Imatron Announces Record First Quarter Revenues On Sales of Nine EBT Scanners;
Highest Quarterly Revenue in
Company History; Net Income Increases 729% to $1.8 Million
Business Editors
BIOWIRE2K
SO. SAN FRANCISCO, Calif.--(BW HealthWire)--May 8, 2001--Imatron
Inc. (Nasdaq:IMAT), manufacturer of Electron Beam Tomography (EBT)
scanners, announced today record revenues for the first fiscal quarter
of 2001. Revenues for the three months ended March 31, 2001 were $19.3
million, an increase of 71%, compared to revenues of $11.2 million for
the same period in fiscal 2000. Net income for the three months ended
March 31, 2001 increased $1.6 million to $1.8 million, or $0.02 per
share, compared to net income of $212,000 for the same period one year
ago. The Company sold nine EBT scanners in the first quarter ended
March 31, 2001 compared to seven EBT scanner sales for the same period
one year ago.
As of March 31, 2001, the Company reported cash and cash
equivalents and short-term investments of $4.4 million, working
capital of $33.7 million, shareholders' equity of $39 million and a
current ratio of 2.7 to 1.
S. Lewis Meyer, CEO of Imatron, commented, "We are happy to report
record first quarter revenues and, in fact, revenues at record levels
for any quarter in Imatron's history. Imatron is now clearly moving
into fiscal year 2001, building on the momentum of increased revenue
growth and consistent profitability established in 2000. Some of the
noteworthy financial metrics for the quarter were, in addition to a
729% increase in net income to $1.8 million on a revenue base of $19.3
million, a continuing, solid product gross margin of 47% and total
gross margins of 44%, a 52% increase in customer service revenues from
the prior year's first quarter and many more."
Meyer continued, "We expect continued revenue growth and
profitability throughout our 2001 fiscal year with revenues growing at
a greater than 30% pace and operating income increasing at 50+% for
the year. The recent press release issued on May 1, 2001 from the
American College of Cardiology highlighting the deficiencies in
today's widely accepted paradigm of utilizing blood cholesterol levels
as an indicator of risk for coronary heart disease in women is only
one example of the mounting body of medical evidence and support for
the electron beam tomography coronary artery scan as the best first
test for heart disease. The combination of medical credibility and
public awareness is now building massive physician and public support
for and acceptance of a fundamental change in the model for detection
of early stage heart disease, specifically and most importantly, in
both men and women without classic cardiac symptoms. It is now clear
to both patients and physicians alike that elevated blood cholesterol
is not a disease itself. The disease is atherosclerosis and the EBT
coronary artery scan is the best tool available today to help
determine those patients upon whom "state of the medical art"
therapies and interventions should be focused. This essential change
in the way we view heart disease is driving and, we believe, will
continue to propel our growth in the future."
Imatron will host a conference call for all interested parties on
Tuesday, May 8, 2001 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern
Time) to discuss the Company's first quarter financial results. In the
United States and Canada, the conference call dial-in number is
877-356-8074. The Conference ID No. is 99098. The international and
local dial-in number is 706-679-7574. The conference call will be
webcast over the Internet via www.streetfusion.com.
Imatron Inc. is primarily engaged in designing, manufacturing,
marketing, and servicing 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 University Medical Center, Cedars-Sinai Medical
Center, Abbott-Northwestern Hospital, Mount Sinai Medical Center,
University of Iowa, Harbor-UCLA Medical Center, 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, BodyScan Imaging Center
of Kansas City, ITG/HeartScan Imaging, Heart Savers of Irvine, The
Cooper Clinic, Cardiac Plus, Vital Imaging (La Jolla, Dallas, Houston
and Orange County), Holistica Hawaii, and LifeScore of San Diego.
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 on Form 10-K for
their current fiscal year.
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IMATRON INC
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(unaudited)
Three months ended March 31,
2001 2000
---------- ----------
Revenues
Product sales $ 16,582 $ 9,498
Service 2,449 1,615
Other products sales 238 125
Total revenue 19,269 11,238
Cost of revenues
Product sales 8,724 4,942
Service 1,783 1,047
Other products sales 233 132
Total cost of revenues 10,740 6,121
Gross profit 8,529 5,117
Operating expenses
Research and development 2,636 1,881
Marketing and sales 2,602 1,945
General and administrative 1,281 953
Goodwill amortization 35 35
Total operating expenses 6,554 4,814
Operating income 1,975 303
Interest income 114 107
Interest expense (33) (6)
Other income (loss) (259) --
Income from continuing operations
before provision for income taxes 1,797 404
Provision for income taxes (40) --
Income from continuing operations 1,757 404
Loss from discontinued operations -- (163)
Income before cumulative effect of
change in accounting principle 1,757 241
Cumulative effect on prior periods (to
December 31, 1999) of changing to a
different revenue recognition method -- (29)
Net income $ 1,757 $ 212
Net income per share:
Income from continuing operations -
basic and diluted $ 0.02 $ 0.00
Net income - basic and diluted $ 0.02 $ 0.00
Number of shares used in basic
per share calculations 104,863 100,679
Number of shares used in diluted
per share calculations 106,086 107,676
IMATRON INC.
Condensed Consolidated Balance Sheets
(In thousands)
(unaudited)
March 31, December 31,
2001 2000
--------- ------------
ASSETS
Current assets
Cash and cash equivalents $ 3,890 $ 4,718
Short term investments 523 461
Accounts receivable, net:
Trade accounts receivable 27,203 19,300
Other receivables 1,980 2,184
Inventories 19,293 18,835
Prepaid expenses 703 905
Total current assets 53,592 46,403
Property and equipment, net 4,253 3,567
Goodwill, net 1,066 1,101
Other assets 322 417
Total assets $ 59,233 $ 51,488
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 4,971 $ 3,037
Deferred revenue 1,897 1,901
Other accrued liabilities 9,489 9,448
Line of credit 3,534 --
Capital lease obligations -
due within one year 45 35
Total current liabilities 19,936 14,421
Deferred revenue 234 293
Capital lease obligations 79 82
Total liabilities 20,249 14,796
Shareholders' equity
Common stock 128,591 128,108
Additional paid-in capital 9,720 9,614
Notes receivable from shareholders (3,284) (3,230)
Accumulated deficit (96,043) (97,800)
Total shareholders' equity 38,984 36,692
Total liabilities and
shareholders' equity $ 59,233 $ 51,488
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--30--ws/sf*
CONTACT: Imatron Inc.
S. Lewis Meyer, 650/583-9964 (CEO)
Robin Kelley, 650/583-9964 (Investor Relations)
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: BIOTECHNOLOGY MEDICAL MEDICAL DEVICES
CONFERENCE CALLS EARNINGS
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May-08-2001 12:01 GMT
Symbols:
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