Launch of Next-Generation Cerebral Oximetry Products Underway
Conference Call Begins at 10:00 a.m. ET Today
BRANFORD, Conn., Nov. 12, 2013 (GLOBE NEWSWIRE) -- CAS Medical Systems, Inc. (Nasdaq:CASM) (CASMED), a leader in medical devices for non-invasive patient monitoring, today reported financial results for the three and nine months ended September 30, 2013.
Net sales for the third quarter of 2013 were $5.4 million, compared with $6.1 million for the third quarter of 2012. The decline was primarily due to lower sales of vital signs monitors to the Veterans Administration. The net loss applicable to common stockholders for the third quarter of 2013, including an impairment charge, was $3.3 million, or ($0.19) per common share, compared with a net loss applicable to common stockholders of $1.8 million, or ($0.14) per common share, for the third quarter of 2012.
Highlights of the third quarter of 2013 and recent weeks include:
- Launching the next-generation FORE-SIGHT ELITE™ cerebral oximeter monitor and sensors;
- Increasing the installed base of all FORE-SIGHT® units to 845 as of September 30, 2013, up 21% from September 30, 2012;
- Increasing domestic FORE-SIGHT sensor revenues by 19% from the prior year, with worldwide FORE-SIGHT revenues of sensors and monitors up 4%;
- Launching the next-generation 740 SELECT™ and the PPM3 Vital Signs monitors;
- Completing a $6.5 million public offering of common stock;
- Appointing Brian J. Wagner as the Company's new Chief Commercial Officer;
- Reporting a cash balance of $10.4 million as of September 30, 2013; and
- Exhibiting the FORE-SIGHT ELITE at the American Society of Anesthesiologists (ASA) Annual Meeting, which included a meeting program of eight courses and sessions on applications of cerebral oximetry and brain monitoring.
Management Commentary
"The launch of the next-generation FORE-SIGHT ELITE technology, along with two new vital signs monitors, represents a significant inflection point in our progress towards renewed growth and profitability," said Thomas M. Patton, President and Chief Executive Officer of CASMED. "The FORE-SIGHT ELITE launch has proceeded as planned, creating enthusiasm among our distribution partners and our customers. We have added a new distribution partner in Germany and expect to have more new international distributors in place in the coming quarters. While we were pleased to increase oximetry product sales leading up to the introduction of the FORE-SIGHT ELITE, we believe this next-generation technology's industry-leading accuracy and upgraded feature set should drive market-share gains and place us on the path toward making cerebral oximetry a standard of care.
"CASMED is positioned to leverage the new product offerings and improved balance sheet with a stronger sales and marketing program guided by Brian Wagner. In addition to our enhanced distribution program for the ELITE, we have new initiatives in our vital signs segment to exploit market opportunities in the oral surgery market while we expand cooperation with strategic partners," concluded Mr. Patton.
Third Quarter 2013 Financial Results
For the third quarter of 2013, the Company reported net sales of $5.4 million, a decrease of $0.7 million, or 12%, from net sales of $6.1 million for the third quarter of 2012. FORE-SIGHT oximetry sales were $2.0 million, an increase of $0.1 million, or 4%, over the third quarter of 2012. FORE-SIGHT disposable sensor sales increased $0.2 million, or 15%, to $1.9 million, compared with the prior-year period led by a 19% increase in domestic sensors sales. All other sales were $3.3 million, a decrease of $0.8 million, or 20%, compared with the prior-year period driven by lower sales of vital signs monitors to the Veterans Administration.
The Company recorded a net loss applicable to common stockholders for the third quarter of 2013 of $3.3 million, or ($0.19) per common share, compared with a net loss applicable to common stockholders of $1.8 million, or ($0.14) per common share, for the third quarter of 2012. The third quarter 2013 loss included an impairment charge of $0.4 million against placements at customer sites of first-generation FORE-SIGHT monitors due to the anticipated upgrade to FORE-SIGHT ELITE monitors.
2013 Year-to-Date Financial Results
For the nine months ended September 30, 2013, net sales were $16.0 million, compared with net sales of $16.7 million for the comparable period in 2012. The net loss applicable to common stockholders for the first nine months of 2013 was $8.1 million, or ($0.55) per common share, compared with a net loss applicable to common stockholders of $6.0 million, or ($0.45) per common share, for the first nine months of 2012.
As of September 30, 2013, the Company's cash and cash equivalents were approximately $10.4 million.
Conference Call Information
CASMED will host a conference call today at 10:00 a.m. ET to discuss third quarter 2013 results.
Conference call dial-in information is as follows:
- U.S. callers: (866) 239-5859
- International callers: (702) 495-1913
Individuals interested in listening to the live conference call via the Internet may do so by logging on to the Company's website: www.casmed.com.
A telephone replay will be available from 2:00 p.m. ET on November 12, 2013, through 11:59 p.m. ET on November 26, 2013. Replay dial-in information is as follows:
- U.S. callers: (855) 859-2056
- International callers: (404) 537-3406
- Conference ID number (U.S. and international): 92415076
- The replay will also be available at www.casmed.com.
