AtriCure Inc. (ATRC, Financial) filed Quarterly Report for the period ended 2009-06-30.
AtriCure Inc. is a medical device company focused on developing manufacturing and selling innovative surgical devices to create precise lesions or scars in soft tissues. Medical journals have described the adoption by leading cardiothoracic surgeons of the AtriCure Inc. bipolar ablation system as a standard treatment alternative during open-heart surgical procedures to safely rapidly and reliably create lesions in cardiac or heart tissue to block the abnormal electrical impulses that cause atrial fibrillation a quivering of the upper chambers of the heart. AtriCure Inc. has a market cap of $57.97 million; its shares were traded at around $3.93 with and P/S ratio of 1.05.
Other (expense) income. Other (expense) income consists of foreign currency transaction (loss) gain, grant income and non-employee option (expense) income related to the fair market value change for fully vested options outstanding for consultants, which are accounted for as free standing derivatives. For the six months ended June 30, 2009, other expense of $0.2 million included $0.1 million related to foreign currency transaction losses associated with partial settlements of intercompany balances and $0.1 million of certain non-employee option expense due to an increase in the value of the options. Other income of $0.4 million for the six months ended June 30, 2008 included income of $0.2 million associated with a reduction in value of certain non-employee stock options, $0.1 million related to foreign currency transaction gains associated with the partial settlement of intercompany balances, and $0.1 million in grant income related to our grant agreement with the Cleveland Clinic Foundation.
As of June 30, 2009, we had cash, cash equivalents and short-term investments of $15.7 million and short-term and long-term debt of $5.8 million (net of $0.4 million discount on long-debt), resulting in a net cash position of $9.9 million. We had working capital of $21.6 million and an accumulated deficit of $86.9 million.
Cash flows used in operating activities. Net cash used in operating activities was $1.2 million for the six months ended June 30, 2009 and $6.5 million for the six months ended June 30, 2008. Net cash used in operating activities for the six months ended June 30, 2009 was primarily attributable to the net loss of $9.4 million, an increase in accounts receivable of $0.9 million due to an increased mix of international revenues and the timing of revenues within the quarter and a decrease in accounts payable and accrued liabilities of $1.5 million due primarily to a reduction in our overall expense structure. These uses of cash were offset by a goodwill impairment charge of $6.8 million and non-cash charges related to share-based compensation of $2.0 million. Net cash used in operating activities was $6.5 million for the six months ended June 30, 2008. Net cash used in operating activities for the six months ended June 30, 2008 was primarily attributable to the net loss of $5.2 million, increases in accounts receivable and inventory of approximately $2.2 million and $0.6 million, respectively, and decreases in accounts payable and accrued liabilities of approximately $1.2 million. Net cash used by operations was partially offset by adjustments for depreciation and amortization of $1.4 million and non-cash charges related to share-based compensation of $2.0 million. The increase in accounts receivable was primarily due to an increase in and the timing of revenues. The increase in inventories was primarily related to anticipated growth and new product introductions. The decrease in accounts payable and accrued liabilities was primarily related to payments for year-end legal, accounting, and other professional services, as well as payments to material suppliers.
Cash flows provided by investing activities. Net cash provided by investing activities was $3.2 million for the six months ended June 30, 2009 and $3.6 million for the six months ended June 30, 2008. Net cash provided by investing activities for the six months ended June 30, 2009 was due to $6.0 million in positive cash flows related to the release of the restriction on our cash and cash equivalents due to the re-payment of the borrowings under the National City credit facility, partially offset by $2.0 million in purchases of available-for-sale securities and $0.8 million in purchases of property and equipment relating primarily to capital equipment loaned to our customers. Net cash provided by investing activities for the six months ended June 30, 2008 was attributable to net purchases and maturities of available-for-sale securities of $5.1 million, offset by purchases of property and equipment of $1.1 million relating primarily to capital equipment loaned to our customers and the repayment of a $0.4 million note associated with our acquisition of a product line.
Cash flows provided by (used in) financing activities. Net cash provided by (used in) financing activities for the six months ended June 30, 2009 and 2008 was $0.1 million and ($47,017), respectively. For the six months ended June 30, 2009, cash flows provided by financing activities was attributable to proceeds from borrowings of long-term debt under our new credit facility of $6.5 million, and $0.1 million in proceeds from the issuance of common stock under our employee stock purchase plan, offset by payments made on our debt and capital lease obligations of $6.4 million, including a $6.0 million repayment in full of our National City credit facility, and $0.1 million in payment of debt origination fees. For the six months ended June 30, 2008, cash flows used in financing activities included payments made on our debt and capital lease obligations of $0.2 million, partially offset by proceeds from exercises of stock options of $0.2 million.
