|Contacts at CLOSURE Medical||At The Financial Relations Board|
|Robert V. Toni, President & CEO||Stuart Z. Levine, Ph.D. — General Info|
|Benny Ward, CFO||Cecelia Heer — Analyst Info|
|(919) 876-7800||Deanne Eagle — Media Info|
FOR IMMEDIATE RELEASE:
CLOSURE Medical Corporation Provides Guidance for Fourth Quarter 2000 and for Fiscal Year 2001 Including the Effects of Adopting Staff Accounting Bulletin No. 1 ("SAB 101")
Raleigh, N.C., Jan.11 / PRNewswire/ -- CLOSURE Medical Corporation (Nasdaq: CLSR) today hosted a conference call with analysts and investors to discuss the Company's expectations for key financial metrics for fourth quarter 2000 and fiscal year 2001, including the effects of adopting SAB 101.
Fourth Quarter 2000 Excluding Effects of SAB 101
Fourth quarter 2000 results, before the adoption of SAB 101, is expected to be consistent with the guidance provided during the third quarter 2000 earnings conference call held on October 26, 2000. Total revenues for the fourth quarter are expected to be in the range of $3.7 to $3.8 million. Fourth quarter earnings per basic and diluted common share is expected to be a net loss of ($0.01) to breakeven.
Fourth Quarter 2000 Including Effects of SAB 101
Total revenues for fourth quarter 2000, including $625,000 related to SAB 101, are expected to be in the range of $4.3 to $4.4 million. The net loss for fourth quarter 2000, including the effects of adopting SAB 101, is expected to be approximately $2.2 million or ($0.15) to ($0.16) per basic and diluted common share. The adoption of SAB 101 reflects the reversal of licenses fees and product development revenues that had been recognized in prior years related to a licensing and marketing agreement with Ethicon, Inc., signed in March 1996. Under the new accounting method, applied retroactively to January 1, 2000, these payments are recognized ratably over the remaining agreement term, through March 2004. The effect of applying this change in accounting principle, as of the beginning of the year, is a cumulative charge of $2.6 million or ($0.20) per basic and diluted common share.
For fiscal 2001, full year earnings per basic and diluted common share are expected to be in the range of $0.15 to $0.20 on revenues of $18.0 to $20.0 million. Comparing 2000 and 2001, these expectations represent growth in the range of 45%-50% for revenues and improves forecasted basic and diluted earnings per common share from a loss of ($0.12) to ($0.13) in fiscal 2000 to income of $0.15 to $0.20 in fiscal 2001.
The 2001 quarterly breakdown for basic and diluted earnings per common share is as follows: Q1 of ($0.01) to $0.01, Q2 of $0.00 to $0.02, Q3 of $0.05 to $0.07 and Q4 of $0.09 to $0.11.
CLOSURE Medical Corporation, headquartered in Raleigh, North Carolina, develops, manufactures and commercializes medical tissue adhesive products based on its proprietary cyanoacrylate technology. CLOSURE's nonabsorbable tissue adhesive products may be used to replace sutures and staples for certain topical wound closure applications, while its internal tissue adhesive products can potentially be used for internal wound closure and management. Currently marketed nonabsorbable tissue adhesive products include DERMABOND®* Topical Skin Adhesive, which is used to replace sutures and staples for closure of certain lacerations and incisions; OCTYLDENT®* adhesive, which is used as an adjunct in the treatment of adult periodontal disease; and the NEXABAND®* line of topical adhesives, which are used in veterinary wound closure and management.
* DERMABOND® adhesive is a trademark of Ethicon, Inc.; SOOTHE-N-SEAL™ canker sore relief and LIQUIDERM™ adhesive are trademarks of CLOSURE Medical Corporation. OCTYLDENT® adhesive and NEXABAND® adhesives are federally registered trademarks of CLOSURE Medical Corporation. To receive CLOSURE's latest news release and other corporate documents via fax, at no cost, call 1-800-PRO-INFO, use the Company's symbol CLSR. Or visit the Financial Relations Board's website at www.frbinc.com.
This release contains certain forward-looking statements which involve known and unknown risks, delays, uncertainties or other factors not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance, or other expectations implied by these forward-looking statements. These factors include, but are not limited to the early stage of commercialization of the Company products; the progress of its research and development programs for future products; the need for regulatory approval and effects of governmental regulation; technological uncertainties; the satisfactory conclusion of negotiations with, and dependence on marketing partners, and dependence on patents and trade secrets, as well as those detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 1999 filed with the Securities and Exchange Commission.