SAN DIEGO, Jan. 22, 2002 (PRIMEZONE) -- CardioDynamics International Corporation (CDIC)(Nasdaq:CDIC), the innovator and market leader of Impedance Cardiography (ICG) technology and manufacturer of BioZ(r) noninvasive digital cardiac function monitoring systems, today announced its second consecutive profitable quarter, record sales, and a 55% sales increase for fiscal quarter ended November 30, 2001, as compared with the same quarter last year. This marks the Company's 16th consecutive quarter of increased sales.
2001 Fourth Quarter and Year-End Results:
Net sales for fiscal fourth quarter 2001 were $5.9 million, an increase of 55% over sales of $3.8 million for the same period in fiscal 2000. Fiscal 2001 sales were $19.6 million, an increase of 50% over sales of $13.1 million reported for fiscal 2000. Recurring sensor revenue in fourth quarter 2001 was $483,000 (8.2% of sales), up 98% from $244,000 (6.4% of total sales) in the fourth quarter of the previous year. For fiscal 2001, recurring sensor revenue was $1.7 million, up 143% from $0.7 million in fiscal 2000.
Net income in fourth quarter 2001 was $254,000, or $0.01 per share, compared to a net loss in fourth quarter 2000 of $6.8 million, or ($0.15) per share. Profits in the third and fourth quarters reduced the net loss for 2001 to $659,000, or ($0.01) per share, down 92% from fiscal 2000's net loss of $8.3 million, or ($0.19) per share.
Operating Highlights:
During the fourth quarter 2001, the Company sold a total of 141 BioZ Systems and 235 BioZ ICG Modules. The Company's installed base at November 30, 2001 exceeded 1,650 BioZ Systems, up over 50% from nearly 1,100 one year ago. At the end of fiscal 2001, the Company had 58 sales associates, including 40 territory managers and 7 clinical sales support specialists. The Company's gross margin percentage improved to 72.3% for the fourth quarter fiscal 2001 compared with 59.5% for the same period last year. For the fiscal year ended 2001, gross margin percentage was 71.4%, up from 65.3% for the fiscal year ended 2000. The Company attributed the gross margin percentage improvement to increased average system selling price and reduced material costs of the BioZ.com.
CEO Comment and Outlook:
Michael K. Perry, CardioDynamics' Chief Executive Officer, stated, "This 16th consecutive quarter of increasing sales completes a record year of success. Despite the challenging economic environment in 2001, we are extremely proud of our accomplishments, including the announcement of our first two profitable quarters, three new strategic partnerships, release of the BioZ ICG Module and BioZ.com II, a dedicated CPT reimbursement code from the American Medical Association, an expanded, stronger direct sales force, as well as a significant increase in our institutional investor ownership. We are now beginning to reap the benefits of taking the time to build a solid company foundation and are stronger today than we have ever been before."
"Looking forward," Perry added, "we will continue to focus our business on our customers. Each day, an increasing number of medical professionals and patients are learning about the value of our ICG technology as a standard of care in battling the number one killer of men and women -- cardiovascular disease. We plan to continue to develop relationships with partners and actively pursue new business opportunities for our technology as we strengthen our global presence and brand equity. We believe the Company has the necessary resources to continue to increase profitability and create long-term, sustainable and growing value for our shareholders. We are ready for 2002."
