Full Press Release Details
Reports Record Third Quarter 2020 Financial Results
reports record Q3 2020 Total Revenue of $10.5 million, including a 79% increase in Product Sales to $10.2 million, with $34.5
million in trailing 12-month Product Sales
N.J., November 4, 2020 - CytoSorbents Corporation (NASDAQ: CTSO), a critical care immunotherapy leader using
its CytoSorb blood purification technology to treat deadly inflammation in critically-ill and cardiac surgery patients
around the world, reports its full financial and operational results for the quarter ending September 30, 2020.
Third Quarter 2020 Financial
Quarter 2020 Operational Highlights:
Chan, MD, PhD, Chief Executive Officer of CytoSorbents stated, "We believe we are in an excellent position for continued
growth and success, with another outstanding quarter of record sales and cumulative treatments delivered. These results were driven
by steady growth in our core markets of critical care and cardiac surgery, and robust global sales to help treat critically-ill
patients stricken with COVID-19. Product gross margins also improved sequentially from Q2 2020 to 74%, reflecting our improved
manufacturing efficiencies and a reduction in ramp-up costs related to COVID-19."
our strong financial performance and solid cash position, coupled with strong current and anticipated demand for CytoSorb, we
are aggressively executing upon our clinical trial and sales growth strategy to continue our momentum into 2021 and beyond. These
include the following multiple initiatives:
"I am extremely proud of our CytoSorbents team, executing very well in a challenging healthcare environment dominated by
COVID-19, and am grateful to the medical community for continuing to embrace CytoSorb for many different applications. We are
very excited about the potential for continued growth in 2021."
"Please join us on our earnings
conference call today, details for which are below."
Conference Call Details:
Dial-In: 877-451-6152
Conference ID: 13705996
Live Presentation Webcast: http://public.viavid.com/index.php?id=141897
that participants dial in approximately 10 minutes prior to the start of the call. There will also be a simultaneous live webcast
of the conference call that can be accessed through the following audio feed link: http://public.viavid.com/index.php?id=141897
recording of the conference call will be available under the Investor Relations section of the Company's website at http://cytosorbents.com/investor-relations/financial-results/.
for the three months ended September 30, 2020 and 2019:
product sales was approximately $10,246,000 in the three months ended September 30, 2020, as compared to approximately $5,728,000
in the three months ended September 30, 2019, an increase of approximately $4,518,000, or 79%. This increase was driven by an
increase in direct sales of approximately $2,063,000 resulting from sales to both new customers and repeat orders from existing
customers and an increase in distributor sales of approximately $2,455,000. Sales to hospitals in the United States under the
EUA granted by the FDA amounted to approximately $262,000 for the three months ended September 30, 2020. Though difficult to quantitate,
we estimate that approximately $2.7 million of total product sales in the third quarter of 2020 was due to the demand for CytoSorb
to treat COVID-19 patients. In addition, as a result of the increase in the average exchange rate of the Euro to the U.S. dollar,
sales were positively impacted by approximately $428,000. For the three months ended September 30, 2020, the average exchange
rate of the Euro to the U.S. dollar was $1.17 as compared to an average exchange rate of $1.11 for the three months ended September
was approximately $301,000 for the three months ended September 30, 2020 as compared to approximately $367,000 for the three months
ended September 30, 2019, a decrease of approximately $66,000 or 18%. This decrease was a result of delays in grant related work
caused by the COVID-19 pandemic as our research and development employees were either deployed to work-from-home status or reassigned
to assist in activities related to increasing the production of CytoSorb.
were approximately $10,547,000 for the three months ended September 30, 2020, as compared to total revenues of approximately $6,095,000
for the three months ended September 30, 2019, an increase of approximately $4,452,000, or 73%.
months ended September 30, 2020 and 2019, cost of revenue was approximately $2,890,000 and $1,696,000, respectively, an increase
of approximately $1,194,000. Product cost of revenues increased approximately $1,279,000 during the three months ended September
30, 2020 as compared to the three months ended September 30, 2019 primarily as a result of increased sales. Product gross margins
were approximately 74% for the three months ended September 30, 2020 and approximately 77% for the three months ended September
30, 2019. The decrease in gross margin in 2020 was due to an increase in percent contribution of lower margin distributor sales
as well as additional costs primarily related to COVID-19 incentive payments to employees as a result of the continued rapid ramp-up
of production during the three months ended September 30, 2020.
