CardioDynamics (CDIC) Reports Record $1.075 Million Sales in First
CardioDynamics Reports Record $1.075 Million Sales in First Quarter 1999 and
Fifth Consecutive Quarterly Sales Increase
Business Editors/Health and Medical Writers
SAN DIEGO--(BW HealthWire)--March 23, 1999--
Congestive Heart Failure Physicians Drive Demand
CardioDynamics International Corp. (Nasdaq:CDIC), a noninvasive
digital cardiac output monitor manufacturer, today announced record
sales for the fiscal first quarter ended Feb. 28, 1999.
First Quarter Results:
Net sales for first quarter 1999 were $1,075,000, an increase of
629% over sales of $148,000 for the same period in 1998, and a 34%
increase over fourth quarter 1998 sales of $803,000. Net loss to
common shareholders for first quarter 1999 was $1,128,000, or $0.03
per share, down 12% from the net loss to common shareholders of
$1,289,000, or $0.04 per share for the same period in 1998, and down
19% from the net loss to common shareholders of $1,386,000, or $0.04
per share, reported in the fourth quarter 1998. Net loss from
operations narrowed by 20% in first quarter 1999 to $1,052,000, down
from $1,312,000 in first quarter 1998.
The company attributed the strong increase in 1999 first quarter
sales to increased physician acceptance of its noninvasive technology
and the early success of its direct sales force implementation and
international distribution expansion. Physicians are recognizing the
BioZ's role in improving patient care and reducing rapidly growing
healthcare costs. This is particularly apparent in the congestive
heart failure arena where annual expenses total $20 billion in the
U.S., and $40 billion worldwide.
The net loss for first quarter 1999 was primarily due to
expenditures associated with hiring and training of additional direct
sales representatives and building the international distributor
network. Additionally, the company continued its investment in ongoing
and new clinical studies, product refinements, and product research
and development, including the recently announced Z Xport(TM) and
BioZ.sim(TM) products.
CEO Comments:
Commenting on the results, Michael K. Perry, chief executive
officer of CardioDynamics, stated, "This marks our fifth sequential
quarter of increased sales and is evidence that we are meeting our
customers' needs for less expensive, less invasive hemodynamic
monitoring solutions. Medicare reimbursement approval received in
November last year was key to our sales success in the first quarter
and will play a tremendous role in growing sales throughout 1999.
Reimbursement approval not only enhances the economic benefits our
customers realize in acquiring and utilizing the technology, but also
provides important third party validation and support of our company
from HCFA (Health Care Financing Administration)."
Medical Advisory Board Expansion
The company also announced several key appointments to its
Medical Advisory Board. Steven Nissen, M.D., vice-chairman, department
of cardiology and director of clinical cardiology, Cleveland Clinic;
Marc A. Silver, M.D., director of the heart failure institute, Christ
Hospital and Medical Center, Chicago; John S. Schroeder, M.D.,
professor of cardiovascular medicine, Stanford University School of
Medicine; John E. Strobeck, M.D., Ph.D., co-founder of the Heart
Failure Society of America (HFSA) and director of the Heart Lung
Center, New Jersey; Guillermo Torre, M.D., Ph.D., medical director of
heart transplant services, Baylor Medical University Center, Houston;
and Clyde W. Yancy Jr., M.D., medical director of heart transplant
programs, Baylor University Medical Center and St. Paul Medical
Center, Dallas have joined the company's Medical Advisory Board.
Perry added, "These prominent physicians bring extensive clinical
expertise which will significantly contribute in the company's goal to
establish the BioZ's TEB technology as the 'Sixth Vital Sign(TM).'"
Company Description:
CardioDynamics develops, manufactures, and markets noninvasive
digital cardiac output monitoring devices, which provide continuous
data on a wide range of hemodynamic parameters. The company's primary
products, the BioZ(TM) System, BioZ(TM) Portable, and BioZ.com(TM),
use Thoracic Electrical Bioimpedance (TEB) technology to obtain data
which is typically available only through the time-consuming, costly
and potentially dangerous invasive Pulmonary Artery Catheterization
(PAC) procedure. Since TEB monitoring is noninvasive, it decreases
costs through elimination of patient risk, reduction of hospital stay,
and minimization of hospital expenditures and personnel.
The estimated worldwide market potential for BioZ products is
estimated to be $4 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.cardiodynamics.com.
Forward-Looking (Safe Harbor Statement):
Note: Except for the historical and factual information contained
herein, this press release contains forward-looking statements, the
accuracy of which are necessarily subject to uncertainties and risks,
which include sole dependence on the BioZ product line, competition
from Baxter Healthcare Corp. (manufacturer of the Swan-Ganz(TM)
device), further capital requirements, and various uncertainties
characteristic of companies just emerging from the development stage;
as well as other risks detailed in the company's filings with the SEC,
including its 1998 Form 10-KSB. The company does not undertake to
update the disclosures contained in this press release.
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