Exhibit 99.1

 
 
IMMEDIATE RELEASE
CONTACTS:
Brent Larson,
Vice President / CFO
614 793 7500 x133
March 7, 2007
 
Tim Ryan,
The Trout Group
646.378.3924
 
NEOPROBE ANNOUNCES 2006 ANNUAL RESULTS
Conference Call Scheduled for 11:00 a.m. tomorrow, Thursday, March 8, 2007

DUBLIN, OHIO - March 7, 2007 --Neoprobe Corporation (OTCBB: NEOP) today announced financial results for the fourth quarter of 2006 and for the full year that ended December 31, 2006. Results for the fourth quarter and for the full year of 2006 include the consolidated operations of Neoprobe Corporation and its subsidiaries, Cardiosonix Ltd. and Cira Biosciences, Inc. For the fourth quarter of 2006, Neoprobe had a net loss of $1.3 million (including total non-cash expenses of $398,000) or $0.02 per share compared to loss of $1.3 million (including total non-cash expenses of $326,000) or $0.02 per share for the fourth quarter of 2005. For fiscal year 2006, Neoprobe incurred a net loss of $4.7 million (including total non-cash expenses of $1.5 million) or $0.08 per share compared to a net loss of $4.9 million (including total non-cash expenses of $1.4 million) or $0.08 per share for fiscal 2005.

For the year 2006, Neoprobe reported total revenues of $6.1 million compared to $5.9 million in 2005. Revenue from our medical device product lines increased $132,000 or 2% in 2006 compared to the prior year. The improvement in annual revenue from our medical devices in 2006 reflects a 77% increase in blood flow device sales to $604,000 in 2006 compared to $340,000 in 2004, the effect of which offset a 2% decline in revenue from our gamma device product line related primarily to declines in end customer sales prices experienced by our primary distribution partner. For the fourth quarter of 2006, revenues increased $452,000 or 32% to $1.9 million compared to $1.4 million for the fourth quarter of 2005.

Gross profit for 2006 decreased $124,000 or 4% as compared to 2005. The decrease was the combined result of inventory impairment charges related to obsolete material components for our blood flow devices resulting from our efforts to improve product performance coupled with the price decline experienced related to our gamma detection products.

Neoprobe’s research and development expenses for 2006 decreased to $3.8 million compared to $4.0 million in 2005. Expenses incurred related to our Lymphoseek® development initiative remained relatively steady across the periods despite a shift in emphasis from pre-clinical and manufacturing scale-up activities in 2005 to more clinical study support activities in 2006. Device development costs for the year declined slightly as efforts to develop our Bluetooth wireless probe were offset by cost decreases in other areas of our gamma and blood flow line development.

General and administrative expenses decreased to $3.1 million for 2006 compared to $3.2 million for 2005 as increased non-cash stock option expenses were more than offset by decreases in professional services and other areas.

“2006 proved to be an exciting and challenging year for our business,” said David Bupp, Neoprobe’s President and CEO, “but one in which we demonstrated the continued strength of our medical device businesses as we strove to move forward in gaining market clearance for Lymphoseek in the United States and Europe.” Bupp continued, “The milestones we achieved during 2006 in the clinical evaluation of Lymphoseek have set the stage for 2007 to be an important development year for our Company.”

Neoprobe’s President and CEO, David Bupp, and Vice President and CFO, Brent Larson, will provide a business update and discuss the company’s results for the fourth quarter and full year of 2006 during a conference call scheduled for 11:00 AM EST, Thursday, March 8, 2007. The conference call can be accessed as follows:
 
 
NEOPROBE CORPORATION
ADD - 2
 
Conference Call Information
TO PARTICIPATE LIVE:
TO LISTEN TO A REPLAY:
Date:
Time:
 
Toll-free (U.S.) Dial in # :
International Dial in # :
March 8, 2007
11:00AM EST
 
877-407-9210
201-689-8050
Available until:
Toll-free (U.S.) Dial in # :
International Dial in # :
Replay passcodes (both required for playback):
Account # :
Conference ID # :
March 15, 2007
877-660-6853
201-612-7415
 
