Isonics Corporation Reports Fourth Quarter, Year-End
Results
PR Newswire - July 08, 1998 07:45
Record Revenues Operating Loss Reduced by 96 Percent
SAN JOSE, Calif., July 8 /PRNewswire/ -- Isonics Corporation (OTC: ISON) today reported record revenues of $6.78 million for the fiscal year ended April 30, 1998, an increase of $2.24 million or 49 percent from the $4.54 million reported for the year ended April 30, 1997. This
increase is a reflection of greater demand for the Company's core products including depleted
zinc oxide and stable isotope labeled compounds, including carbon-13. For the fourth quarter of
fiscal 1998, net revenues increased 27 percent to $1.51 million from $1.18 million reported in the
same quarter a year ago. Net income for the fourth quarter was $248,000 or $0.04 per share,
which includes a tax credit of $315,000 related to the realization of deferred income taxes
associated with the purchase of International Process Research Corporation (Interpro),
compared to a net loss of $649,000 or $0.16 per share diluted for the same period a year ago.
Gross margin improved to $2.12 million or 31 percent of net revenues, in fiscal 1998, compared
to $923,000 or 20 percent in fiscal 1997. Selling, general and administrative expense increased
to $1.34 million in fiscal 1998 from $1.18 million in fiscal 1997, while declining on a percentage
basis to 20 percent of net revenues from 26 percent of net revenues for fiscal 1997. During fiscal
1998, research and development costs increased 24 percent to $811,000, compared to
$655,000 during the same period last year. Research and development expense consists of costs
associated with tile development of isotopically pure silicon materials to be utilized in the
semiconductor industry and development of processes to manufacture low cost carbon-13 for
the healthcare industry.
Isonics President and CEO James E. Alexander commented, "Fiscal 1998 has been an exciting
year for Isonics. We made significant investments in products that are now ready for market and
increased our revenue base significantly through both internal growth and acquisition. We
produced the first isotopically pure silicon wafers for the semiconductor industry and are
developing strategic relationships with industry leaders. Isonics also formed a strategic production
joint venture to meet the demand for carbon-13, a stable isotope used in a new class of
diagnostic breath test for the healthcare industry. These accomplishments were made while
keeping selling, general and administrative expenses virtually flat."
Isonics completed the acquisition of Interpro, which is doing business as Colorado Minerals
Research Institute, effective April 30, 1998. Interpro is a contract research, process
development, and materials processing operation that provides Isonics with in-house processing
and manufacturing capabilities for its core business, depleted zinc, and for developing enriched
isotopes for other applications, including diagnostic breath tests and imaging for the healthcare
market. Subsequent to fiscal year end, Isonics announced the acquisition of Chemotrade GmbH,
a Dusseldorf, Germany-based company that supplies both stable and radioactive isotopes. The
acquisition of Chemotrade is expected to provide Isonics access to potential European
customers and is expected to expand Chemotrade's markets into the United States. The closing
of the Chemotrade acquisition is expected to occur before the end of August.
According to Paul Catuna, Isonics Chief Financial Officer, the Company's balance sheet at April
30, 1998 includes the assets and liabilities of Interpro. The Company's balance sheet remains
strong with a cash balance of $1.0 million, a current ratio of 2.2:1, and net assets of $3.44
million.
Isonics is a specialty chemical and advanced materials company that develops and
commercializes enriched stable isotope-based products. These ultra pure materials provide
enhanced performance properties compared to normal purity materials. Stable isotopes have
commercial uses in several areas, including medical diagnostics, drug development,
semiconductors, lasers, and energy production.
Isonics Corporation
Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
April 30, April 30,
1998 1997 1998 1997
Net revenues $1,509 $1,184 $6,783 $4,539
Cost of revenues 1,026 1,037 4,662 3,616
Gross margin 483 147 2,121 923
Operating expenses:
Selling, general and administrative 337 293 1,342 1,183
Research and development 232 334 811 655
Total operating expenses 569 627 2,153 1,838
Operating loss (86) (480) (32) (915)
Interest income (expense), net 19 (169) (145) (395)
Loss before extraordinary
item and income taxes (67) (649) (177) (1,310)
Income tax expense (benefit) (315) -- (314) 53
Income (loss) before
extraordinary item 248 (649) 137 (1,363)
Extraordinary item - loss
on extinguishment of debt -- -- (252) --
NET INCOME (LOSS) $248 $(649) $(115)$(1,363)
Net income (loss) per share - basic
Net income (loss) per share
before extraordinary item $0.05 $(0.16) $0.03 $(0.35)
Extraordinary item $-- $-- $(0.05) $--
Net income (loss) per share $0.05 $(0.16) $(0.02) $(0.35)
Shares used in computing
per share information 5,364 4,104 5,039 3,880
Net income (loss) per share - diluted
Net income (loss) per share
before extraordinary item $0.04 $(0.16) $0.02 $(0.35)
Extraordinary item $-- $-- $(0.04) $--
Net income (loss) per share $0.04 $(0.16) $(0.02) $(0.35)
Shares used in computing per
share information 6,506 4,104 6,469 3,880
Pro forma net income (loss) per share
Net income (loss) per share 0.04 (0.12) 0.01 (0.23)
Share used in computing pro
forma per share, information 6,506 4,344 6,614 4,486
Isonics Corporation
Condensed Balance Sheets
(Dollars in thousands)
April 30, April 30,
1998 1997
ASSETS
CURRENT ASSETS
Cash and cash equivalents $1,044 $28
Accounts receivable, net 1,629 4
Inventories 456 1,539
Prepaid expenses 45 14
Deferred taxes 112 --
Total current assets 3,286 1,585
PROPERTY AND EQUIPMENT, net 1,626 70
GOODWILL, net 236 315
NOTES RECEIVABLE FROM SHAREHOLDERS 170 41
DEFERRED TAXES 315 --
OTHER ASSETS 22 673
$5,655 $ 2,684
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Current portion of long-term debt $80 $403
Accounts payable 657 1,105
Accrued liabilities and other 738 518
Total current liabilities 1,475 2,026
LONG-TERM DEBT 312 1,268
DEFERRED TAXES 427 --
STOCKHOLDERS' EQUITY (DEFICIT) 3,441 (610)
$5,655 $2,684
SOURCE Isonics Corporation
/CONTACT: Matt Clawson or Owen Daley, of Allen & Caron, Inc.,
714-957-8440, for Isonics Corporation; or Paul J. Catuna, Vice President,
Finance of Isonics Corporation, 408-260-0155/ |
