Columbia, MD - February 22, 2007 -- Celsion Corporation (AMEX: CLN) today announced financial results for its fourth quarter ended December 31, 2006. The Company reported revenue of $4.5 million for the quarter, compared to $4.3 million for the fourth quarter of 2005.
Net loss for the fourth quarter was $1.1 million, or $0.10 per basic and diluted share, compared to a net loss of $2.1 million, or $0.20 per basic and diluted share for the comparable quarter in 2005. The reduction in the net loss reflects a substantial increase in gross margin, up from 37.2% of net sales in the fourth quarter of 2005 to 47.3% of net sales in the fourth quarter of 2006. This increase was primarily due to the commissioning of a new Prolieve® disposable catheter kit supplier and a 27% reduction in research and development expenses as a result of decreased Prolieve development costs.
Revenue for the year ended December 31, 2006 of $11.3 million compared to revenue of $12.3 million in the comparable period in 2005. Net loss for the year was $7.6 million, or $0.71 per basic and diluted share, compared to $8.7 million, or $0.81 per basic and diluted share for the year ended December 31, 2006.
Michael H. Tardugno, Celsion's President and Chief Executive Officer, commented, "The Company ended 2006 on a strong note. Sales of Prolieve continued to grow and are now generating a profit on a fully absorbed basis. Our cash burn rate for the fourth quarter of $1.3 million continued well below historic levels. Our outlook for 2007 is positive. We expect that annual sales of Prolieve will approach $18 million along with a continued improvement in profitability. Our liver and recurrent chest wall breast cancer studies are on schedule and progressing well. As a result, we anticipate the initiation of a Phase III study in primary liver cancer before the end of the year. "
About Celsion: The Prolieve Thermodilatation system is a minimally invasive transurethral microwave system which combines a transurethral microwave thermotherapy device with pressure applied by a balloon catheter.
Prolieve is marketed, in the United States under an exclusive distribution agreement, with Boston Scientific Corporation.
Celsion has research, license or commercialization agreements with leading institutions such as the National Institutes of Health, Duke University Medical Center, Massachusetts Institute of Technology, Harbor UCLA Medical Center, Montefiore Medical Center and Memorial Sloan-Kettering Cancer Center in New York City, Roswell Park Cancer Institute in Buffalo, New York, and Duke University. For more information on Celsion, visit our website: http://www.celsion.com.
Celsion wishes to inform readers that forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that such forward-looking statements involve risks and uncertainties including, without limitation, unforeseen changes in the course of research and development activities and in clinical trials by others; possible acquisitions of other technologies, assets or businesses; possible actions by customers, suppliers, competitors, regulatory authorities; and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
For Further Information Contact:
Financial Relations Board