Kensey Nash Announces Sequential Growth of 17% in Revenue and 20% in EPS In its Third Fiscal Quarter

-Strong Angio-Seal(TM) Royalties and Biomaterials Sales Contribute to Quarter-



Apr 19, 2001, 01:00 ET from Kensey Nash Corporation

    EXTON, Pa., April 19 /PRNewswire/ --
 Kensey Nash Corporation (Nasdaq: KNSY) today announced results for its third
 fiscal quarter ended March 31, 2001, highlighted by 17% sequential growth in
 revenue and 20% in EPS (exclusive of the IPR&D charge) over its second quarter
 ended December 31, 2000.
     Total revenues for the third quarter, which include both net sales and
 royalty income, increased 12% to $6.0 million compared to $5.4 million in the
 prior year period.  Net sales increased 5% to $3.9 million from $3.7 million
 and royalty income increased 21% to $2.0 million from $1.7 million, despite
 changes in the revenue mix as discussed below.  Net income for the quarter
 increased 42% to $1.9 million compared to $1.3 million for the prior year
 period.  Earnings per share increased to $0.18 per share on a higher share
 count of 10.6 million shares from $0.17 per share on 7.9 million shares in the
 comparable quarter last year.
     For the nine months ended March 31, 2001 total revenues increased 14% to
 $15.7 million compared to $13.8 million in the prior year period.  Net sales
 increased 5% to $9.6 million from $9.1 million and royalty income increased
 29% to $6.0 million from $4.6 million, despite changes in the revenue mix as
 discussed below.  Net income for the nine months, excluding a one time
 in-process research and development charge of $7.6 million related to the
 acquisition of THM Biomedical, Inc., increased 64% to $4.7 million compared to
 $2.8 million for the prior year period.  Earnings per share prior to the
 one-time charge increased 22% to $0.45 per share on a higher share count of
 10.5 million shares from $0.37 per share on 7.6 million shares in the
 comparable nine-month period last year.
     The growth of revenue and net income was achieved despite two factors
 which makes comparisons between the periods difficult.  In fiscal 2000, Kensey
 Nash manufactured initial commercial quantities of 6F Angio-Seal(TM) devices
 for its licensee, St. Jude Medical, Inc., resulting in sales of $1.7 million
 and $3.2 million for the third quarter and nine-month periods ended March 31,
 2000, respectively.  Excluding these sales which are not recurring, the
 company's core biomaterials business increased 93% in the current quarter to
 $3.9 million from $2.0 million and for the nine months increased 56% to
 $9.2 million from $5.9 million.  Similarly, a comparison of royalty income
 masks the true strength of the growth in Angio-Seal sales.  During the quarter
 ended December 31, 2000, upon the achievement of the milestone of one million
 cumulative Angio-Seal units sold, the company's contractual royalty rate
 decreased by 25% from 12% to 9%.  Despite a lower royalty rate on each St.
 Jude Medical sale, Angio-Seal royalties were up over 20% from the prior year
 quarter.
     "This was an exceptional quarter for Kensey Nash in all areas of our
 business and validates the strength of our business model," commented Joseph
 W. Kaufmann, President and CEO of Kensey Nash Corporation.  "St. Jude Medical
 continues to do an excellent job marketing the Angio-Seal product, and the
 results this quarter speak for themselves.  During the quarter, approximately
 129,000 Angio-Seal units were sold, a 14% increase from the previous quarter
 and a 38% increase over the prior year.  Additionally, strong unit and dollar
 growth occurred in both the U.S. and international markets, even while pricing
 continues to strengthen.  That translated to a 60% growth in Angio-Seal sales
 dollars to St. Jude Medical.  I am also pleased to report that the product
 continues to perform extremely well.  At the American College of Cardiology
 meeting in Orlando, FL in March, data presented indicated that Angio-Seal has
 high rates of hemostasis success and no increases in complication rates, even
 when patients are given the common anti-platelet regimen of glycoprotein
 IIbIIIa inhibitors."
     "Additionally, our company is ready to initiate large-scale clinical
 trials for the TriActiv(TM) Balloon Protected Flush Extraction System
 (formerly known as the Aegis Vortex System) for the treatment of saphenous
 vein grafts," stated Mr. Kaufmann.  "We have already received approval in
 several European countries to commence the trials necessary for CE Mark, which
 should get underway shortly.  This is a very exciting time for our company, as
 we believe our product has some significant competitive advantages in this
 very important marketplace.
     "As we look forward, our estimates for revenues and earnings per share for
 the fourth quarter of fiscal year 2001 remain in the $6.3 to $6.8 million and
 $.22 to $.25 ranges, respectively."
     A live webcast of the third quarter conference call will be broadcast
 April 20th at 11:00 AM eastern standard time.  Please visit the investor
 relations page at www.kenseynash.com for the link.
 
