Exhibit 99(a)
IMMEDIATE RELEASE MARCH 9, 2004
CONTACTS:
BRENT LARSON, JONATHAN FASSBERG,
VP FINANCE & CFO THE TROUT GROUP
614 793 7500 212 437 9007
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NEOPROBE ANNOUNCES 2003 FISCAL YEAR RESULTS
Annual Revenues Increase 32%, Net Loss Decreases 39%
DUBLIN, OHIO - March 9, 2004 -- Neoprobe Corporation (OTCBB: NEOP) today
announced financial results for the fourth quarter of 2003 and for the full year
that ended December 31, 2003. Results for the fourth quarter and for the full
year of 2003 include the consolidated operations of Neoprobe Corporation and its
wholly owned subsidiary, Cardiosonix Ltd. For the fourth quarter of 2003,
Neoprobe had a net loss of $582,000 or $0.01 per share. For fiscal year 2003,
Neoprobe incurred a loss of $1.8 million or $0.04 per share. The net loss
decreased by 39% compared to the prior year.
For the year 2003, Neoprobe reported revenues of $6.5 million compared to $4.9
million in the prior year. Total revenue increased 32% on a year-to-year basis.
Revenues for 2002 were adversely affected by an inventory overstock situation at
Neoprobe's primary gamma products distributor. For the fourth quarter of 2003,
Neoprobe reported revenues of $1.9 million compared to $1.7 million for the
fourth quarter of 2002. Revenues for 2003 exhibited a recovery to a level we
expect to be sustainable during 2004. Annual gross profit was 52% for both 2002
and 2003.
The operating results for 2003 reflect the continued investment in the
development and commercialization of our Quantix(R) blood flow measurement
technology. However, Neoprobe's research and development costs for 2003
decreased to $1.9 million compared to $2.3 million in 2002 due primarily to
headcount reductions made in our gamma development team at the end of 2002 and
the transition from development to clinical evaluation and commercialization of
our blood flow product line during 2003. General and administrative expenses
also decreased to $3.1 million for 2003 from $3.3 million in 2002 due again
primarily to headcount reductions at the end of 2002 coupled with decreases in
depreciation but offset by increases in marketing costs ($479,000) in support of
the Quantix product line.
"Our gamma business line improved in 2003 and the market remains very
encouraging," said David Bupp, Neoprobe's President and CEO. "Our gamma product
line continues to be the market leader and our primary marketing partner
continues to experience positive sales momentum and strong product pricing. Net
sales increased 45% in the fourth quarter of 2003 as compared to 2002. During
2003, we completed the pre-commercial and clinical evaluation activities
associated with the commercial launch of the Quantix products. Following the
presentation of the product at the recent Society of Thoracic Surgeons meeting,
we have completed agreements with independent cardiovascular sales organizations
to provide sales and marketing coverage for the Quantix products in North and
South America, Europe and Asia. We were also able to obtain regulatory guidance
during 2003 concerning the development plan for our procedural product
Lymphoseek(TM). Finally, we have scheduled a meeting with the U.S. Food and Drug
Administration in April to determine the appropriate next steps to reactivate
the RIGS(R) technology development program."
Neoprobe also announced that it intends to release the text of its Annual Letter
to Stockholders tomorrow, March 10, 2004. The letter highlights Neoprobe's
business and financial activities in 2003. Neoprobe's President and CEO, David
Bupp, and Vice President and CFO, Brent Larson, will discuss the Company's
business strategy and its 2003 results via a conference call scheduled for 4:30
PM EST tomorrow, March 10, 2004. Participants may dial-in by calling
1-888-823-7457 from the United States and Canada or by calling 1-973-582-2718
internationally. A replay of the call will be available for one week by calling
1-877-519-4471 (PIN# 4589094) from the United States and Canada or by calling
1-973-341-3080 internationally, or by accessing the company website at
www.neoprobe.com.
