Fusion Medical Technologies Reports First Quarter Results; Revenues Up 235% From Q1 2000

Apr 19, 2001, 01:00 ET from Fusion Medical Technologies, Inc.

    FREMONT, Calif., April 19 /PRNewswire/ -- Fusion Medical Technologies,
 Inc. (Nasdaq:   FSON) today announced that broadening use of FloSeal(R) and
 Proceed(TM) hemostatic products in hospitals and surgery centers drove revenue
 to $2.4 million for the three months ended March 31, 2001, a 235 percent
 increase over revenues of $715,000 in the first quarter of 2000.  First
 quarter revenues increased 32 percent over the $1.8 million reported for the
 three months ended December 31, 2000.
     The net loss for the three months ended March 31, 2001 was $3.9 million,
 or a loss per share of $0.34, compared to a net loss of $3.1 million, or a net
 loss per share of $0.31 for the same period last year.  Cash, cash
 equivalents, and available-for-sale securities totaled $4.2 million at
 March 31, 2001.  On April 9, 2001, the Company sold $8.0 million of common
 stock and warrants to Alloy Ventures, the State of Wisconsin Investment Board
 and the Asset Management Company.
     Fusion President and CEO Philip Sawyer said, "The revenue growth we are
 achieving quarter after quarter is evidence that FloSeal is steadily gaining
 acceptance by surgeons.  Growth continues to be positive in targeted surgical
 specialties and our sales force and marketing partners continue to execute our
 sales plan.
     "We expect," added Sawyer, "continued steady growth as our products
 penetrate additional medical facilities enhanced by interest generated at
 medical conferences and the continued adoption of FloSeal by leading
 surgeons."
     Fusion management will host a conference call this morning at 11:30 a.m.
 (Eastern).  The call will be broadcast live over the Internet at PR Newswire's
 website at (www.videonewswire.com/Fusion/041901).  Web participants are
 encouraged to go to the website at least 15 minutes prior to the start of the
 call to register, download, and install any necessary audio software.  The
 online archive will be available immediately and continue through Thursday,
 April 26, 2001.
     Fusion currently markets its FloSeal(R) Matrix Hemostatic Sealant
 (FloSeal) and Proceed products in surgical procedures, other than ophthalmic
 or urologic, as an adjunct to hemostasis when control of bleeding by ligature
 or conventional procedures is ineffective or impractical.  FloSeal, Proceed
 and Fusion's products in development are based on a bio-resorbable and
 proprietary collagen-based gel.  Products in development are being developed
 for use as hemostatic sealants, as well as for other potential uses.  Proceed
 is distributed worldwide exclusively by Sulzer Spine-Tech.
     The United States Food and Drug Administration (FDA) granted Fusion
 approval to market FloSeal and Proceed in the United States in December 1999.
 The FDA has not cleared or approved Fusion's other products in development.
 
     Fusion Medical Technologies(TM), Fusion(TM), FloSeal(R), Proceed(TM), and
 the stylized Fusion logo are trademarks of Fusion.
 
     This news release contains forward-looking statements.  These statements,
 which reflect Fusion management's beliefs and expectations, are subject to
 risks and uncertainties that may cause actual results to differ significantly
 from the results discussed in these statements.  Potential risks and
 uncertainties include without limitation, the risks and uncertainties
 associated with our ability to maintain consistent revenue and operational
 growth, our ability to manufacture our product in sufficient quantity, our
 relationship with Sulzer Spine-Tech, our ability to expand international
 sales, our ability to obtain third-party reimbursements for procedures, our
 ability to grow our sales, marketing and distribution capabilities and our
 ability to commercialize new products.  For a discussion of the risks and
 uncertainties that may affect Fusion's future results, please see
 "Management's Discussion and Analysis of Financial Condition and Results of
 Operations" and "Additional Factors That Might Affect Future Results"
 contained in Fusion's 2000 Annual Report on Form 10-K filed with the United
 States Securities and Exchange Commission on April 13, 2001.
 
