CLOSURE Medical Corporation Reports First Quarter Profit

Highlights

* Company achieves 39% revenue growth over comparable 2000 quarter

* Earnings per share hits historical high; exceeds previous guidance of

$0.01

* Two new products are introduced to the market



Apr 24, 2001, 01:00 ET from CLOSURE Medical Corporation

    RALEIGH, N.C., April 24 /PRNewswire Interactive News Release/ -- CLOSURE
 Medical Corporation (Nasdaq: CLSR), a medical tissue adhesive products
 company, today announced financial and operating results for the period ended
 March 31, 2001.
     Total revenues for the three months ended March 31, 2001 were $3,917,000,
 a 39% increase over revenue of $2,822,000 in the corresponding period of 2000.
     Net income for the first quarter of 2001 was $269,000, or $0.02 per basic
 and diluted common share, compared to a net loss of $3,118,000, or ($0.23) per
 basic and diluted common share in the corresponding 2000 period.  As required
 by the Securities and Exchange Commission, the Company's adoption of Staff
 Accounting Bulletin No. 101 resulted in the amendment of the March 31, 2000
 results from the previously filed Form 10-Q and includes a $2,656,000 charge
 for the cumulative effect of a change in accounting principle.  Earnings
 before the cumulative effect of accounting change were a loss of $462,000 in
 the comparable quarter of 2000.
     Total cash, cash equivalents and investments decreased to $10.3 million
 at March 31, 2001 compared to $11.8 million at December 31, 2000.  This
 decrease resulted primarily from the timing of shipments, specifically a new
 DERMABOND(R) adhesive line extension utilizing a "chisel tip" configuration
 (see "First Quarter Milestones"), which occurred later in the quarter and the
 seasonal payment of accrued liabilities.
     Commenting on today's news, Robert V. Toni, President and Chief Executive
 Officer of CLOSURE Medical, stated, "Our positive earnings announcement today
 is another milestone for the Company and further demonstrates our commitment
 to the ultimate goal of maximizing value for our shareholders.  Based upon
 first quarter 2001 results, we can reaffirm our previously stated full-year
 2001 EPS guidance of $0.15 to $0.20 per basic and diluted common share, as
 provided in January."
 
     First Quarter Milestones
     During the quarter ended March 31, 2001, Closure and its marketing
 partners introduced two new products.  In February, the first shipment of
 SOOTHE-N-SEAL(TM) canker sore relief, an over-the-counter ("OTC") product to
 treat oral ulcers and mouth sores, was delivered to the Company's marketing
 partner, Colgate Oral Pharmaceuticals, Inc., for launch to both professionals
 and consumers.  Additionally, in March, a new DERMABOND(R) adhesive line
 extension utilizing a "chisel tip" configuration versus the original "dome
 tip", was shipped to Ethicon, Inc., a subsidiary of Johnson & Johnson and the
 Company's marketing partner for DERMABOND(R) adhesive.
     Mr. Toni continued, "Although a majority of Closure's revenue is
 generated from the sale of DERMABOND(R) adhesive, the introduction of the
 SOOTHE-N-SEAL(TM) product and new DERMABOND(R) adhesive line extension
 provides the Company with important expansion of its product portfolio.
 It also reflects one of our major focuses which is aggressive new product
 development."
     Two additional milestones were achieved during the quarter ended March 31,
 2001.  First, in January 2001 the Company was notified of FDA clearance for
 its LIQUIDERM(TM) liquid adhesive bandage, an OTC product which can be used
 for the treatment of minor cuts and abrasions.  The Company expects to sign a
 distribution agreement with a top-tier marketing partner for the LIQUIDERM(TM)
 liquid adhesive by mid-year 2001, leading to an initial consumer launch of the
 product during the first quarter of 2002.
     Also during the quarter, the Company signed a Cooperative Research and
 Development Agreement with Walter Reed Army Medical Center and Uniformed
 Services University of the Health Sciences for the development of an internal
 medical adhesive to be used in the treatment of emphysema.  The partnership is
 currently conducting additional animal studies to optimize the Endobronchial
 Lung Volume Reduction procedure prior to entering human clinical trials.
 
