CULVER CITY, Calif., Aug. 9, 2001 (PRIMEZONE) -- Careside, Inc. (AMEX:CSA), a provider of point-of-care blood analysis instrumentation and records management, today announced its results for the second quarter and six months ended June 30, 2001. During the quarter, Careside continued its shift away from development to a focus on sales and marketing. This shift resulted in a net loss for the second quarter excluding non-cash dividend charges of $3.7 million or $0.32 pro forma loss per share, compared to a net loss of $3.8 million or $0.44 pro forma loss per share for the same period last year.
"The second quarter and early July efforts brought the number of placements of the CARESIDE Analyzer(r) to over 40. Over the last few months, Careside sales personnel have been working with our marketing group to train over 400 distributor representatives from Fisher Scientific, Labsco, and several regional distributors," said Careside Chairman and CEO W. Vickery Stoughton. "We are scheduled to complete this training by the end of August. At that time, the distributors' sales representatives will be positioned to begin selling our products. As a result, we expect our sales to increase in the third and fourth quarters."
For the first six months of 2001, the net loss totaled $7.0 million or $0.62 pro forma loss per share, compared to a net loss of $8.0 million or $0.96 pro forma loss per share in the prior year's first six months. The net loss to common shareholders reflects an imputed non-cash dividend calculation associated with the beneficial conversion feature of the Company's recent financing and accreted dividends. Including these charges results in a net loss to common shareholders of $10.9 million or $0.96 loss per share for the first six months compared to a net loss of $8.1 million or $0.97 loss per share in the same period in 2000. Second quarter and six-month revenues were $192,000 and $376,000, respectively, compared to $245,000 and $528,000 in the prior year periods.
"Careside has been working with select customers to get clinical evaluations which can be used in Careside marketing materials. These studies will be available to distributors in the near future. Based on these studies and numerous customer comments, there is strong evidence that product acceptance is growing. We have placed more units in June and July than we placed in the first five months combined and have orders for August that will bring the total number of placements to more than 50. All of this is without the benefit of the 400 plus distributor representatives."
"Our sights are now firmly set," continued Stoughton, "on implementing the incremental phases of our marketing plan. With manufacturing and supply in place for increased demand, our sales staff remains committed to selling the devices and, in addition to the valuable insight our distribution partners have already brought, we look forward to the contributions of these partners. The remainder of 2001 promises to be exciting."
Revenues in the second quarter were derived primarily from sales of the Company's CARESIDE Analyzer and test 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 CARESIDE H-2000 to international distributors. Prior year results include a one-time payment of $100,000 from Quest Diagnostics associated with the termination of its supply and distribution agreement with Careside. This was recorded in other income and does not impact revenues.
During the second quarter, Careside also completed a preferred stock financing which raised approximately $10.0 million in gross proceeds. The dilution impact of this transaction has not been reflected in earnings per share calculations shown, as the preferred stock sold in the private placement has not yet converted to common stock.
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.
Careside, Inc.
Abbreviated Statement of Operations
(in thousands) (unaudited)
Three months ended Six months ended
June 30, June 30,
2000 2001 2000 2001
-------- -------- -------- --------
SALES, net $ 245 $ 192 $ 528 $ 376
COST OF SALES 109 1,033 252 2,035
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GROSS PROFIT 136 (841) 276 (1,659)
OPERATING EXPENSES:
Research and development
costs - product 2,309 808 4,772 1,614
Research and development
costs - software 180 248 235 451
Selling and marketing 998 1,010 1,942 1,863
General and administrative 453 555 1,119 960
Goodwill Amortization 142 142 283 283
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Total operating expenses 4,082 2,763 8,351 5,171
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OPERATING LOSS: (3,946) (3,604) (8,075) (6,830)
INTEREST INCOME (EXPENSE): 114 (71) 45 (170)
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NET LOSS $ (3,832) $ (3,675) $ (8,030) $ (7,000)
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Beneficial
conversion feature -- 3,799 -- 3,799
Dividends on
Preferred Stock 26 8 52 55
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NET LOSS to
common shareholders $ (3,858) $ (7,482) $ (8,082) $(10,854)
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NET LOSS PER SHARE
pro forma $ (0.44) $ (0.32) $ (0.96) $ (0.62)
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NET LOSS PER SHARE
to common shareholders $ (0.44) $ (0.66) $ (0.97) $ (0.96)
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Weighted average number of
common stock and common
stock equivalents
outstanding 8,798 11,416 8,333 11,255
Abbreviated Balance Sheets
(in thousands)
December 31, June 30,
2000 2001
-------- --------
(unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 1,789 $ 5,624
Accounts Receivable 104 105
Inventories 2,698 2,767
Prepaid expenses and other 174 230
PROPERTY AND EQUIPMENT (net) 5,643 4,731
DEPOSITS 24 24
GOODWILL (net) 2,231 1,948
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Total Assets $ 12,663 $ 15,429
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LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES 4,767 4,880
-------- --------
LONG-TERM DEBT 1,192 902
-------- --------
MANDITORILY REDEEMABLE PREF. STOCK 1,054 481
-------- --------
STOCKHOLDER'S EQUITY 5,650 9,166
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Total liabilities and
stockholder's equity $ 12,663 $ 15,429
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