Full Press Release Details
Accelerates Growth in Q3 2015
MONMOUTH JUNCTION, NJ - November 13, 2015
- CytoSorbents Corporation (NASDAQ: CTSO), a leader in critical care immunotherapy commercializing its CytoSorb
blood purification technology to reduce deadly uncontrolled inflammation in hospitalized patients around the world, today reported
financial and operating results for the three and nine months ended September 30, 2015.
CytoSorbents achieved strong product
revenue of approximately $1.1 million in Q3 2015, its best quarterly sales performance, and a 38% increase over Q2 2015
Recent Financial Highlights:
Recent Operational Highlights:
Dr. Phillip Chan, Chief Executive Officer
of CytoSorbents stated, "CytoSorbents achieved strong organic growth across the board in both direct and distributor/partner
sales, delivering our best quarterly product sales to date. This speaks to the success of
our recently expanded direct sales team and international distribution network, as well as to the increasing awareness and traction
CytoSorb is achieving in the marketplace."
early October we held the 2nd International CytoSorb Users Meeting in Berlin, which was one of the largest and most
successful gatherings of worldwide CytoSorb users, distributors and partners in the Company's history. We were excited
to learn about the many treatment successes credited to CytoSorb , and were pleased that the quality of the data being reported
from around the world continues to grow from case reports, to case series, and now to small completed randomized controlled studies.
We hope to capture even more data from the more than 8,000 human treatments that have taken place to date, in our International
CytoSorb Registry, where more than 80 medical centers are registered and in the process of submitting treatment data."
we continue to expand our commercialization efforts, we remain on track in pursuing a dual path to potential U.S. approval for
CytoSorb , including the use of CytoSorb intra-operatively in a heart-lung machine during complex cardiac surgery in our
REFRESH Trial, as well as for the treatment of sepsis, one of the top ten killers around the world for which there are no effective
therapies. To that end, we have submitted an application with the FDA to request Expedited Access Pathway (EAP) designation for
the treatment of sepsis and will have an update in the future as warranted."
we plan for a strong 2016, we are encouraged by the convergence of many key drivers of our business. These include the:
with our dedicated team and network of thought leaders and users from around the world, we believe we have the formula to take
our business to the next level."
Dr. Chan concluded, "Please join
us on the earnings call today at 11:00AM EST where we will cover our progress in greater detail. In addition, we will address questions
from analysts and investors during the live question and answer period. The investor presentation and a written transcript of the
conference call will be available within a week of the webcast on our website."
Conference Call Details:
Dial-In: 719-457-2731
Live Presentation Webcast: http://public.viavid.com/index.php?id=116936
An archived recording of the conference
call will be available under the Investor Relations section of the Company's website at http://www.cytosorbents.com/invest.htm
Financial Results for the Third Quarter
Ended September 30, 2015
The Company generated total revenues of
approximately $1,343,000 and $1,162,000 for the three months ending September 30, 2015 and September 30, 2014, respectively. Product
revenues were approximately $1,071,000 for the quarter ended September 30, 2015, as compared to product revenues of $1,032,000
for the quarter ended September 30, 2014. Product sales were negatively impacted by the decline in the exchange rate of the Euro.
The impact of the decline in the exchange rate of the Euro was approximately $150,000, or 14% of sales, for the three months ended
September 30, 2015. Additionally, grant revenue and other income was approximately $272,000 and $128,000 for the three month periods
ended September 30, 2015 and 2014, respectively.
For the three months ended September 30,
2015 and 2014, cost of revenue was approximately $639,000 and $476,000, respectively. The increase in cost of revenues is directly
related to an increase of direct labor and other costs being deployed toward grant-funded activities, which has the effect of increasing
the amount of costs allocated to cost of revenue. Product gross margins were approximately 63% for each of the three month periods
ended September 30, 2015 and 2014, respectively.
Research and Development Expenses:
For the three months ending September 30,
2015, research and development costs were approximately $865,000, as compared to research and development costs of approximately
$880,000 for the three months ended September 30, 2014, a decrease of approximately $14,000 or 2%. This decrease was primarily
due to an increase of approximately $234,000 of direct labor and other costs being deployed toward grant-funded activities in the
three months ended September 30, 2015 as compared to the three months ended September 30, 2014, which had the effect of decreasing
the amount of our non-reimbursable research and development costs. Also, materials and supplies related to our various research
and development activities decreased approximately $157,000 during the three months ended September 30, 2015 as compared to the
three months ended September 30, 2014. These decreases were offset by increases in salaries and other costs related to our
various clinical and investigator initiated studies of approximately $295,000 and salaries related to non-clinical research and
development activities increased approximately $43,000 during the three months ended September 30, 2015 as compared to the three
months ended September 30, 2014.
Legal, Financial and Other Consulting
Legal, financial and other consulting costs
were approximately $289,000 for the three months ending September 30, 2015, as compared to legal financial and other consulting
costs of approximately $49,000 for the three months ended September 30, 2014. This increase of approximately $240,000 was primarily
due to legal fees of approximately $118,000 that were related to general corporate and governance matters and an increase in consulting
fees of approximately $93,000 primarily related to Sarbanes-Oxley compliance, marketing activities, and other matters.
Selling, General and Administrative
Selling, general and administrative expenses
were approximately $1,700,000 for the three months ended September 30, 2015, compared to approximately $1,240,000 for the three
months ended September 30, 2014, an increase of approximately $460,000. This was primarily due to increases in payroll related
costs of approximately $336,000, increased royalties and license fees of approximately $12,000 due to increases in product sales,
additional sales and marketing costs, which include advertising and conferences of approximately $166,000 and an increase in stock
transfer, filing and stock exchange fees of approximately $31,000 due to costs associated with our listing on the NASDAQ Capital
Market and our first annual meeting of stockholders in 2015, and an increase in travel-related expenses of approximately $45,000.
These increases were offset by a decrease in consulting expenses of approximately $143,000.
Our loss from operations for the three
months ending September 30, 2015 was approximately $2,150,000, as compared to a net loss from operations of approximately $1,484,000
for the three months ended September 30, 2014.
Financial Results for the Nine Months
Ended September 30, 2015
Revenue from product sales was approximately
$2,548,000 in the nine months ended September 30, 2015, as compared to approximately $2,264,000 in the nine months ended September
30, 2014, an increase of approximately $284,000, or 13%. This increase was driven by the continued growth in direct sales as well
as the expansion of sales to our growing distributor network, which was offset by the negative impact of the decline in the exchange
rate of the Euro relative to the U.S. dollar. The impact of the decline in the exchange rate of the Euro was approximately $410,000,
or 16% of sales, for the nine months ended September 30, 2015. Adjusted for the impact of the Euro, product sales for the nine
months ended September 30, 2015 would have been approximately $3.0 million.
Grant income was approximately $471,000
for the nine months ended September 30, 2015 as compared to approximately $978,000 for the nine months ended September 30, 2014
as a result of the conclusion during 2014 of several significant grants.
As a result of the decrease in grant income,
for the nine months ended September 30, 2015, we generated total revenues of approximately $3,031,000, as compared to total revenue
of approximately $3,249,000, for the nine months ended September 30, 2014, a decrease of approximately $218,000, or 7%.
For the nine months ended September 30,
2015 and 2014, cost of revenue was approximately $1,409,000 and $1,805,000, respectively. The decrease is directly related to a
decrease of approximately $676,000 of direct labor and other costs being deployed toward grant-funded activities, which has the
effect of decreasing the amount of costs allocated to cost of revenue. Product cost of revenues increased approximately $139,000