Conceptus, Inc. (Nasdaq: CPTS), developer of the Essure ® procedure, the first proven non-surgical permanent birth control method available, today reported financial results for the three months ended March 31, 2010.
Net sales for the first quarter of 2010 were $33.4 million, an increase of 23% over net sales of $27.2 million for the first quarter of 2009. Net sales were within the Company’s guidance of $33.0 million to $34.0 million issued in February of this year.
The Company reported a net loss for the first quarter of 2010 of $2.4 million, or $0.08 per share, compared with a net loss in the same period of 2009 of $4.3 million, or $0.14 per share. These results were better than the Company’s net loss guidance of $0.09 to $0.10 per share. Non-GAAP net income for the first quarter of 2010 was $1.4 million, or $0.04 per diluted share, compared with non-GAAP net loss for the prior year first quarter of $1.7 million, or $0.05 per share.
Compared with the prior year first quarter, domestic sales of the Essure system increased 20% to $25.4 million and international sales increased 33% to $8.0 million. Domestic sales growth reflects continued increases in both the number of physicians entering and completing training, and in the number of certified physicians performing the Essure procedure in-office. The percentage of domestic procedures performed in sites of minimal anesthesia in the first quarter of 2010 was approximately 66%, a slight increase over the fourth quarter of 2009 and a 12 percentage point increase over the prior year first quarter. International sales growth was positively impacted by a weaker U.S. dollar in the current period compared to a year ago. International unit volume growth was 31%.Gross profit for the first quarter of 2010 was $27.0 million, compared with $21.4 million for the first quarter of 2009. Gross profit margin was 81% of net sales for the first quarter of 2010 compared with 79% for the first quarter of 2009. Sequential gross profit margin decreased slightly from 82% in the fourth quarter of 2009 primarily due to a higher percentage of lower-margin international sales in the first quarter of 2010. Total operating expenses for the first quarter of 2010 were $27.7 million, up from $24.0 million for the first quarter of 2009, reflecting increased spending on research and development and marketing.