     Kensey Nash Corporation is a leader in designing, developing,
 manufacturing and processing proprietary absorbable biomaterials products for
 the orthopedics, cardiology, drug and biologics delivery and wound care
 markets.  The Company is also a leader in the development and manufacture of
 cardiovascular medical technology devices for arterial revascularization and
 arterial puncture closure.
 
     Statements contained in this press release that are not historical facts
 are forward-looking statements that are made pursuant to the Safe Harbor
 provisions of the Private Securities Litigation Reform Act of 1995.  The
 Company cautions that a number of important factors could cause the Company's
 actual results to differ materially from those in the forward-looking
 statements including, without limitation, St. Jude Medical's success in
 marketing the Angio-Seal(TM) device, demand for and the Company's ability to
 manufacture biomaterial products, including Angio-Seal(TM) components,
 clinical success of the TriActiv(TM) system, additional regulatory approvals,
 and competition from other technologies in the marketplace.  Results of
 operations in any past period should not be considered indicative of the
 results to be expected for future periods.  Fluctuations in operating results
 may also result in fluctuations in the price of the Common Stock.
 
                      - FINANCIAL INFORMATION TO FOLLOW -
 
 
                            KENSEY NASH CORPORATION
                 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                                  (Unaudited)
 
 
                                    Three Months             Nine Months
                                  Ended March 31,          Ended March 31,
                                  2001        2000         2001        2000
     Revenues:
         Net sales             $3,889,453  $3,702,541   $9,570,418  $9,075,453
         Research and
          development              89,974       5,447      206,817      48,044
         Royalty income         2,045,582   1,693,726    5,968,037   4,639,943
              Total revenues    6,025,009   5,401,714   15,745,272  13,763,440
     Operating costs and
      expenses:
         Cost of products sold  1,911,058   2,022,742    5,237,813   5,088,140
         Research and
          development           1,790,906   1,434,389    5,006,178   4,074,294
         Selling, general and
          administrative          833,704     700,299    2,145,234   2,040,744
         In-process research &
          development charge                             7,593,597
              Total operating
               costs and
               expenses         4,535,668   4,157,430   19,982,822  11,203,178
     Income (loss) from
      operations                1,489,341   1,244,284   (4,237,550)  2,560,262
     Interest and other
      income, net                 380,911      68,400    1,298,763     271,713
     Net income (loss)         $1,870,252  $1,312,684  $(2,938,787) $2,831,975
     Income (loss) per common
      share, assuming dilution      $0.18       $0.17       $(0.28)      $0.37
     Weighted average common
      shares outstanding       10,556,412   7,867,490   10,458,698   7,616,374
 
 
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                    (Unaudited)
 
                                                 March 31,         June 30,
                                                   2001              2000
     Assets
     Current assets:
         Cash, cash equivalents and short-
          term investments                      $26,403,062       $31,720,810
         Other current assets                     8,304,181         6,799,260
              Total current assets               34,707,243        38,520,070
     Property, plant and equipment, net           8,246,157         7,215,997
     Acquired puncture closure patents,
      net                                         3,265,456         3,355,953
     Goodwill                                     3,276,252
     Restricted investments and other
      assets                                      2,234,010         2,091,595
              Total assets                      $51,729,118       $51,183,615
 
     Liabilities and stockholders' equity
     Current liabilities                         $2,382,961        $1,777,326
     Long-term debt and obligations               2,572,258             1,933
     Total stockholders' equity                  46,773,899        49,404,356
               Total liabilities and
                stockholders' equity            $51,729,118       $51,183,615
 
