Anybody still around? CDIC ekes out a profit.
>>SAN DIEGO--(BUSINESS WIRE)--March 19, 2003-- 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 19th consecutive quarter of year-over-year revenue growth and 46% increase in first quarter 2003 sales over the same period in the prior year.
First Quarter 2003 Results:
Net sales for fiscal first quarter 2003 were $6.4 million, an increase of 46% over net sales of $4.4 million for the same period in fiscal 2002. Gross margin for first quarter 2003 increased to 74% of sales, up from 71% in the same quarter last year. Net income for first quarter 2003 was $116,000, or $0.00 per share, compared with a net loss of $630,000, or ($0.01) per share, reported in first quarter 2002.
Operating Highlights:
During first quarter 2003, 185 BioZ Systems were sold, increasing the total number of BioZ Systems sold to over 2,400 systems, up 40% from one year ago. Recurring sensor revenue in the first quarter 2003 was $977,000 (15% of sales), up 79% from $547,000 (13% of sales) in the same quarter 2002. The increase is attributable to expansion of the installed base of BioZ Systems and success of the Company's recent program to assist in the workflow integration of BioZ Systems in physician offices.
Cash flow from operations for the quarter was $126,000, an improvement of $693,000 compared with first quarter 2002. This represents the third consecutive quarter of positive operating cash flow. First quarter accounts receivable cash collections were $6.6 million, representing 111% of fourth quarter 2002's trade accounts receivable sales. The Company ended the quarter with $7.0 million in cash and cash equivalents, and remains essentially debt free.
CEO Comments:
Commenting on the results, Michael K. Perry, CardioDynamics' Chief Executive Officer, stated, "Despite the harsh economic climate, we met analysts' consensus estimates for the first quarter and are on track for a strong year. We are very pleased with the 46% growth in our business this quarter, over an admittedly challenging first quarter 2002, and are encouraged by the continued solid increase in sensor revenue."
Perry continued, "The first quarter was highlighted by a 39% increase in Medicare reimbursement rates for our ICG technology. We believe Medicare, in conjunction with the medical community, is looking towards innovative, noninvasive technologies to improve patient management and reduce the estimated annual U.S. expenditures of $50 billion on high blood pressure and over $24 billion on heart failure. The measurements provided by our proprietary ICG technology help physicians identify underlying cardiovascular disease, customize and target treatment, and monitor the effectiveness of prescribed medications."
Perry concluded, "Nineteen consecutive quarters of year-over-year revenue growth is a testament to the significance of our ICG technology and strength of a sound and profitable business model. We are confident in the long-term prospects of the industry we are creating. With penetration of nearly 2% in physician offices and under 1% in the hospital market, we are just beginning to capitalize on this enormous market opportunity. Through innovation and education, we are committed to helping the medical community win the battle against cardiovascular disease as we fundamentally change the way physicians practice cardiac medicine."
Additional Highlights and Accomplishments:
`Increase of 39% in Medicare national average payment to $48.92 for the Company's ICG technology. The new rate became effective March 1, 2003.
`Introduction of ICG practice protocols for the treatment of high blood pressure and heart failure patients at the American Heart Association (AHA) Meeting in Chicago. The customized ICG algorithms provide an objective roadmap for patient treatment and help physicians avoid months of trial and error with multiple drug combinations by facilitating a more accurate drug selection and dose titration.
`Issuance of two U.S. patents covering the unique design features of the BioZtect® sensor system. The intellectual property protection applies to both of the Company's BioZtect sensors, for use with the BioZ Systems and its GE ICG Module.
Conference Call Information:
Michael K. Perry, Chief Executive Officer, will host a summary of CardioDynamics' first quarter 2003 results in a conference call today at 4:30 p.m. (EST). To access the conference call, dial 800/346-7359 (Code 7784). International participants may call 973/528-0008 (Code 7784). A replay of the call will be available for two weeks following the call at 800/332-6854 (Code 7784). The international replay number is 973/528-0005 (Code 7784). The call will also be available via Webcast and can be accessed 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 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, Philips 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, such as estimated cardiovascular and ICG industry prospects, market size, potential, growth and penetration rates, the accuracy of which is necessarily subject to uncertainties and risks including the Company's sole dependence on the BioZ product line, and various uncertainties characteristic of early growth companies, as well as other risks detailed in the Company's filings with the SEC, including its 2002 Form 10-K. The Company does not undertake to update the disclosures contained in this press release.
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CardioDynamics -- The ICG Company
Operational Results: Three Months Ended
February 28,
2003 2002
---------------------------------------------- ----------- -----------
Net Sales $6,385,000 $4,366,000
Cost of Sales 1,632,000 1,278,000
----------- -----------
Gross Margin 4,753,000 3,088,000
Research & Development Expense 736,000 642,000
Selling & Marketing Expense 3,481,000 2,721,000
General & Administrative Expense 499,000 439,000
----------- -----------
Income (Loss) from Operations 37,000 (714,000)
Other Income, net 88,000 84,000
Income Tax Expense (9,000) --
----------- -----------
Net Income (Loss) $116,000 $(630,000)
=========== ===========
Net Income (Loss) per Common Share:
-- Basic and Diluted $0.00 $(0.01)
=========== ===========
Weighted-Average Number of Shares Outstanding:
-- Basic 46,181,193 45,932,770
=========== ===========
-- Diluted 47,240,059 45,932,770
=========== ===========
Selected Balance Sheet Data: February 28, November 30,
2003 2002
---------------------------------------- -------------- --------------
Cash & Cash Equivalents $6,965,000 $6,879,000
Accounts Receivable, net 8,431,000 8,349,000
Inventory, net 3,514,000 3,474,000
Total Current Assets 21,270,000 21,179,000
Long-term Assets 2,450,000 2,387,000
Total Assets 23,720,000 23,566,000
Total Current Liabilities 3,214,000 3,282,000
Long-term Liabilities 622,000 560,000
Total Liabilities 3,836,000 3,842,000
Shareholders' Equity 19,884,000 19,724,000<<
Cheers, Tuck |
