GOLDEN, Colo., March 9 /PRNewswire/ -- Isonics Corporation
(OTC Bulletin Board: ISON) today reported a 239 percent increase in revenues
for the third quarter ended January 31, 1999, as compared to the same period
of the prior fiscal year, and positive earnings for the period.
Third quarter revenues rose to a record $6.67 million as compared to
$1.97 million for the third quarter of the prior fiscal year. Net income for
the quarter was $77,000 or $0.01 per diluted share, as compared to net income
of $99,000 or $0.01 per diluted share for the same period of the prior fiscal
year. Sequential quarter-to-quarter comparisons were also favorable as
revenues for this year's third quarter grew approximately 80 percent from the
$3.71 million posted in the second quarter of this fiscal year, and
profitability was achieved as compared to a net loss of $1.70 million for the
second quarter.
Gross margin increased substantially to $1.28 million in the third quarter
as compared to $672,000 for the same period of the prior fiscal year. Gross
margin, as a percentage decreased to 19 percent from 34 percent for the same
period in the prior fiscal year, primarily due to a change in product mix
associated with Isonics' recent acquisitions,
Isonics President & CEO James E. Alexander commented, "The full
integration of the Interpro and Chemotrade operations into Isonics is
virtually complete and we have settled into our new headquarters in Golden,
Colorado. Our growing business has allowed us to step up investment in
developing healthcare and semiconductor opportunities. In fact, our R & D
expenditures have increased 67 percent so far this fiscal year. Our management
team is continually looking for ways to enhance the core business either
through acquisition of complementary businesses or technologies or by
establishing strategic partnerships that will also serve to advance Isonics
growth and development."
Consistent with the restructuring announced last quarter, Isonics has
reduced its on-going operating expenses 19 percent or $249,000, as compared to
the quarter ended October 31, 1998. Operating income for the third quarter was
$201,000, as compared to an operating loss of $1.52 million in the second
quarter (which included a $708,000 restructuring and office closure charge)
and operating income of $76,000 for the same period a year earlier.
Revenues for the nine months ended January 31, 1999 were $14.3 million, a
171 percent increase compared to the nine-month period in the previous fiscal
year. This growth in revenue is primarily attributable to the Company's
acquisitions of Interpro and Chemotrade during that period. The net loss of
approximately $1.76 million for the nine months ended January 31, 1999 was
primarily due to the effect of the restructuring and office closure charges,
and the results of operations for the quarter ended October 31, 1998.
The Company also announced that Brantley J. Halstead has recently accepted
the position of Chief Financial Officer at Isonics. According to Alexander,
"With a strong financial background, including five years at Deloitte
& Touche, and a metallurgical engineering degree, Brant will be a valuable
addition to the management team and will play a key role in moving Isonics to
the next level. Brant, who has an MS in accounting, an MBA in finance and is a
CPA comes to Isonics from OZO Diversified Automation, Inc. a publicly traded
manufacturing company located in Denver where he served as CFO."
According to the announcement Brant replaces former VP of Finance and
Chief Financial Officer Paul Catuna, who had been with Isonics since before
he has decided not to join us in our move to Colorado for family reasons and
we wish him all the best in his new endeavors."
Isonics Corporation is a specialty chemical and advanced materials company
which develops, commercializes, and markets stable and radioisotope based
products. These ultra-pure materials provided enhanced performance properties
and have commercial applications in several areas, including semiconductor
devices, medical diagnostics, imaging and therapy drug development and energy
production. For more details visit Isonics' Web site at www.isonics.com.
Except for historical information contained herein this document contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements involve known and unknown
risks and uncertainties that may cause the Company's actual results or
outcomes to be materially different from those anticipated and discussed
herein. Further, the Company operates in industries where securities values
may be volatile and may be influenced by regulatory and other factors beyond
the Company's control. Other important factors that the Company believes might
cause such differences are discussed in the risk factors detailed in the
Company's 10-KSB for the year ended April 30, 1998 filed with the Securities
and Exchange Commission. In assessing forward-looking statements contained
herein, readers are urged to carefully read all cautionary statements
contained in the Company's filings with the Securities and Exchange
Commission.
Isonics Corporation and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
January 31, January 31,
1999 1998 1999 1998
Net revenues $6,670 $1,968 $14,309 $5,274
Cost of revenues 3,393 1,296 11,575 3,636
Gross margin 1,277 672 2,734 1,638
Operating expenses:
Selling, general and
administrative 826 369 2,444 1,005
Research and development 250 227 962 579
Restructuring and office
closure -- -- 708 --
Total operating expenses 1,076 596 4,114 1,584
Operating income (loss) 201 76 (1,380) 54
Other income (expense):
Foreign currency gain
(loss), net 131 -- 35 --
Interest income (expense), net (78) 23 (215) (164)
Total other income
(expense), net 53 23 (180) (164)
Income (loss) before
extraordinary item and
income taxes 254 99 (1,560) (110)
Income tax expense 177 -- 197 1
Income (loss) before
extraordinary item 77 99 (1,757) (111)
Extraordinary item - loss on
extinguishment of debt -- -- -- (252)
Net income (loss) per share
- basic
Net income (loss) per share
before extraordinary item $0.01 $0.02 $(0.29) $(0.02)
Extraordinary item $-- $-- $-- $(0.04)
Net income (loss) per share $0.01 $0.02 $(0.29) $(0.06)
Shares used in computing per
share information 6,216 5,360 6,120 5,836
Net income (loss) per share
- diluted
Net income (loss) per share
before extraordinary item $0.01 $0.01 $(0.29) $(0.02)
Extraordinary item $-- $-- $-- $(0.04)
Not income (loss) per share $0.01 $0.01 $(0.29) $(0.06)
Shares used in computing
per share information 6,918 6,625 6,120 5,836
Isonics Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
January 31, April 30,
1999 1998
ASSETS
CURRENT ASSETS
Cash and cash equivalents $228 $1,044
Accounts receivable, net 3,389 1,629
Inventories 1,134 456
Prepaid expenses and other assets 388 157
Total current assets 5,139 3,286
PROPERTY AND EQUIPMENT, net 1,089 1,626
GOODWILL, net 3,450 236
OTHER ASSETS 293 507
$9,971 $5,655
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt $261 $80
Notes payable - shareholders 877 --
Accounts payable 3,908 657
Accrued liabilities and other 1,155 738
Total current liabilities 6,201 1,475
LONG-TERM DEBT 859 739
DEFERRED TAXES 197 --
STOCKHOLDERS' EQUITY 2,714 3,441
$9,971 $5,655
SOURCE Isonics Corporation
-0- 03/09/99
/CONTACT: Matt Clawson of Allen & Caron, Inc., 714-957-8440, for Isonics
Corporation; or James E. Alexander of Isonics Corporation, 303-279-7900/
/Web site: isonics.com
(ISON)
CO: Isonics Corporation
ST: Colorado
IN: CPR CHM MTC
SU: ERN PER
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