Angeion Reports Results for Five-Month Transition Period

Angeion Corporation reported its financial results for the five-month transition period ended December 31, 1997, following the company's change from a July 31 fiscal year to a calendar year.

Net sales decreased to $864,775 from $2,275,901 for its Sentinel(TM) series of implantable cardioverter defibrillator (ICD) systems for the five months ended December 31, 1997, compared to the five months ended December 31, 1996. Sales were generated primarily from U.S. clinical implants and the deferred revenue from the sale of programmers to St. Jude Medical, Inc.

The decline in sales reflected the loss of original-equipment-manufacturer (OEM) sales, which accounted for 55 percent of the net sales for the same five-month period ended December 1996, the company'spreparation to transition from independent European distributors to ELA Medical, its strategic partner for the marketing of its products in Europe and Japan, and the temporary suspension of implants due to a component replacement.

Increased expenses related primarily to research, development and manufacturing activities resulted in a net loss of $14,940,896, or $.48 per share for the five months ended December 31, 1997, compared to a net loss of $7,734,829, or $.27 per share for the same five months ended December 31, 1996. These expenses primarily related to unabsorbed manufacturing expense as a result of lower production volumes during the marketing transition period, a revision to the company's clinical trial protocol, component replacement and the temporary suspension of implants in November 1997.

Minneapolis-based Angeion develops medical devices for the treatment of cardiac arrhythmias.