ATS Announces 1st Quarter Results and Exceeds Street Estimates

Apr 18, 2001, 01:00 ET from ATS Medical, Inc.

    MINNEAPOLIS, April 18 /PRNewswire/ -- Manny Villafana, Chairman and Chief
 Executive Officer of ATS Medical, Inc. (Nasdaq: ATSI), announced today that
 ATS Medical recorded sales of $4,253,573 for the quarter ended March 31, 2001,
 compared to sales of $4,127,355 for the quarter ended March 31, 2000.
     "In the first quarter we posted a gain of 148% in revenue in the United
 States, but this was almost entirely offset by a 3% decline in International
 revenue which was primarily the result of continued weakness of the Euro in
 exchange for the Dollar," Mr. Villafana stated.
     Mr. Villafana went on to say, "As we indicated at the end of last year,
 the expenses associated with the hiring of the direct sales force and the
 increase in research and development expense for the carbon project resulted
 in a net loss of $575,317 or $0.03 per share for the quarter ended March 31,
 2001, compared to net income of $400,996 or $0.02 per share for the quarter
 ended March 31, 2000.  This exceeded the street estimates of a $0.04-$0.06 net
 loss for the quarter.
     "We added eight salespeople to our U.S. sales force during the quarter
 ended March 31, 2001," said Mr. Villafana.  "This brings our total number of
 U.S. salespeople to 19 and we intend to hire 6 to 11 more individuals to round
 our sales force out at 25-30," he added.  "Our launch of the valve is a
 ongoing process," said Mr. Villafana, and "we remain confident that we can
 capture significant marketshare over the next couple of years."
     During the first quarter of 2001, ATS Medical hired ten people for its new
 carbon facility and installed its first carbon coater at that facility.  ATS
 Medical purchased approximately $600,000 of capital equipment for the carbon
 facility in the quarter ended March 31, 2001.
     Finally, Mr. Villafana extended an invitation to shareholders to attend
 the Company's Annual Meeting scheduled for Tuesday, May 1, 2001 at 3:30 p.m.
 at the Minneapolis Club.
     ATS Medical, Inc. manufactures and markets a pyrolytic carbon open pivot
 mechanical heart valve.  The Company's common stock is traded in the Nasdaq
 National Market under the symbol "ATSI".
     This press release contains forward looking statements that may included
 statements regarding intent, belief or current expectations of the Company and
 its management.  Actual results could differ materially from those projected
 in the forward looking statements as a result of a number of important
 factors, including regulatory actions, competition, pricing pressures,
 supplier actions and management of growth.  For a discussion of these and
 other risks and uncertainties that could affect the Company's activities and
 results, please refer to the Company's filings with the Securities and
 Exchange Commission including its Form 10-K for the year ended December 31,
 2000.
 
 
                               ATS Medical, Inc.
           Consolidated Condensed Statement of Operations (Unaudited)
 
                                                     Three months ended
                                                           March 31,
     Revenues                                       2001              2000
           Net sales                             $4,253,573        $4,127,355
           Less cost of goods sold                2,608,160         2,584,052
                Gross profit                      1,645,413         1,543,303
 
     Operating expenses
           Research, development and engineering    757,914           421,075
           Sales and marketing                    1,067,712           221,634
           General and administrative               815,678           620,957
                Total expenses                    2,641,304         1,263,666
     Operating income (loss)                       (995,891)          279,637
 
     Interest income                                420,574           121,359
 
      Net  income (loss) for the period           ($575,317)         $400,996
      Net  income (loss) per share:
           Basic                                     ($0.03)            $0.02
           Diluted                                   ($0.03)            $0.02
     Weighted average number of shares
      outstanding:
           Basic                                 22,117,758        17,932,322
           Diluted                               22,117,758        18,614,020
 
 
            Consolidated Statement of Financial Position (Unaudited)
 
                                                 March 31,        December 31,
     Current assets                                2001              2000
           Cash, cash equivalents and
            short-term investments              $27,194,086       $31,077,465
           Accounts receivable                    6,898,801         6,581,315
           Inventories                           52,222,656        51,488,128
           Prepaid expenses                         676,415           615,680
               Total current assets              86,991,958        89,762,588
 
     Furniture, machinery & equipment,
      less accumulated depreciation               5,192,222         4,167,326
     Other assets                                 8,429,562         8,423,862
     Total assets                              $100,613,742      $102,353,776
 
 
     Current liabilities                         $2,518,618        $3,828,671
     Long-term debt                                       0                 0
     Shareholders' equity                        98,095,124        98,525,105
     Total liabilities & shareholders'
      equity                                   $100,613,742      $102,353,776
 
