-- First Quarter 2007 Revenues Increase 14% Compared to First Quarter 2006 Revenues -- Pillcam SB Sales Increase by 19% Over First Quarter 2006 -- $0.1 Million Net Income Compared to Net Loss of $3.0 Million in Q1 2006 -- $1.2 Million Non-GAAP Net Income Compared to $1.7 Million Net Loss in Q1 2006 -- Company Refines 2007 Revenue Guidance to Higher End of RangeGiven Imaging Ltd. (
Recent Highlights
-- In April, Japan's Ministry of Health, Labor and Wealth approved PillCam SB Capsule and equipment for sale and marketing. -- Given Imaging signed a global strategic agreement with Fujinon Corporation to collaborate on research and development, sourcing and non- exclusive distribution activities. -- Wisconsin Physicians Service (WPS), the Medicare Part B Carrier for Wisconsin, Illinois, Michigan and Minnesota expanded its coverage policy for capsule endoscopy of the small bowel. The revised policy states that PillCam SB can be used as a primary diagnostic tool to evaluate patients with suspected but undiagnosed Crohn's disease, small bowel tumors and malabsorption syndrome. Wisconsin Physicians Service serves approximately 3 million Medicare beneficiaries.First Quarter Webcast Information Given Imaging will host a conference call tomorrow, May 8, 2007, at 9:00 a.m. Eastern time to discuss first quarter 2007 results. To participate in the teleconference, please dial (877) 704-5384 fifteen minutes before the conference begins. International callers should dial (913) 312-1297. The call will also be webcast live at www.givenimaging.com. A replay of the call will be available for thirty days on the company's website, or until May 22, 2007 by dialing 888-203-1112. International callers should dial 719-457-0820. The replay participant code is 8820442. Given Imaging Financial Community Meeting Given Imaging will host a meeting with members of the financial community in New York on Thursday, May 24 at 12:00pm. Management will review business objectives and goals and provide an update on the company's PillCam platform of products; PillCam SB, PillCam ESO and PillCam COLON. In addition, leading gastroenterologists will present key capsule endoscopy data presented at Digestive Disease Week, taking place earlier in the week. The event will be webcast live at www.givenimaging.com. About Given Imaging Ltd. Given Imaging is redefining gastrointestinal diagnosis by developing, producing and marketing innovative, patient-friendly products for detecting gastrointestinal disorders. The company's technology platform is the PillCam™ Platform, featuring the PillCam video capsule, a disposable, miniature video camera contained in a capsule, which is ingested by the patient, a sensor array, data recorder and RAPID® software. Given Imaging has three commercially available capsules: the PillCam SB video capsule to visualize the entire small intestine which is currently marketed in the United States and in more than 60 other countries; the PillCam ESO video capsule to visualize the esophagus; and the Agile™ patency capsule to determine the free passage of the PillCam capsule in the GI tract. The PillCam COLON video capsule to visualize the colon has been cleared for marketing in the European Union, and multi-center clinical trials are underway in Europe and the U.S. A capsule to visualize the stomach is under development. More than 500,000 patients worldwide have benefited from the PillCam capsule endoscopy procedure. Given Imaging's headquarters, manufacturing and R&D facilities are located in Yoqneam, Israel; it has direct sales and marketing operations in the United States, Germany and France, and local offices in Japan, Spain and Australia. For more information, visit http://www.givenimaging.com. This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, projections about our business and our future revenues, expenses and profitability. Forward-looking statements may be, but are not necessarily, identified by the use of forward-looking terminology such as "may," "anticipates," "estimates," "expects," "intends," "plans," "believes," and words and terms of similar substance. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual events, results, performance, circumstances or achievements of the Company to be materially different from any future events, results, performance, circumstances or achievements expressed or implied by such forward-looking statements. Factors that could cause actual events, results, performance, circumstances or achievements to differ from such forward-looking statements include, but are not limited to, the following: (1) satisfactory results of clinical trials with PillCam Colon (2) our ability to receive regulatory clearance or approval to market our products or changes in regulatory environment, (3) our success in implementing our sales, marketing and manufacturing plans, (4) protection and validity of patents and other intellectual property rights, (5) the impact of currency exchange rates, (6) the effect of competition by other companies, (7) the outcome of future litigation, including patent litigation with Olympus Corporation, (8) the reimbursement policies for our product from healthcare payors, (9) quarterly variations in operating results, (10) the possibility of armed conflict or civil or military unrest in Israel, and (11) other risks and factors disclosed in our filings with the U.S. Securities and Exchange Commission, including, but not limited to, risks and factors identified under such headings as "Risk Factors," "Cautionary Language Regarding Forward-Looking Statements" and "Operating Results and Financial Review and Prospects" in the Company's Annual Report on Form 20-F for the year ended December 31, 2005. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except for the Company's ongoing obligations to disclose material information under the applicable securities laws, it undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.
