Common use of Selected Financial Data Clause in Contracts

Selected Financial Data. YEAR ENDED DECEMBER 31, --------------------------------------------------- 2000 1999 1998 1997 1996 ------- -------- -------- -------- -------- (IN THOUSANDS, EXCEPT PER SHARE DATA) CONSOLIDATED STATEMENT OF OPERATIONS DATA: Product sales................................ $15,054 $ 17,090 $ 18,611 $ 23,421 $ 624 License and royalty revenue.................. 5,166 1,000 -- -- -- ------- -------- -------- -------- -------- Total revenue................................ 20,220 18,090 18,611 23,421 624 ------- -------- -------- -------- -------- Cost of product sales........................ 7,989 10,634 16,846 15,395 561 ------- -------- -------- -------- -------- Gross profit................................. 12,231 7,456 1,765 8,026 63 Operating expenses: Research and development................... 4,519 7,039 10,985 18,005 21,059 Selling, general and administrative........ 11,655 18,520 33,151 43,005 11,223 Patent acquisition......................... -- -- -- -- 5,216 Restructuring charges...................... 1,275 2,363 12,158 -- -- ------- -------- -------- -------- -------- Loss from operations......................... (5,218) (20,466) (54,529) (52,984) (37,435) Interest and other, net...................... (2,825) (933) (1,692) 1,653 3,381 ------- -------- -------- -------- -------- Loss before extraordinary item............... (8,043) (21,399) (56,221) (51,331) (34,054) Extraordinary item -- gain on extinguishment of debt.................................... 1,750 -- 15,563 -- -- ------- -------- -------- -------- -------- Net loss..................................... $(6,293) $(21,399) $(40,658) $(51,331) $(34,054) ======= ======== ======== ======== ======== Basic and diluted loss per share before extraordinary item......................... $ (0.32) $ (0.88) $ (2.39) $ (2.29) $ (2.11) ======= ======== ======== ======== ======== Extraordinary item per share................. $ 0.07 $ 0.66 ======= ======== Basic and diluted loss per share............. $ (0.25) $ (0.88) $ (1.73) $ (2.29) $ (2.11) ======= ======== ======== ======== ======== DECEMBER 31, -------------------------------------------------------- 2000 1999 1998 1997 1996 --------- --------- --------- --------- -------- (IN THOUSANDS) CONSOLIDATED BALANCE SHEET DATA: Current assets.......................... $ 21,055 $ 48,683 $ 74,761 $ 124,848 $ 94,226 Working capital......................... 17,445 24,906 46,170 113,923 87,561 Total assets............................ 34,425 60,813 87,537 142,810 101,852 Long-term obligations, less current portion............................... 51,283 55,433 56,098 89,868 4,717 Accumulated deficit..................... (170,280) (163,987) (142,588) (101,930) (50,599) Total stockholders' equity (net capital deficiency)........................... (20,468) (18,397) 2,848 42,017 90,470 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW Since our inception in May 1991, we have been engaged in the research and development of Port-Access minimally invasive cardiac surgery systems and related technology. In December 1996, we commercially introduced our EndoCPB System and other Port-Access systems for minimally invasive cardiac surgery performed on a stopped heart. During the third quarter of 1998 we began selling our EndoDirect system, a direct aortic cannulation system for stopped heart minimally invasive cardiac surgery. In 1999 we commercially introduced several new cardiac surgery products, including our PrecisionOP system for surgery performed on a beating heart. We are now engaged in extensive marketing and selling activities as well as continued research and development. The Company has entered into an Amended and Restated Agreement and Plan of Merger, dated as of January 26, 2001, with John▇▇▇ & ▇ohn▇▇▇. ▇▇rsuant to the terms of the merger agreement, HP Merger