>>SAN DIEGO--(BUSINESS WIRE)--Jan. 21, 2004-- CardioDynamics (Nasdaq: CDIC - News), the innovator and leader of Impedance Cardiography (ICG) technology and manufacturer of BioZ® noninvasive cardiac function monitoring systems, today announced its 22nd consecutive quarter of year-over-year quarterly revenue growth, second profitable year and 29% increase in 2003 sales over the same period in the prior year.
2003 Fourth Quarter and Year-End Results:
Net sales for fourth quarter fiscal 2003 were $8.9 million, an increase of 22% over sales of $7.3 million for the same quarter last year. Full year fiscal 2003 sales were $30.3 million, an increase of 29% over sales of $23.5 million reported for fiscal 2002. Gross margin for fourth quarter 2003 increased to 76.8% of sales, up from 73.9% for the same quarter in fiscal 2002.
Net income for the fourth quarter 2003 was $985,000 (up 78%), or $0.02 per diluted share, compared to net income of $554,000, or $0.01 per diluted share reported in fourth quarter 2002. Net income for fiscal 2003 was $2.5 million (up 691%), or $0.05 per diluted share, compared to net income of $310,000, or $0.01 per diluted share, in fiscal 2002.
Operating Highlights:
During fourth quarter 2003, 236 BioZ Systems were sold, up 16% from the same quarter last year, increasing the total number of BioZ Systems sold to over 3,000. The U.S. direct sales team posted a 19% growth in sales over fourth quarter 2002 and increased sales 15% sequentially over third quarter 2003. Sensor revenue in fourth quarter 2003 was $1,522,000 (17% of net sales), up 82% from $836,000 (12% of net sales) in the fourth quarter of the previous year. In fiscal 2003, overall sensor revenue was $5.2 million, an increase of 79% from $2.9 million in fiscal 2002.
Operating cash flow for fourth quarter 2003 was $1,015,000, a $635,000 improvement over the previous year. Cash flow from operations for fiscal year 2003 was $2,198,000, an improvement of $2,341,000 over 2002. Fourth quarter accounts receivable cash collections were $8.1 million, bringing the cash and short-term investments balance to $9.3 million, up 36% from $6.9 million at the end of fiscal 2002.
CEO Comments and Outlook:
Michael K. Perry, CardioDynamics' Chief Executive Officer, stated, "We are very pleased with our fourth quarter operating performance and overall results for 2003. We grew the business a healthy 29%, achieved our second profitable year and 22nd consecutive quarter of year-over-year revenue growth."
Perry added, "In addition to our solid financial performance, we achieved several key objectives in 2003, including the issuance of six U.S. patents, development of AERIS(TM) processing technology, presentation of seven clinical studies, increased institutional ownership to over 40%, and the private sale of two million shares of the Allen E. Paulson Trust to institutional investors. We were also recognized by Deloitte & Touche for the fifth consecutive year as one of the fastest growing technology companies in North America."
Perry concluded, "With over two million patients monitored, we remain convinced that this is a unique opportunity to fundamentally change cardiac monitoring and make a genuine contribution to healthcare. The medical community is helping us drive market adoption through clinical studies, educational programs, presentations, and publications. The investor community is recognizing our solid operating discipline, strong balance sheet, and exceptional market potential. We enter 2004 with no debt, increased cash, new partners, a dedicated and talented team, and even greater opportunity. As exciting as 2003 has been for us, we believe the best is yet to come."
Fiscal 2003 Highlights and Accomplishments:
-- Patents: Issuance of six U.S. patents, including one
underlying the Company's novel AERIS(TM) (Adaptive Extraction
& Recognition of Impedance Signals) processing and three
others relating to the unique design features of the
BioZtect(R) sensor system.
-- Sale of Paulson Trust Stock: Assistance in the sale of two
million shares of the Allen E. Paulson Trust and 250,000
shares owned personally by the Trustee, J. Michael Paulson, to
institutional investors in privately negotiated transactions.
-- Clinical Studies:
-- Presentation of a Cleveland Clinic Study at the Scientific
Assembly of the American College of Emergency Physicians
demonstrating that ICG changes emergency treatment 24% of the
time (tenfold benefit over pulse oximetry).
