CULVER CITY, Calif., Nov. 5, 2001 (PRIMEZONE) -- Careside, Inc. (AMEX:CSA), a provider of point-of-care blood analysis instrumentation and records management, today announced its results for the third quarter and nine months ended September 30, 2001. During the quarter, Careside's continued shift to a sales and marketing focus resulted in a reduced net loss to common shareholders for the third quarter of $3.3 million, or $0.29 loss per share, from a net loss of $4.1 million, or $0.46 loss per share, for the same period last year. Year to date, the net loss to common shareholders totaled $15.1 million, or $1.32 loss per share, compared to a year to date net loss of $12.2 million, or $1.42 loss per share, in the prior year. On a pro forma basis, the year to date net loss to common shareholders excluding imputed non-cash dividend calculations associated with the beneficial conversion feature of the Company's Series C Preferred Stock and accreted dividend charges was $10.4 million, or $0.91 loss per share. Revenues for the third quarter and nine months of this year were $305,000 and $681,000 respectively, compared to $108,000 and $636,000 in the prior year periods.
"The third quarter and early October efforts brought the number of placements of the CARESIDE Analyzer to over 50. In addition to placed units, orders for 13 additional units have been received. This order backlog awaiting delivery scheduling includes several orders from distributors trained earlier this year. Over the last few months Careside sales personnel have worked with approximately 400 distributor representatives from Fisher Scientific, Labsco, and several regional distributors," said Chairman and CEO W. Vickery Stoughton. "We are beginning to see the fruits of these efforts. In addition, we have already begun training sales representatives from Physician Sales & Service (PSS) under the agreement we recently announced. We expect that the combined efforts of these sales representatives in addition to our own sales force will bring increasing orders in the fourth quarter. We now expect to have placed between 75 and 80 Analyzers in total by year end.
"The relationship with PSS will broaden our reach into the physician office market which is one of our key targets. The investment in time and effort by our staff in the fourth quarter is expected to leverage higher results in 2002. We expect that we will be able to achieve the 700 total placements previously forecast by year end 2002."
Revenues in the quarter were derived primarily from sales of the Company's CARESIDE Analyzer and cartridges. Revenues do not reflect placements of instruments made during the period for which the customer has been given a trial period prior to final acceptance or for which a formal acceptance was not received. In the prior year, revenues were primarily derived from sales of the H2000 Hematology Analyzer to international distributors. The difference in revenues and accounts receivable reflect this shift in marketing efforts.
About Careside
Careside, Inc. markets a proprietary blood testing system including its CARESIDE Analyzer, a companion hematology system called the H-2000 Hematology Analyzer, and its CARESIDE Connect record management system linking patient test results into a single report. The CARESIDE Analyzer provides a cost-effective and efficient means of measuring blood chemistry, electrochemistry, and coagulation function near the patient by producing accurate test results within 15 minutes. Careside, Inc. is one of the world's leading developers of advanced point-of-care blood testing technology.
Safe Harbor: Statements in this press release regarding Careside, Inc. which are not historical facts, including statements regarding expansions in sales efforts and increasing placements in 2001 and 2002, are forward-looking statements that involve risks and uncertainties. Key factors which may impact these statements include product acceptance, market forces and other challenges inherent in sales, marketing and manufacturing, and the other factors discussed in the Company's prospectus that was effective dated October 2000. The Company undertakes no obligation to update forward-looking statements. Please see the risk factors listed from time to time in the Company's prospectus and reports on file with the SEC.
CARESIDE, INC.
Abbreviated Statement of Operations
(in thousands) (unaudited)
Three months ended Nine months ended
September 30, September 30,
2000 2001 2000 2001
SALES, net $ 108 $ 305 $ 636 $ 681
COST OF SALES 59 1,046 311 3,081
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GROSS PROFIT 49 (741) 325 (2,400)
OPERATING EXPENSES:
Research and
development
costs-Product 2,427 675 7,199 2,289
Research and
development
costs-IT 154 316 389 767
Sales and
marketing 921 919 2,858 2,782
General and
administrative 440 473 1,560 1,433
Goodwill Amortization 142 142 425 425
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Total operating
expenses 4,084 2,525 12,431 7,696
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OPERATING LOSS: (4,035) (3,266) (12,106) (10,096)
INTEREST INCOME
(EXPENSE): (66) (74) (21) (245)
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NET LOSS $(4,101) $(3,340) $(12,127) $(10,341)
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Beneficial conversion
feature -- -- -- 3,799
Dividends on
Preferred Stock 2 2 54 942
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NET LOSS to common
shareholders $(4,103) $(3,342) $(12,181) $(15,082)
======= ======= ======= =======
NET LOSS PER SHARE to
common shareholders $ (0.46) $ (0.29) $ (1.42) $ (1.32)
======= ======= ======= =======
Pro Forma NET LOSS
PER SHARE excluding
non-cash charges $ (0.46) $ (0.29) $ (1.42) $ (0.91)
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Weighted average
number of common
stock and common
stock equivalents
outstanding 8,988 11,665 8,553 11,393
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Abbreviated Balance Sheets
(in thousands)
December 31, 2000 September 30, 2001
(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,789 $ 2,263
Accounts Receivable 104 237
Inventories 2,698 2,673
Prepaid expenses and other 174 562
PROPERTY AND
EQUIPMENT (net) 5,643 4,292
DEPOSITS 24 24
GOODWILL (net) 2,231 1,806
--------- ---------
Total Assets $12,663 $11,857
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LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES 4,767 4,774
--------- ---------
LONG-TERM DEBT 1,192 749
--------- ---------
MANDITORILY
REDEEMABLE PREF. STOCK 1,054 -
--------- ---------
STOCKHOLDER'S EQUITY 5,650 6,334
--------- ---------
Total liabilities and
stockholder's equity $12,663 $11,857
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