Monday May 3, 4:01 pm Eastern Time
Company Press Release
Colorado MEDtech, Inc. Reports Strong Third Quarter and Nine-Month Results
BOULDER, Colo.--(BW HealthWire)--May 3, 1999--Colorado MEDtech, Inc.
(NASDAQ: CMED - news), a Boulder, Colorado-based medical products
and services company, today announced record results for its third
quarter and nine-month period ended March 31, 1999.
Net income in the third quarter increased to $2,205,376 compared to
$1,329,444 in the third quarter last year (an increase of 66%) and
diluted earnings per share increased to 18 cents per share compared
to 11 cents per share. Sales in the third quarter increased
approximately 28% over the same period in 1998 ($17.2 million
compared to $13.4 million).
Net income through the nine-months ended March 31, 1999 increased to
$5,214,586 compared to $2,936,233 for the same period last year (an
increase of 78%) on sales of $46.3 million compared to $32.9 million
in the same period of the prior year (an increase of 41%). Earnings
per share through the nine months were 42 cents compared to 24 cents
in the prior year on a diluted basis.
''FY99 appears to be an extremely strong year, with large increases
in sales and profitability. We are particularly pleased with the
growth of our diagnostics, MRI and Y2K business areas and the
excellent performance of our staff,'' said John V. Atanasoff,
President and CEO.
Colorado MEDtech, Inc., through its wholly owned affiliates and
operating divisions, is a leading full-service provider of advanced
medical products and comprehensive outsourcing services.
Statements in this news release which are not historical facts are
forward-looking statements subject to risks and uncertainties which
could cause actual results to differ materially from those set forth
in or implied by forward-looking statements, including, but not
limited to, the risk that the Company's existing level of orders may
not be indicative of the level or trend of future orders, the risk
that the Company may not successfully complete the work encompassed
by such orders, and the risk that a downturn in general economic
conditions or customer budgets may adversely affect research and
development and capital expenditure budgets of potential customers
upon which the Company is dependent. These factors are more fully
described in the Company's Form 10-K filed with the Securities and
Exchange Commission for the year ended June 30, 1998, copies of which
the Company will provide on request.
COLORADO MEDTECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
March 31, March 31,
1999 1998 1999 1998
SALES AND SERVICE $17,150,071 $13,449,571 $46,312,291 $32,892,786
COST OF SALES AND
SERVICE 10,437,279 8,653,451 28,612,086 21,324,911
GROSS PROFIT 6,712,792 4,796,120 17,700,205 11,567,875
COSTS AND EXPENSES:
Marketing and
selling 555,520 504,636 1,702,491 1,283,830
Operating, general and
administrative 2,317,932 2,024,269 6,482,489 5,493,717
Research and
development 423,846 508,245 1,400,165 1,013,894
Total operating
expenses 3,297,298 3,037,150 9,585,145 7,791,441
EARNINGS FROM
OPERATIONS 3,415,494 1,758,970 8,115,060 3,776,434
OTHER INCOME, net 138,882 60,474 287,526 315,799
EARNINGS BEFORE
INCOME TAXES 3,554,376 1,819,444 8,402,586 4,092,233
Provision for
income taxes 1,349,000 490,000 3,188,000 1,156,000
NET INCOME $ 2,205,376 $ 1,329,444 $ 5,214,586 $ 2,936,233
NET INCOME PER SHARE:
Basic $ .20 $ .12 $ .49 $ .28
Diluted $ .18 $ .11 $ .42 $ .24
WEIGHTED AVERAGE
SHARES OUTSTANDING:
Basic 10,775,433 10,677,117 10,672,154 10,346,148
Diluted 12,538,202 12,377,906 12,390,464 12,125,453
COLORADO MEDTECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31, 1999 June 30, 1998
CURRENT ASSETS:
Cash and cash equivalents $ 3,166,953 $ 2,499,072
Short-term investments 13,252,967 12,144,005
Accounts receivable, net 12,015,310 7,813,973
Inventories, net 4,321,262 4,225,680
Deferred income taxes and other
current assets 1,930,432 2,566,487
Total current assets 34,686,924 29,249,217
PROPERTY AND EQUIPMENT, net 2,110,345 1,734,272
GOODWILL, net 1,680,589 1,724,796
LAND, DEFERRED INCOME TAXES
AND OTHER ASSETS 1,128,997 1,298,997
TOTAL ASSETS $ 39,606,855 $ 34,007,282
CURRENT LIABILITIES:
Accounts payable $ 4,063,928 $ 4,426,172
Accrued salaries and wages 3,473,499 3,126,671
Accrued product service costs 360,298 291,566
Customer deposits 3,876,688 2,804,450
Other accrued expenses 2,161,763 1,169,004
Income taxes payable - 466,788
Total current liabilities 13,936,176 12,284,651
SHAREHOLDERS' EQUITY:
Common stock 10,612,918 11,879,456
Retained earnings 15,022,761 9,808,175
Unrealized gain on
available-for-sale investment 35,000 35,000
Total shareholders' equity 25,670,679 21,722,631
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 39,606,855 $ 34,007,282
-------------------------------------------------
Contact:
Colorado MEDtech, Inc.,
John V. Atanasoff, President and CEO, or
Bruce L. Arfmann, CFO, 303/530-2660
Fax: 303/581-1010
Website: www.cmed.com
Email: cmedinfo@cmed.com
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