarter. The positive side
however, is that we are closing sales with the new team and we
currently have evaluations in process at approximately 200
hospitals throughout the country," said John A. Williams, president
and chief executive officer of Physiometrix. "We continue to work
closely with Baxter to expand our monitor and sensor sales. We are
also increasing our clinical study efforts to support our launch
into the Intensive Care Unit later this year, with our next
generation PSA 5000. We are also funding and assisting with other
studies, which will help to position our product in the office
based anesthesia market and continue to show clinical value in the
operating room," Williams added. Physiometrix will hold a telephone
conference call to discuss first- quarter 2004 financial results,
as well as management's comments related to the Company's business,
at 11:00 A.M. (Eastern) today, May 5, 2004. The call can be
accessed at 800-465-7133 (conf. ID # 6802263). A replay of today's
conference call will be available after conclusion of today's
conference call until 11:59 P.M. (Eastern) on May 14, 2004. Replay
callers in the U.S. must dial 800-642-1687 (conf. ID # 6802263).
Physiometrix Inc. designs, manufactures and markets noninvasive
medical products -- based on novel gel materials, sophisticated
signal-processing electronics technologies, and proprietary
software -- for use in anesthesia- monitoring during surgical
procedures. For more information, please visit the Company's Web
site at http://www.physiometrix.com/. Statements in this press
release regarding Physiometrix's growth and future business results
of the Company are "forward-looking" statements as defined in the
Private Securities Litigation Reform Act of 1995. Such statements
are based upon management's current expectations and are subject to
a number of factors and uncertainties. Information contained in
these forward-looking statements is inherently uncertain, and
actual performance and results may differ materially due to many
important factors. Such factors that could cause actual results to
differ materially from any forward-looking statements made by the
Company include, among others, revenue estimates, dependence on
existing and future products, the existence of alternative
technologies and the potential emergence of new methods for
consciousness monitoring, uncertainty of market acceptance, intense
competition, partnership agreements, and government regulations,
especially regulatory approvals. These and other relevant risks are
described in the Company's Form 10-K dated March 30, 2004 filed
with the SEC. The Company disclaims any obligation to update
information contained in any forward-looking statement to reflect
events or circumstances occurring after the date of this press
release. CONTACT: Daniel W. Muehl, CFO Physiometrix Inc.
978-670-2422 - Financial Tables to Follow - Physiometrix, Inc.
Condensed Statements of Operations (Unaudited) Three Months Ended
March 31 March 31 2004 2003 Revenues $197,194 $238,744 Costs and
expenses: Cost of goods sold 330,126 340,116 Research and
development 381,819 370,809 Selling, general, and administrative
938,211 727,531 1,650,156 1,438,456 Operating loss (1,452,962)
(1,199,712) Other income (expense): Change in fair value of warrant
derivative (1,046,080) - Interest income, net 19,043 10,243 Net
loss $(2,479,999) $(1,189,469) Net loss per share $(0.19) $(0.14)
Shares used in computing net loss per share 13,400,415 8,422,994
Physiometrix, Inc. Condensed Balance Sheets (Unaudited) March 31
December 31 2004 2003 ASSETS Current assets: Cash, cash equivalents
and short term investments $5,885,193 $7,626,049 Other current
assets 732,760 966,484 Total current assets 6,617,953 8,592,533
Property, plant and equipment, net 152,893 179,668 Total assets
$6,770,846 $8,772,201 LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT) Current liabilities: Accounts payable and accrued
expenses $483,261 $ 971,281 Warrant derivative contract -
11,342,730 Total current liabilities 483,261 12,314,011 Total
stockholders' equity (deficit) 6,287,585 (3,541,810) Total
liabilities and stockholders' equity (deficit) $6,770,846
$8,772,201 DATASOURCE: Physiometrix, Inc. CONTACT: Daniel W. Muehl,
CFO of Physiometrix Inc., +1-978-670-2422 Web site:
http://physiometrix.com/
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