 

SOURCE ATS Medical, Inc.
    MINNEAPOLIS, April 18 /PRNewswire/ -- Manny Villafana, Chairman and Chief
 Executive Officer of ATS Medical, Inc. (Nasdaq: ATSI), announced today that
 ATS Medical recorded sales of $4,253,573 for the quarter ended March 31, 2001,
 compared to sales of $4,127,355 for the quarter ended March 31, 2000.
     "In the first quarter we posted a gain of 148% in revenue in the United
 States, but this was almost entirely offset by a 3% decline in International
 revenue which was primarily the result of continued weakness of the Euro in
 exchange for the Dollar," Mr. Villafana stated.
     Mr. Villafana went on to say, "As we indicated at the end of last year,
 the expenses associated with the hiring of the direct sales force and the
 increase in research and development expense for the carbon project resulted
 in a net loss of $575,317 or $0.03 per share for the quarter ended March 31,
 2001, compared to net income of $400,996 or $0.02 per share for the quarter
 ended March 31, 2000.  This exceeded the street estimates of a $0.04-$0.06 net
 loss for the quarter.
     "We added eight salespeople to our U.S. sales force during the quarter
 ended March 31, 2001," said Mr. Villafana.  "This brings our total number of
 U.S. salespeople to 19 and we intend to hire 6 to 11 more individuals to round
 our sales force out at 25-30," he added.  "Our launch of the valve is a
 ongoing process," said Mr. Villafana, and "we remain confident that we can
 capture significant marketshare over the next couple of years."
     During the first quarter of 2001, ATS Medical hired ten people for its new
 carbon facility and installed its first carbon coater at that facility.  ATS
 Medical purchased approximately $600,000 of capital equipment for the carbon
 facility in the quarter ended March 31, 2001.
     Finally, Mr. Villafana extended an invitation to shareholders to attend
 the Company's Annual Meeting scheduled for Tuesday, May 1, 2001 at 3:30 p.m.
 at the Minneapolis Club.
     ATS Medical, Inc. manufactures and markets a pyrolytic carbon open pivot
 mechanical heart valve.  The Company's common stock is traded in the Nasdaq
 National Market under the symbol "ATSI".
     This press release contains forward looking statements that may included
 statements regarding intent, belief or current expectations of the Company and
 its management.  Actual results could differ materially from those projected
 in the forward looking statements as a result of a number of important
 factors, including regulatory actions, competition, pricing pressures,
 supplier actions and management of growth.  For a discussion of these and
 other risks and uncertainties that could affect the Company's activities and
 results, please refer to the Company's filings with the Securities and
 Exchange Commission including its Form 10-K for the year ended December 31,
 2000.
 
 
                               ATS Medical, Inc.
           Consolidated Condensed Statement of Operations (Unaudited)
 
                                                     Three months ended
                                                           March 31,
     Revenues                                       2001              2000
           Net sales                             $4,253,573        $4,127,355
           Less cost of goods sold                2,608,160         2,584,052
                Gross profit                      1,645,413         1,543,303
 
     Operating expenses
           Research, development and engineering    757,914           421,075
           Sales and marketing                    1,067,712           221,634
           General and administrative               815,678           620,957
                Total expenses                    2,641,304         1,263,666
     Operating income (loss)                       (995,891)          279,637
 
     Interest income                                420,574           121,359
 
      Net  income (loss) for the period           ($575,317)         $400,996
      Net  income (loss) per share:
           Basic                                     ($0.03)            $0.02
           Diluted                                   ($0.03)            $0.02
     Weighted average number of shares
      outstanding:
           Basic                                 22,117,758        17,932,322
           Diluted                               22,117,758        18,614,020
 
 
            Consolidated Statement of Financial Position (Unaudited)
 
                                                 March 31,        December 31,
     Current assets                                2001              2000
           Cash, cash equivalents and
            short-term investments              $27,194,086       $31,077,465
           Accounts receivable                    6,898,801         6,581,315
           Inventories                           52,222,656        51,488,128
           Prepaid expenses                         676,415           615,680
               Total current assets              86,991,958        89,762,588
 
     Furniture, machinery & equipment,
      less accumulated depreciation               5,192,222         4,167,326
     Other assets                                 8,429,562         8,423,862
     Total assets                              $100,613,742      $102,353,776
 
 
     Current liabilities                         $2,518,618        $3,828,671
     Long-term debt                                       0                 0
     Shareholders' equity                        98,095,124        98,525,105
     Total liabilities & shareholders'
      equity                                   $100,613,742      $102,353,776
 
 SOURCE  ATS Medical, Inc.