CDIC reports good sales growth, but various wacky charges cause an earnings miss. Hope we're done with those:
siliconinvestor.com
>>CardioDynamics (CDIC) Reports 12th Consecutive Quarterly Sales Increase and 80% Increase in Fiscal 2000 Sales
Company Also Announces $3.5 Million Contract With GE Medical Systems Information Technologies
SAN DIEGO, Jan 23, 2001 /PRNewswire via COMTEX/ -- CardioDynamics International Corporation (Nasdaq: CDIC chart, msgs), manufacturer of BioZ(R) noninvasive digital cardiac function monitoring systems, today announced a 47% sales increase for the fourth quarter 2000, and an 80% sales increase for fiscal year ended November 30, 2000. This marks the twelfth consecutive quarter of increased sales. The Company also announced a commitment by GE Medical Systems Information Technologies to purchase $3.5 million of CardioDynamics' products in 2001.
2000 Fourth Quarter and Year-End Results:
Net sales for fiscal fourth quarter 2000 were $3.8 million, an increase of 47% over sales of $2.6 million for the same period in fiscal 1999. Fiscal 2000 sales were $13.1 million, an increase of 80% over sales of $7.3 million reported for fiscal year 1999. Net loss to Common Shareholders in fourth quarter 2000 was $6.8 million, or $0.15 per share, compared to the net loss to Common Shareholders reported in fourth quarter 1999 of $0.6 million, or $0.01 per share. Exclusive of non-cash charges reported in fourth quarter 2000, including $3.4 million for warrants issued to GE Medical in August 1999, $0.7 million provision for bad debt expense and obsolete inventory related to Profiles in Health, Inc. (PIH), the net loss to Common Shareholders for fiscal 2000 was $4.2 million, or $0.10 per share.
A non-cash charge of $3,383,000 was recorded in the fourth fiscal quarter related to vesting of 1,000,000 performance-based warrants issued as part of the Company's strategic alliance with GE Medical formed in August 1999. One-half of the warrants were vested during the Company's third quarter 1999, and the final half was vested during fourth quarter 2000. The fourth quarter 2000 results also included a $592,000 allowance for bad debt expense and $123,000 inventory obsolescence provision, representing a 100% reserve related to receivables and inventory under the Company's licensing and purchase agreement with PIH.
Operating Highlights:
The Company experienced strong sales growth from its domestic direct sales force, up 119% over fourth quarter 1999. Sell-through to end users from GE Medical's sales force increased during the quarter, reducing GE Medical's previously purchased stocking inventory. As of fiscal year end 2000, the Company's total installed base approximated 1,100 BioZ Systems, more than double the installed base one year ago. Total sales headcount was 45 (up 18% over third quarter), and included 32 direct sales representatives, four clinical sales support specialists, field management, national accounts, and new market development personnel.
In addition to the previously discussed accounting charges, the Company attributed the increase in net loss to Common Shareholders for the year to investments in direct sales and clinical sales support personnel, additional provision for bad debt expense, and accelerated investment in research and development. During the year, the Company's gross margin improved to 65% from 64% in fiscal 1999, generating an additional $3.9 million of gross margin in the year.
CEO Comment and Outlook:
Commenting on the results, Michael K. Perry, CardioDynamics' Chief Executive Officer, stated, "Fiscal 2000 was a strategically important year for CardioDynamics. The Company is much stronger today than during any point in its history. We are extremely pleased with the 80% sales growth achieved in fiscal 2000 and the strong quarterly sales progression. We ended the year with nearly $12 million in the bank, no debt, national pricing for Medicare reimbursement, new proprietary BioZtect(TM) sensors to secure recurring sensor revenue, a joint technology agreement with GE Medical, worldwide distribution in over 70 countries, and an expanded, stronger direct sales force."
"Looking forward," Perry added, "our Company is committed to achieving our aggressive performance goals to increase shareholder value. We continue to see excellent growth prospects in the Impedance Cardiography (ICG) market. Our focus in fiscal 2001 will include research and product development, strategic alliances with the world's leading patient monitoring, pacemaker, pharmaceutical and telemedicine companies, global extension, Company brand development, and direct sales force and clinical sales support expansion. With approximately $16 million in working capital, we believe we have the necessary resources to accelerate market penetration and establish our ICG technology as a standard of care."
GE Marquette Medical Systems Information Technologies Commitment:
CardioDynamics also announced a commitment by GE Medical Systems Information Technologies to purchase $3.5 million of the Company's BioZ products in 2001.
Gregory T. Lucier, President and CEO of GE Medical Systems Information Technologies, stated, "This agreement further solidifies the strategic relationship between the Companies, including the joint development of the BioZ module (pending 510(k) clearance) which integrates CardioDynamics' ICG technology into GE's Solar(R) patient monitoring systems. This relationship with the innovator in Impedance Cardiography presents us an opportunity to provide our customers with the latest in noninvasive medical technology when and where they need it the most."
Fiscal 2000 Highlights & Key Accomplishments:
-- FDA 510(k) Clearance for BioZ.pc(TM) and BioZtect Sensors -- Company's
Technology Combined with an Internet-based Information Management
System and New Proprietary Sensors Utilizing Patented Technology
-- Significant Medicare Rulings -- Average National Reimbursement
Increased 37% and Company's Technology Mandated as an Alternative to
Right Heart Catheter for Inotropic Therapy Determination
-- Equity Financings Totaling $22 Million -- Broadened Institutional
Ownership, Eliminated Outstanding Debt, and Provided Resources
Necessary to Establish Company's Proprietary Technology as Standard of
Care
-- GE Medical Joint Technology Agreement for ICG Module and Alliance
Expansion to Include U.S. Hospitals and Select International Markets
-- 50% Increase in Direct Sales Force and Clinical Sales Support and
Addition of Vice President of Business Development to Drive Strategic
Business Expansion
-- Regulatory Approval to Market BioZ.com in China -- Opening Market to
World's Most Populous Country
-- First Peer-Reviewed Heart Failure Journal Entirely Devoted to ICG
Technology and Over 10 Major Clinical Studies Presented Worldwide --
Amplifying BioZ Impact on Improving Patient Outcomes and Reducing
Healthcare Costs
-- Nasdaq National Market System and Russell 3000 Stock Index Listing --
Increasing Exposure to Larger, More Diversified Group of Institutional
and Individual Investors
Company Description:
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), and Baylor College of Medicine (Houston). 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.<<
snip
The Street was looking for breakeven. Sigh.
Cheers, Tuck |