 

SOURCE Kensey Nash Corporation
    EXTON, Pa., April 19 /PRNewswire/ --
 Kensey Nash Corporation (Nasdaq: KNSY) today announced results for its third
 fiscal quarter ended March 31, 2001, highlighted by 17% sequential growth in
 revenue and 20% in EPS (exclusive of the IPR&D charge) over its second quarter
 ended December 31, 2000.
     Total revenues for the third quarter, which include both net sales and
 royalty income, increased 12% to $6.0 million compared to $5.4 million in the
 prior year period.  Net sales increased 5% to $3.9 million from $3.7 million
 and royalty income increased 21% to $2.0 million from $1.7 million, despite
 changes in the revenue mix as discussed below.  Net income for the quarter
 increased 42% to $1.9 million compared to $1.3 million for the prior year
 period.  Earnings per share increased to $0.18 per share on a higher share
 count of 10.6 million shares from $0.17 per share on 7.9 million shares in the
 comparable quarter last year.
     For the nine months ended March 31, 2001 total revenues increased 14% to
 $15.7 million compared to $13.8 million in the prior year period.  Net sales
 increased 5% to $9.6 million from $9.1 million and royalty income increased
 29% to $6.0 million from $4.6 million, despite changes in the revenue mix as
 discussed below.  Net income for the nine months, excluding a one time
 in-process research and development charge of $7.6 million related to the
 acquisition of THM Biomedical, Inc., increased 64% to $4.7 million compared to
 $2.8 million for the prior year period.  Earnings per share prior to the
 one-time charge increased 22% to $0.45 per share on a higher share count of
 10.5 million shares from $0.37 per share on 7.6 million shares in the
 comparable nine-month period last year.
     The growth of revenue and net income was achieved despite two factors
 which makes comparisons between the periods difficult.  In fiscal 2000, Kensey
 Nash manufactured initial commercial quantities of 6F Angio-Seal(TM) devices
 for its licensee, St. Jude Medical, Inc., resulting in sales of $1.7 million
 and $3.2 million for the third quarter and nine-month periods ended March 31,
 2000, respectively.  Excluding these sales which are not recurring, the
 company's core biomaterials business increased 93% in the current quarter to
 $3.9 million from $2.0 million and for the nine months increased 56% to
 $9.2 million from $5.9 million.  Similarly, a comparison of royalty income
 masks the true strength of the growth in Angio-Seal sales.  During the quarter
 ended December 31, 2000, upon the achievement of the milestone of one million
 cumulative Angio-Seal units sold, the company's contractual royalty rate
 decreased by 25% from 12% to 9%.  Despite a lower royalty rate on each St.
 Jude Medical sale, Angio-Seal royalties were up over 20% from the prior year
 quarter.
     "This was an exceptional quarter for Kensey Nash in all areas of our
 business and validates the strength of our business model," commented Joseph
 W. Kaufmann, President and CEO of Kensey Nash Corporation.  "St. Jude Medical
 continues to do an excellent job marketing the Angio-Seal product, and the
 results this quarter speak for themselves.  During the quarter, approximately
 129,000 Angio-Seal units were sold, a 14% increase from the previous quarter
 and a 38% increase over the prior year.  Additionally, strong unit and dollar
 growth occurred in both the U.S. and international markets, even while pricing
 continues to strengthen.  That translated to a 60% growth in Angio-Seal sales
 dollars to St. Jude Medical.  I am also pleased to report that the product
 continues to perform extremely well.  At the American College of Cardiology
 meeting in Orlando, FL in March, data presented indicated that Angio-Seal has
 high rates of hemostasis success and no increases in complication rates, even
 when patients are given the common anti-platelet regimen of glycoprotein
 IIbIIIa inhibitors."
     "Additionally, our company is ready to initiate large-scale clinical
 trials for the TriActiv(TM) Balloon Protected Flush Extraction System
 (formerly known as the Aegis Vortex System) for the treatment of saphenous
 vein grafts," stated Mr. Kaufmann.  "We have already received approval in
 several European countries to commence the trials necessary for CE Mark, which
 should get underway shortly.  This is a very exciting time for our company, as
 we believe our product has some significant competitive advantages in this
 very important marketplace.
     "As we look forward, our estimates for revenues and earnings per share for
 the fourth quarter of fiscal year 2001 remain in the $6.3 to $6.8 million and
 $.22 to $.25 ranges, respectively."
     A live webcast of the third quarter conference call will be broadcast
 April 20th at 11:00 AM eastern standard time.  Please visit the investor
 relations page at www.kenseynash.com for the link.
 
