ATL Launches Major New Product Introduction
Provides Guidance for Third Quarter
BOTHELL, Wash., July 14 /PRNewswire/ -- ATL Ultrasound, Inc. (Nasdaq: ATLI) announced today introduction of a powerful new ultrasound system, the HDI(R) 5000, that for the first time applies supercomputed processing, patented new blood flow imaging technology and adaptive system intelligence to diagnostic ultrasound. Physicians evaluating the HDI 5000 report the system provides a vast amount of new information about the human body and how it works. ATL will begin customer deliveries in the fourth quarter. ATL's HDI 3000 is fully upgradable, on site, to the HDI 5000 technology. Details of the product introduction are the subject of a separate news release issued today.
As a result of this major product introduction, the Company believes that third quarter revenues may be within the $90-$95 million range as customers pause to review their purchasing decisions. External financial analyst forecasts for operating expenses for the full year 1997 remain appropriate and cover expenses associated with both the HDI 5000 and the HDI 1000, a software-based mid-range product introduced in February 1997. However, quarterly expense spending will be somewhat higher in the third quarter than previously expected and offset in the other nine months of the year. The Company therefore expects to report a loss in the third quarter of approximately $0.10 to $0.20 per share.
"Within six months, ATL has introduced both the HDI 5000 and the HDI 1000 systems, positioning the Company for strong growth in the fourth quarter this year and throughout 1998," said Dennis C. Fill, ATL Chairman and CEO. "While this quarter will be transitional as customers make purchase decisions in response to our new products, we remain confident regarding our financial targets for 1998, including an ROE of 15%."
ATL will report second quarter 1997 results on July 23 that will be at the high-end of Wall Street estimates.
ATL is a worldwide leader in diagnostic medical ultrasound. Headquartered near Seattle, Washington, the Company has annual revenues of $420 million and serves customers in over 100 countries. Press releases and other corporate information are available on ATL's web site at http://www/atl.com.
Private Securities Litigation Reform Act of 1995 Compliance Statement
Certain statements in this news release, including statements concerning the HDI 5000 system and the HDI 1000 system and estimates of EPS are forward looking and should be read in conjunction with the Company's SEC filings and news releases. The Company's quarterly and annual operating results are affected by a wide variety of factors such as market conditions, competitive product or pricing elements, market acceptance of new products, economic conditions in ATL's markets, delays in regulatory approvals or delays in product development programs that could adversely affect revenues and profitability.
SOURCE ATL Ultrasound Inc.
-0- 07/14/97
/CONTACT: Anne Bugge of Advanced Technology Laboratories Inc., 206-487-7427/
(ATLI)
CO: Advanced Technology Laboratories Inc.; ATL Ultrasound Inc. ST: Washington IN: MTC SU: PDT
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