     For further information, please contact Matt Clawson of Allen & Caron Inc,
 949-474-4300, for Fusion Medical Technologies, Inc.; or Philip M. Sawyer,
 President & CEO, or Larry J. Strauss, VP Finance & CFO, both of Fusion Medical
 Technologies, Inc., 510-818-4600.
 
 
                         FUSION MEDICAL TECHNOLOGIES, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands, except per share amounts)
                                    (unaudited)
 
                                                       Three Months Ended
                                                            March 31
                                                      2001              2000
      Revenues                                       $2,396              $715
      Cost of goods sold and start-up
           manufacturing costs                        1,968             1,089
      Gross profit (loss)                               428              (374)
 
      Operating expenses:
         Research and development                     1,688             1,021
         Marketing and selling                        1,747               963
         General and administrative                     895               942
      Total operating expenses                        4,330             2,926
      Operating loss                                 (3,902)           (3,300)
      Interest income, net                               40               164
      Net loss                                      $(3,862)          $(3,136)
 
     Basic and diluted net loss per share            $(0.34)           $(0.31)
 
     Shares used in computing basic and
      diluted net loss per share                      11,281            10,026
 
 
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (in thousands)
 
                                                    March 31        December 31
                                                      2001              2000
                                                   (unaudited)
                    ASSETS
     Current assets:
        Cash and cash equivalents                     $2,837            $3,668
        Available-for-sale securities                  1,405             4,489
        Accounts receivable, net                       1,448               978
        Inventory                                      1,197             1,018
        Other current assets                             113               197
           Total current assets                        7,000            10,350
        Restricted cash deposit                        1,502             1,661
        Plant, property & equipment, net               5,553             5,483
        Other long term assets                           219               215
            Total assets                             $14,274           $17,709
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
      Current liabilities                             $2,486            $2,089
      Long-term obligations                              783               799
           Total liabilities                           3,269             2,888
      Common stock and other stockholders'
       equity                                         66,138            66,092
      Accumulated deficit                            (55,133)          (51,271)
          Total stockholders' equity                  11,005            14,821
          Total liabilities and
           stockholders' equity                      $14,274           $17,709
 
 

SOURCE Fusion Medical Technologies, Inc.
    FREMONT, Calif., April 19 /PRNewswire/ -- Fusion Medical Technologies,
 Inc. (Nasdaq:   FSON) today announced that broadening use of FloSeal(R) and
 Proceed(TM) hemostatic products in hospitals and surgery centers drove revenue
 to $2.4 million for the three months ended March 31, 2001, a 235 percent
 increase over revenues of $715,000 in the first quarter of 2000.  First
 quarter revenues increased 32 percent over the $1.8 million reported for the
 three months ended December 31, 2000.
     The net loss for the three months ended March 31, 2001 was $3.9 million,
 or a loss per share of $0.34, compared to a net loss of $3.1 million, or a net
 loss per share of $0.31 for the same period last year.  Cash, cash
 equivalents, and available-for-sale securities totaled $4.2 million at
 March 31, 2001.  On April 9, 2001, the Company sold $8.0 million of common
 stock and warrants to Alloy Ventures, the State of Wisconsin Investment Board
 and the Asset Management Company.
     Fusion President and CEO Philip Sawyer said, "The revenue growth we are
 achieving quarter after quarter is evidence that FloSeal is steadily gaining
 acceptance by surgeons.  Growth continues to be positive in targeted surgical
 specialties and our sales force and marketing partners continue to execute our
 sales plan.
     "We expect," added Sawyer, "continued steady growth as our products
 penetrate additional medical facilities enhanced by interest generated at
 medical conferences and the continued adoption of FloSeal by leading
 surgeons."
     Fusion management will host a conference call this morning at 11:30 a.m.
 (Eastern).  The call will be broadcast live over the Internet at PR Newswire's
 website at (www.videonewswire.com/Fusion/041901).  Web participants are
 encouraged to go to the website at least 15 minutes prior to the start of the
 call to register, download, and install any necessary audio software.  The
 online archive will be available immediately and continue through Thursday,
 April 26, 2001.
     Fusion currently markets its FloSeal(R) Matrix Hemostatic Sealant
 (FloSeal) and Proceed products in surgical procedures, other than ophthalmic
 or urologic, as an adjunct to hemostasis when control of bleeding by ligature
 or conventional procedures is ineffective or impractical.  FloSeal, Proceed
 and Fusion's products in development are based on a bio-resorbable and
 proprietary collagen-based gel.  Products in development are being developed
 for use as hemostatic sealants, as well as for other potential uses.  Proceed
 is distributed worldwide exclusively by Sulzer Spine-Tech.
     The United States Food and Drug Administration (FDA) granted Fusion
 approval to market FloSeal and Proceed in the United States in December 1999.
 The FDA has not cleared or approved Fusion's other products in development.
 
