PLC Systems Reports a 72 Percent Increase in Third Quarter Domestic Disposable Kit Shipments Over a Year Ago -- Company Posts Sixth Consecutive Profitable Quarter -- FRANKLIN, Mass., Oct. 29 /PRNewswire-FirstCall/ -- PLC Systems Inc. , the leader in carbon dioxide (CO2) TransMyocardial Revascularization (TMR) laser technology used to treat patients with severe angina, or heart pain, today reported positive financial results for the three and nine months ended September 30, 2003. PLC's third quarter results represent the sixth consecutive profitable quarter for the Company. "We are very pleased with our third quarter results," stated Mark R. Tauscher, president and chief executive officer of PLC Systems. "During the past several quarters we have witnessed a fundamental change in our penetration of the TMR market, which has led to a significant increase in customer awareness and growth in disposable kit shipments. Edwards Lifesciences' sales and marketing strength combined with PLC's clinical and technology expertise provides a formidable presence within the angina relief market. In fact, based on both the third quarter and year-to-date reported end user revenue, we believe the CO2 TMR team -- Edwards and PLC Medical -- has established the leadership position within the TMR market." The third quarter total revenue of $2,254,000 was up 13 percent compared to $1,995,000 in the third quarter of 2002. Net income for the third quarter ended September 30, 2003 was $225,000 compared to net income of $219,000 for the third quarter ended September 30, 2002. Total revenues for the nine months ended September 30, 2003 were $5,999,000 compared to total revenues of $6,594,000 for the nine months ended September 30, 2002. Net income for the nine months ended September 30, 2003 was $443,000 compared to net income of $95,000 for the nine months ended September 30, 2002. A leading indicator for the adoption rate of the CO2 TMR therapy is disposable kit shipments to hospitals. During the third quarter of 2003, a total of 503 disposable kits were shipped worldwide, which is an increase of 55 percent from worldwide kit shipments in the third quarter of 2002. Edwards Lifesciences delivered 488 disposable kits to United States hospitals and PLC shipped an additional 15 disposable kits to International hospitals. The 488 domestic kits delivered by Edwards Lifesciences represents a growth of 72 percent over the comparable third quarter a year ago. A total of 325 disposable kits were delivered worldwide during the quarter ended September 30, 2002. Tauscher continued, "With respect to disposable kit shipments, we are extremely pleased to see the positive trend from the second quarter continue through the third quarter. This continued increased adoption is very encouraging because the third quarter is one of the slower quarters for cardiac procedures due to the summer months." During the third quarter of 2003, 10 next-generation CO2 Heart Lasers (HL2) were shipped to United States hospitals through Edwards Lifesciences Corporation (NYSE:EW), PLC's exclusive U.S. sales and marketing partner. PLC ended the third quarter of 2003 with 152 CO2 Heart Lasers located at heart centers throughout the U.S., comprised of 99 HL2 customers and 53 HL1 customers. As of September 30, 2003, PLC's U.S. laser base (HL1 and HL2) had increased by 24 percent during the preceding twelve months. More significantly, PLC's U.S. HL2 installed base grew to 99 lasers as of September 30, 2003, up 50 percent from September 30, 2002. Tauscher concluded, "PLC's six consecutive profitable quarters is a testament to the momentum building around CO2 TMR. I believe CO2 TMR's increased visibility and awareness will continue to move the therapy to a standard of care for angina patients." In conjunction with announcing its third quarter results, PLC Systems will be hosting a conference call today, October 29, at 11:00 a.m. Eastern Time. The call may be joined via telephone by dialing (800) 599-9795 at least five minutes prior to the start of the call. The passcode is: 40382300. A live Webcast of the call will be available and accessible at the investor relations section of the Company's website at http://www.plcmed.com/. A recording of the conference call will be available for the next month on PLC's website. PLC SYSTEMS INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2003 2002 2003 2002 Revenues: Product sales $1,899 $1,641 $4,883 $5,547 Placement and service fees 355 354 1,116 1,047 Total revenues 2,254 1,995 5,999 6,594 Cost of revenues: Product sales 873 645 1,897 2,692 Placement and service fees 134 120 375 397 Total cost of revenues 1,007 765 2,272 3,089 Gross profit 1,247 1,230 3,727 3,505 Operating expenses: Selling, general and administrative 747 796 2,578 2,790 Research and development 283 230 744 665 Total operating expenses 1,030 1,026 3,322 3,455 Income from operations 217 204 405 50 Other income, net 8 15 38 45 Net income $225 $219 $443 $95 Basic and diluted earnings per share $ 0.01 $ 0.01 $ 0.01 $ 0.00 Average shares outstanding: Basic 29,836 29,738 29,815 29,676 Diluted 30,531 29,755 30,120 29,700 CONDENSED BALANCE SHEET September 30, December 31, 2003 2002 Cash and cash equivalents $6,216 $5,932 Total current assets 9,472 9,412 Total assets 10,054 10,328 Total current liabilities 2,525 2,942 Shareholders' equity 7,197 6,725 Contact: John Jordan Director of Investor Relations 508-541-8800, ext. 145 DATASOURCE: PLC Systems Inc. CONTACT: John Jordan, Director of Investor Relations of PLC Systems Inc., +1-508-541-8800, ext. 145 Web site: http://www.plcmed.com/

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