Ev3 ends third quarter with $45 million cash; reports investing in new technologies

By Jennifer Lanning Drey

Portland, Ore., Oct. 20 - Ev3 Inc. finished the third quarter with $45.0 million in cash, cash equivalents and short-term investments, compared with $69.6 million at Dec. 31, 2005, the company reported Friday.

The third-quarter figure includes $7.5 million that Ev3 borrowed during the quarter to expand production capacity and manufacturing at the its Minnesota facility, chief financial officer Patrick Spangler said during the company's quarterly earnings conference call on Friday.

The company has roughly $29.0 million in borrowing capacity remaining under its $30.0 million line of credit, he said.

Ev3 expects upcoming quarters to be characterized by market share gains from its existing products as well as new product approvals and introductions that will strengthen the company's current product lines, chief executive officer James Corbett said during the conference.

"We are investing in an array of new technologies targeting endovascular treatments for neurovascular and peripheral vascular disease markets," he said.

The company believes those combined markets will exceed $7 billion by 2010.

Corbett also said that although the company is not ready to announce expected launch and approval dates, it has internal programs in place for neuro-access, next-generation embolic coil technology and new stent treatments.

In its peripheral vascular segment, the company is focusing on new applications and designs for embolic protection, new stents and technologies for managing embolic complications of the peripheral vasculature, Corbett said.

Ev3's next expected major regulatory milestone is Food and Drug Administration approval of its Pre-Market Approval submission for the use of the Protégé RX Stent in conjunction with the SpideRX device for carotid stenting. The company expects to receive the approval before the end of the year.

Ev3 has also started a major regulatory initiative for the EverFlex Stent for treatment of vascular disease in the superficial femoral artery.

Improved EBITDA

Ev3 reported a third quarter net loss of $12.5 million, compared with $20.5 million in the same period of 2005, according to a company news release.

EBITDA for the third quarter showed a loss of $5.0 million, compared with a loss of $16.6 million in the third quarter of 2005.

"These results clearly show we are making substantial progress toward our goal of achieving a positive EBITDA, excluding non-cash stock-based compensation, in the fourth quarter of this year," Corbett said.

Ev3 is an endovascular device company based in Plymouth, Minn.

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