Endocardial Solutions Reports First Quarter Earnings Results; Sales Up 37%, EnSite Catheter Revenues Up 92% Over Q1'00

Apr 16, 2001, 01:00 ET from Endocardial Solutions, Inc.

    MINNEAPOLIS/ST. PAUL, Minn., April 16 /PRNewswire/ --
     Endocardial Solutions, Inc. (Nasdaq:   ECSI) today reported net sales for
 the first quarter 2001 of $4,602,166, compared with $3,360,059 for the same
 period of 2000, an increase of 37%.  The net loss for the first quarter ended
 March 31, 2001, is $2,491,111, or $.20 per share, compared with a net loss of
 $2,502,415, or $.25 per share, for the same period of 2000.
     "We are excited with our first quarter results, particularly with U.S.
 operations," said Jim Bullock, President and Chief Executive Officer.  "With
 U.S. sales nearly doubling over the same period last year, we can now confirm
 that the investment in sales and clinical engineering infrastructure is paying
 off.  U.S. catheter revenues were up 117% over this period last year, which is
 another indication that clinical acceptance of the EnSite technology continues
 to grow.  We expect continued improvements in our gross margin as we increase
 production levels of catheters and as the favorable mix trend continues," said
 Bullock.
     "We are anxious to preview our new software, Revelation, at the North
 American Society of Pacing and Electrophysiology (NASPE) conference May 2-5 in
 Boston.  Revelation is designed to dramatically improve orientation and
 navigation within the chamber of the heart.  Our research and development team
 has again hit the mark with another dramatic product improvement," concluded
 Bullock.
     The U.S. Food and Drug Administration cleared the EnSite 3000(R) System
 for use in diagnostic mapping of complex arrhythmias in the right atrium of
 the heart during the second quarter 1999.  Through a distribution agreement
 with Medtronic, Inc. ( http://www.medtronic.com ), the EnSite 3000(R) System
 and catheter have been available to electrophysiologists in Europe since the
 second quarter 1998.
     Based in St. Paul, Minn., Endocardial Solutions
 ( http://www.endocardial.com ) develops, manufactures and markets technology
 for diagnostic mapping of complex arrhythmias (abnormally rapid heartbeats
 caused by irregular electrical activity in the heart).  The EnSite 3000(R)
 System provides a 3D graphical display of the heart's electrical activity.
     The discussion above is based on preliminary financial results, which are
 subject to further review and adjustment, and contains forward-looking
 statements within the meaning of the Private Securities Litigation Reform Act
 of 1995, including statements regarding gross margins, operating expenses and
 revenue expectations, that involve a number of risks and uncertainties.  A
 number of factors should be considered in conjunction with these
 forward-looking statements.  These factors are set forth in the cautionary
 statements included in Exhibit 99 to Endocardial Solutions' Form 10-K for the
 year ended December 31, 2000, filed with the Securities and Exchange
 Commission.  Endocardial Solutions cautions investors and others to review the
 statements set forth in that report and that other factors may prove to be
 important in affecting the business and results of operations of Endocardial
 Solutions.
 
 
                          Endocardial Solutions, Inc.
 
                     Consolidated Statements of Operations
 
                                                  For the Three Months Ended
                                                  March 31,         March 31,
                                                    2001               2000
 
     Revenue                                     $4,602,166        $3,360,059
 
       Cost of goods sold                         2,078,059         1,875,676
     Gross margin                                 2,524,107         1,484,383
 
     Operating expenses:
       Research and development                   1,013,327         1,062,409
       General and administrative                   590,445           533,519
       Sales and marketing                        3,413,896         2,353,793
     Operating loss                              (2,493,561)       (2,465,338)
 
     Other income (expense):
       Interest income                               84,443           125,538
       Interest expense                             (81,993)         (162,615)
                                                      2,450           (37,077)
 
     Net loss for the period                    $(2,491,111)      $(2,502,415)
 
     Net loss per share - basic and
      diluted                                        $(0.20)           $(0.25)
 
     Weighted average shares outstanding         12,466,559        10,185,183
 
 
                            Selected Balance Sheet Data
 
                                                  March 31,        December 31,
                                                    2001               2000
 
       Cash and cash equivalents                 $8,140,490        $10,759,128
       Working capital                           11,500,895          7,272,956
       Total assets                              18,496,586         21,356,333
       Total liabilities                          3,844,186         11,492,164
       Stockholders' equity                      14,652,400          9,864,169
 
