MedAmicus Reports $450,000 First Quarter Profit; Revenue Increases 24 Percent

Apr 12, 2001, 01:00 ET from MedAmicus, Inc.

    MINNEAPOLIS, April 12 /PRNewswire/ -- MedAmicus, Inc. (Nasdaq:   MEDM)
 reported net income for the first quarter of the year 2001 of $450,000 or
 $.10 per diluted share compared to a loss of $75,000, or $.02 per share for
 the same quarter of 2000.  Revenues increased 24 percent to $3,240,000
 compared to $2,611,000 for the first quarter of last year.
     "Our first quarter results were very gratifying," said James D. Hartman,
 president and CEO.  "We achieved record sales and profitability in our
 Percutaneous Delivery Solutions (PDS) division.  Our Gynecology division, in
 spite of a restructuring at the end of 2000 that significantly reduced sales
 and marketing activities, achieved modest sales gains and a dramatic reduction
 in the divisional loss for the quarter when compared to last year's first
 quarter.
     "Our PDS division recorded a 31 percent increase in sales for the
 quarter," Hartman continued.  "Most notable were substantial shipments of the
 Left Ventricle Lead Delivery System used to implant Medtronic's new pacing
 device for the treatment of congestive heart failure.  As recently reported by
 Medtronic, the results of several clinical studies in support of Medtronic's
 application for marketing approval by the Food and Drug Administration have
 been extremely positive.  The product is already being marketed in Europe.
     "As we head into the second quarter, we are optimistic about continued
 growth in our PDS business from Left Ventricle Lead Delivery Systems, as well
 as several new significant introducer customers coming on line.  We are also
 making progress in the ramp-up of PDS production capabilities for the launch
 of our safety needle in the third quarter," Hartman added.
     "We restructured our Gynecology business at the end of 2000," Hartman
 continued.  "The restructuring was designed to align the expenses with the
 growth rate of the business and focus on expanding the number of diagnostic
 tests within its existing loyal customer base.  These changes were intended to
 allow the division, which has been operating at a loss, to perform at or near
 break-even before allocation of general and administrative costs for the
 calendar year 2001.  The first quarter results have been a success.  The
 division reported a 7 percent increase in total sales led by a 26 percent
 increase in catheter sales.  More significant was a divisional loss before
 general and administrative allocations of $29,000 compared to a loss on the
 same basis in 2000 of $449,000."
     The Company will hold a conference call at 2:30 P.M. CDT today, Thursday,
 April 12 to discuss the first quarter results.  Individuals wishing to
 participate should call 877-888-3855.  A recording of the conference call will
 be available for one week by calling 888-509-0082.
     The Company also announced that its annual stockholder meeting would be
 held at the Crowne Plaza Northstar Hotel in downtown Minneapolis, Thursday,
 April 26, 2001 at 3:30 P.M.
     MedAmicus, Inc., based in Plymouth, Minn., is a medical products company
 engaged in the design, development, manufacture and marketing of medical
 products for the cardiology, gynecology and urology markets.  Its products
 include venous vessel introducers and safety products for use in the
 implantation of pacemakers, defibrillators, catheters and infusion ports sold
 through OEM relationships with other medical device companies, as well as
 Lumax fiber optic monitors and catheters for the diagnosis of incontinence and
 prostate conditions sold through its own direct sales force.  MedAmicus is
 traded on the Nasdaq Stock Market under the symbol MEDM.
 
