CDIC (one of the Russell adds) came out with pretty good numbers today. This is a partly a "razor/razorblade" story, so it should be fairly easy for them to continue strong revenue growth.
On their web site they give a cost/benefit analysis from a hospital's viewpoint that shows the cost of the "razorblade" (disposable sensor) at $10 per procedure and the cost of the "razor" at $31 per procedure (15 patients per month, 5 year depreciation). Thus conceptually about 1/3 of their revenue over the long term will come from the "blades."
They still have some hard work to do on the sales side, but hopefully we should be seeing profitability fairly soon.
CardioDynamics Reports Tenth Consecutive Quarterly Sales Increase and 101% Sales Growth For Second Quarter 2000
SAN DIEGO--(BW HealthWire)--June 21, 2000--
Innovator of Impedance Cardiography Changing the Way Cardiovascular Medicine is Practiced Around the World
CardioDynamics International Corporation (NasdaqNM:CDIC), manufacturer of BioZ(R) noninvasive digital cardiac function monitoring systems, today announced record sales for the second quarter of fiscal 2000. This marks the Company's tenth consecutive quarter of increased sales and sixth consecutive quarter of reduced net loss, exclusive of non-cash charges.
Second Quarter Results
Net sales for the second quarter of fiscal 2000 were $3,073,000, an increase of 101% over sales of $1,528,000 for the same period in fiscal 1999. Gross margin for the second quarter 2000 increased to $2,013,000, or 66% of sales, up 63% from the same quarter in 1999. Net loss to common shareholders for the second quarter was $496,000, or $0.01 per share, down 38% from $797,000, or $0.02 per share loss, reported in the second quarter of 1999.
Operating Highlights
The Company attributed record sales in the second quarter to the medical community's increased recognition and usage of the Company's proprietary, noninvasive, cost-effective Impedance Cardiography (ICG) technology, and the concerted efforts of its direct sales force and international distributor network. The Company's sales growth in the second quarter also benefited from its strategic alliances with GE Marquette Medical Systems (NYSE: GE) and Profiles in Health.
During the second quarter 2000, the Company sold 160 BioZ systems, including 26 BioZ systems to GE Marquette, and 35 phase one BioZ monitors to Profiles in Health. There are approximately 450 customers using the BioZ and the Company's total installed base exceeds 775 BioZ systems. The Company has 27 domestic direct sales associates and 15 distributors marketing BioZ systems in over 70 countries.
The net loss for second quarter 2000 was primarily due to expenditures associated with the Company's continued investment in research and product development, and training of direct sales representatives. The Company attributed the reduction in net loss in the quarter to improved operating efficiencies resulting from increased sales, combined with ongoing improvements in cost structures. This marks the sixth consecutive quarterly reduction in net loss, exclusive of non-cash charges.
CEO Comments
Commenting on the results, Michael K. Perry, CardioDynamics' Chief Executive Officer, stated, "We are extremely pleased with the Company's second quarter sales growth and strong quarterly sales progression. Aside from record sales, our second quarter was marked by many significant accomplishments, including receipt of the Chinese government's approval to market the BioZ.com; FDA 510(k) clearance of our BioZtect(TM) proprietary sensors; development and submission of our BioZ.pc for FDA 510(k) clearance; announcement of four clinical studies, including one presented by the Mayo Clinic; the Company's largest single end-user sale to the University of California, San Diego; and progression from the Nasdaq-Amex SmallCap Market to the National Market. These accomplishments are important milestones for CardioDynamics, and we plan to continue to execute our aggressive business strategy to further the rapid adoption of our technology as a standard of care."
"Looking forward," Perry added, "We believe the greatest growth potential for the BioZ product line is in new uses now available to the medical community for noninvasive cardiac function measurement. We intend to pursue additional strategic alliances with major patient monitoring companies, pacemaker manufacturers, and other medical products/technology companies focused on multi-parameter measurement integration, database management, home healthcare, telemedicine, and wireless communication. We believe these strategic alliances will dramatically increase the availability of ICG and provide medical professionals with timely access to vital patient data. These alliances should accelerate market penetration of our ICG technology in markets not presently served by our direct sales team and provide access to large installed bases of patient monitoring, cardiology, and other complementary medical equipment."
CardioDynamics, with headquarters in San Diego, is a medical technology and information solutions company committed to fundamentally changing the way hemodynamic monitoring is performed in healthcare. The Company's primary products, the BioZ(R) System and BioZ.com(R), utilize proprietary BioZ Impedance Cardiography (ICG) technology to noninvasively provide medical professionals with hemodynamic data not previously available in the physician's office and many hospital settings. Just as Electrocardiography (ECG) measures the heart's electrical characteristics, ICG makes it possible to noninvasively measure the heart's mechanical (blood flow) characteristics. Physicians around the world are currently using the BioZ products, including major medical centers such as the Mayo Clinic (Rochester), Stanford University School of Medicine, (Palo Alto), University of California San Francisco (San Francisco), Yale New Haven Hospital (New Haven), Baylor College of Medicine (Houston), and University of California San Diego (San Diego). The worldwide market potential for BioZ products is estimated to be $5 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.cdic.com.
Peter |