About CASMED® – Monitoring What's Vital
CASMED is a leading developer and manufacturer of medical devices for non-invasive patient monitoring. The Company's FORE-SIGHT Absolute Cerebral Oximeters, including the new FORE-SIGHT ELITE™, provide a highly accurate, non-invasive, continuous measurement of absolute cerebral tissue oxygen saturation. Direct monitoring of tissue oxygenation provides a superior and powerful tool to alert clinicians to otherwise unrecognized and dangerously low levels of oxygenation of the brain and other tissues, thereby allowing them to intervene appropriately in the care of their patients. In addition to FORE-SIGHT Oximeters and accessories, the Company provides a line of bedside patient vital signs monitoring products, proprietary non-invasive blood pressure monitoring solutions for OEM use, neonatal intensive care supplies, and service. CASMED products are designed to provide unique monitoring solutions that are vital to patient care. For further information regarding CASMED, visit the Company's website at www.casmed.com.
Statements included in this press release, which are not historical in nature, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements relating to the future performance of the Company are subject to many factors including, but not limited to, the customer acceptance of the products in the market, the introduction of competitive products and product development, the impact of any product liability or other adverse litigation, working capital and availability of capital, commercialization and technological difficulties, the impact of actions and events involving key customers, vendors, lenders, competitors, and other risks detailed in the Company's Form 10-K for the year ended December 31, 2012, and other subsequent Securities and Exchange Commission filings.
Such statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. When used in this press release, the terms "anticipate", "believe", "estimate", "expect", "may", "objective", "plan", "possible", "potential", "project", "will", and similar expressions identify forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof, and we do not undertake any obligation to update any forward-looking statements, whether as a result of future events, new information, or otherwise.
Company Contact
CAS Medical Systems, Inc.
Jeffery A. Baird
Chief Financial Officer
(203) 315-6303
ir@casmed.com
Investors
LHA
Don Markley (dmarkley@lhai.com)
(310) 691-7105
Bruce Voss (bvoss@lhai.com)
(310) 691-7100
@LHA_IR_PR
Tables to Follow
| CAS MEDICAL SYSTEMS, INC. | ||||
| STATEMENTS OF OPERATIONS | ||||
| Unaudited | ||||
| Three Months Ended | Nine Months Ended | |||
| September 30, | September 30, | |||
| 2013 | 2012 | 2013 | 2012 | |
| Net sales | $ 5,353,166 | $ 6,110,813 | $ 15,971,424 | $ 16,717,932 |
| Cost of sales | 3,512,905 | 3,596,056 | 9,988,172 | 9,985,457 |
| Asset impairment charge | 407,141 | -- | 407,141 | -- |
| Total cost of sales | 3,920,046 | 3,596,056 | 10,395,313 | 9,985,457 |
| Gross profit | 1,433,120 | 2,514,757 | 5,576,111 | 6,732,475 |
| Operating expenses: | ||||
| Research and development | 1,012,546 | 906,202 | 3,094,939 | 2,746,023 |
| Selling, general and administrative | 3,297,653 | 3,131,409 | 9,840,235 | 9,136,112 |
| Total operating expenses | 4,310,199 | 4,037,611 | 12,935,174 | 11,882,135 |
| Operating loss | (2,877,079) | (1,522,854) | (7,359,063) | (5,149,660) |
| Interest expense | 86,927 | 46,059 | 229,482 | 46,941 |
| Other Income | (3,884) | (4,161) | (407,371) | (36,148) |
| Net loss | (2,960,122) | (1,564,752) | (7,181,174) | (5,160,453) |
| Preferred stock dividend accretion | 303,553 | 283,203 | 895,087 | 835,080 |
| Net loss applicable to common stockholders | $ (3,263,675) | $ (1,847,955) | $ (8,076,261) | $ (5,995,533) |
| Per share basic and diluted loss applicable to common stockholders: | $ (0.19) | $ (0.14) | $ (0.55) | $ (0.45) |
| Weighted average number of common shares outstanding: | ||||
| Basic and diluted | 17,471,529 | 13,313,901 | 14,762,899 | 13,264,362 |
| CAS MEDICAL SYSTEMS, INC. | ||
| BALANCE SHEETS | ||
| Unaudited | ||
| September 30, | December 31, | |
| 2013 | 2012 | |
| Cash and cash equivalents | $ 10,354,658 | $ 9,245,094 |
| Short-term investments | -- | 1,250,794 |
| Accounts receivable | 2,943,244 | 2,197,513 |
| Inventories | 3,558,024 | 3,543,325 |
| Other current assets | 516,118 | 612,082 |
| Total current assets | 17,372,044 | 16,848,808 |
| Property and equipment | 9,059,430 | 9,158,677 |
| Less accumulated depreciation | (6,577,704) | (6,443,303) |
| 2,481,726 | 2,715,374 | |
| Intangible and other assets, net | 832,733 | 830,245 |
| Total assets | $ 20,686,503 | $ 20,394,427 |
| Accounts payable | $ 1,710,070 | $ 1,906,327 |
| Accrued expenses | 1,221,873 | 1,625,923 |
| Current portion of long-term debt | 395,108 | 697,834 |
| Total current liabilities | 3,327,051 | 4,230,084 |
| Deferred gain on sale and leaseback of property | 529,174 | 630,152 |
| Note Payable Long Term - East West Bank | 4,502,381 | 2,685,560 |
| Total liabilities | 8,358,606 | 7,545,796 |
| Series A convertible preferred stock | 8,802,000 | 8,802,000 |
| Series A exchangeable preferred stock | 5,135,640 | 5,135,640 |
| Common stock | 76,117 | 55,069 |
| Additional paid-in capital | 18,663,113 | 12,023,721 |
| Treasury stock | (101,480) | (101,480) |
| Accumulated deficit | (20,247,493) | (13,066,319) |
| Total stockholders' equity | 12,327,897 | 12,848,631 |
| Total liabilities & stockholders' equity | $ 20,686,503 | $ 20,394,427 |