UROLOGIX REPORTS 4TH QTR 2007 NET LOSS OF $12.1 MIL.

Position:Revenue report - Financial report
 
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Urologix, Inc. (NASDAQ:ULGX), Minn., has reported financial results for the fiscal 2007 fourth quarter and year ended June 30, 2007, both of which include $4.8 million in non-cash income tax expense to increase the tax valuation allowance to fully reserve the company's deferred tax assets and a $6.4 million non-cash charge for long lived asset impairments and inventory write-downs for a total in non-cash charges of $11.2 million.

Revenue for the fourth quarter was $4.8 million compared to $5.1 million reported in the third quarter of fiscal 2007 and $6.6 million in the fourth quarter of fiscal 2006. For the fourth quarter of fiscal 2007, revenue from catheter sales to direct accounts declined 6% from the third quarter of fiscal 2007, driven primarily by a reduction in average selling price. Revenue from catheter sales to direct accounts constituted 51% of overall revenue in the fourth quarter of 2007 as compared to 52% in the prior quarter. Third party mobile revenue represented approximately 9% of overall revenue in both the fourth and third quarters of fiscal 2007. Sales of Urologix-owned Cooled ThermoTherapy mobile service treatments declined 2% compared to the third quarter of fiscal 2007, constituting 37% of overall revenue in the fourth quarter of 2007 compared to 36% in the prior quarter.

The net loss for the fourth quarter was $12.1 million, or $0.84 per diluted share. Impacting the fourth quarter net loss were non-cash long lived asset impairment charges, inventory write-downs and income tax expense recorded in the fourth quarter totaling $11.2 million, or $0.78 per diluted share. This compares to a net loss of $0.8 million, or $0.05 per diluted share, in the third quarter of fiscal 2007 and net earnings of $4.7 million, or $0.32 per diluted share, which includes $4.6 million, or $0.32 per diluted share, income tax benefit, in the fourth quarter of fiscal 2006 to reduce the valuation allowance related to the company's deferred tax asset.

For the year ended June 30, 2007, revenue was $21.3 million compared to $25.9 million in fiscal 2006. The net loss in fiscal 2007 was $13.2 million, or $0.92 per diluted share, which includes $11.2 million, or $0.78 per diluted share, of non-cash income tax expense to increase the valuation allowance on the deferred tax asset and long lived asset impairment charges and inventory write-downs recorded in the fourth quarter of fiscal 2007. This compares to fiscal 2006 net earnings of $5.5 million, or...

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