     Kensey Nash Corporation is a leader in designing, developing,
 manufacturing and processing proprietary absorbable biomaterials products for
 the orthopedics, cardiology, drug and biologics delivery and wound care
 markets.  The Company is also a leader in the development and manufacture of
 cardiovascular medical technology devices for arterial revascularization and
 arterial puncture closure.
 
     Statements contained in this press release that are not historical facts
 are forward-looking statements that are made pursuant to the Safe Harbor
 provisions of the Private Securities Litigation Reform Act of 1995.  The
 Company cautions that a number of important factors could cause the Company's
 actual results to differ materially from those in the forward-looking
 statements including, without limitation, St. Jude Medical's success in
 marketing the Angio-Seal(TM) device, demand for and the Company's ability to
 manufacture biomaterial products, including Angio-Seal(TM) components,
 clinical success of the TriActiv(TM) system, additional regulatory approvals,
 and competition from other technologies in the marketplace.  Results of
 operations in any past period should not be considered indicative of the
 results to be expected for future periods.  Fluctuations in operating results
 may also result in fluctuations in the price of the Common Stock.
 
                      - FINANCIAL INFORMATION TO FOLLOW -
 
 
                            KENSEY NASH CORPORATION
                 CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
                                  (Unaudited)
 
 
                                    Three Months             Nine Months
                                  Ended March 31,          Ended March 31,
                                  2001        2000         2001        2000
     Revenues:
         Net sales             $3,889,453  $3,702,541   $9,570,418  $9,075,453
         Research and
          development              89,974       5,447      206,817      48,044
         Royalty income         2,045,582   1,693,726    5,968,037   4,639,943
              Total revenues    6,025,009   5,401,714   15,745,272  13,763,440
     Operating costs and
      expenses:
         Cost of products sold  1,911,058   2,022,742    5,237,813   5,088,140
         Research and
          development           1,790,906   1,434,389    5,006,178   4,074,294
         Selling, general and
          administrative          833,704     700,299    2,145,234   2,040,744
         In-process research &
          development charge                             7,593,597
              Total operating
               costs and
               expenses         4,535,668   4,157,430   19,982,822  11,203,178
     Income (loss) from
      operations                1,489,341   1,244,284   (4,237,550)  2,560,262
     Interest and other
      income, net                 380,911      68,400    1,298,763     271,713
     Net income (loss)         $1,870,252  $1,312,684  $(2,938,787) $2,831,975
     Income (loss) per common
      share, assuming dilution      $0.18       $0.17       $(0.28)      $0.37
     Weighted average common
      shares outstanding       10,556,412   7,867,490   10,458,698   7,616,374
 
 
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                    (Unaudited)
 
                                                 March 31,         June 30,
                                                   2001              2000
     Assets
     Current assets:
         Cash, cash equivalents and short-
          term investments                      $26,403,062       $31,720,810
         Other current assets                     8,304,181         6,799,260
              Total current assets               34,707,243        38,520,070
     Property, plant and equipment, net           8,246,157         7,215,997
     Acquired puncture closure patents,
      net                                         3,265,456         3,355,953
     Goodwill                                     3,276,252
     Restricted investments and other
      assets                                      2,234,010         2,091,595
              Total assets                      $51,729,118       $51,183,615
 
     Liabilities and stockholders' equity
     Current liabilities                         $2,382,961        $1,777,326
     Long-term debt and obligations               2,572,258             1,933
     Total stockholders' equity                  46,773,899        49,404,356
               Total liabilities and
                stockholders' equity            $51,729,118       $51,183,615
 
 SOURCE  Kensey Nash Corporation