CULVER CITY, Calif. May 8, 2001 (PRIMEZONE) -- CARESIDE, Inc. (AMEX:CSA) announced today that it narrowed its net loss for the first quarter ended March 31, 2001 by more than 25 percent compared to the first quarter in 2000. The net loss for the first quarter was $(3.4) million, or $(0.30) per share, versus a net loss of $(4.2) million, or $(0.54) per share, for the same period last year.
Revenues for the quarter in 2001 decreased to $184,000 from $284,000 in 2000. This reflects a decrease in revenues associated with the CARESIDE H-2000 and a delay in revenue recognition associated with the sales of the CARESIDE Analyzer. While placements of the CARESIDE Analyzer continue to increase, the Company does not recognize revenue until the time of customer acceptance. Operating expenses were reduced from $4.3 million in the first quarter of 2000 to $2.4 million in 2001. This was primarily due to reductions in R&D and administrative expenditures and reclassification of some costs previously recorded as R&D being allocated to cost of sales.
The Company took several important steps during the first quarter to raise working capital and expand its marketing efforts, including the signing of a series of product distribution efforts and a partnership with Charlottesville, VA-based Medical Automation Systems, Inc. (MAS) that will significantly expand the sales and marketing reach for Careside products. In addition to developing a communications interface linking Careside products to MAS' network of more than 250 hospital and health systems for automatic connectivity and transmission of test results, MAS will provide a team capable of installing the entire Careside system, as well as the electronic interface, to supplement Careside's installation group.
The Company completed the first closing on a private placement of convertible preferred stock, raising $1.5 million through various institutional investors. The second closing, which occurred in May, raised an additional $6.5 million. This financing is subject to shareholder approval at Careside's Annual Meeting to be held on May 24.
"Our products have won considerable acceptance as an alternative approach to point-of-care testing in physicians' offices, but our reach, until now, has been limited," said Careside Chairman and CEO W. Vickery Stoughton. "To that end, we will continue our direct selling efforts focused on customers generated through a direct marketing campaign to physician office labs, but we will augment that with an expanded sales force to better support the sales efforts of our distribution partners, starting in the second quarter."
The Company also recently announced a favorable review of the CARESIDE Analyzer after a six-month evaluation at sea aboard the Big Horn, a U.S. Navy ship. Stoughton added that management is optimistic that the favorable evaluation will lead to the Navy's eventual purchase of Careside technology.
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 the two devices into customers' laboratory or patient information systems. The CARESIDE Analyzer provides a cost-effective and efficient means of measuring blood chemistry, electrochemistry, and coagulation function at the patient's point of care by producing accurate test results within 15 minutes.
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 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.
TABLE FOLLOWS
CARESIDE, INC.
Abbreviated Statement of Operations
(in thousands except per share amounts)
Three months ended
March 31,
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2000 2001
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Sales, net $ 283 $ 184
Cost of sales 143 1,002
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Gross profit 140 (818)
Operating expenses:
Research and development - product 2,463 806
Research and development - software 55 203
Selling and marketing 944 853
General and administrative 667 404
Goodwill amortization 142 142
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Total operating expenses 4,271 2,408
Operating loss: (4,131) (3,226)
Interest income (expense): (69) (99)
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Net Loss $(4,200) $(3,325)
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Dividend payable on preferred stock 26 47
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Net Loss to common shareholders $(4,226) $(3,372)
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Net Loss per share $ (0.54) $ (0.30)
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Weighted average number of common stock 7,867 11,092
and common stock equivalents outstanding ====== ======
Abbreviated Balance Sheets
(in thousands)
December 31, 2000 March 31, 2001
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ASSETS
Current assets
Cash and cash equivalents $ 1,789 $ 1,036
Accounts receivable 104 116
Inventories 2,698 2,844
Prepaid expenses and other 174 162
Property and equipment (net) 5,643 5,214
Deposits 24 24
Goodwill (net) 2,231 2,090
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Total Assets $ 12,663 $ 11,486
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LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities 4,744 4,850
Long-term liabilities 1,215 1,180
Manditorily redeemable preferred stock 1,054 1,059
Stockholder's equity 5,650 4,397
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Total liabilities and
Stockholder's equity $ 12,663 $ 11,486
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