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TheStreet Open House

EDAP Reports Second Quarter 2012 Revenues Up 61%

Stock quotes in this article: EDAP

Gross profit for the first half of 2012 was EUR 4.3 million (USD 5.6 million), up 23% from EUR 3.5 million (USD 5.0 million) for the first half of 2011. Gross profit margin was 39.2% in the first half of 2012, compared to 40.5% in the first half of 2011. 

Operating loss for the first half of 2012 was stable at EUR 1.9 million (USD 2.5 million) and net loss for the first half of 2012 was EUR 5.6 million (USD 7.2 million), or EUR 0.30 per diluted share, as compared to net income of EUR 1.2 million (USD 1.8 million), or EUR 0.13 per diluted share, in the first half of 2011.  Net loss in 2012 included a non-cash interest expense of EUR 3.3 million (USD 4.2 million) to reflect the accounting fair value impact of the January 2012 exchange offering on its convertible debentures and related warrants.  

At June 30, 2012, cash and cash equivalents, including short-term treasury investments, were EUR 8.1 million (USD 10.2 million) and reflected the payment in the second quarter 2012 of USD 2.0 million to the debt holders following the $5.625 million registered direct placement in March 2012.

Conference Call

EDAP will hold a conference call today, Thursday, August 30, 2012, at 8:30 a.m. EDT to discuss the results.  The dial-in numbers are 1-877-317-6789 for domestic callers and 1-412-317-6789 for international.  The conference ID number for both is 10016762. A live webcast of the conference call will be available online from the investor relations page of the Company's corporate website at www.edap-tms.com .

After the live webcast, the call will remain available on EDAP's website, www.edap-tms.com , through September 30, 2012. In addition, a telephonic replay of the call will be available until September 11, 2012. The replay dial-in numbers are 1-877-344-7529 for domestic callers and 1-412-317-0088 for international callers. Please use event passcode 10016762.

About EDAP TMS SA

EDAP TMS SA develops and markets Ablatherm(R), the most advanced and clinically proven choice for high-intensity focused ultrasound (HIFU) treatment of localized prostate cancer. HIFU treatment is shown to be a minimally invasive and effective treatment option with a low occurrence of side effects. Ablatherm-HIFU is generally recommended for patients with localized prostate cancer (stages T1-T2) who are not candidates for surgery or who prefer an alternative option, or for patients who failed radiotherapy treatment. Approved in Europe as a treatment for prostate cancer, Ablatherm-HIFU (High Intensity Focused Ultrasound) is currently undergoing evaluation in a multi-center U.S. Phase II/III clinical trial under an Investigational Device Exemption (IDE) granted by the FDA, the ENLIGHT U.S. clinical study. The Company also is developing this technology for the potential treatment of certain other types of tumors. EDAP TMS SA also produces and commercializes medical equipment (the Sonolith(R) range) for treatment of urinary tract stones using extra-corporeal shockwave lithotripsy (ESWL). For more information on the Company, please visit http://www.edap-tms.com, and http://www.hifu-planet.com.

Forward-Looking Statements

In addition to historical information, this press release may contain forward-looking statements.. Such statements are based on management's current expectations and are subject to a number of risks and uncertainties, including matters not yet known to us or not currently considered material by us, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among others the uncertainties of the U.S. FDA approval process, the clinical status and market acceptance of our HIFU devices and the continued market potential for our lithotripsy device.,. Factors that may cause such a difference also may include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission and in particular, in the sections "Cautionary Statement on Forward-Looking Information" and "Risk Factors" in the Company's Annual Report on Form 20-F. Ablatherm-HIFU treatment is in clinical trials, but not FDA-approved or marketed in the United States.

 
EDAP TMS S.A.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Amounts in thousands of Euros and U.S. Dollars, except per share data)
         
  Three Months Ended : Three Months Ended :
  June 30, June 30,  June 30,  June 30,
  2012 2011 2012 2011
  Euros Euros $US $US
Sales of goods 3,747 1,312 4,779 1,912
Net Sales of RPP and Leases 1,088 1,160 1,388 1,691
Sales of spare parts and        
Services  1,290  1,316  1,646  1,917
TOTAL NET SALES  6,126  3,788  7,813  5,520
Other revenues  --  3  --  4
TOTAL REVENUES  6,126  3,791  7,813  5,524
Cost of goods  (2,200)   (806)  (2,806)  (1,175)
Cost of RPP and Leases  (608)  (577)  (775)  (841)
Cost of spare parts & services  (925)   (884)  (1,179)  (1,288)
Cost of sales  (3,732)  (2,267)  (4,760)  (3,304)
         
GROSS PROFIT  2,394  1,524  3,053  2,220
Research & development expenses  (854)  (646)  (1,090)  (941)
Marketing & Sales expenses  (1,536)  (1,423)  (1,959)  (2,074)
G & A expenses  (940)  (715)  (1,199)  (1,041)
Total operating expenses  (3,331)  (2,784)  (4,248)   (4,056)
         
OPERATING PROFIT (LOSS)  (937)  (1,260)  (1,195)  (1,836)
Interest (expense) income, net  (2,109)  (173)  (2,690)   (253)
Currency exchange gains (loss), net  296  39  377  57
Other income (loss), net  33  (2)   42  (2)
         
INCOME (LOSS) BEFORE TAXES AND MINORITY INTEREST  (2,717)  (1,396)  (3,465)  (2,034)
Income tax (expense) credit  49   (47)  62  (69)
         
NET INCOME (LOSS)   (2,669)  (1,443)  (3,403)   (2,103)
Earning per share – Basic  (0.15)  (0.11)  (0.19)  (0.16)
Average number of shares used in computation of EPS  18,257,273  13,148,421  18,257,273  13,148,421
Earning per share – Diluted  (0.15)  (0.11)  (0.19)  (0.16)
Average number of shares used in computation of EPS for positive net income   18,249,273  13,465,858  18,249,273  13,465,858
         
NOTE: Translated for convenience of the reader to U.S. dollars at the 2012 average three months noon buying rate of 1 Euro = 1.2753 USD, and 2011 average three months noon buying rate of 1 Euro = 1.4573 USD.
 