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AtriCure Inc. is a medical device company focused on developing manufacturing and selling innovative surgical devices to create precise lesions or scars in soft tissues. Medical journals have described the adoption by leading cardiothoracic surgeons of the AtriCure Inc. bipolar ablation system as a standard treatment alternative during open-heart surgical procedures to safely rapidly and reliably create lesions in cardiac or heart tissue to block the abnormal electrical impulses that cause atrial fibrillation a quivering of the upper chambers of the heart. AtriCure Inc. has a market cap of $57.97 million; its shares were traded at around $3.93 with and P/S ratio of 1.05.
Highlight of Business Operations:
Other (expense) income. Other (expense) income consists of foreign currency transaction (loss) gain, grant income and non-employee option (expense) income related to the fair market value change for fully vested options outstanding for consultants, which are accounted for as free standing derivatives. For the three months ended June 30, 2009, other expense of $0.2 million included $0.1 million related to foreign currency transaction losses associated with partial settlement of intercompany balances and $0.1 million of certain non-employee option expense due to an increase in the value of the options. Other income of $0.2 million for the three months ended June 30, 2008 included income of $0.1 million associated with a reduction in value of certain non-employee stock options and $0.1 million in grant income related to our grant agreement with the Cleveland Clinic Foundation.Other (expense) income. Other (expense) income consists of foreign currency transaction (loss) gain, grant income and non-employee option (expense) income related to the fair market value change for fully vested options outstanding for consultants, which are accounted for as free standing derivatives. For the six months ended June 30, 2009, other expense of $0.2 million included $0.1 million related to foreign currency transaction losses associated with partial settlements of intercompany balances and $0.1 million of certain non-employee option expense due to an increase in the value of the options. Other income of $0.4 million for the six months ended June 30, 2008 included income of $0.2 million associated with a reduction in value of certain non-employee stock options, $0.1 million related to foreign currency transaction gains associated with the partial settlement of intercompany balances, and $0.1 million in grant income related to our grant agreement with the Cleveland Clinic Foundation.
As of June 30, 2009, we had cash, cash equivalents and short-term investments of $15.7 million and short-term and long-term debt of $5.8 million (net of $0.4 million discount on long-debt), resulting in a net cash position of $9.9 million. We had working capital of $21.6 million and an accumulated deficit of $86.9 million.
Cash flows used in operating activities. Net cash used in operating activities was $1.2 million for the six months ended June 30, 2009 and $6.5 million for the six months ended June 30, 2008. Net cash used in operating activities for the six months ended June 30, 2009 was primarily attributable to the net loss of $9.4 million, an increase in accounts receivable of $0.9 million due to an increased mix of international revenues and the timing of revenues within the quarter and a decrease in accounts payable and accrued liabilities of $1.5 million due primarily to a reduction in our overall expense structure. These uses of cash were offset by a goodwill impairment charge of $6.8 million and non-cash charges related to share-based compensation of $2.0 million. Net cash used in operating activities was $6.5 million for the six months ended June 30, 2008. Net cash used in operating activities for the six months ended June 30, 2008 was primarily attributable to the net loss of $5.2 million, increases in accounts receivable and inventory of approximately $2.2 million and $0.6 million, respectively, and decreases in accounts payable and accrued liabilities of approximately $1.2 million. Net cash used by operations was partially offset by adjustments for depreciation and amortization of $1.4 million and non-cash charges related to share-based compensation of $2.0 million. The increase in accounts receivable was primarily due to an increase in and the timing of revenues. The increase in inventories was primarily related to anticipated growth and new product introductions. The decrease in accounts payable and accrued liabilities was primarily related to payments for year-end legal, accounting, and other professional services, as well as payments to material suppliers.
Cash flows provided by investing activities. Net cash provided by investing activities was $3.2 million for the six months ended June 30, 2009 and $3.6 million for the six months ended June 30, 2008. Net cash provided by investing activities for the six months ended June 30, 2009 was due to $6.0 million in positive cash flows related to the release of the restriction on our cash and cash equivalents due to the re-payment of the borrowings under the National City credit facility, partially offset by $2.0 million in purchases of available-for-sale securities and $0.8 million in purchases of property and equipment relating primarily to capital equipment loaned to our customers. Net cash provided by investing activities for the six months ended June 30, 2008 was attributable to net purchases and maturities of available-for-sale securities of $5.1 million, offset by purchases of property and equipment of $1.1 million relating primarily to capital equipment loaned to our customers and the repayment of a $0.4 million note associated with our acquisition of a product line.
Cash flows provided by (used in) financing activities. Net cash provided by (used in) financing activities for the six months ended June 30, 2009 and 2008 was $0.1 million and ($47,017), respectively. For the six months ended June 30, 2009, cash flows provided by financing activities was attributable to proceeds from borrowings of long-term debt under our new credit facility of $6.5 million, and $0.1 million in proceeds from the issuance of common stock under our employee stock purchase plan, offset by payments made on our debt and capital lease obligations of $6.4 million, including a $6.0 million repayment in full of our National City credit facility, and $0.1 million in payment of debt origination fees. For the six months ended June 30, 2008, cash flows used in financing activities included payments made on our debt and capital lease obligations of $0.2 million, partially offset by proceeds from exercises of stock options of $0.2 million.
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