     Products
     DERMABOND(R) Topical Skin Adhesive is a topical tissue adhesive used to
 close wounds from skin lacerations and incisions, minimally invasive surgery
 and plastic surgery.  DERMABOND(R) adhesive can be used as a replacement for
 topical sutures or staples and is marketed and distributed by Ethicon Inc.,
 a subsidiary of Johnson & Johnson and the world leader in wound closure
 products.
     SOOTHE-N-SEAL(TM) adhesive forms a protective barrier that shields oral
 ulcers from irritation due to eating and drinking while providing immediate
 and long-term pain relief.  Additionally, the product utilizes the same
 proprietary technology as the Company's professional product, DERMABOND(R)
 adhesive.  SOOTHE-N-SEAL(TM) adhesive is in the early stages of the product
 launch to the professional and consumer markets by Colgate Oral
 Pharmaceuticals, Inc.
     LIQUIDERM(TM) adhesive is the first and only cyanoacrylate medical device
 approved by the FDA for the OTC adhesive bandage market.  LIQUIDERM(TM)
 adhesive is painted on the wound, sealing it from dirt and germs, creating a
 healing environment which allows natural healing to take place quickly.  As
 the wound heals, the adhesive sloughs off naturally.  CLOSURE's negotiations
 with a top-tier marketing partner include rights to its LIQUIDERM(TM) adhesive
 and its overall OTC wound care platform, including distribution rights to all
 present and future products, except for SOOTHE-N-SEAL(TM) adhesive.
     CLOSURE Medical Corporation, headquartered in Raleigh, North Carolina,
 develops, manufactures, and commercializes medical tissue adhesive products
 based on its proprietary cyanoacrylate technology.  CLOSURE's nonabsorbable
 tissue adhesive products may be used to replace sutures and staples for
 certain topical wound closure applications, while its internal tissue adhesive
 products can potentially be used for internal wound closure and management.
 Currently marketed nonabsorbable tissue adhesive products include:
 DERMABOND(R) Topical Skin Adhesive, which is used to replace sutures and
 staples for closure of certain lacerations and incisions; SOOTHE-N-SEAL(TM)
 canker sore relief, an over-the-counter product to treat oral ulcers and mouth
 sores; and NEXABAND(R) topical adhesives used in veterinary wound closure and
 management.  The Company's LIQUIDERM(TM) liquid adhesive bandage has been
 approved by the FDA for the over-the-counter adhesive bandage market.
     DERMABOND(R) adhesive is a registered trademark of Ethicon, Inc.;
 SOOTHE-N-SEAL(TM) adhesive is a licensed trademark of Colgate Oral
 Pharmaceuticals, Inc.; LIQUIDERM(TM) adhesive is a trademark of CLOSURE
 Medical Corporation; and NEXABAND(R) adhesive is a registered trademark of
 CLOSURE Medical Corporation.
     To receive CLOSURE's latest news release and other corporate documents via
 fax, at no cost, call 1-800-PRO-INFO, use the Company's symbol CLSR.  Or visit
 the Financial Relations Board's website at www.frbinc.com .
 
     This release contains certain forward-looking statements which involve
 known and unknown risks, delays, uncertainties or other factors not under the
 Company's control which may cause actual results, performance or achievements
 of the Company to be materially different from the results, performance, or
 other expectations implied by these forward-looking statements.  These factors
 include, but are not limited to the early stage of commercialization of the
 Company products; the progress of its research and development programs for
 future products; the need for regulatory approval and effects of governmental
 regulation; technological uncertainties; the satisfactory conclusion of
 negotiations with, and dependence on marketing partners, and dependence on
 patents and trade secrets, as well as those detailed in the Company's Annual
 Report on Form 10-K for the year ended December 31, 2000 filed with the
 Securities and Exchange Commission.
 
 
                          CLOSURE Medical Corporation
                            Statements of Operations
                     (In thousands, except per share data)
 
                                                       THREE MONTHS ENDED
                                                            MARCH 31,
                                                      2001            2000
 
     Product sales                                  $3,738          $2,666
     License and product development
       revenue                                         179             156
         Total revenues                              3,917           2,822
     Cost of products sold                           1,167             816
         Gross profit                                2,750           2,006
     Research, development and regulatory
       affairs expenses                              1,280           1,466
     General and administrative expenses             1,330           1,124
         Total operating expenses                    2,610           2,590
     Income (loss) from operations                     140            (584)
     Interest expense                                  (46)            (58)
     Investment and interest income                    175             180
     Income (loss) before cumulative
       effect of accounting change                     269            (462)
     Cumulative effect of accounting change*             -          (2,656)
     Net income (loss)                                $269         $(3,118)
 
     Shares used in computation of net income
       (loss) per common share:
         Basic                                      13,441          13,353
         Diluted                                    13,710          13,353
 
     Net income (loss) per common share:
         Basic and diluted                           $0.02          $(0.23)
 
     * See the Company's Annual Report on Form 10-K for the year ended December
       31, 2000.
 