     Fusion Medical Technologies(TM), Fusion(TM), FloSeal(R), Proceed(TM), and
 the stylized Fusion logo are trademarks of Fusion.
 
     This news release contains forward-looking statements.  These statements,
 which reflect Fusion management's beliefs and expectations, are subject to
 risks and uncertainties that may cause actual results to differ significantly
 from the results discussed in these statements.  Potential risks and
 uncertainties include without limitation, the risks and uncertainties
 associated with our ability to maintain consistent revenue and operational
 growth, our ability to manufacture our product in sufficient quantity, our
 relationship with Sulzer Spine-Tech, our ability to expand international
 sales, our ability to obtain third-party reimbursements for procedures, our
 ability to grow our sales, marketing and distribution capabilities and our
 ability to commercialize new products.  For a discussion of the risks and
 uncertainties that may affect Fusion's future results, please see
 "Management's Discussion and Analysis of Financial Condition and Results of
 Operations" and "Additional Factors That Might Affect Future Results"
 contained in Fusion's 2000 Annual Report on Form 10-K filed with the United
 States Securities and Exchange Commission on April 13, 2001.
 
     For further information, please contact Matt Clawson of Allen & Caron Inc,
 949-474-4300, for Fusion Medical Technologies, Inc.; or Philip M. Sawyer,
 President & CEO, or Larry J. Strauss, VP Finance & CFO, both of Fusion Medical
 Technologies, Inc., 510-818-4600.
 
 
                         FUSION MEDICAL TECHNOLOGIES, INC.
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands, except per share amounts)
                                    (unaudited)
 
                                                       Three Months Ended
                                                            March 31
                                                      2001              2000
      Revenues                                       $2,396              $715
      Cost of goods sold and start-up
           manufacturing costs                        1,968             1,089
      Gross profit (loss)                               428              (374)
 
      Operating expenses:
         Research and development                     1,688             1,021
         Marketing and selling                        1,747               963
         General and administrative                     895               942
      Total operating expenses                        4,330             2,926
      Operating loss                                 (3,902)           (3,300)
      Interest income, net                               40               164
      Net loss                                      $(3,862)          $(3,136)
 
     Basic and diluted net loss per share            $(0.34)           $(0.31)
 
     Shares used in computing basic and
      diluted net loss per share                      11,281            10,026
 
 
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (in thousands)
 
                                                    March 31        December 31
                                                      2001              2000
                                                   (unaudited)
                    ASSETS
     Current assets:
        Cash and cash equivalents                     $2,837            $3,668
        Available-for-sale securities                  1,405             4,489
        Accounts receivable, net                       1,448               978
        Inventory                                      1,197             1,018
        Other current assets                             113               197
           Total current assets                        7,000            10,350
        Restricted cash deposit                        1,502             1,661
        Plant, property & equipment, net               5,553             5,483
        Other long term assets                           219               215
            Total assets                             $14,274           $17,709
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
      Current liabilities                             $2,486            $2,089
      Long-term obligations                              783               799
           Total liabilities                           3,269             2,888
      Common stock and other stockholders'
       equity                                         66,138            66,092
      Accumulated deficit                            (55,133)          (51,271)
          Total stockholders' equity                  11,005            14,821
          Total liabilities and
           stockholders' equity                      $14,274           $17,709
 
 SOURCE  Fusion Medical Technologies, Inc.