and Development Expenses:
months ended September 30, 2020, research and development expenses were approximately $1,753,000 as compared to research and development
expenses of approximately $3,185,000 for the three months ended September 30, 2019. The decrease of approximately $1,432,000 was
due to a decrease in our clinical trial costs of approximately $1,045,000 which is due primarily to the pause in our Company-sponsored
clinical trials as a result of hospital restrictions due to the COVID-19 pandemic, a decrease in non-clinical research and development
salary related costs of approximately $337,000, a decrease in new product development costs of approximately $49,000 and a decrease
in non-grant related research and development costs of approximately $86,000. These decreases were offset by a decrease in direct
labor and other costs being deployed toward grant-funded activities of approximately $85,000, which had the effect of increasing
the amount of our non-reimbursable research and development costs.
Financial and Other Consulting Expenses:
and other consulting expenses were approximately $580,000 for the three months ended September 30, 2020, as compared to approximately
$733,000 for the three months ended September 30, 2019. The decrease of approximately $153,000 was due to a decrease in employment
agency fees of approximately $34,000 and a decrease in legal fees of approximately $193,000. These increases were offset by an
increase in consulting fees of approximately $35,000 and an increase in accounting fees of approximately $39,000.
General and Administrative Expenses:
and administrative expenses were approximately $7,282,000 for the three months ended September 30, 2020, as compared to approximately
$6,108,000 for the three months ending September 30, 2019, an increase of $1,174,000. This increase is related to an increase
in salaries, commissions and other employee-related costs of approximately $1,345,000, an increase in royalty expenses of approximately
$646,000 due to the increase in product sales, and an increase in non-cash stock compensation expense of approximately $286,000.
These increases were offset by a decrease in travel and entertainment expenses of approximately $127,000, a decrease in sales
and marketing expenses, which include advertising and conference attendance of approximately $546,000, a decrease in non-cash
restricted stock expense of approximately $307,000 related to restricted stock units granted to the Company's executive
officers and a decrease in other general and administrative costs of approximately $123,000.
months ended September 30, 2020, net interest expense was approximately $261,000, as compared to net interest expense of approximately
$302,000 for the three months ended September 30, 2019. This decrease in net interest expense of approximately $41,000 was primarily
a result of the interest income earned on our increased cash balances as a result of equity raised during 2020.
(Loss) on Foreign Currency Transactions:
months ended September 30, 2020, the gain on foreign currency transactions was approximately $1,380,000 as compared to a loss
of approximately $956,000 for the three months ended September 30, 2019. The 2020 gain was directly related to the increase in
the spot exchange rate of the Euro to the U.S. dollar at September 30, 2020 as compared to June 30, 2020. The spot exchange rate
of the Euro to the U.S. dollar was $1.17 per Euro at September 30, 2020, as compared to $1.12 per Euro at June 30, 2020. The 2019
loss was directly related to the decrease in the spot exchange rate of the Euro at September 30, 2019 as compared to June 30,
2019. The spot exchange rate of the Euro to the U.S. dollar was $1.09 per Euro at September 30, 2019, as compared to $1.14 per
Euro at June 30, 2019.
Comparison for the nine months
ended September 30, 2020 and 2019:
product sales was approximately $27,922,000 in the nine months ended September 30, 2020, as compared to approximately $16,155,000
in the nine months ended September 30, 2019, an increase of approximately $11,767,000, or 73%. This increase was driven by an
increase in direct sales of approximately $6,204,000 resulting from sales to both new customers and repeat orders from existing
customers and an increase in distributor sales of approximately $5,563,000. Sales to hospitals in the United States under the
EUA granted by the FDA amounted to approximately $928,000 for the nine months ended September 30, 2020. Though difficult to quantitate,
we estimate that approximately $6.9 million of total product sales in the nine months ended September 30, 2020 was due to the
demand for CytoSorb to treat COVID-19 patients. The change in the Euro to U.S. dollar exchange rate did not have a significant
impact on sales for the nine months ended September 30, 2020 as compared to the nine months ended September 30, 2019.
was approximately $1,127,000 for the nine months ended September 30, 2020 as compared to approximately $1,364,000 for the nine
months ended September 30, 2019, a decrease of approximately $237,000 or 17%. This decrease was a result of delays in grant related
work caused by the COVID-19 pandemic as our research and development employees were either deployed to work-from-home status or
reassigned to assist in activities related to increasing production of CytoSorb.
were approximately $29,049,000 for the nine months ended September 30, 2020, as compared to total revenues of approximately $17,519,000