Peter,
Last quarter you wrote:
>>I figure I'll get a chance to buy it back cheaper - the only issue is whether to wait for next quarter's results to see if this indeed was a temporary blip or not. (I'm inclined to think it was - but temporary might mean two quarters, not one, while confidence is re-established).<<
Tough day to assess whether or not this re-establishes confidence:
>>SAN DIEGO--(BW HealthWire)--June 20, 2002-- CardioDynamics (Nasdaq:CDIC - News), the innovator and global leader of Impedance Cardiography (ICG) technology and manufacturer of BioZ® noninvasive digital cardiac function monitoring systems, today reported its financial results for the second quarter 2002.
Second Quarter 2002 Results:
Net sales for fiscal second quarter 2002 were $5.6 million, an increase of 26 percent over sales of $4.5 million for the same period in fiscal 2001. This marks the company's 16th consecutive quarter of year-over-year quarterly revenue growth. Gross margin for the second quarter increased to 72.3 percent of sales, up from 71.3 percent for the same quarter in fiscal 2001, a result of higher average unit sales price and reduced product material cost.
Net income for second quarter was $47,000, or $0.00 per share, compared with a net loss for the second quarter 2001 of $430,000, or ($0.01) per share. The improved net income in the second quarter was due to increased sales, higher gross margin, and the company's ongoing focus on expense management.
Operating Highlights:
During second quarter 2002, 157 BioZ systems were shipped, increasing the company's installed base to over 1,900 systems, up 41 percent from one year ago. Included in second quarter shipments were nine BioZ Systems sold to Saudi Arabia. Sensor revenue in the second quarter 2002 was $701,000 (13 percent of sales), up 52 percent from $463,000 (10 percent of sales) in the same quarter 2001. The recurring sensor revenue growth was attributable to the expansion of installed base of BioZ Systems and the impact of the company's program to increase the medical community's daily usage of ICG technology.
At the end of second quarter 2002, the company has 61 field sales associates, including 41 domestic sales representatives and 11 clinical sales specialists. The U.S. direct sales team posted a strong 53 percent growth in sales over second quarter 2001 and increased sales 33 percent sequentially over first quarter 2002.
CEO Comments and Outlook:
Commenting on the results, Michael K. Perry, CardioDynamics' chief executive officer, stated, "We are pleased with our sales growth in the second quarter, the continued progression in recurring revenue, and our return to profitability. We were able to quickly move past the challenges experienced in the first quarter to continue to grow the business and meet consensus analyst projections. During the quarter we published three significant clinical studies in peer-reviewed journals, initiated a partnership with Medtronic, and welcomed two outstanding healthcare veterans to our Board of Directors."
Perry added, "We look forward to a strong year as we continue building upon our leadership position and further expanding ICG technology within the healthcare industry. We will continue to introduce programs aimed at educating medical professionals and patients about the value of our ICG technology in the battle against cardiovascular disease. The aging of the worldwide population and the severe healthcare cost pressures placed on countries around the world is driving demand for our ICG technology. We are well positioned to actively pursue new business opportunities, develop new partnerships, research new applications for our technology, and create long-term, sustainable, growing value for our shareholders."
Additional Second Quarter Highlights and Accomplishments:
Partnership with Medtronic Inc.: The companies signed an agreement to evaluate the clinical utility of CardioDynamics' ICG technology in optimizing programming of Medtronic's implantable devices for Cardiac Resynchronization Therapy (CRT), and potential integration of the BioZ ICG Module with Medtronic instrumentation.
Initiation of Mandatory ICG Testing at Tenet Healthcare Hospital: The California Heart Institute at Redding Medical Center commenced standard ICG testing in all critical care and emergency department patients complaining of shortness of breath or presenting hypotension (low blood pressure) or hypoxia (deficiency of oxygen).
Publication of three ICG studies in peer-reviewed journals:
Hypertension: Mayo Clinic study demonstrated a 70 percent superiority in effectively treating previously uncontrolled high blood pressure with ICG, as compared to traditional management by high blood pressure specialist physicians.