 

SOURCE Endocardial Solutions, Inc.
    MINNEAPOLIS/ST. PAUL, Minn., April 16 /PRNewswire/ --
     Endocardial Solutions, Inc. (Nasdaq:   ECSI) today reported net sales for
 the first quarter 2001 of $4,602,166, compared with $3,360,059 for the same
 period of 2000, an increase of 37%.  The net loss for the first quarter ended
 March 31, 2001, is $2,491,111, or $.20 per share, compared with a net loss of
 $2,502,415, or $.25 per share, for the same period of 2000.
     "We are excited with our first quarter results, particularly with U.S.
 operations," said Jim Bullock, President and Chief Executive Officer.  "With
 U.S. sales nearly doubling over the same period last year, we can now confirm
 that the investment in sales and clinical engineering infrastructure is paying
 off.  U.S. catheter revenues were up 117% over this period last year, which is
 another indication that clinical acceptance of the EnSite technology continues
 to grow.  We expect continued improvements in our gross margin as we increase
 production levels of catheters and as the favorable mix trend continues," said
 Bullock.
     "We are anxious to preview our new software, Revelation, at the North
 American Society of Pacing and Electrophysiology (NASPE) conference May 2-5 in
 Boston.  Revelation is designed to dramatically improve orientation and
 navigation within the chamber of the heart.  Our research and development team
 has again hit the mark with another dramatic product improvement," concluded
 Bullock.
     The U.S. Food and Drug Administration cleared the EnSite 3000(R) System
 for use in diagnostic mapping of complex arrhythmias in the right atrium of
 the heart during the second quarter 1999.  Through a distribution agreement
 with Medtronic, Inc. ( http://www.medtronic.com ), the EnSite 3000(R) System
 and catheter have been available to electrophysiologists in Europe since the
 second quarter 1998.
     Based in St. Paul, Minn., Endocardial Solutions
 ( http://www.endocardial.com ) develops, manufactures and markets technology
 for diagnostic mapping of complex arrhythmias (abnormally rapid heartbeats
 caused by irregular electrical activity in the heart).  The EnSite 3000(R)
 System provides a 3D graphical display of the heart's electrical activity.
     The discussion above is based on preliminary financial results, which are
 subject to further review and adjustment, and contains forward-looking
 statements within the meaning of the Private Securities Litigation Reform Act
 of 1995, including statements regarding gross margins, operating expenses and
 revenue expectations, that involve a number of risks and uncertainties.  A
 number of factors should be considered in conjunction with these
 forward-looking statements.  These factors are set forth in the cautionary
 statements included in Exhibit 99 to Endocardial Solutions' Form 10-K for the
 year ended December 31, 2000, filed with the Securities and Exchange
 Commission.  Endocardial Solutions cautions investors and others to review the
 statements set forth in that report and that other factors may prove to be
 important in affecting the business and results of operations of Endocardial
 Solutions.
 
 
                          Endocardial Solutions, Inc.
 
                     Consolidated Statements of Operations
 
                                                  For the Three Months Ended
                                                  March 31,         March 31,
                                                    2001               2000
 
     Revenue                                     $4,602,166        $3,360,059
 
       Cost of goods sold                         2,078,059         1,875,676
     Gross margin                                 2,524,107         1,484,383
 
     Operating expenses:
       Research and development                   1,013,327         1,062,409
       General and administrative                   590,445           533,519
       Sales and marketing                        3,413,896         2,353,793
     Operating loss                              (2,493,561)       (2,465,338)
 
     Other income (expense):
       Interest income                               84,443           125,538
       Interest expense                             (81,993)         (162,615)
                                                      2,450           (37,077)
 
     Net loss for the period                    $(2,491,111)      $(2,502,415)
 
     Net loss per share - basic and
      diluted                                        $(0.20)           $(0.25)
 
     Weighted average shares outstanding         12,466,559        10,185,183
 
 
                            Selected Balance Sheet Data
 
                                                  March 31,        December 31,
                                                    2001               2000
 
       Cash and cash equivalents                 $8,140,490        $10,759,128
       Working capital                           11,500,895          7,272,956
       Total assets                              18,496,586         21,356,333
       Total liabilities                          3,844,186         11,492,164
       Stockholders' equity                      14,652,400          9,864,169
 
 SOURCE  Endocardial Solutions, Inc.