CULVER CITY, Calif., Nov. 19, 2002 (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 ended September 30, 2002. Revenues for the third quarter were $78,000, compared to $305,000 in the prior year period. While revenues decreased, operating expenses in the third quarter of 2002 declined 45% percent to $1.4 million, from $2.5 million in the third quarter of 2001. However, for the three months ended September 30, 2002, the Company incurred a net loss of $2.3 million, which resulted in a $0.12 net loss per share. This compares with the net loss for the same period in the prior year of $3.3 million, which resulted in a net loss per share of $0.29.
In the third quarter, Careside took approximately $644,000 in additional expenses, of which $491,000 were one-time expense charges as a result of its October 11, 2002 voluntary petition under Chapter 11 of the U.S. Bankruptcy Code filed in the United States Bankruptcy Court for the Central District of California. On October 24 Careside filed a plan for Debtor-in-Possession (DIP) financing with the same U.S. Bankruptcy Court in connection with Palm Finance.
"Revenues in the third quarter resulted from continuing cartridge sales to existing customers," said W. Vickery Stoughton, Careside CEO. "Careside discontinued manufacturing the Careside Analyzer because of cash problems. Careside has filed for DIP financing under the U.S. Bankruptcy Code and subject to court approval of the plan expects to begin manufacturing Careside Analyzers in the first quarter of next year."
About Careside
Careside, Inc. markets a proprietary blood testing system called the Careside Analyzer. 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 availability of products for sale, re-release of products, and securing financing under the U.S. Bankruptcy Code, are forward-looking statements that involve risks and uncertainties. Key factors which may impact these statements include Court decisions and other challenges inherent in product manufacturing. 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.
Abbreviated Statement of Operations
(in thousands)
Three months ended Nine months ended
September 30, September 30,
2001 2002 2001 2002
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SALES, net $ 305 $ 78 $ 681 $ 1,088
COST OF SALES 1,046 525 3,081 2,673
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GROSS PROFIT (741) (447) (2,400) (1,585)
OPERATING EXPENSES:
Research and development
costs - product 675 397 2,289 1,085
Research and development
costs - software 316 162 767 579
Selling and marketing 919 228 2,782 1,658
General and administrative 473 596 1,433 1,508
Goodwill Amortization 142 -- 425 50
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Total operating expenses 2,525 1,383 7,696 4,880
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OPERATING LOSS: (3,266) (1,830) (10,096) (6,465)
INTEREST INCOME (EXPENSE): (74) (493) (245) (3,802)
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NET LOSS $(3,340) $(2,323) $(10,341) $(10,267)
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Beneficial conversion feature -- -- (3,799) --
Dividends on Preferred Stock (2) -- (942) --
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NET LOSS to common
shareholders $(3,342) $(2,323) $(15,082) $(10,267)
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NET LOSS PER SHARE $ (0.29) $ (0.12) $ (1.32) $ (0.55)
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NET LOSS PER SHARE to
common shareholders $ (0.29) $ (0.12) $ (1.32) $ (0.55)
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Weighted average number
of common stock and
common stock equivalents
outstanding 11,665 19,066 11,393 18,552
Abbreviated Balance Sheets
(in thousands)
Dec. 31, 2001 Sept. 30, 2002
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(unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 39 $ 11
Accounts Receivable 158 97
Inventories 2,498 1,665
Prepaid expenses and other 480 310
PROPERTY AND EQUIPMENT (net) 3,964 2,916
DEPOSITS 24 24
GOODWILL (net) 50 --
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Total Assets $ 7,214 $ 5,023
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES 5,659 9,500
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LONG-TERM DEBT 483 --
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STOCKHOLDERS' EQUITY 1,072 (4,477)
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Total liabilities and stockholders'
equity $ 7,214 $ 5,023
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