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Monday October 23, 7:02 am Eastern Time
Press Release
Imatron Announces Record Third Quarter Revenues and Earnings
Fourth Consecutive Quarter of Increased Earnings
Revenues Increase 60% On Sales of Nine EBT Scanners
SO. SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Oct. 23, 2000--Imatron Inc. (Nasdaq:IMAT - news), manufacturer of Electron Beam Tomography (``EBT'') scanners, today announced record revenues and net income for the third fiscal quarter of 2000. Revenues for the three months ended September 30, 2000 were $17.8 million, an increase of 60%, compared to revenues of $11.1 million for the same period in fiscal 1999. Net income for the three months ended September 30, 2000 increased $3.2 million to $1.6 million, or $0.01 per share, compared to a net loss of $1.7 million, or $0.02 per share, for the same period in 1999.
Revenues for the nine months ended September 30, 2000 were $44.7 million, an increase of 82%, compared to revenues of $24.6 million for the same period last year. Net income for the nine months ended September 30, 2000 increased $9.5 million to $2.9 million, or $0.03 per share, compared to a net loss of $6.6 million, or $0.07 per share, for the same period in 1999.
Third quarter revenues increased 15% and net income increased 51% from three months ended June 30, 2000. As of September 30, 2000, the Company reported cash and cash equivalents and short-term investments of $10.8 million, working capital of $28.3 million and a current ratio of 3 to 1. The Company's shareholders' equity increased $11.4 million, or 52%, from September 30, 1999.
S. Lewis Meyer, Imatron's CEO, commented, ``This strong third quarter report is completely consistent with our fiscal year 2000 plan of reporting increasing sales
and profits every quarter. Imatron's gross margins on product sales were 43% compared to 33% in the prior year's third quarter. Selling, General and Administrative
(SG&A) expenses stand at a very acceptable, industry standard level of 18% of sales revenues for the quarter ended September 30, 2000. Our increasingly positive
earnings have allowed us to strategically accelerate our investment in EBT technology development and to expand our manufacturing capacity to accommodate the anticipated increase in demand for EBT scanners. We have now occupied a new, 33,000 square foot manufacturing and customer service facility in Hayward, California achieving this increased production capability and technology investment while maintaining strong financial metrics.''
Mr. Meyer continued, ``We are gratified to see a number of factors now converging to drive Imatron's increased sales and profitability -- 1) massively increased public
awareness of the role EBT technology can play in the early diagnosis of a number of significant diseases, 2) significantly enhanced medical community acceptance of
early stage, non-invasive strategies for supporting preventive medicine, and 3) major investment in expanding Imatron's sales and marketing capabilities both in the
United States and internationally. Imatron and EBT technology are on the right side of a crucial issue facing the developed economies of the world -- how to cope
with an aging population, increasingly subject to serious, but largely preventable diseases. We believe that the diagnostic information uniquely delivered by EBT
technology will play a pivotal role in supporting wellness and prevention initiatives as the only effective way to improve the quality of life and to reduce spiraling
healthcare costs. We are confident that this strong base of support for increased EBT scanner sales built over the past five years will deliver solid growth in sales and
profits in the future.''
Imatron will hold a conference call on Thursday, November 2, 2000 at 1:30 p.m. Pacific time (4:30 p.m. Eastern time) to discuss the Company's third quarter financial results. The dial-in phone number is 800/816-3043. The access code is: No. 99556. Notification and additional details of the conference call will be issued on Tuesday, October 24, 2000 and will be available on Imatron's web site at ww.imatron.com. The conference call will be webcast at www.Nasdaq-Amex.com which will allow anyone with Internet access to hear the conference live through their pc. You may also visit this website during the next three months to hear the conference call replayed.
Imatron Inc. is primarily engaged in designing, manufacturing, marketing, and supporting high performance electron beam tomography (EBT) scanners based on
the Company's proprietary EBT technology. Imatron's EBT scanner is now in use at more than 150 major medical facilities and imaging centers around the world,
including the Mayo Clinic, Hackensack Regional Medical Center, Cedars-Sinai Medical Center, Abbott-Northwestern Hospital, Mount Sinai Medical Center, University of Iowa, National Institutes of Health, UCLA Medical Center, St. Francis Hospital, Stanford University, University of Pittsburgh Medical Center, Edward Cardiovascular Institute, Michigan Heart Imaging, Ohio Heart, University of Illinois, Arizona Heart Institute, Alfried Krupp Krankenhaus, Essen, Landeskrankenhaus in Graz, Austria, Cardiology Research Centre in Moscow, Russia, FAU Erlangen-Nurnberg in Erlangen, Germany, Beijing Hospital in China, HeartScan Imaging,
Heart Savers, LLC, Cooper Clinic, HealthScan of La Jolla, LifeScore of San Diego and HealthScan of Plano (Dallas).
