) reported net loss of $1.225 million or a loss of 8 cents per
share in the fourth quarter of 2012, a nominal improvement from a
net loss of $1.33 million or a loss of 9 cents per share in the
year-ago quarter. Reported loss, however, lagged the Zacks
Consensus Estimate of a loss of 6 cents per share. The reported
quarter also included $205,000 of non-cash imputed interest expense
on deferred acquisition payments.
For the full year 2012, net loss of 32 cents per share came as a
disappointment compared with the previous year's loss of 26 cents
per share and the Zacks Consensus Estimate of loss of 28 cents per
Revenues increased 54.2% year over year to $4.5 million during
the quarter driven by incremental contribution from the Prostiva
radio frequency ("RF") therapy product revenue. However, revenues
dropped 5% on a sequential basis due to lower procedure kit sales
volume in the company's direct channel. Revenues during 2012
increased 35.4% to $17 million.
Gross profit during the quarter was $2.3 million representing
gross margin of 50.6%, up from the adjusted (after considering
accounting adjustment) margin of 48.4% in the year-ago quarter.
Margin during the reported quarter was adversely affected by 110
basis points from non-cash (accounting) items related to the
purchase of the Prostiva RF therapy system. Moreover, operating
expenses are on the rise as selling and marketing (up 61.5% year
over year to $2.1 million) and general and administrative expenses
(up 21.8% to $0.8 million) recorded significant increases, while
research and development expenses dropped 1% to $0.57 million. We
believe that higher expenses were primarily associated with the
induction of the Prostiva RF therapy system to the company's
Urologix exited the fiscal with cash and cash equivalents of
$1.9 million, lower than $3.1 million at the end of the previous
fiscal. The company expects to report revenues of $17.5−$19 million
during fiscal 2013.
The Minneapolis based company develops, manufactures and markets
non-surgical catheter-based therapies for the treatment of Benign
Prostatic Hyperplasia ("BPH"), a disease that affects more than 23
million men worldwide. Under a license agreement signed in
) and its subsidiary VidaMed granted Urologix an exclusive,
worldwide license to the Prostiva RF therapy System for the
treatment of BPH.
The stock carries a Zacks #3 Rank (Hold) in the short term.
MEDTRONIC (MDT): Free Stock Analysis Report
UROLOGIX INC (ULGX): Free Stock Analysis Report
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