Urologix Reports Fiscal Year 2013 First Quarter Results and Revises Annual Guidance

Urologix Reports Fiscal Year 2013 First Quarter Results and Revises Annual
Guidance

  *First quarter revenue of $4.0 million, up 26.3% year-over-year
  *Cash balance increases to $5.3 million after completion of follow-on
    offering
  *Cooled ThermoTherapy reimbursement code supported in Medicare review
  *The Company revises fiscal year 2013 total revenue guidance range to $16.0
    million to $17.0 million

MINNEAPOLIS, Nov. 14, 2012 (GLOBE NEWSWIRE) -- Urologix®, Inc. (Nasdaq:ULGX),
the leading provider of in-office procedures for the safe, durable and
effective treatment of BPH, today reported financial results for its fiscal
year first quarter ended September 30, 2012.

First quarter fiscal year 2013 revenue totaled $4.0 million, up 26.3%
year-over-year and down 11.7% sequentially. The first quarter year over year
increase in revenue was driven by the incremental contribution of Prostiva®
Radio Frequency (RF) Therapy product revenue. The sequential decline in total
Urologix revenue was due to lower procedure kit sales volume in the Company's
direct channel, approximately half of which was driven by a decline in
Prostiva product sales.

As of September 30, 2012, the Company's cash balance was $5.3 million compared
to $1.9 million as of June 30, 2012. The change in cash balance was driven
primarily by the contributions from the Company's completed follow-on offering
in the period which added approximately $3.9 million to cash balances in the
fiscal year 2013 first quarter. The Company's cash flow benefitted from the
delayed timing of payments for Prostiva product, royalties and license fees.

"The first quarter of fiscal year 2013 started off slower than expected and
our revised guidance reflects our cautiousness with respect to healthcare
procedure trends for the balance of the fiscal year," stated Stryker Warren,
Jr., CEO. "We remain intently focused on leveraging our leading market share
position, our expanded sales organization and our innovative market
development and patient education programs to drive top-line growth going
forward."

Gross profit for the first quarter of fiscal year 2013 was $2.0 million, or
50.8% of revenue, compared to $1.4 million, or 45.0% of revenue, in the first
quarter of fiscal year 2012. The increase in the percentage of gross profit
compared to the prior year was due to the negative impact of lower production
volumes in the prior year as part of a plan to reduce inventory levels that
reduced gross margin by 450 basis points in that period.

Total operating expense of $2.9 million in the first quarter of fiscal year
2013 increased 7.5% year-over-year, driven primarily by the investment in the
direct sales force and our seminar program that resulted from the acquisition
of the Prostiva product line. Total operating expense declined 12.5% on a
sequential basis due to: (i) expenses related to the Annual AUA meeting that
were incurred in the fourth quarter of fiscal year 2012; and (ii) lower sales
compensation expense as a result of the decrease in sales compared to the last
quarter. First quarter fiscal year 2013 operating expense included a gain of
$154,000 due to a change in the fair value of the acquisition consideration
for the Prostiva business.

For the first quarter of fiscal year 2013, Urologix reported a net loss of
$1.1 million, or $0.05 per diluted share, compared to a net loss of $1.4
million, or $0.09 per diluted share, in the first quarter of fiscal year
2012.The net loss in the first quarter of fiscal year 2013 was positively
impacted by the gain of $154,000 due to a change in the fair value of the
acquisition consideration.

Recent Developments

On November 1, 2012, the Centers for Medicare and Medicaid Services (CMS), in
the Final Rule for the Medicare Physician Fee Schedule for 2013, updated
payment rates for Urologix's Cooled ThermoTherapy technology as part of a
broad re-evaluation of 70 codes across multiple specialties. The AMA
recommended the physician work "relative value units" (RVUs) for Urologix's
Cooled ThermoTherapy (CTT) remain at current levels. CMS accepted the AMA
recommendation and made no material adjustments to either physician time, or
to overall practice expense for CTT's Current Procedural Terminology (CPT®)
code (53850).

Guidance

The Company is revising the fiscal year 2013 total revenue guidance range to
approximately $16.0 million to $17.0 million compared to $17.5 to $19.0
million previously.

Earnings Call Information

Urologix will host a conference call with the financial community to discuss
fiscal year 2013 first quarter results on Wednesday, November 14, 2012 at 4:00
p.m. Central Standard Time.To listen to the call, please dial 1-866-202-1971
and enter the Participant Passcode 75425848 at least 10 minutes prior to the
call.A live webcast of the call will be available through the investor
relations section of the Company's website at www.urologix.com and available
for replay approximately two hours after the completion of the call.

About Urologix

Urologix, Inc., based in Minneapolis, develops, manufactures, markets and
distributes minimally invasive medical products for the treatment of
obstruction and symptoms due to Benign Prostatic Hyperplasia (BPH). Urologix'
Cooled ThermoTherapy™ produces targeted microwave energy combined with a
unique cooling mechanism to protect healthy tissue and enhance patient
comfort. The Cooled ThermoTherapy™ product line includes the CoolWave® and
Targis® Control Units and the CTC Advance® and Targis® catheter families. The
Prostiva® RF Therapy System distributed by Urologix delivers radio frequency
energy directly into the prostate destroying prostate tissue, reducing
constriction of the urethra, and thereby relieving BPH voiding symptoms. Both
of these products provide safe, effective and lasting relief of the symptoms
and obstruction due to BPH. Prostiva® is a registered trademark of Medtronic,
Inc., used under license. All other trademarks are the property of Urologix.