 
                          CLOSURE Medical Corporation
                               Balance Sheet Data
                                 (In thousands)
 
                                                   March 31,      December 31,
                                                    2001              2000
 
     Cash, cash equivalents and investments       $10,297           $11,832
     Working capital                               $8,661            $8,462
     Total assets                                 $21,222           $22,139
     Current portion of long-term debt             $1,336            $1,487
     Total stockholders' equity                   $14,358           $13,907
 
     Total shares outstanding                      13,446            13,428
 
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SOURCE CLOSURE Medical Corporation
    RALEIGH, N.C., April 24 /PRNewswire Interactive News Release/ -- CLOSURE
 Medical Corporation (Nasdaq: CLSR), a medical tissue adhesive products
 company, today announced financial and operating results for the period ended
 March 31, 2001.
     Total revenues for the three months ended March 31, 2001 were $3,917,000,
 a 39% increase over revenue of $2,822,000 in the corresponding period of 2000.
     Net income for the first quarter of 2001 was $269,000, or $0.02 per basic
 and diluted common share, compared to a net loss of $3,118,000, or ($0.23) per
 basic and diluted common share in the corresponding 2000 period.  As required
 by the Securities and Exchange Commission, the Company's adoption of Staff
 Accounting Bulletin No. 101 resulted in the amendment of the March 31, 2000
 results from the previously filed Form 10-Q and includes a $2,656,000 charge
 for the cumulative effect of a change in accounting principle.  Earnings
 before the cumulative effect of accounting change were a loss of $462,000 in
 the comparable quarter of 2000.
     Total cash, cash equivalents and investments decreased to $10.3 million
 at March 31, 2001 compared to $11.8 million at December 31, 2000.  This
 decrease resulted primarily from the timing of shipments, specifically a new
 DERMABOND(R) adhesive line extension utilizing a "chisel tip" configuration
 (see "First Quarter Milestones"), which occurred later in the quarter and the
 seasonal payment of accrued liabilities.
     Commenting on today's news, Robert V. Toni, President and Chief Executive
 Officer of CLOSURE Medical, stated, "Our positive earnings announcement today
 is another milestone for the Company and further demonstrates our commitment
 to the ultimate goal of maximizing value for our shareholders.  Based upon
 first quarter 2001 results, we can reaffirm our previously stated full-year
 2001 EPS guidance of $0.15 to $0.20 per basic and diluted common share, as
 provided in January."
 
     First Quarter Milestones
     During the quarter ended March 31, 2001, Closure and its marketing
 partners introduced two new products.  In February, the first shipment of
 SOOTHE-N-SEAL(TM) canker sore relief, an over-the-counter ("OTC") product to
 treat oral ulcers and mouth sores, was delivered to the Company's marketing
 partner, Colgate Oral Pharmaceuticals, Inc., for launch to both professionals
 and consumers.  Additionally, in March, a new DERMABOND(R) adhesive line
 extension utilizing a "chisel tip" configuration versus the original "dome
 tip", was shipped to Ethicon, Inc., a subsidiary of Johnson & Johnson and the
 Company's marketing partner for DERMABOND(R) adhesive.
     Mr. Toni continued, "Although a majority of Closure's revenue is
 generated from the sale of DERMABOND(R) adhesive, the introduction of the
 SOOTHE-N-SEAL(TM) product and new DERMABOND(R) adhesive line extension
 provides the Company with important expansion of its product portfolio.
 It also reflects one of our major focuses which is aggressive new product
 development."
     Two additional milestones were achieved during the quarter ended March 31,
 2001.  First, in January 2001 the Company was notified of FDA clearance for
 its LIQUIDERM(TM) liquid adhesive bandage, an OTC product which can be used
 for the treatment of minor cuts and abrasions.  The Company expects to sign a
 distribution agreement with a top-tier marketing partner for the LIQUIDERM(TM)
 liquid adhesive by mid-year 2001, leading to an initial consumer launch of the
 product during the first quarter of 2002.
     Also during the quarter, the Company signed a Cooperative Research and
 Development Agreement with Walter Reed Army Medical Center and Uniformed
 Services University of the Health Sciences for the development of an internal
 medical adhesive to be used in the treatment of emphysema.  The partnership is
 currently conducting additional animal studies to optimize the Endobronchial
 Lung Volume Reduction procedure prior to entering human clinical trials.
 