Additional Fiscal 2001 Highlights & Key Accomplishments:
New Products & Technology:
-- FDA 510(k) clearance of BioZ ICG module for use in GE Medical's
Solar patient monitoring systems -- The world's first bedside
monitor with noninvasive hemodynamics
-- FDA 510(k) clearance of the BioZ.com II, redesign of BioZ.com,
resulting in over $1,000 material cost reduction
Reimbursement:
-- Issuance of a specific CPT code, 93701, by the American Medical
Association for the Company's ICG Technology
-- Standardized National Medicare pricing, with an overall average
increase of 37%
Clinical Research & Conferences:
-- Significant Mayo Clinic ICG study demonstrating a 65% improvement
in the treatment of high blood pressure -- Presented at the
National American Society of Hypertension meeting
-- Pacemaker optimization study by Iowa Heart Center demonstrating
ICG benefited 89% of all patients --Presented at the National
Heart Failure Society of America conference
-- Emergency Department Study by The California Heart Institute at
Redding Medical Center, a leading Tenet Healthcare Corporation
hospital
-- Commencement of the ED-IMPACT (Emergency Department IMPedance
Cardiography-aided Assessment Changes Therapy) study by Cleveland
Clinic and University of Mississippi Medical Center
Partnerships:
-- GE Medical Systems Information Technologies -- Expanded strategic
alliance to include distribution of BioZ products in Canada, and
GE funding for the expansion of our international sales team
-- Vasomedical -- Joint marketing agreement with EECP(r) therapy for
angina market leader
-- Spacelabs Medical -- Technology development agreement with a
leading provider of integrated medical information systems and
instrumentation
-- Heart-Lung Associates of America -- BioZ Pilot Program to improve
treatment of end-stage renal disease
Institutional Ownership/Stock Activity:
-- Institutional ownership of the Company's outstanding shares
increased to 30%
-- Placement of 4.2 million shares of the Paulson Estate and Scripps
Foundation stock primarily to institutional investors, reducing
the Estate of Allen E. Paulson's ownership to below 20% from a
high of 78%
-- Stock price growth of 92% as compared to Nasdaq (down 21%), S&P
500 (down 13%), and DJIA (down 7%)
Awards:
-- 73rd ranking in the 2001 Deloitte & Touche Technology Fastest 500
growing companies in North America (3rd in San Diego/Orange
County "Fast 50") with 8,813% five-year revenue growth
-- Company's CEO and President nominated as one of the top three
finalists in the 2001 San Diego Ernst & Young Entrepreneur of the
Year Award
Conference Call Information:
Michael K. Perry, Chief Executive Officer, will host a summary of CardioDynamics' fourth quarter results and outlook for 2002 in a conference call today at 9:00 AM (EST). To access the conference call, dial 800-349-4174. A replay of the call is available by calling 800-642-1687. The call will also be available via webcast and can be accessed at http://www.irconnect.com/primecast/02/cdic_conf.mhtml.
About CardioDynamics:
CardioDynamics (Nasdaq:CDIC), the ICG Company, is passionately dedicated to improving healthcare as the innovator and leader of noninvasive ICG technology. The Company's primary products, the BioZ(r) Systems, utilize proprietary ICG technology to assist medical professionals in the physician's office and the hospital to identify underlying cardiovascular disease, quickly assess and diagnose, and optimize drug therapy for patients with high blood pressure, heart failure, and other cardiovascular diseases. BioZ ICG is available in over 70 countries and is being used by leading medical centers around world. The technology is covered by Medicare and private insurance. Strategic partners include GE Medical Information Technologies, Spacelabs Medical Systems, and Vasomedical. The worldwide market potential for BioZ products is estimated to be $5 billion, together with an additional $800 million in recurring annual revenue for disposables. For additional information or to request an investor package, please refer to the company's Web site at www.cdic.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, 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 2000 Form 10-KSB. The company does not undertake to update the disclosures contained in this press release.
CardioDynamics International Corporation
Results From Operations:
Three Months Ended Twelve Months Ended
November 30, November 30,
(Unaudited)
------------------------- -------------------------
2001 2000 2001 2000
------------ ------------ ------------ ------------
Net Sales $ 5,922,000 $ 3,832,000 $19,598,000 $13,102,000
Gross Margin 4,281,000 2,280,000 13,984,000 8,557,000
Research &
Development 705,000 965,000 3,215,000 2,758,000
Selling &
Marketing 2,923,000 7,846,000 10,184,000 12,638,000
General &
Administrative 482,000 456,000 1,747,000 1,662,000
------------ ------------ ------------ ------------
Income (Loss)
from
Operations 171,000 (6,987,000) (1,162,000) (8,501,000)
Other Income 83,000 228,000 504,000 245,000
Income Taxes -- (10,000) (1,000) (11,000)
------------ ------------ ------------ ------------
Net Income
(Loss) 254,000 (6,769,000) (659,000) (8,267,000)
============ ============ ============ ============
Net Income
(Loss) per
Share,
- Basic and
Diluted $ 0.01 $ (0.15) $ (0.01) $ (0.19)
============ ============ ============ ============
Weighted-Average
Number of
Common Shares
Outstanding:
- Basic 45,967,067 45,478,307 45,583,404 43,145,043
- Diluted 48,064,181 45,478,307 45,583,404 43,145,043
============ ============ ============ ============
Selected Financial Information: Fiscal Year Ended
November 30,
-------------------------
2001 2000
----------- -----------
Cash $ 6,394,000 $11,595,000
Accounts Receivable, net 7,373,000 3,771,000
Inventory, net 2,821,000 2,255,000
Current Assets 18,682,000 18,763,000
Long-term Assets 2,779,000 2,798,000
Total Assets 21,461,000 21,561,000
Current Liabilities 2,998,000 2,908,000
Long-term Debt 40,000 87,000
Total Liabilities 3,038,000 2,995,000
Shareholders' Equity 18,423,000 18,566,000