>>SAN DIEGO--(BUSINESS WIRE)--Sept. 22, 2004-- CardioDynamics (Nasdaq:CDIC - News), the innovator and leader of Impedance Cardiography (ICG) technology and manufacturer of BioZ® noninvasive cardiac function monitoring systems, today reported its 25th consecutive quarter of year-over-year quarterly sales growth and a 42% increase in third quarter 2004 sales over the same period last year.
ADVERTISEMENT
Third Quarter 2004 Results:
Net sales for the third quarter 2004 were $11.1 million, an increase of 42% over net sales of $7.8 million for the same period last year. The Company recorded net income of $992,000, or $0.02 per diluted share, a 19% increase, compared with net income of $833,000, or $0.02 per diluted share reported in third quarter 2003. For the nine months ended August 31, 2004, net sales were $29.4 million, an increase of 37%, and net income was $2.7 million ($0.05 per diluted share), an increase of 85% compared, to $1.5 million ($0.03 per diluted share), for the same period in 2003. Net income during the quarter was effected by increased investment in additional sales and clinical personnel, regulatory compliance costs associated with Sarbanes-Oxley, and expenses attributable to the design and future launch of the BioZ Dx, the Company's co-developed product with Philips Medical Systems.
Operating Highlights:
During third quarter 2004, shipments of ICG devices totaled 284 units, including 236 ICG monitors, an increase of 21% over third quarter 2003, and 48 ICG modules. Included in shipments for the quarter were eight Medis ICG monitors and 14 BioZ systems under the Company's rental and guarantee programs. The total number of ICG systems and modules sold to date is now over 4,700 (including 117 cumulative Medis units). Currently, field associates total 79 people, including 50 U.S. territory managers and 19 clinical application specialists.
Combined ICG and electrocardiograph (ECG) sensor revenue was $4.1 million, representing 37% of total net sales in the third quarter 2004. During the quarter, Vermed contributed $2.4 million to net sales. ICG sensor revenue for the third quarter 2004 was $1.7 million (20% of total ICG net sales), an increase of 16%, compared to $1.5 million (19% of total ICG net sales) in the same quarter 2003.
Operating cash flow for third quarter 2004 was a record $1.7 million, an increase of 162% or $1.0 million, compared to $637,000 in the same quarter 2003. For the nine months ended August 31, 2004, operating cash flow was $3.6 million, an increase of 206% or $2.4 million, compared to $1.2 million for the same nine-month period in 2003. The Company ended the third quarter 2004 with $7.1 million in cash and paid down its bank term loan by over $1 million during the quarter.
Gross margin for the third quarter 2004 was 69%, of which the ICG business was 75% and Vermed was 45%. This compares to 77% for ICG business in the same quarter last year. The decrease in overall gross margin was the result of lower gross margins associated with Vermed's ECG sensor products and an increase in lower-priced U.S. and international distributor business. The Company is currently piloting two new sales partnership programs with the Caligor division of Henry Schein and Physician Sales & Service, Inc. (PSS).
CEO Comments and Outlook:
"The third quarter was one of investment for CardioDynamics," stated Michael K. Perry, Chief Executive Officer. "In addition to growing the number of territory managers to a record level, we significantly increased the number of clinical application specialists by 36% over the previous quarter. We believe this investment will improve productivity by allowing our territory sales managers to focus on new system sales, as our clinical team drives recurring revenue growth through support of our expanding customer base."
Perry added, "We enter the fourth quarter 2004 with a strong sales and clinical force armed with the multi-center PREDICT study results demonstrating ICG as the most powerful predictor of heart failure outcomes. We look forward to the initial launch of the BioZ Dx, our co-developed product with Philips, and manufacturing of our ICG sensors at Vermed. We believe these strategic initiatives will contribute appreciably to our operating performance in fiscal 2005. In the coming months, we intend to build additional awareness for our ICG technology, accelerate revenue growth, and improve ICG sensor margins. With over 2.7 million patients monitored, we are fundamentally changing the way cardiovascular medicine is practiced around the world."
Conference Call Information:
Michael K. Perry, Chief Executive Officer, will host a summary of CardioDynamics' third quarter 2004 results in a conference call today at 4:30 p.m. (EDT). 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). The Internet webcast can be accessed at irconnect.com. <<
snip
Decent, but the increasing share count hurts. EPS sequentially flat. Still holding for my Mom, on the the theory that revenue will eventually overtake overhead and share count.
Cheers, Tuck |
