Urologix Reports Fiscal Year 2013 Third Quarter Results and Reaffirms Annual Guidance

Urologix Reports Fiscal Year 2013 Third Quarter Results and Reaffirms Annual
Guidance

Third Quarter Summary

  oThird quarter revenue of $4.1 million
  oQuarter-end cash balance of $5.1 million
  oGuidance for fiscal year 2013 revenue reaffirmed at $16.0 million to $17.0
    million

MINNEAPOLIS, May 1, 2013 (GLOBE NEWSWIRE) -- Urologix®, Inc. (Nasdaq:ULGX),
the leading provider of in-office BPH therapy, today reported financial
results for its fiscal year third quarter ended March 31, 2013.

Third quarter fiscal year 2013 revenue totaled $4.1 million, down 6.3%
sequentially from the second quarter of fiscal year 2013 and down 13.8%
compared to the third quarter of fiscal year 2012. The comparative declines in
revenue were driven by lower unit sales in both product lines, Cooled
ThermoTherapy^TM (CTT) and Prostiva Radio Frequency (RF) Therapy.

"The seasonal procedure weakness we typically see in Q3 as a result of
resetting of patient deductibles was greater than in past years. Our third
fiscal quarter performance does however keep us on track to hit the midpoint
of our annual guidance and our team remains focused on improving upon our
execution," stated Greg Fluet, Chief Executive Officer. "Our goal is to
leverage our leading market share position, sales organization, and innovative
market development and patient education programs to drive top-line growth.
Within our company there are a number of geographies that are beginning to
show growth through execution of our sales plan giving us continued confidence
in our ability to grow the business."

As of March 31, 2013, the Company's cash balance was $5.1 million compared to
$4.9 million as of December 31, 2012, an increase of $221,000 during the
quarter.The Company's cash balance benefited from both the deferral of
payments totaling $610,000 for Prostiva disposables purchased during the
quarter, and the receipt of proceeds totaling $321,000 from the
demutualization of an insurer.Additionally, we continue to defer payments due
and accrued in the current and prior periods related to Prostiva which are
reflected in accounts payable and short term deferred acquisition payments on
the balance sheet.

Gross profit for the third quarter of fiscal year 2013 was $2.0 million, or
49.6% of revenue, compared to $2.4 million, or 50.7% of revenue, in the third
quarter of fiscal year 2012. The change in gross margin year-over-year was
driven primarily by variability in expenses associated with costs for
manufacturing and servicing capital equipment.

Total operating expense for the third quarter of fiscal year 2013 declined
10.2% compared to the third quarter of fiscal year 2012, and 5.1% sequentially
compared to the second quarter of fiscal year 2013, to $2.9 million. The
decline in total operating expense compared to the prior year was driven
primarily by a gain of $321,000 in the third quarter of fiscal year 2013
related to the receipt of proceeds from the demutualization of an
insurer.Excluding this gain, total operating expense was flat compared to the
prior year and the sequential decline was related to lower sales compensation
compared to the previous quarter.

For the third quarter of fiscal year 2013, Urologix reported a net loss of
$1.0 million, or $0.05 per diluted share, compared to a net loss of $968,000,
or $0.07 per diluted share, in the third quarter of fiscal year 2012.The net
loss in the third quarter of fiscal year 2013 was positively impacted by a
$321,000 gain for the receipt of proceeds from a demutualization. Third
quarter net loss increased slightly from a net loss of $970,000, or $0.05 per
share, in the second quarter of fiscal 2013.

Guidance

The Company reaffirms the fiscal year 2013 total revenue guidance range of
approximately $16.0 million to $17.0 million.

Earnings Call Information

Urologix will host a conference call with the financial community to discuss
fiscal year 2013 third quarter results on Wednesday, May 1, 2013 at 4:00 p.m.
Central Daylight Time.To listen to the call, please dial 1-877-299-4454 and
enter the Participant Passcode 88115737 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 Prostiva® RF Therapy System delivers radio frequency energy
directly into the prostate destroying prostate tissue, reducing constriction
of the urethra, and thereby relieving BPH symptoms. Both of these therapies
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.

If you'd like more information on this topic, please contact Brian Smrdel at
(763) 475-7696 or bsmrdel@urologix.com or to learn more about Urologix and its
products and services, visit their website at www.urologix.com.

The Urologix, Inc. logo is available at
www.urologix.com/clinicians/resource-library.php.