     Products
     DERMABOND(R) Topical Skin Adhesive is a topical tissue adhesive used to
 close wounds from skin lacerations and incisions, minimally invasive surgery
 and plastic surgery.  DERMABOND(R) adhesive can be used as a replacement for
 topical sutures or staples and is marketed and distributed by Ethicon Inc.,
 a subsidiary of Johnson & Johnson and the world leader in wound closure
 products.
     SOOTHE-N-SEAL(TM) adhesive forms a protective barrier that shields oral
 ulcers from irritation due to eating and drinking while providing immediate
 and long-term pain relief.  Additionally, the product utilizes the same
 proprietary technology as the Company's professional product, DERMABOND(R)
 adhesive.  SOOTHE-N-SEAL(TM) adhesive is in the early stages of the product
 launch to the professional and consumer markets by Colgate Oral
 Pharmaceuticals, Inc.
     LIQUIDERM(TM) adhesive is the first and only cyanoacrylate medical device
 approved by the FDA for the OTC adhesive bandage market.  LIQUIDERM(TM)
 adhesive is painted on the wound, sealing it from dirt and germs, creating a
 healing environment which allows natural healing to take place quickly.  As
 the wound heals, the adhesive sloughs off naturally.  CLOSURE's negotiations
 with a top-tier marketing partner include rights to its LIQUIDERM(TM) adhesive
 and its overall OTC wound care platform, including distribution rights to all
 present and future products, except for SOOTHE-N-SEAL(TM) adhesive.
     CLOSURE Medical Corporation, headquartered in Raleigh, North Carolina,
 develops, manufactures, and commercializes medical tissue adhesive products
 based on its proprietary cyanoacrylate technology.  CLOSURE's nonabsorbable
 tissue adhesive products may be used to replace sutures and staples for
 certain topical wound closure applications, while its internal tissue adhesive
 products can potentially be used for internal wound closure and management.
 Currently marketed nonabsorbable tissue adhesive products include:
 DERMABOND(R) Topical Skin Adhesive, which is used to replace sutures and
 staples for closure of certain lacerations and incisions; SOOTHE-N-SEAL(TM)
 canker sore relief, an over-the-counter product to treat oral ulcers and mouth
 sores; and NEXABAND(R) topical adhesives used in veterinary wound closure and
 management.  The Company's LIQUIDERM(TM) liquid adhesive bandage has been
 approved by the FDA for the over-the-counter adhesive bandage market.
     DERMABOND(R) adhesive is a registered trademark of Ethicon, Inc.;
 SOOTHE-N-SEAL(TM) adhesive is a licensed trademark of Colgate Oral
 Pharmaceuticals, Inc.; LIQUIDERM(TM) adhesive is a trademark of CLOSURE
 Medical Corporation; and NEXABAND(R) adhesive is a registered trademark of
 CLOSURE Medical Corporation.
     To receive CLOSURE's latest news release and other corporate documents via
 fax, at no cost, call 1-800-PRO-INFO, use the Company's symbol CLSR.  Or visit
 the Financial Relations Board's website at www.frbinc.com .
 
     This release contains certain forward-looking statements which involve
 known and unknown risks, delays, uncertainties or other factors not under the
 Company's control which may cause actual results, performance or achievements
 of the Company to be materially different from the results, performance, or
 other expectations implied by these forward-looking statements.  These factors
 include, but are not limited to the early stage of commercialization of the
 Company products; the progress of its research and development programs for
 future products; the need for regulatory approval and effects of governmental
 regulation; technological uncertainties; the satisfactory conclusion of
 negotiations with, and dependence on marketing partners, and dependence on
 patents and trade secrets, as well as those detailed in the Company's Annual
 Report on Form 10-K for the year ended December 31, 2000 filed with the
 Securities and Exchange Commission.
 
 
                          CLOSURE Medical Corporation
                            Statements of Operations
                     (In thousands, except per share data)
 
                                                       THREE MONTHS ENDED
                                                            MARCH 31,
                                                      2001            2000
 
     Product sales                                  $3,738          $2,666
     License and product development
       revenue                                         179             156
         Total revenues                              3,917           2,822
     Cost of products sold                           1,167             816
         Gross profit                                2,750           2,006
     Research, development and regulatory
       affairs expenses                              1,280           1,466
     General and administrative expenses             1,330           1,124
         Total operating expenses                    2,610           2,590
     Income (loss) from operations                     140            (584)
     Interest expense                                  (46)            (58)
     Investment and interest income                    175             180
     Income (loss) before cumulative
       effect of accounting change                     269            (462)
     Cumulative effect of accounting change*             -          (2,656)
     Net income (loss)                                $269         $(3,118)
 
     Shares used in computation of net income
       (loss) per common share:
         Basic                                      13,441          13,353
         Diluted                                    13,710          13,353
 
     Net income (loss) per common share:
         Basic and diluted                           $0.02          $(0.23)
 
     * See the Company's Annual Report on Form 10-K for the year ended December
       31, 2000.
 
 
                          CLOSURE Medical Corporation
                               Balance Sheet Data
                                 (In thousands)
 
                                                   March 31,      December 31,
                                                    2001              2000
 
     Cash, cash equivalents and investments       $10,297           $11,832
     Working capital                               $8,661            $8,462
     Total assets                                 $21,222           $22,139
     Current portion of long-term debt             $1,336            $1,487
     Total stockholders' equity                   $14,358           $13,907
 
     Total shares outstanding                      13,446            13,428
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X93838152
 
 SOURCE  CLOSURE Medical Corporation