 
286
233794
 
About Neoprobe
Neoprobe is a biomedical company focused on enhancing patient care and improving patient outcome by meeting the critical intraoperative diagnostic information needs of physicians and therapeutic treatment needs of patients. Neoprobe currently markets the neo2000® line of gamma detection systems that are widely used by cancer surgeons and is commercializing the Quantix® line of blood flow measurement products developed by its subsidiary, Cardiosonix Ltd. In addition, Neoprobe holds significant interests in the development of related biomedical systems and radiopharmaceutical agents including Lymphoseek® and RIGScan® CR. Neoprobe’s subsidiary, Cira Biosciences, Inc., is also advancing a patient-specific cellular therapy technology platform called ACT. Neoprobe’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. www.neoprobe.com

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, anticipated clinical and regulatory pathways, 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 of its products, 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, risks of development of new products, regulatory risks 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.
 


NEOPROBE CORPORATION
                       
CONDENSED CONSOLIDATED BALANCE SHEETS
 
           
December 31,
  
December 31,
  
           
2006
  
2005
  
           
(unaudited)
      
                   
Assets:
                  
                   
Cash and cash equivalents
              
$
2,502,655
  
$
4,940,946
  
Available-for-sale securities
                
-
   
1,529,259
 
Other current assets
                
2,831,088
   
1,978,268
 
Intangible assets, net
                
1,828,517
   
2,098,910
 
Other non-current assets
                
871,272
   
1,023,058
 
                           
Total assets
              
$
8,033,532
  
$
11,570,441
  
                           
Liabilities and stockholders' (deficit) equity:
                          
                           
Current liabilities, including current portion of notes payable
              
$
3,462,837
  
$
1,501,683
  
Notes payable, long-term (net of discounts)
                
4,808,540
   
5,973,853
 
Other liabilities
                
60,182
   
78,109
 
Stockholders' (deficit) equity
                
(298,027
)
  
4,016,796
 
                           
Total liabilities and stockholders' (deficit) equity
              
$
8,033,532
  
$
11,570,441
  
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                          
                           
 
    
Three Months Ended
    
Twelve Months Ended
  
 
    
December 31,
    
December 31,
    
December 31,
    
December 31,
  
     
2006
    
2005
    
2006
    
2005
  
 
    
(unaudited) 
    
(unaudited
)
  
(unaudited
)
      
                           
Net sales
  
$
1,871,210
  
$
1,419,172
  
$
6,051,071
  
$
5,919,473
  
Cost of goods sold
    
890,959
   
638,054
   
2,632,131
   
2,376,211
 
Gross profit
    
980,251
   
781,118
   
3,418,940
   
3,543,262
 
                           
Operating expenses:
                          
Research and development
    
1,084,405
   
983,734
   
3,803,060
   
4,031,790
 
Selling, general and administrative
    
818,665
   
802,697
   
3,076,379
   
3,155,674
 
Total operating expenses
    
1,903,070
   
1,786,431
   
6,879,439
   
7,187,464
 
                           
Loss from operations
    
(922,819
)
  
(1,005,313
)
  
(3,460,499
)
  
(3,644,202
)
                           
Interest expense
    
(405,359
)
  
(348,748
)
  
(1,496,332
)
  
(1,350,592
)
Increase in warrant liability
    
-
   
-
   
-
   
(142,427
)
Other income, net
    
32,400
   
56,760
   
215,615
   
208,271
 
                           
Net loss
  
$
(1,295,778
)
$
(1,297,301
)
$
(4,741,216
)
$
(4,928,950
)
                           
Loss per common share:
                          
Basic
  
$
(0.02
)
$
(0.02
)
$
(0.08
)
$
(0.08
)
Diluted
  
$
(0.02
)
$
(0.02
)
$
(0.08
)
$
(0.08
)
                           
Weighted average shares outstanding:
                          
Basic
    
58,713,401
   
58,492,059
   
58,586,593
   
58,433,895
 
Diluted
    
58,713,401
   
58,492,059
   
58,586,593
   
58,433,895