-- Publication of an ICG study, Impedance Cardiography: The Next
Vital Sign Technology, in CHEST, an official publication of
the American College of Chest Physicians, demonstrating
superior accuracy of the Company's ICG technology.
-- Cleveland Clinic ICG study presented at the American College
of Cardiology 52nd Scientific Sessions demonstrating ICG to
have a significant correlation (0.89) as compared to the
invasive pulmonary artery catheter procedure.
-- Presentation of five ICG studies at the Seventh Annual Heart
Failure Society of America Meeting highlighting the value of
ICG in heart failure treatment.
-- New Analyst Coverage: Initiation of coverage by Anthony Green,
Senior Research Analyst at Craig-Hallum Capital Group, LLC,
and Adina Dodi, Equity Analyst at B. Riley & Co., with "buy"
recommendations.
-- Awards and Recognition:
-- Company's CEO, Michael K. Perry, and President, Rhonda F.
Rhyne, named Ernst & Young's 2003 San Diego's Entrepreneur of
the Year in the medical products and technology category.
-- Ranking of 287 in the 2003 Deloitte & Touche Technology Fast
500, a ranking of the 500 fastest growing technology companies
in North America (1,021% five-year revenue growth).
-- New Board Member: Appointment of Ronald L. Merriman to the
Company's Board of Directors. Mr. Merriman, who qualifies as a
"financial expert" under the Sarbanes-Oxley Act of 2002, will
also serve as the Chairman of the Audit Committee.
Conference Call and Webcast Information:
Michael K. Perry, chief executive officer, and Steve P. Loomis, chief financial officer, will host a summary of CardioDynamics' fourth quarter results and outlook for 2004 in a conference call today at 4:30 PM (EST). To access the conference call, dial 800-346-7359 (Code 7784). International participants can call 973-528-0008 (Code 7784). A replay of the call will be available for one month following the call at 800-332-6854 (Code 7784). The international replay number is 973-528-0005 (Code 7784). A webcast of the call is available at irconnect.com.
About CardioDynamics:
CardioDynamics, the ICG Company, is the innovator and 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 and Philips Medical Systems. The worldwide market potential for BioZ products is estimated to be $5 billion and an additional $800 million in recurring annual revenue for sensors. For additional information or to request an investor package, refer to the company's Web site at www.cdic.com.
Forward-Looking (Safe Harbor) Statement:
Except for the historical and factual information contained herein, this press release contains forward-looking statements, such as future 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.
CardioDynamics -- The ICG Company
In thousands except per share information (unaudited)
Operational Results: Three Months Fiscal Year
Ended Ended
November 30, November 30,
------------------------------
2003 2002 2003 2002
Net Sales $8,853 $7,256 $30,332 $23,523
Cost of Sales 2,050 1,896 7,122 6,145
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Gross Margin 6,803 5,360 23,210 17,378
Research and Development 969 612 3,272 2,423
Selling and Marketing 4,262 3,831 15,548 13,124
General and Administrative 557 426 2,062 1,821
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Income from Operations 1,015 491 2,328 10
Other Income, net 84 63 351 301
------------------------------
Income before Income Taxes 1,099 554 2,679 311
------------------------------
Provision for Income Taxes (114) 0 (227) (1)
------------------------------
Net Income $985 $554 $2,452 $310
==============================
Net Income per Common Share,
- Basic and Diluted $0.02 $0.01 $0.05 $0.01
==============================
Weighted-Average Number of
Shares Used in Per Share Calculation:
- Basic 46,423 46,156 46,248 46,087
==============================
- Diluted 48,919 47,110 47,607 47,458
==============================
Selected Balance Sheet Data:
November November
30, 30,
2003 2002 Change
Cash and Short-term Investments $9,345 $6,879 36%
Accounts Receivable, net 9,560 8,616 11%
Inventory, net 3,163 3,474 (9%)
Current Assets 24,113 21,446 12%
Long-term Assets 2,535 2,120 20%
Total Assets 26,648 23,566 13%
Current Liabilities 2,784 3,282 (15%)
Long-term Liabilities 844 560 51%
Total Liabilities 3,628 3,842 (6%)
Shareholders' Equity 23,020 19,724 17%<<
Cheers, Tuck |
