CardioDynamics (CDIC) Reports Record Sales of $2.074 Million for Third Quarter 1999 and Seventh Consecutive Quarterly Sales Increase
Company Also Announces Israeli Ministry of Health Approval to Market BioZ.com
SAN DIEGO, Calif.--(BW HealthWire)--Sept. 22, 1999-- CardioDynamics International Corporation (Nasdaq: CDIC - news), manufacturer of BioZ© noninvasive digital cardiac output monitoring systems, today reported record sales and seventh consecutive quarterly sales increase for its third fiscal quarter ended August 31, 1999.
Third Quarter Results:
Net sales for the third quarter of fiscal 1999 were $2,074,000, an increase of 209% over sales of $671,000 for the same period in fiscal 1998, and a 36% increase from its second quarter 1999 sales of $1,528,000. For the first nine months of 1999, net sales were $4,677,000, an increase of 261% compared to $1,296,000 for the same period of 1998.
Exclusive of one-time non-cash charges, the net loss to common shareholders for 1999's third quarter was $693,000, or $0.02 per share, down 46% from $1,292,00, or $0.04 per share, for the same period in 1998, and down 13% from the net loss to common shareholders of $797,000, or $0.02 per share, reported in the second quarter 1999. Including the one-time charges reported in the third quarter, the Company incurred a net loss to common shareholders of $1,727,000, or $0.04 per share. A non-cash charge of $350,000 was included in research and development as a result of the issuance of warrants for access to GE Marquette's technology and $492,000 was recorded as other expense for shares and warrants issued in conjunction with the retirement of the Company's Series A convertible preferred stock. In addition, $192,000 was recorded as a preferred stock dividend related to premium priced warrants issued to the Series A preferred stock investors in exchange for the elimination of their right to buy an additional $3 million in convertible preferred stock.
The Company attributed the reduced net loss to common shareholders in the third quarter, before one-time, non-cash charges, to improved operating efficiencies resulting from increased sales, combined with ongoing improvements in cost structures. This marks the fourth consecutive quarterly reduction in net loss.
Operating Highlights:
The Company credited the significant increase in third quarter sales to the continued success and expansion of its domestic sales force and international distributor network, important validation of the BioZ's technology resulting from its strategic alliance with GE Marquette, and growing recognition of the contribution its products are making in the treatment of congestive heart failure patients.
During the third quarter 1999, the Company shipped 86 BioZ monitoring systems, including a partial shipment of orders placed by GE Marquette for the European product launch. Multiple system sales were made to Brooke Army Medical Center (San Antonio, Texas), Cardiac Disease Specialists (Atlanta, Georgia), Ohio Heart (Cincinnati, Ohio), and South Florida Cardiology Associates (Pembroke Pines, Florida). There are 275 customers using BioZ systems, and the Company expects this number to increase appreciably during the fiscal fourth quarter.
There are currently 23 domestic sales representatives and 18 distributors in 36 countries marketing the BioZ systems. The Company intends to continue to increase its domestic sales force and have international distributors in over 40 countries by fiscal year end.
The Company also announced that it has received approval from the Israel Ministry of Health to market the Company's BioZ System throughout Israel. Eldan Electronic Instrument Co. Ltd., Medical Division, a leading Israeli medical distributor, will be the exclusive distributor of the BioZ.com.
CEO Comments:
Commenting on the results, Michael K. Perry, Chief Executive Officer of CardioDynamics stated, ``We are very pleased with the record sales results and sales growth during the third quarter. Our alliance with GE Marquette offers great potential to increase global market presence and accelerate the medical community's usage of our noninvasive BioZ product line and technology. We look forward to additional distribution opportunities with GE Marquette and the future integration of our technology into their patient monitoring and cardiology product platforms. The strategic alliance with GE Marquette, together with the positive response by U.S. leading cardiologists to participate in the BioZ multi-center congestive heart failure study, further validates the importance of the BioZ's technology as a cost-effective tool in the treatment and management of CHF patients.'
Commenting on the non-cash charges, Perry stated, ``The one-time charge to research and development resulted from warrants issued to GE Marquette at a significant premium to market price. We are particularly pleased to have GE Marquette participate in our drive to increase shareholder value and already have seen the benefit of General Electrics' intense focus on growing shareholder value by accelerating the implementation of various aspects of our partnership. Additionally, the charges to other expense and preferred stock dividends were made to eliminate the convertible preferred stock from our capital structure. We believe our new investors have a longer-term orientation toward the Company's growth prospects.'
Company Summary:
CardioDynamics, with headquarters in San Diego, is committed to fundamentally changing the way hemodynamic monitoring is performed in healthcare. The Company's primary products, the BioZ© System, Portable BioZ(tm) and BioZ.com(tm), utilize its proprietary Thoracic Electrical Bioimpedance (TEB) technology to noninvasively obtain data on a wide range of hemodynamic parameters. The worldwide market potential for the BioZ© products is estimated to be $4 billion, together with an additional $800 million in recurring annual revenue for disposables. For additional information, please refer to the Company's web site at www.cardiodynamics.com.
Forward-Looking (Safe Harbor) Statement:
Note: Except for the historical and factual information contained herein, this press release contains forward-looking statements, the accuracy of which are necessarily subject to uncertainties and risks, which include sole dependence on the BioZ product line, competition from Baxter Healthcare Corp. (manufacturer of the Swan-Ganz(tm) device), further capital requirements, and various uncertainties characteristic of companies just emerging from the development stage; as well as other risks detailed in the Company's filings with the SEC, including its 1998 Form 10-KSB. The Company does not undertake to update the disclosures contained in this press release.
CardioDynamics International Corporation
Results of Operations:
(Unaudited)
-----------------------------------------------
Three Months Ended Nine Months Ended
August 31, August 31,
-----------------------------------------------
1999 1998 1999 1998
-----------------------------------------------
Net Sales $2,074,000 $671,000 $4,677,000 $1,296,000
Gross Profit Margin 1,357,000 372,000 2,995,000 511,000
Loss from Operations (1,005,000) (1,217,000) (2,763,000) (3,906,000)
Net Loss (1,532,000) (1,292,000) (3,425,000) (3,971,000)
Net Loss to Common
Shareholders (1,727,000) (1,292,000) (3,652,000) (3,971,000)
===============================================
Net Loss per Common
Share, Basic and
Diluted $ (.04) $ (.04) $ (.10) $ (.12)
Weighted-Average
Number of Common
Shares Outstanding 39,502,000 32,105,000 35,103,000 32,097,000
===============================================
Selected Financial Information:
----------------------------------------
August 31, November 30,
1999 1998 Change
(Unaudited) (Audited)
----------------------------------------
Cash $2,836,000 $2,633,000 8%
Current Assets 7,629,000 4,342,000 76%
Current Liabilities 2,182,000 3,005,000 -27%
Working Capital 5,447,000 1,337,000 307%
Total Assets 7,971,000 4,649,000 72%
Total Liabilities 4,768,000 4,117,000 16%
======================================== |