 
                                 Balance Sheets
 
                                                    Unaudited        Audited
 
     Assets                                          03/31/01       12/31/00
       Cash and cash equivalents                     $940,813     $1,007,149
       Inventory, receivables and prepaids          3,689,984      3,150,246
       Property, plant and equipment, net           1,471,624      1,334,594
       Other assets                                    68,751         69,043
     Total Assets                                  $6,171,172     $5,561,032
 
     Liabilities & Shareholders' Equity
       Current liabilities                         $2,882,621     $2,713,980
       Long-term liabilities                          200,515        214,849
       Shareholders' equity                         3,088,036      2,632,203
     Total Liabilities & Shareholders' Equity      $6,171,172     $5,561,032
 
 
                      Statements of Operations (Unaudited)
 
                                                       Three Months Ended
                                                    03/31/01       03/31/00
 
     Sales                                         $3,240,392     $2,610,564
     Cost of sales                                  1,584,695      1,369,953
     Gross Profit                                   1,655,697      1,240,611
 
     Expenses
       Research and development                       333,687        239,748
       Selling, general and administrative            833,468      1,048,615
       Other (income) expense, net                     39,047         27,472
     Total Expenses                                 1,206,202      1,315,835
 
     Net Income (Loss)                               $449,495       $(75,224)
 
     Net Income (Loss) Per Share
       Basic                                            $0.11         $(0.02)
       Diluted                                          $0.10         $(0.02)
 
     Wtd Avg Common & Common Equivalent Shares
      Outstanding
       Basic                                        4,166,206      4,116,288
       Diluted                                      4,448,275      4,116,288
 
     This news release contains forward-looking statements as defined by the
 Private Securities Litigation Reform Act of 1995.  Certain important factors
 could cause results to differ materially from those anticipated by some
 statements made herein.  You are cautioned that all forward-looking statements
 involve risks and uncertainties.  Among the factors that could cause results
 to differ materially are the following:  attracting and retaining key
 personnel; complications bringing new PDS products into production; lack of
 market acceptance of the Company's products, especially new PDS products;
 introduction of competitive products; patent and government regulatory
 matters; performance of the Company's sales representatives and ability to
 attract effective sales representatives; economic conditions; and the ability
 to raise capital.  All such forward-looking statements, whether written or
 oral, and whether made by or on behalf of the Company are expressly qualified
 by these cautionary statements.  In addition, the Company disclaims any
 obligation to update forward-looking statements to reflect events or
 circumstances after the date hereof.
 
 

SOURCE MedAmicus, Inc.
    MINNEAPOLIS, April 12 /PRNewswire/ -- MedAmicus, Inc. (Nasdaq:   MEDM)
 reported net income for the first quarter of the year 2001 of $450,000 or
 $.10 per diluted share compared to a loss of $75,000, or $.02 per share for
 the same quarter of 2000.  Revenues increased 24 percent to $3,240,000
 compared to $2,611,000 for the first quarter of last year.
     "Our first quarter results were very gratifying," said James D. Hartman,
 president and CEO.  "We achieved record sales and profitability in our
 Percutaneous Delivery Solutions (PDS) division.  Our Gynecology division, in
 spite of a restructuring at the end of 2000 that significantly reduced sales
 and marketing activities, achieved modest sales gains and a dramatic reduction
 in the divisional loss for the quarter when compared to last year's first
 quarter.
     "Our PDS division recorded a 31 percent increase in sales for the
 quarter," Hartman continued.  "Most notable were substantial shipments of the
 Left Ventricle Lead Delivery System used to implant Medtronic's new pacing
 device for the treatment of congestive heart failure.  As recently reported by
 Medtronic, the results of several clinical studies in support of Medtronic's
 application for marketing approval by the Food and Drug Administration have
 been extremely positive.  The product is already being marketed in Europe.
     "As we head into the second quarter, we are optimistic about continued
 growth in our PDS business from Left Ventricle Lead Delivery Systems, as well
 as several new significant introducer customers coming on line.  We are also
 making progress in the ramp-up of PDS production capabilities for the launch
 of our safety needle in the third quarter," Hartman added.
     "We restructured our Gynecology business at the end of 2000," Hartman
 continued.  "The restructuring was designed to align the expenses with the
 growth rate of the business and focus on expanding the number of diagnostic
 tests within its existing loyal customer base.  These changes were intended to
 allow the division, which has been operating at a loss, to perform at or near
 break-even before allocation of general and administrative costs for the
 calendar year 2001.  The first quarter results have been a success.  The
 division reported a 7 percent increase in total sales led by a 26 percent
 increase in catheter sales.  More significant was a divisional loss before
 general and administrative allocations of $29,000 compared to a loss on the
 same basis in 2000 of $449,000."
     The Company will hold a conference call at 2:30 P.M. CDT today, Thursday,
 April 12 to discuss the first quarter results.  Individuals wishing to
 participate should call 877-888-3855.  A recording of the conference call will
 be available for one week by calling 888-509-0082.
     The Company also announced that its annual stockholder meeting would be
 held at the Crowne Plaza Northstar Hotel in downtown Minneapolis, Thursday,
 April 26, 2001 at 3:30 P.M.
     MedAmicus, Inc., based in Plymouth, Minn., is a medical products company
 engaged in the design, development, manufacture and marketing of medical
 products for the cardiology, gynecology and urology markets.  Its products
 include venous vessel introducers and safety products for use in the
 implantation of pacemakers, defibrillators, catheters and infusion ports sold
 through OEM relationships with other medical device companies, as well as
 Lumax fiber optic monitors and catheters for the diagnosis of incontinence and
 prostate conditions sold through its own direct sales force.  MedAmicus is
 traded on the Nasdaq Stock Market under the symbol MEDM.
 