 
EDAP TMS S.A.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Amounts in thousands of Euros and U.S. Dollars, except per share data)
         
  Six Months Ended : Six Months Ended :
  June 30, June 30,  June 30,  June 30,
  2012 2011 2012 2011
  Euros Euros $US $US
Sales of goods  6,212  3,736  8,076  5,318
Net Sales of RPP and Leases  2,201  2,352  2,862  3,348
Sales of spare parts and        
Services  2,550  2,537  3,316  3,612
TOTAL NET SALES  10,963  8,625  14,253  12,278
Other revenues  --  25  --  36
TOTAL REVENUES  10,963  8,650  14,253  12,313
Cost of goods  (3,575)  (2,259)   (4,648)  (3,215)
Cost of RPP and Leases  (1,243)  (1,210)  (1,615)  (1,723)
Cost of spare parts & services  (1,850)  (1,681)   (2,404)  (2,394)
Cost of sales  (6,667)  (5,151)  (8,668)  (7,332)
         
GROSS PROFIT  4,296  3,500  5,585  4,982
Research & development expenses  (1,563)  (1,182)  (2,032)  (1,683)
Marketing & Sales expenses  (2,959)  (2,763)  (3,846)  (3,933)
G & A expenses  (1,718)  (1,485)  (2,233)  (2,113)
Total operating expenses  (6,239)  (5,430)  (8,111)  (7,729)
         
OPERATING PROFIT (LOSS)  (1,943)  (1,930)  (2,526)  (2,748)
Interest (expense) income, net  (3,665)  1,194  (4,764)  1,700
Currency exchange gains (loss), net  28  (400)  36  (570)
Other income (loss), net  40  --  51  --
         
INCOME (LOSS) BEFORE TAXES AND MINORITY INTEREST  (5,540)  (1,136)  (7,203)  (1,618)
Income tax (expense) credit  (25)  (94)  (33)   (134)
         
NET INCOME (LOSS)   (5,565)  (1,230)  (7,236)  (1,751)
Earning per share – Basic   (0.30)  (0.09)  (0.40)  (0.13)
Average number of shares used in computation of EPS  18,257,273  13,148,421  18,257,273  13,148,421
Earning per share – Diluted  (0.30)  (0.09)  (0.40)  (0.13)
Average number of shares used in computation of EPS for positive net income  18,277,698  13,591,364  18,277,698  13,591,364
         
NOTE: Translated for convenience of the reader to U.S. dollars at the 2012 average six months noon buying rate of 1 Euro = 1.3001 USD, and 2011 average six months noon buying rate of 1 Euro = 1. 4235 USD.
 
 
EDAP TMS S.A.
CONSOLIDATED BALANCE SHEETS HIGHLIGHTS (UNAUDITED)
(Amounts in thousands of Euros and U.S. Dollars)
         
  June 30, March 31, June 30,  March 31,
  2012 2012 2012 2012
  Euros Euros $US $US
         
Cash, cash equivalents and short term investments 8,068 10,714 10,221 14,311
Total current assets  25,834  26,754  32,726   35,734
Total current liabilities  13,075  13,744  16,563  18,357
Shareholders' Equity  11,682  13,618  14,799  18,189
         
NOTE:  Translated for convenience of the reader to U.S. dollars at the noon buying rate of 1 Euro = 1.2668 USD, on June 30, 2012 and at the noon buying rate of 1 Euro = 1.3356 USD, on March 31, 2012.
     
     
EDAP TMS S.A.
CONDENSED STATEMENTS OF OPERATIONS BY DIVISION
SIX MONTHS ENDED JUNE 30, 2012
(Amounts in thousands of Euros)
                 
  HIFU Division   UDS Division   FDA Trials Corporate Total After Consolidation  
                 
Sales of goods  466    5,746       6,212
Sales of RPPs & Leases  1,505    696        2,201  
Sales of spare parts & services  454    2,096        2,550  
TOTAL NET SALES  2,426    8,538        10,963  
               
Other revenues  (3)    3        --  
               
TOTAL REVENUES  2,422    8,541        10,963  
                 
GROSS PROFIT  1,103 45.5%  3,193 37.4%      4,296 39.2%
                 
Research & Development  (717)   (451)    (395)    (1,563)
Total SG&A plus depreciation  (1,349)    (2,697)    (42)  (589)  (4,676)  
                 
OPERATING PROFIT (LOSS)  (964)    46    (437)  (589)  (1,943)  
CONTACT: Blandine Confort
         Investor Relations / Legal Affairs
         EDAP TMS SA
         +33 4 72 15 31 72
         bconfort@edap-tms.com
         
         Investors:
         Stephanie Carrington
         The Ruth Group
         646-536-7017
         scarrington@theruthgroup.com

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