Conceptus Reports Strong Second Quarter 2005 Results

Strategic Insights -

Conceptus, Inc., the developer of the Essure(R) non-incisional permanent birth control procedure, announced preliminary financial results for the second quarter of 2005, exceeding the company's guidance. Net sales for the quarter stood at $5.0 million, a significant 82% increase from $2.8 million in the same quarter of 2004 and a 30% increase from $3.9 million in the first quarter of 2005. The strong sales were driven by increased physician utilization and a growing number of sales territories. Conceptus also reported a net loss of between $6.2 million and $6.5 million for the second quarter, which was favorable compared to the company's guidance of $6.5 million to $6.7 million. The company ended the quarter with $19.7 million in cash, cash equivalents, and restricted cash, with a cash usage of $4.6 million.

Key Takeaways:

  • Net sales for the second quarter of 2005 reached $5.0 million, a significant 82% increase from $2.8 million in the same quarter of 2004.
  • The company reported a net loss of between $6.2 million and $6.5 million for the second quarter, favorable compared to the guidance of $6.5 million to $6.7 million.
  • Conceptus ended the quarter with $19.7 million in cash, cash equivalents, and restricted cash, with a cash usage of $4.6 million.
  • The Essure procedure is 99.80% effective after three years of follow-up and does not require cutting or penetrating the abdomen.
  • The company expects to release full results for the second quarter of 2005 and hold an investor conference call on July 27, 2005.
  • The Essure procedure has the potential to open up a large market, currently occupied by incisional tubal ligation and vasectomy, which combined account for over 1 million procedures annually.

Statistics:

  • Net sales for the second quarter of 2005: $5.0 million
  • Net sales for the second quarter of 2004: $2.8 million
  • Increase in net sales from 2004 to 2005: 82%
  • Net sales for the first quarter of 2005: $3.9 million
  • Increase in net sales from first quarter 2005 to 2005: 30%
  • Net loss for the second quarter of 2005: $6.2 million to $6.5 million
  • Net loss for the second quarter of 2004: $6.2 million
  • Net loss for the first quarter of 2005: $6.4 million
  • Cash usage for the quarter: $4.6 million
  • Cash, cash equivalents, and restricted cash at the end of the quarter: $19.7 million

Sources:

  • Conceptus, Inc. press release, July 2005
  • Conceptus, Inc. annual report on Form 10-K, 2004
  • Conceptus, Inc. quarterly report on Form 10-Q, 2005
  • Conceptus, Inc. investor relations website