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Intelligent Medical Imaging, Inc. Announces Increase in Sequential Quarterly Revenue, Release of Automated Blood Slide Maker - HSM
PALM BEACH GARDENS, Fla.--(BW HealthWire)--Jan. 14, 1999-- Intelligent Medical Imaging, Inc. (Nasdaq:IMII) announced today that it anticipates revenues for the fourth quarter ended December 31, 1998 to be in excess of $1.6 million, including the first installment of the Bayer Licensing Fee. Product sales for the 1998 fourth quarter totaled approximately $1.0 million compared with 1998 third quarter sales of $633,808. The estimated results in this press release are preliminary and unaudited. The Company expects to report final results for the fourth quarter and year-end during the week of February 15, 1999.
Tyce Fitzmorris, Intelligent Medical Imaging's Chairman, Chief Executive Officer and President stated, "We are pleased that strategic modifications made to our sales approach during the 1998 third quarter had a positive impact on the Company's performance in a relatively short period of time. Importantly, we expect this positive trend to continue."
New Product Release
Intelligent Medical Imaging's new blood slide maker (HSM(tm)) was commercially released in December. The HSM fully automates the process of blood slide making/staining. The HSM was designed so that results from the hematology analyzers manufactured by Bayer and Beckman-Coulter can trigger the automatic preparation of a slide, providing the lab significant labor savings and improved operational efficiency. Once prepared, the slides can be automatically reviewed by the MICRO21, providing even greater labor savings and improved operational efficiency.
Mr. Fitzmorris continued, "We believe that the benefits the HSM provides by linking hematology analyzers and the MICRO21 will be the catalyst for the wide spread industry acceptance of the MICRO21. Sales of the HSM will be generated by the sales organizations of Bayer, Beckman-Coulter and IMI. Because IMI will be the recommended source for most HSM supplies sold, we are optimistic that a significant recurring revenue base will develop.
"Potential 'pull-through' of MICRO21 sales, as a result of the placement of an HSM, has already occurred. As an example, prior to the signing of the HSM agreements with Bayer Corporation and Beckman-Coulter, we were asked by one of the strategic partners to present the HSM as a part of a bid package that called for an automated slide maker. Subsequently, Intelligent Medical Imaging was awarded a purchase order for an HSM," Mr. Fitzmorris added. "This afforded the opportunity to offer the lab a MICRO21 through our Consumable-Rental Program. Under this Program, the base HSM per-test consumable charge is increased to include the rental of a MICRO21.
"However, the increased consumable charge is still less than the cost to produce a slide manually. Thus, the savings from automating slide making, also cost justified the MICRO21, providing the lab an additional "bonus savings" associated with automating microscopic review.
"We are very excited that our first production run of five Hematology Slide Masters (HSMs) was purchased during December, with three HSMs sold to Bayer and two to Florida hospitals. In addition, our second production run, currently in process and consisting of 10 units, has been reserved for anticipated orders from Bayer, Beckman-Coulter and several individual laboratories."
New Strategic Plan Implementation
With the signing of the HSM Agreements in November and December with Bayer Corporation and Beckman-Coulter, Intelligent Medical Imaging has begun to implement its strategic plan to rely on its strategic partners for worldwide sales/service of its products. Accordingly, the Company announced today that it has implemented measures to reduce its overhead to approximately $550,000 per month from $800,000, as the Company is able to increasingly rely on its strategic partners to initially supplement and ultimately fully assume worldwide sales/service. Consequently, once the strategic partners are selling and servicing Intelligent Medical Imaging products, the Company will be better positioned to realize significant one-time and recurring revenue with a relatively nominal overhead, potentially resulting in greater earnings per share.
Mr. Fitzmorris concluded, "We expect significant growth in sales revenue throughout 1999 as a result of (1) the continued positive effect of our revised sales approach, (2) sales of HSMs to Bayer, Beckman-Coulter and end-users, (3) potential growth of the recurring revenue base associated with HSM consumables, (4) our strategic partners potentially becoming involved in MICRO21 sales and (5) placement of HSMs 'pulling-through' MICRO21 sales."
Intelligent Medical Imaging, Inc. developed and markets the MICRO21 System, an intelligent, automated microscope system, the HSM, an automated blood slide maker and the USM(tm), an automated urine slide maker for diagnostic use in hospitals, commercial reference, physician group practice laboratories and pharmaceutical and veterinary laboratories.
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