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NEOPROBE CORPORATION
ADD-1-
ABOUT NEOPROBE
Neoprobe develops and provides innovative surgical and diagnostic products that
enhance patient care by meeting the critical decision making needs of healthcare
professionals. Neoprobe's current line of gamma detection systems is widely used
for intraoperative lymphatic mapping (ILM), an emerging standard of care
technology for breast cancer and melanoma. Neoprobe also holds significant
interests in the development of related biomedical systems and agents. The
Company's strategy is to deliver superior growth and shareholder return by
maximizing its strong position in gamma detection technologies and diversifying
into new, synergistic biomedical markets through continued investment and
selective acquisitions. With the acquisition of Cardiosonix Ltd. in 2001,
Neoprobe expanded its product portfolio to include blood flow measurement
products. Cardiosonix is an early stage company that has recently received
regulatory clearance to begin the clinical evaluation and commercial sale of its
blood flow measurement products. Cardiosonix' products (the Quantix/ND(TM) and
the Quantix/OR(TM)) are designed to be used by neurosurgeons, cardiovascular
surgeons and critical care physicians.
Statements in this news release, which relate to other than strictly historical
facts, such as statements about the Company's plans and strategies, expectations
for future financial performance, new and existing products and technologies,
and markets for the Company's products, are forward-looking statements. The
words "believe," "expect," "anticipate," "estimate," "project," and similar
expressions identify forward-looking statements that speak only as of the date
hereof. Investors are cautioned that such statements involve risks and
uncertainties that could cause actual results to differ materially from
historical or anticipated results due to many factors including, but not limited
to, the Company's continuing operating losses, uncertainty of market acceptance,
reliance on third party manufacturers, accumulated deficit, future capital
needs, uncertainty of capital funding, dependence on limited product line and
distribution channels, competition, limited marketing and manufacturing
experience, and other risks detailed in the Company's most recent Annual Report
on Form 10-KSB and other Securities and Exchange Commission filings. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements.
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NEOPROBE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2003 2002
(unaudited)
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Assets:
Cash and cash equivalents $1,588,760 $ 700,525
Other current assets 2,462,575 2,389,562
Intangible assets, net 2,935,515 3,366,328
Other non-current assets 398,192 623,426
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Total assets $7,385,042 $7,079,841
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Liabilities and stockholders' equity:
Current liabilities, excluding deferred revenue $ 657,341 $1,016,365
Deferred revenue 955,587 1,637,485
Other liabilities 513,169 465,855
Stockholders' equity 5,258,945 3,960,136
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Total liabilities and stockholders' equity $7,385,042 $7,079,841
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2003 2002 2003 2002
(unaudited) (unaudited) (unaudited)
----------- ----------- ----------- -----------
Revenues:
Net sales $ 1,695,620 $ 1,166,324 $ 5,564,275 $ 3,382,707
License revenue and other 200,000 509,168 945,633 1,538,233
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Total revenues 1,895,620 1,675,492 6,509,908 4,920,940
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Cost of goods sold 1,012,731 486,255 3,124,978 2,351,169
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Gross profit 882,889 1,189,237 3,384,930 2,569,771
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Operating expenses:
Research and development 528,243 525,193 1,893,520 2,323,710
Selling, general and administrative 871,842 859,865 3,102,535 3,267,361
Acquired in-process research and development -- (28,368) -- (28,368)
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Total operating expenses 1,400,085 1,356,690 4,996,055 5,562,703
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Loss from operations (517,196) (167,453) (1,611,125) (2,992,932)
Other (expenses) income, net (64,745) 2,755 (187,870) 29,207
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Net loss $ (581,941) $ (164,698) $(1,798,995) $(2,963,725)
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Loss per common share:
Basic $ (0.01) $ (0.00) $ (0.04) $ (0.08)
Diluted $ (0.01) $ (0.00) $ (0.04) $ (0.08)
Weighted average shares outstanding:
Basic 45,925,972 36,084,855 40,337,679 36,045,196
Diluted 45,925,972 36,084,855 40,337,679 36,045,196