EX-99.1 2 d818939dex991.htm EX-99.1 EX-99.1

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Exhibit 99.1

Intersect ENT Reports Third Quarter 2014 Results

Third Quarter Revenue Increased 113% Year-Over-Year to $9.1 Million

Menlo Park, Calif. – Nov. 5, 2014 (GLOBE NEWSWIRE) – Intersect ENT, Inc. (Nasdaq:XENT), a company dedicated to improving the quality of life for patients with ear, nose and throat conditions, today reported financial results for the third quarter of 2014.

Recent Accomplishments

 

    Achieved Q3 revenue of $9.1 million, an increase of 113% over the third quarter of 2013.

 

    Realized Q3 gross margin of 72% versus 66% in the third quarter of 2013.

 

    Commenced enrollment in September of the PROGRESS study, a prospective, randomized, blinded, multi-center trial to assess the safety and efficacy of the PROPEL® mini steroid eluting sinus implant when placed in the frontal sinus opening following frontal sinus surgery in patients with chronic sinusitis. The trial is intended to support an expanded indication for placement of PROPEL mini in the frontal sinuses, which are located behind the eyebrows. PROPEL mini is currently indicated for placement in the ethmoid sinuses, located just behind the bridge of the nose.

 

    Published results from a prospective, randomized, blinded, multi-center clinical trial for Intersect ENT’s investigational RESOLVE steroid eluting implant, as well as the results of a pharmacokinetic study of this implant. Based on these findings, Intersect ENT is working with the FDA to finalize the Phase 3 study design.

 

    Completed enrollment in a feasibility study to assess the Company’s investigational NOVA steroid eluting sinus implant. This implant is designed primarily as a treatment in the physician’s office for patients suffering from chronic sinusitis who have not yet had sinus surgery.

“Our accomplishments this quarter demonstrate ongoing progress in both commercial execution and product pipeline advancement,” said Lisa Earnhardt, president and chief executive officer. “We were pleased to deliver continuing quarter-on-quarter revenue growth despite the historic seasonal slowdown associated with the summer, and to achieve clinical milestones for our key product pipeline initiatives.”

Third Quarter Financial Results

Revenue for the three months ending September 30, 2014 increased by 113% to $9.1 million from $4.3 million in the same period in 2013. This increase is attributable to higher unit sales via the acquisition of new accounts and driving adoption with existing customers. Gross margin for the third quarter of 2014 was 72%, up from 66% in the three months ended September 30, 2013. This increase in gross margin was due primarily to spreading the company’s manufacturing costs over higher production volumes.


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Operating expenses for the third quarter of 2014 were $12.4 million, an increase of 83% compared to $6.8 million in the third quarter of 2013. The increase in operating expenses was driven primarily by an increase in expenses associated with being a public company as well as growth in sales and marketing headcount.

Net loss for the third quarter of 2014 was $5.9 million, compared to $4.1 million for the third quarter of 2013.

Cash, cash equivalents and short-term investments totaled $53.6 million as of September 30, 2014.

Conference Call

Intersect ENT will host a conference call today at 4:30 p.m. ET to discuss its third quarter 2014 financial results. To access the conference call via the Internet, go to the “Investor Relations” page of the Company’s web site at www.intersectENT.com. To access the live conference call via phone, dial 1-866-652-5200 and ask to join the Intersect ENT call. International callers may access the live call by dialing 1-412-317-6060.

A replay of the conference call may be accessed that same day after 8:00 p.m. ET at www.intersectENT.com or via phone at 1-877-344-7529 or 1-412-317-0088 for international callers. The reference number to enter the replay of the call is 10054909. The dial-in replay will be available for a week after the call and via the Internet for approximately one month.

About Intersect ENT

Intersect ENT, Inc. is dedicated to improving the quality of life for patients with ear, nose and throat conditions. The company markets the first and only drug-eluting sinus implants, PROPEL and PROPEL mini, clinically proven to improve surgical outcomes for patients with chronic sinusitis. The products release an advanced steroid with anti-inflammatory properties directly into the sinus lining, then dissolve, maintaining the open passages created in ethmoid sinus surgery. In addition, Intersect ENT is pursuing clinical trials designed to support expanded indications and to assess two new investigational drug-eluting implants to provide ENT physicians with additional options to treat patients with chronic sinusitis less invasively and more cost effectively. Chronic sinusitis is an inflammatory condition leading to debilitating symptoms and chronic infections, and is one of the most costly conditions to U.S. employers. To learn more about Intersect ENT, please visit www.intersectENT.com.


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Intersect ENT, Inc.

Condensed Statements of Operations

(in thousands, except per share data)

(unaudited)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2014     2013     2014     2013  

Revenue

   $ 9,100      $ 4,279      $ 25,162      $ 10,959   

Cost of sales

     2,576        1,438        7,256        5,589   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     6,524        2,841        17,906        5,370   

Gross margin

     72     66     71     49

Operating expenses:

        

Selling, general and administrative

     9,667        4,700        24,616        12,137   

Research and development

     2,758        2,077        7,712        6,754   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     12,425        6,777        32,328        18,891   
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (5,901     (3,936     (14,422     (13,521

Interest and other income (expense), net

     16        (163     (254     (216
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (5,885   $ (4,099   $ (14,676   $ (13,737
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share, basic and diluted

   $ (0.32   $ (2.39   $ (2.00   $ (10.08
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average common shares used tocompute net loss per share, basic and diluted

     18,217        1,718        7,343        1,363   
  

 

 

   

 

 

   

 

 

   

 

 

 


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Intersect ENT, Inc.

Condensed Balance Sheets

(in thousands)

(unaudited)

 

     September 30,
2014
     December 31,
2013
 
Assets      

Current assets:

     

Cash, cash equivalents and short-term investments

   $ 53,617       $ 12,294   

Accounts receivable, net

     4,934         4,200   

Inventory

     2,680         2,197   

Prepaid expenses and other current assets

     1,188         511   
  

 

 

    

 

 

 

Total current assets

     62,419         19,202   

Property and equipment, net

     1,611         1,707   

Other non-current assets

     111         126   
  

 

 

    

 

 

 

Total assets

   $ 64,141       $ 21,035   
  

 

 

    

 

 

 
Liabilities and Stockholders’ Equity      

Current liabilities:

     

Accounts payable

   $ 2,088       $ 1,451   

Accrued compensation

     4,219         2,955   

Equipment loans – current portion

     35         696   

Convertible preferred stock warrant liability

     —           237   

Other current liabilities

     832         745   
  

 

 

    

 

 

 

Total current liabilities

     7,174         6,084   

Equipment loans – non-current portion

     30         756   

Deferred rent

     —           52   
  

 

 

    

 

 

 

Total liabilities

     7,204         6,892   

Total stockholders’ equity

     56,937         14,143   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 64,141       $ 21,035   
  

 

 

    

 

 

 


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Inquiries:    Jeri Hilleman
   650.641.2105
   ir@intersectENT.com