The Urologix, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7867

Forward Looking Statements

This press release contains forward-looking statements that are made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Any statements contained in this press release that are not
statements of historical fact may be deemed to be forward-looking statements.
Without limiting the foregoing, words such as "may," "will," "expect,"
"believe," "anticipate," "estimate" or "continue" or comparable terminology
are intended to identify forward-looking statements. Such forward looking
statements include, for example, statements about the effectiveness of the
Company's sales and marketing strategies, the Company's future revenue and
operating performance, or about the development and marketing of new
products.The statements made by the Company are based upon management's
current expectations and are subject to certain risks and uncertainties that
could cause the actual results to differ materially from those described in
the forward-looking statements. These risks and uncertainties include market
conditions and other factors beyond the Company's control and the risk factors
and other cautionary statements described in the Company's Annual Report on
Form 10-K for the year ended June 30, 2012 and other documents filed with the
Securities and Exchange Commission.

Urologix, Inc.
Statements of Operations
(Unaudited, in thousands, except per share data)
                                             
                                             Three Months Ended September 30,
                                             2012             2011
                                                             
Sales                                         $3,970          $3,142
Cost of goods sold                            1,954            1,727
Gross profit                                  2,016            1,415
                                                             
Costs and expenses:                                           
Sales and marketing                           1,717            1,365
General and administrative                    738              880
Research and development                      615              481
Change in value of acquisition consideration  (154)            --
Amortization expense                          26               12
Total costs and expenses                      2,942            2,738
                                                             
Operating loss                                (926)            (1,323)
Interest expense                              (123)            (56)
Foreign currency exchange loss                (4)              --
Loss before income taxes                      (1,053)          (1,379)
                                                             
Income tax expense                            16               5
Net loss                                      $(1,069)        $(1,384)
                                                             
Net loss per common share---basic             $(0.05)         $(0.09)
                                                             
Net loss per common share---diluted           $(0.05)         $(0.09)
                                                             
Weighted average number of common shares      20,180           14,646
outstanding---basic
                                                             
Weighted average number of common shares      20,180           14,646
outstanding---diluted

Urologix, Inc.
Balance Sheets
(Unaudited, in thousands)
                                                       
                                          September 30, June 30,
                                           2012          2012
ASSETS                                                  
Current assets:                                         
Cash and cash equivalents                  $5,349   $1,899
Accounts receivable, net                   2,096         2,132
Inventories                                2,060         1,448
Prepaids and other current assets          313           290
Total current assets                       9,818         5,769
Property and equipment:                                 
Property and equipment                     12,023       12,006
Less accumulated depreciation              (11,205)     (11,144)
Property and equipment, net                818          862
Other intangible assets, net               2,199         2,262
Goodwill                                   3,036         3,115
Long-term inventories                      698           663
Other assets                               5             5
Total assets                               $ 16,574  $ 12,676
                                                       
LIABILITIES AND SHAREHOLDERS' EQUITY                    
Current liabilities:                                    
Accounts payable                           $ 4,535   $ 3,376
Accrued compensation                       606          732
Deferred income                            13            7
Short-term deferred acquisition payment    2,457         2,395
Other accrued expenses                     759           779
Total current liabilities                  8,370         7,289
                                                       
Deferred tax liability                     46            35
Long-term deferred acquisition payment     4,567         4,613
Other accrued liabilities                  103           113
Total liabilities                          13,086        12,050
                                                       
Shareholders' equity:                                   
Common stock                               207          147
Additional paid-in capital                 119,076      115,205
Accumulated deficit                        (115,795)     (114,726)
Total shareholders' equity                 3,488         626
Total liabilities and shareholders' equity $16,574  $ 12,676
                                                       

Urologix, Inc.
Condensed Statements of Cash Flows
(Unaudited, in thousands)
                                                       
                                                       Three Months Ended
                                                        September 30,
                                                       2012        2011
Operating Activities:                                              
Net loss                                                $(1,069) $ (1,384)
Adjustments to reconcile net loss to net cash used for             
operating activities:
Depreciation and amortization                           172         139
Employee stock-based compensation expense               58          87
Provision for bad debts                                 (12)        --
Loss on disposal of assets                              --          10
Implied interest on deferred acquisition payments       170         56
Net adjustment to acquisition consideration             (154)       --
Deferred income taxes                                   11          --
Change in operating items, net of acquisition:                     
Accounts receivable                                    48          (433)
Inventories                                            (624)       348
Prepaids and other assets                              (23)        (105)
Accounts payable                                       1,159       (75)
Accrued expenses and deferred income                   (150)       277
Net cash used for operating activities                  (414)       (1,080)
                                                                  
Investing Activities:                                              
Purchase of property and equipment                      (4)         (5)
Acquisition of business                                 --          (500)
Purchases of intellectual property                     (5)         --
Net cash used for investing activities                  (9)         (505)
                                                                  
Financing Activities:                                              
Proceeds from stock option exercises                   --          79
Issuance of common stock                               3,873       --
Net cash provided by financing activities               3,873       79
Net increase/(decrease) in cash and cash equivalents    3,450       (1,506)
Cash and cash equivalents:                                         
Beginning of period                                     1,899       3,061
End of period                                           5,349    1,555
                                                                  
Supplemental cash-flow information                                 
Income taxes paid during the period                     $15      11
Net amount of inventory transferred to property and     $56       $36
equipment
Non-cash consideration for acquisition                  $--      $6,532

CONTACT: Brian J. Smrdel, Chief Financial Officer, (763) 475-7696

Urologix, Inc. Logo
 
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