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Cardiac Science Announces Third Quarter, Nine-Months Results
Friday October 18, 2:04 am ET
IRVINE, Calif., Oct. 18 /PRNewswire-FirstCall/ -- Cardiac Science, Inc. (Nasdaq: DFIB - News), a leading manufacturer of life-saving automated public access defibrillators today reported that solid gains in domestic AED market segments along with better than expected sales activity through its international distribution network resulted in revenue of $13.6 million in the third quarter ended September 30, 2002, as compared to $644,000 in revenue posted in the same period last year. The operating loss for the third quarter narrowed to $2.8 million, a 65 percent decrease from the same period in the prior year. The net loss decreased to $4.1 million, or $0.06 loss per share, down 49 percent from $8.0 million, or $0.31 loss per share, in the same period last year.
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AED revenue in the third quarter totaled $9.6 million with over 4,400 AED devices sold to a wide variety of market segments worldwide. The strongest two sectors within the domestic AED market were corporate workplace facilities and schools, accounting for a combined 64 percent of the total number of AEDs sold in the U.S.
Overall gross margin for the third quarter was 50 percent, up sequentially from 48 percent in the second quarter of 2002. Gross margin on sales of AEDs was approximately 57 percent for the third quarter and primarily accounts for the upward trend in margins experienced throughout the year.
Revenue for the first nine months of 2002 was $35.8 million, up from the $2.9 million for the same period last year. Net loss for the first nine months of this year was $11.4 million or $0.17 loss per share compared to a loss of $20.4 million, or $0.81 loss per share for the year earlier period.
Sales of Powerheart® disposable defibrillator pads to hospital customers grew to $248,800 for the third quarter compared to $142,800 posted in last year's corresponding period. For the first nine months of 2002, 376 Powerheart® bedside defibrillator-monitors were shipped worldwide.
Revenue from sales of emergency defibrillators and Diascope® patient monitors sold to international distributors accounted for $3.6 million of third quarter revenue as the Company sold off the remaining inventory produced in the manufacturing facility in Denmark, which was shut down during the quarter. The Company will begin shipping its new Diascope G2® patient monitors this quarter.
Cardiac Science President and CEO Raymond W. Cohen said that the outstanding third quarter results were driven by an increased sales presence that is allowing the Company to effectively compete for customers in an expanding public access AED market in the U.S. and abroad.
"Year to date, our AED sales are up over 84 percent over last year and our AED business is growing at nearly three times the estimated growth of the worldwide market. We estimate that we now have about 25 percent market share, up more than 10 percentage points from when Cardiac Science acquired Survivalink a year ago. Our goal is AED market leadership and we believe that this objective can be accomplished within a reasonable amount of time," Cohen said. "It was especially encouraging to see sequential quarterly sales growth despite the traditionally slow summer months.
"We continue to post strong gains in the U.S. corporate segment and we captured the vast majority of the state mandated orders for AEDs in New York State schools -- selling over $1 million during the quarter," continued Cohen. "In our hospital segment, we continue to make steady progress in introducing the bedside Powerheart CRM to new customers. Notable new U.S. hospital customers in the quarter included, Hackensack University Medical Center, Hackensack, NJ; New York Methodist Hospital, |