Except for the historical information contained herein, the matters discussed in this news release may contain forward-looking statements that are based on current
expectations and estimates about the industry in which Imatron operates, the estimated impact of certain technological advances, the estimated impact of published
research studies on scanner sales and procedures, as well as management's beliefs and assumptions. It is important to note that the Company's actual results could
differ materially from those projected in such forward-looking statements. The factors that could cause actual results to differ materially include, among others; failed clinical demonstration of certain asserted technological advantages and diagnostic capabilities; reliance on product distributors; competition in the diagnostic imaging market; failure to improve product reliability or introduce new product models and enhancements; delays in production and difficulty in obtaining components and sub-assemblies from limited sources of supply; inability to meet cash-on-delivery or prepayment terms from vendors; determinations by regulatory and administrative government authorities; patent expiration and denial of patent applications; the high cost of the scanner as compared to commercially available CT scanners; and the
risk factors listed from time to time in the Company's Securities and Exchange Commission reports, including their reports of Form 10-K for their current fiscal year.
IMATRON INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months ended Nine Months ended
September 30, September 30,
2000 1999 2000 1999
(unaudited) (unaudited)
Revenues
Product sales $ 15,549 $ 9,363 $ 38,711 $ 19,105
Service 2,012 1,590 5,330 4,970
Other product sales 244 147 629 535
Total revenue 17,805 11,100 44,670 24,610
Cost of revenues
Product sales 8,856 6,285 21,364 13,864
Service 1,538 1,589 4,098 4,352
Other product sales 216 144 586 550
Total cost of revenues 10,610 8,018 26,048 18,766
Gross profit 7,195 3,082 18,622 5,844
Operating expenses
Research and development 2,455 1,713 6,279 5,180
Marketing and sales 1,865 1,664 5,802 3,918
General and administrative 1,281 561 3,558 1,895
Goodwill amortization 36 35 107 104
Restructuring charges -- -- -- 282
Total operating expenses 5,637 3,973 15,746 11,379
Operating income (loss) 1,558 (891) 2,876 (5,535)
Interest and other income 81 112 374 139
Interest expense (4) (14) (17) (101)
Income (loss) from
continuing operations
before provision
for income taxes 1,635 (793) 3,233 (5,497)
Provision for income taxes -- -- -- --
Income (loss) from
continuing operations 1,635 (793) 3,233 (5,497)
Loss from
discontinued operations (58) (868) (364) (1,134)
Net income (loss) $ 1,577 $ (1,661) $ 2,869 $ (6,631)
Net income (loss)
per common share:
Income (loss)
from continuing
operations -- basic
and diluted $ 0.02 $ (0.01) $ 0.03 $ (0.06)
Income (loss) from
discontinued
operations
-- basic and
diluted $ 0.00 $ (0.01) $ 0.00 $ (0.01)
Net income
(loss) -- basic $ 0.02 $ (0.02) $ 0.03 $ (0.07)
Net income
(loss) -- diluted $ 0.01 $ (0.02) $ 0.03 $ (0.07)
Number of shares
used in basic
per share
calculations 104,414 97,642 102,458 93,168
Number of shares
used in diluted
per share
calculations 107,178 97,642 107,183 93,168
IMATRON INC.
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
September 30, December 31,
ASSETS 2000 1999
Current assets
Cash, cash equivalents,
and short-term investments $10,838 $11,197
Trade accounts receivable 10,902 9,152
Inventories 18,739 12,965
Prepaid expenses 1,756 1,030
Net current assets
of discontinued operations -- 1,019
Total current assets 42,235 35,363
Property and equipment, net 3,443 2,900
Goodwill and other assets 1,606 1,911
Long-term net assets
of discontinued operations 427 469
Total assets $47,711 $40,643
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $1,898 $2,998
Other accrued liabilities 11,677 10,118
Capital lease obligations
-- due within one year 34 30
Net current liabilities
of discontinued operations 353 --
Total current liabilities 13,962 13,146
Deferred income 388 547
Capital lease obligations 91 125
Total liabilities $14,441 $13,818
Minority interest 71 93
Shareholders' equity
Common stock, no par value 127,872 121,566
Additional paid-in capital 9,694 9,399
Deferred compensation (40) --
Notes receivable from shareholders (3,113) (150)
Accumulated deficit (101,214) (104,083)
Total shareholders' equity 33,199 26,732
Total liabilities
and shareholders' equity $47,711 $40,643 |