The American Journal of Cardiology: Researchers from the University of Texas Southwestern Medical Center in Dallas concluded that the company's ICG technology accurately determines low cardiac output in heart failure patients, which is considered important in their treatment.
The Journal of Cardiothoracic and Vascular Anesthesia: The Study showed clinical equivalence between noninvasive ICG and measurements obtained by the invasive Pulmonary Artery Catheter.
Appointment of Two Board Members: The company appointed Ronald A. Matricaria, former CEO and chairman of St. Jude Medical, and Peter C. Farrell, chairman and CEO of ResMed to its board of directors.
Conference Call Information:
Michael K. Perry, chief executive officer, will host a summary of CardioDynamics' second quarter 2002 results in a conference call today at 9:00 a.m. (EDT). To access the conference call, dial 800/349-4174. International callers can call 706/634-7498. A replay of the call is available by calling 800/642-1687 (Code 4300155). International callers can access the replay by calling 706/645-9291 (Code 4300155). The call is also available via Webcast at irconnect.com.
About CardioDynamics:
CardioDynamics (Nasdaq:CDIC - News), the ICG Company, is the innovator and global leader of breakthrough medical technology called Impedance Cardiography (ICG). The company's primary products, the BioZ® Systems, are being used by leading physicians around the world to help battle the number one killer of men and women -- cardiovascular disease. Partners include GE Medical Systems Information Technologies, Spacelabs Medical Systems and Vasomedical. The worldwide market potential for BioZ products is estimated to be $5 billion and an additional $800 million in recurring annual revenue for disposables. For additional information or to request an investor package, please refer to the company's Web site at www.cdic.com.
Forward-Looking (Safe Harbor) Statement:
Note: Except for the historical and factual information contained herein, this press release contains forward-looking statements, the accuracy of which are necessarily subject to uncertainties and risks, which include sole dependence on the BioZ product line, and various uncertainties characteristic of companies just emerging from the development stage; as well as other risks detailed in the company's filings with the SEC, including its 2001 Form 10-K. The company does not undertake to update the disclosures contained in this press release.
-0-
CardioDynamics -- The ICG Company
Results From Operations:
(Unaudited)
Three Months Ended Six Months Ended
May 31, May 31,
------------------------- -------------------------
2002 2001 2002 2001
------------ ------------ ------------ ------------
Net Sales $ 5,623,000 $ 4,480,000 $ 9,989,000 $ 8,445,000
Gross Margin 4,063,000 3,196,000 7,150,000 5,945,000
Research &
Development 611,000 902,000 1,253,000 1,713,000
Selling &
Marketing 3,049,000 2,470,000 5,770,000 4,663,000
General &
Administrative 422,000 396,000 861,000 846,000
------------ ------------ ------------ ------------
Loss from
Operations (19,000) (572,000) (734,000) (1,277,000)
Other Income, net 67,000 142,000 152,000 314,000
Provision for
Income Taxes (1,000) -- (1,000) (1,000)
------------ ------------ ------------ ------------
Net Income (Loss) 47,000 (430,000) (583,000) (964,000)
============ ============ ============ ============
Net Income (Loss)
per Share,
-- Basic and
Diluted $ 0.00 $ (0.01) $ (0.01) $ (0.02)
============ ============ ============ ============
Weighted-Average
Number of Shares
Outstanding:
-- Basic 46,113,799 45,524,882 46,024,279 45,522,310
-- Diluted 47,433,448 45,524,882 46,024,279 45,522,310
============ ============ ============ ============
Selected Financial Information:
May 31, November 30,
2002 2001 Change
(Unaudited) (Audited)
========================================
Cash $6,405,000 $6,394,000 0%
Accounts Receivable, net 6,814,000 7,373,000 (8%)
Inventory, net 3,541,000 2,821,000 26%
Current Assets 19,302,000 18,682,000 3%
Long-term Assets 2,518,000 2,779,000 (9%)
Total Assets 21,820,000 21,461,000 2%
Current Liabilities 3,054,000 2,998,000 2%
Long-term Debt 27,000 40,000 (33%)
Total Liabilities 3,081,000 3,038,000 1%
Shareholders' Equity 18,739,000 18,423,000 2%
========================================<<
Cheers, Tuck |