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, the effectiveness of the Company's sales and
marketing strategies and organization, 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   Nine Months Ended
                                    March 31,            March 31,
                                   2013       2012      2013       2012
                                                                
Sales                               $4,082     $4,735    $12,405    $12,530
Cost of goods sold                 2,056      2,334     6,127      6,425
Gross profit                       2,026      2,401     6,278      6,105
                                                                
Costs and expenses:                                              
Sales and marketing                 1,915      1,875     5,639      4,914
General and administrative          711        797       2,094      2,573
Research and development           538        543       1,756      1,612
Change in value of acquisition      --         --        (369)      --
consideration
Gain on demutualization             (321)      --        (321)      --
Medical device tax                  41         --        41         --
Amortization expense                26         26        78         65
Total costs and expenses            2,910      3,241     8,918      9,164
                                                                
Operating loss                      (884)      (840)     (2,640)    (3,059)
Interest expense                    (98)       (102)     (348)      (371)
Foreign currency exchange           (6)        1         (9)        (3)
gain/(loss)
Loss before income taxes            (988)      (941)     (2,997)    (3,433)
                                                                
Income tax expense                  17         27        48         38
Net loss                            $(1,005) $(968)  $(3,045) $(3,471)
                                                                
Net loss per common share---basic   $(0.05)  $(0.07) $(0.15)  $(0.24)
                                                                
Net loss per common share---diluted $(0.05)  $(0.07) $(0.15)  $(0.24)
                                                                
Weighted average number of common   20,902     14,778    20,637     14,723
shares outstanding---basic
                                                                
Weighted average number of common   20,902     14,778    20,637     14,723
shares outstanding---diluted

                                                   
                                                   
Urologix, Inc.
Balance Sheets
(Unaudited, in thousands)
                                                   
                                                   
                                          March 31, June 30,
                                           2013      2012
ASSETS                                              
Current assets:                                     
Cash and cash equivalents                  $5,100    $1,899
Accounts receivable, net                   2,059     2,132
Inventories, net                           2,461     1,448
Prepaids and other current assets          197       290
Total current assets                       9,817     5,769
Property and equipment:                             
Property and equipment                     12,053    12,006
Less accumulated depreciation              (11,370)  (11,144)
Property and equipment, net                683       862
Other intangible assets, net               2,081     2,262
Goodwill                                   3,036     3,115
Long-term inventories                      673       663
Other assets                               5         5
Total assets                               $16,295   $12,676
                                                   
LIABILITIES AND SHAREHOLDERS' EQUITY                
Current liabilities:                                
Accounts payable                           $5,983    $3,376
Accrued compensation                       791       732
Deferred income                            13        7
Short-term deferred acquisition payment    2,971     2,395
Other accrued expenses                     668       779
Total current liabilities                  10,426    7,289
                                                   
Deferred tax liability                     67        35
Long-term deferred acquisition payment     4,107     4,613
Other accrued liabilities                  84        113
Total liabilities                          14,684    12,050
                                                   
Shareholders' equity:                               
Common stock                               208       147
Additional paid-in capital                 119,174   115,205
Accumulated deficit                        (117,771) (114,726)
Total shareholders' equity                 1,611     626
Total liabilities and shareholders' equity $16,295   $12,676

                                                                  
                                                                  
Urologix, Inc.
Condensed Statements of Cash Flows
(Unaudited, in thousands)
                                                                  
                                                        Nine Months Ended
                                                         March 31,
                                                        2013       2012
Operating Activities:                                              
Net loss                                                 $(3,045) $(3,471)
Adjustments to reconcile net loss to net cash used for             
operating activities:
Depreciation and amortization                            505        518
Employee stock-based compensation expense                200        277
Provision for bad debts                                  29         26
Loss on disposal of assets                               7          15
Accretion expense on deferred acquisition payments       439        438
Net adjustment to acquisition consideration              (369)      --
Deferred income taxes                                    32         25
Change in operating items, net of acquisition:                     
Accounts receivable                                      44         (1,043)
Inventories, net                                         (1,017)    6
Prepaids and other assets                                93         (6)
Accounts payable                                         2,607      1,999
Accrued expenses and deferred income                     (75)       460
Net cash used for operating activities                   (550)      (756)
                                                                  
Investing Activities:                                              
Purchase of property and equipment                       (55)       (40)
Acquisition of business                                  --         (500)
Purchases of intellectual property                       (24)       (8)
Net cash used for investing activities                   (79)       (548)
                                                                  
Financing Activities:                                              
Proceeds from stock option exercises                    16         100
Issuance of common stock                                3,814      --
Net cash provided by financing activities                3,830      100
                                                                  
Net increase/(decrease) in cash and cash equivalents     3,201      (1,204)
Cash and cash equivalents:                                         
Beginning of period                                      1,899      3,061
End of period                                            $5,100     $1,857
                                                                  
Supplemental cash-flow information                                 
Income taxes paid during the period                      $15        $12
Net amount of inventory transferred to property and      $73        $242
equipment
Non-cash consideration for acquisition                   $--      $6,532

CONTACT: Urologix Investor Relations Contact
         Brian Smrdel
         (763) 475-7696
         bsmrdel@urologix.com
        
         Urologix Media Contact
         Karen Jackson
         (513) 484-2987
         kjackson@urologix.com

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