Earnings out. Revenue of $9.4M in Q4
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Tuesday February 1, 4:06 pm Eastern Time
Company Press Release
SonoSite Announces Fourth Quarter and 1999 Results
Company Finishes First Full Year with Revenues Exceeding $10 Million
BOTHELL, Wash.--(BUSINESS WIRE)--Feb. 1, 2000--SonoSite, Inc. (Nasdaq:SONO - news) today released financial results for the fourth quarter and
year ended December 31, 1999.
For the quarter, SonoSite reported product revenues of $9.4 million, and $10.1 million for the year. SonoSite reported a net loss of $3.2 million for the
quarter, or $0.38 per share, and a loss of $21.6 million for the year, or $3.08 per share.
The growth in operating expenses reflected an aggressive increase in promotions, personnel and product ramp-up for the Company's first two product
platforms. The SonoSite(TM) 180 hand-carried ultrasound system for general applications was launched in May, and in the fourth quarter, the Company
launched SonoHeart(TM), the world's first hand-carried echocardiography system, a quarter ahead of schedule.
Cash, cash equivalents and investments as of December 31, 1999 totaled $53.4 million.
``We had many accomplishments in 1999, and it was a year of real discovery for us as a company,' said Kevin M. Goodwin, president and CEO of
SonoSite. ``In addition to aggressively launching and marketing our two platforms, we converted our manufacturing processes to high volume production to
accommodate the rapid build up in our sales leads and to fulfill the sales order backlog including that which has been carried over into the first quarter of
2000. Throughout the year we focused on product introductions while gathering feedback from physicians in obstetrics and gynecology, emergency
medicine, trauma, radiology and cardiology.'
Fourth quarter highlights:
The SonoHeart hand-carried echocardiography system was introduced at the American Heart Association's annual meeting in Atlanta, GA in
November. In December, the Company received 510(K) premarket clearance from the U.S. Food and Drug Administration (FDA) allowing SonoSite to
market the SonoHeart system in the United States. SonoSite also began discussions with potential cardiology partners for collaboration on SonoHeart
worldwide.
SonoSite aggressively promoted new capabilities on the SonoSite 180 system while participating in three major medical exhibitions including: the
American College of Emergency Physicians, the International Society of Gynecologists and Obstetricians and the Radiological Society of North
America. All shows were highly successful in generating interest, awareness and leads for SonoSite products.
SonoSite initiated the formation of a unique clinical consultant organization designed to expand U.S. distribution around the Company's two product
platforms. This exclusive group of highly trained sonographers will engage in direct selling in hospitals and acute care facilities, and will augment the
selling efforts of SonoSite's U.S. distribution partner, PSS World Medical.
SonoSite completed a private issuance of 1.25 million shares of common stock, generating gross proceeds of $31.25 million.
The SonoSite 180 hand-carried ultrasound system was chosen for the NASA astronaut health monitoring program.
The Company received an additional CE Marking approval, extending certification to include the design of SonoSite products in addition to production
processes (European Certification to the international quality system standards (ISO 9001 and EN 46001) and to the Medical Device Directive
(93/42/EEC, Annex II, Section 3.2)).
Ernest Mario, Ph.D. was appointed to the SonoSite Board of Directors.
Allen W. Guisinger, former president and vice president of ATL Ultrasound was moved to vice president of North American sales and distribution.
-- Andrew T. Dunn was promoted to vice president of marketing.
SonoSite, Inc., (www.sonosite.com) headquartered in Bothell, Wash., develops, manufactures, markets and sells a new class of hand-carried, all-digital
ultrasound systems designed to have the image quality of larger, more expensive systems but small enough to be hand-carried from bedside to bedside and
room to room in many clinical settings. SonoSite became an independent public company on April 6, 1998, as a result of a spin-off from ATL Ultrasound.
Forward-looking Information and the Private Litigation Reform Act of 1995
Certain statements in this press release, including statements concerning market acceptance and performance are ``forward-looking statements' within the
meaning of the Private Litigation Reform Act of 1995. Forward-looking statements are based on the opinions and estimates of management at the time the
statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the
forward-looking statements. The words ``believe,' ``expect,' ``intend,' ``anticipate,' variations of such words, and similar expressions identify
forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guaranties of future
performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect SonoSite's actual results
include, among others, uncertainties as to the Company's ability to manage potential problems, delays or unanticipated expenses, and product acceptance by
the medical community. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this
release. Reference is made to SonoSite's latest annual report on Form 10-K/A filed with the Securities and Exchange Commission for a more definitive
description of such factors. SonoSite undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or
circumstances after the date of this release or to reflect the occurrence of unanticipated events.
SonoSite, Inc.
Selected Financial Information
Statements of Operations
(in thousands except per share data) (unaudited)
Quarter Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1999 1998
--------- --------- ---------- ----------
Grant revenues $ - $ - $ 125 $ 973
Sales revenue 9,386 - 10,132 -
Cost of sales 5,937 - 6,445 -
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Gross margin on
sales revenue 3,449 - 3,687 -
Expenses:
Research &
development $ 3,393 $ 3,018 $ 14,533 $ 9,474
Sales and marketing 3,079 1,127 9,767 3,120
General and
administrative 852 696 2,638 1,904
--------- --------- ---------- ----------
Total Expenses 7,324 4,841 26,938 14,498
Other income, net 665 106 1,514 500
--------- --------- ---------- ----------
Net loss $(3,210) $(4,735) $(21,612) $(13,025)
========= ========= ========== ==========
Basic and diluted net
loss per share $ (0.38) $ (0.99) $ (3.08) $ (2.72)
========= ========= ========== ==========
Weighted average shares
used in computation
of basic and diluted
net loss per share 8,361 4,801 7,025 4,796
========= ========= ========== ==========
Condensed Balance Sheets
(in thousands) (unaudited) December 31, December 31,
1999 1998
---------- ----------
Cash and cash equivalents $ 33,252 $ 7,526
Marketable securities 16,923 -
Trade accounts receivable 8,257 -
Inventory 1,926 -
Prepaid expenses and other current assets 784 12,304
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Total current assets 61,142 19,830
Property and equipment, net 4,846 3,380
Noncurrent marketable securities 3,227 -
Other assets 511 80
---------- ----------
Total assets $ 69,726 $ 23,290
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Accounts payable and accrued expenses $ 5,495 $ 2,587
Capital lease obligations 522 870
Shareholders' equity:
Common stock, additional paid in capital
and other equity items 106,230 40,742
Accumulated deficit (42,521) (20,909)
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Total stockholders' equity 63,709 19,833
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Total liabilities and stockholders' equity $ 69,726 $ 23,290
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Contact:
SonoSite, Inc.
Investor Relations: Guy Seaton, 425/951-1333
OR
Media: 425/951-1284 |
