CULVER CITY, Calif., May 14, 2002 (PRIMEZONE) -- Careside, Inc. (AMEX:CSA), a provider of point-of-care blood analysis instrumentation and records management, today announced its results for the first quarter ended March 31, 2002. Revenues for the first quarter were $601,000, representing record revenues for a quarter, compared to $184,000 in the prior year period and $344,000 for the fourth quarter of 2001. In addition to increased revenues, expense reductions resulted in a reduced net loss to common shareholders for the quarter of $2.7 million or $0.16 loss per share from a net loss of $3.4 million or $0.30 loss per share for the same period last year. Total operating expenses in the first quarter 2002 declined 21 percent to $1.9 million, from $2.4 million in the first quarter of 2001.
"The first quarter and early April efforts brought the number of Careside Analyzers in the market sold and leased to over 100. Over the last few months Careside sales personnel have worked with approximately 1,000 distributor representatives calling physician offices, clinics and hospitals," said Chairman and CEO W. Vickery Stoughton. "We are beginning to see the fruits of these efforts. We expect that the combined efforts of these distributor representatives in addition to our own sales force will bring increasing orders through the remainder of 2002, as we are experiencing new orders each week."
"We continue our efforts to attract additional investors or loans to fund working capital needs and to strengthen the balance sheet," continued Stoughton. "In order to make our resources go further, we have implemented cost reductions that included reducing staff from 72 to 46. This included reductions in R&D staffing, administrative areas and information technology resources. These actions are difficult, but necessary, and are associated with refocusing the company from research and development to manufacturing and sales. Our workforce will now focus solely on manufacturing and selling the Careside Analyzer and test cartridges and providing installation training, technical support and daily customer services."
Careside has been working diligently to secure additional long term financing but has only closed on bridge financing at this time. While Careside expects to complete a financing in the second quarter, it cannot report at this time that this financing is assured, and the company must complete a financing in the near future to sustain its operations.
Revenues in the quarter were derived primarily from sales of the Company's Careside Analyzer and cartridges.
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 effort, and increasing placements in 2002, and securing financing 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 December 2001. 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.
Condensed Statements of Operations
(in thousands except per share amounts)
(unaudited)
Three months ended
March 31,
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2001 2002
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Sales, net $ 184 $ 601
Cost of sales 1,002 1,301
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Gross profit (loss) (818) (700)
Operating expenses:
Research and development - product 806 383
Research and development - software 203 237
Selling and marketing 853 716
General and administrative 404 495
Goodwill amortization or impairment 142 50
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Total operating expenses 2,408 1,881
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Operating loss (3,226) (2,581)
Interest income (expense), net: (99) (159)
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Net Loss (3,325) (2,740)
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Accreted dividend on Series B and C 34 --
Dividend payable on preferred stock 13 --
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Net Loss to common shareholders $ (3,372) $ (2,740)
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Net Loss per share $ (0.30) $ (0.16)
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Weighted average number of common stock
and common stock equivalents outstanding 11,092 17,505
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Condensed Balance Sheets
(in thousands)
Dec. 31, March 31,
2001 2002
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ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 39 $ 43
Accounts receivable 158 330
Inventories 2,498 1,992
Prepaid expenses and other 481 472
Property and equipment (net) 3,964 3,676
Deposits 24 24
Goodwill (net) 50 --
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Total Assets $ 7,214 $ 6,537
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LIABILITIES AND STOCKHOLDER'S INVESTMENT
Current liabilities $ 5,658 $ 7,143
Long-term liabilities 483 396
Stockholder's investment 1,073 (1,002)
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Total liabilities and Stockholder's equity $ 7,214 $ 6,537
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