BLSC hard not to like the numbers
Bio-Logic Systems Corp. Reports Accelerating Sales And Net Income for Fiscal 2000 Second Quarter
Company Highlights
-- Total net sales rise 51 percent; -- Volume across all product categories increases; -- Domestic selling network expanded; -- Margins expand on growing demand for higher-margin audiology products and accelerating sales of high-ticket epilepsy systems; -- Executive management team reinforced with appointment of new president and COO; -- New president takes on added responsibility as director of board, increases board size to seven.
biz.yahoo.com
MUNDELEIN, Ill., Sept. 30 /PRNewswire/ -- Bio-logic Systems Corp. (Nasdaq: BLSC - news) today reported substantial growth for its fiscal 2000 second quarter. Strong demand for products and advanced technologies, and a larger selling network led to a 51 percent increase in sales for the latest three months ended August 31, 1999.
''We are seeing terrific demand in the U.S. for all of our product lines,'' said Gabriel Raviv, chairman and chief executive officer. ''New technologies, such as our digital 64/128 channel epilepsy monitoring system, Ceegraph XL, provide us with a competitive advantage and also drive increased sales of other products as customers look for a single vendor with the capability to supply all of their advanced diagnostic and monitoring needs. We are currently one of only four companies offering the digital 64/128 channel technology.''
Additionally Raviv said, ''Upgraded software that is more compatible with customer systems has also benefited our selling effort. With the initial shipments of Windows software for our Sleepscan platform in the second quarter, our software packages are now upgraded across both the EEG and Sleep product lines and we are experiencing a positive sales impact as a result. Finally, sales of the higher-margin audiology products continue to steadily expand their contribution to total sales and we see this market increasing. In the second quarter, six more states passed legislation mandating newborn hearing screening. There are approximately 4 million babies born each year in the U.S., and it is estimated that by 2002-2003, 95 percent of all newborns will have their hearing tested before leaving the hospital. This represents a substantial growth opportunity for us,'' said Raviv.
Sales for the fiscal 2000 second quarter increased 51 percent to $6.6 million compared with $4.4 million in the similar fiscal 1999 quarter. The sales increase was supported, in part, by the expansion of Bio-logic's sales network by 29 percent over last year. Domestic sales rose 67 percent, while international sales declined 37 percent from a year earlier due to the continued adverse impact of the Asian economic crisis. Operating expenses as a percent of sales declined nearly 7 percent in the latest three months. The substantially stronger sales and comparatively modest increase in operating expenses led to a greatly improved bottom line. Net income was $723,750, or $0.17 per diluted share, compared with $89,687, or $0.02 per share, a year ago.
For the six months ended August 31, 1999, Bio-logic reported a 60 percent increase in net sales to $12.9 million from $8.1 million last year. Net income was $1.4 million, or $0.35 per diluted share, compared with a net loss of $128,276, or $0.03 per diluted share, for the six months a year earlier.
The 18 percent increase in research and development expenses in the second quarter should slow somewhat in the second half of fiscal 2000, since the software upgrades are complete and the Ceegraph XL is commercially available. The company is now focused on developing new products to capitalize on the growing audiology market. SG&A expenses, on the other hand, are expected to increase as the company allocates greater resources for hiring more customer support and service personnel and equipment technicians to manage this level of growth.
Bio-logic has a goal of becoming a $50 million company in the next four years. In order to achieve that objective, the company recently reinforced its executive ranks to effectively build and guide the growth of the company. Last week, Bio-logic announced the appointment of Roderick G. Johnson as president and chief operating officer of the company, and a director to the board. Johnson brings strong operational leadership skills, acquisition expertise and experience with high-growth organizations, supporting an executive platform that ensures Bio-logic is capitalizing on every growth opportunity.
''These are exciting times at Bio-logic. The market's increasing demand for leading-edge technology positions us to aggressively compete for greater market share. We are a pioneer in developing computerized diagnostic equipment, known for offering the latest, most innovative systems. Our modular designs provide a cost-effective means of upgrading systems as next- generation models are introduced, making our products even more appealing to existing and potential customers,'' said Raviv. ''We anticipate record growth for fiscal 2000 based on the sales trends we are experiencing. Our biggest challenge will be hiring sales and technical support fast enough to capitalize on all opportunities. This is our priority for the second half of the year and we are committing both the financial and executive resources to ensure this gets done.''
Financial Position
The company's cash and marketable securities increased to $6.4 million at August 31, 1999, from $6.0 million on February 28, 1999. Long-term debt as a percent of capitalization decreased to 1.5 percent, and the current ratio was 4.4 to 1. Shareholders' equity increased to $14.1 million, or nearly 11 percent.
Bio-logic Systems Corp., headquartered in Mundelein, Ill., designs, develops, assembles and markets computer-based electrodiagnostic systems for use by hospitals, clinics, universities and physicians. The systems conduct tests that are typically used by medical practitioners to aid in the diagnosis of certain neurological disorders, brain disorders and tumors, and sensory disorders, including audiological and hearing screening and diagnosis.
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