 
                                 Balance Sheets
 
                                                    Unaudited        Audited
 
     Assets                                          03/31/01       12/31/00
       Cash and cash equivalents                     $940,813     $1,007,149
       Inventory, receivables and prepaids          3,689,984      3,150,246
       Property, plant and equipment, net           1,471,624      1,334,594
       Other assets                                    68,751         69,043
     Total Assets                                  $6,171,172     $5,561,032
 
     Liabilities & Shareholders' Equity
       Current liabilities                         $2,882,621     $2,713,980
       Long-term liabilities                          200,515        214,849
       Shareholders' equity                         3,088,036      2,632,203
     Total Liabilities & Shareholders' Equity      $6,171,172     $5,561,032
 
 
                      Statements of Operations (Unaudited)
 
                                                       Three Months Ended
                                                    03/31/01       03/31/00
 
     Sales                                         $3,240,392     $2,610,564
     Cost of sales                                  1,584,695      1,369,953
     Gross Profit                                   1,655,697      1,240,611
 
     Expenses
       Research and development                       333,687        239,748
       Selling, general and administrative            833,468      1,048,615
       Other (income) expense, net                     39,047         27,472
     Total Expenses                                 1,206,202      1,315,835
 
     Net Income (Loss)                               $449,495       $(75,224)
 
     Net Income (Loss) Per Share
       Basic                                            $0.11         $(0.02)
       Diluted                                          $0.10         $(0.02)
 
     Wtd Avg Common & Common Equivalent Shares
      Outstanding
       Basic                                        4,166,206      4,116,288
       Diluted                                      4,448,275      4,116,288
 
     This news release contains forward-looking statements as defined by the
 Private Securities Litigation Reform Act of 1995.  Certain important factors
 could cause results to differ materially from those anticipated by some
 statements made herein.  You are cautioned that all forward-looking statements
 involve risks and uncertainties.  Among the factors that could cause results
 to differ materially are the following:  attracting and retaining key
 personnel; complications bringing new PDS products into production; lack of
 market acceptance of the Company's products, especially new PDS products;
 introduction of competitive products; patent and government regulatory
 matters; performance of the Company's sales representatives and ability to
 attract effective sales representatives; economic conditions; and the ability
 to raise capital.  All such forward-looking statements, whether written or
 oral, and whether made by or on behalf of the Company are expressly qualified
 by these cautionary statements.  In addition, the Company disclaims any
 obligation to update forward-looking statements to reflect events or
 circumstances after the date hereof.
 
 SOURCE  MedAmicus, Inc.