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Kips Bay Medical, Inc. (NASDAQ: KIPS) today announced financial results for fourth quarter and year ended December 31, 2011.
Net sales increased to $252,000 for the year ended December 31, 2011, up from $223,000 for the same period in the prior year. The net loss in the year was $4.3 million, or $0.27 per diluted share, compared to a net loss of $10.9 million, or $0.81 per diluted share, for the prior year. The Company achieved a gross margin of 63.9% compared to 65.5% for the full year 2011 and 2010, respectively. The net loss for 2010 included a $5.0 million non-cash charge for the first milestone payment payable to Medtronic, Inc. which was triggered by the first commercial sale of the eSVS
® MESH and a $2.3 million non-cash charge for an increase in the estimated fair value of an investor stock purchase option liability.
In the fourth quarter of 2011, net sales were $94,000, down from $116,000 in the fourth quarter of 2010. Gross profit was $61,000 and $80,000 in the fourth quarter of 2011 and 2010, respectively. Net loss in the fourth quarter of 2011 was $1.1 million, or $0.07 per diluted share, compared to a net loss of $803,000, or $0.06 per diluted share, in the fourth quarter of 2010. The decrease in net sales during the current quarter is due to limited availability of reimbursement to hospitals moderating the usage of the Company’s eSVS MESH. The Company expects sales to continue at modest levels until additional clinical study data is available.
Balance Sheet and Cash Flow
Cash, cash equivalents and short-term investments increased to $9.2 million at December 31, 2011 from $3.8 million at December 31, 2010. Total current assets increased to $10.2 million at December 31, 2011, up from $5.7 million at December 31, 2010. These increases were driven by the Company’s Initial Public Offering (“IPO”) completed in February 2011, from which the Company realized net proceeds of approximately $13.6 million, partially offset by cash used in operations during 2011.