Given Imaging Ltd. and its Consolidated Subsidiaries Consolidated Balance Sheets In thousands except share data March 31, December 31, ------------ ------------ 2007 2006 ------------ ------------ (Unaudited) (Audited) ------------ ------------ Assets Current assets Cash and cash equivalents $ 30,011 $ 44,510 Short-term investments 26,440 17,245 Accounts receivable: Trade (Net of provisions for doubtful debts of $600 and of $787 as of March 31, 2007 and December 31, 2006, respectively) 16,748 18,887 Other 2,208 1,463 Inventories 17,387 18,168 Prepaid expenses 1,766 1,340 Deferred taxes 1,613 1,374 Advances to suppliers 125 82 ------------ ------------ Total current assets 96,298 103,069 ------------ ------------ Deposits 487 469 Assets held for severance benefits 2,210 1,984 Marketable Securities 39,796 34,769 Fixed assets, at cost, less accumulated depreciation 14,351 14,811 Other assets, at cost, less accumulated amortization 3,077 3,075 ------------ ------------ Total Assets $ 156,219 $ 158,177 ------------ ------------ Liabilities and shareholders' equity Current liabilities Current installments of obligation under capital lease $ 30 $ 13 Accounts payable Trade 4,436 5,550 Other 12,182 14,620 Deferred revenue 4,338 3,871 ------------ ------------ Total current liabilities 20,986 24,054 ------------ ------------ Long-term liabilities Deferred income 19,986 20,411 Obligation under capital lease, net - 20 Liability for employee severance benefits 2,655 2,407 ------------ ------------ Total long-term liabilities 22,641 22,838 ------------ ------------ Total liabilities 43,627 46,892 ------------ ------------ Minority interest 3,274 3,499 ------------ ------------ Shareholders' equity Share capital: Ordinary Shares, NIS 0.05 par value each (90,000,000 shares authorized; 28,694,666 and 28,641,291 shares Issued and fully paid as of March 31, 2007 and December 31, 2006, respectively) 336 335 Additional paid-in capital 157,657 156,197 Capital reserve 2,166 2,166 Accumulated deficit (50,841) (50,912) ------------ ------------ Total shareholders' equity 109,318 107,786 ------------ ------------ Total liabilities and shareholders' equity $ 156,219 $ 158,177 ============ ============ Given Imaging Ltd. and its Subsidiaries Consolidated Statements of Operations In thousands except share and per share data Three month period ended March 31, Year ended -------------------------- December 31, 2007 2006 2006 ------------ ------------ ------------ (Unaudited) (Unaudited) (Audited) ------------ ------------ ------------ Revenues $ 23,052 $ 20,268 $ 95,029 Cost of revenues 6,022 5,140 24,154 ------------ ------------ ------------ Gross profit 17,030 15,128 70,875 ------------ ------------ ------------ Operating expenses Research and development, gross (2,783) (3,046) (12,678) Royalty bearing grants 93 - 1,867 ------------ ------------ ------------ Research and development, net (2,690) (3,046) (10,811) Sales and marketing expenses (11,506) (12,693) (50,732) General and administrative expenses (3,943) (3,726) (16,027) ------------ ------------ ------------ Total operating expenses (18,139) (19,465) (77,570) ------------ ------------ ------------ Operating loss (1,109) (4,337) (6,695) Financing income, net 1,202 959 3,980 ------------ ------------ ------------ Profit (loss) before taxes on income 93 (3,378) (2,715) Taxes on income (247) 271 (127) ------------ ------------ ------------ Loss before minority share (154) (3,107) (2,842) Minority share in losses of subsidiary 225 61 1,334 ------------ ------------ ------------ Net profit (loss) $ 71 $ (3,046) $ (1,508) ============ ============ ============ Basic profit (loss) per Ordinary Share $ 0.00 $ (0.11) $ (0.05) ============ ============ ============ Diluted profit (loss) per Ordinary Share $ 0.00 $ (0.11) $ (0.05) ============ ============ ============ Weighted average number of Ordinary Shares used to compute basic profit (loss) per Ordinary share 28,659,520 27,978,210 28,053,849 ============ ============ ============ Weighted average number of Ordinary Shares used to compute diluted profit (loss) per Ordinary share 30,503,871 27,978,210 28,053,849 ============ ============ ============
Contact Information: For further information contact: Fern Lazar/David Carey Lazar Partners Ltd. 1-(866) GIVEN-IR Email Contact/ Email Contact