Company Rapidly Approaches December Launch of Blood-Testing System; Sales, Operational and Production Infrastructure is In Place; Test Menu has Expanded with Additional FDA Test Approvals
CULVER CITY, Calif., Nov. 4, 1999, (PRIMEZONE) -- CARESIDE, Inc. (AMEX:CSA) announced a net loss for the third quarter ended September 30, 1999 of $(2.8) million or $(0.39) per share compared to a net loss of $(2.6) million or $(0.51) per share for the same period last year.
For the nine months ended September 30, 1999, the Company reported a net loss of $(8.1) million or $(1.39) per share compared to $(6.6) million or $(1.48) per share for the comparable period last year.
"Our plans for commercial introduction of the CARESIDE Analyzer are on-track for a December launch," said Chairman and CEO W. Vickery Stoughton. "Our operational and production infrastructure is readied, and our sales force has already begun preselling the device to a very receptive audience. We are greatly encouraged that initial order flow is already beginning. In addition, we have been finalizing several software modifications that will provide the CARESIDE Analyzer with a comprehensive data capture of blood-testing records for each patient."
During the quarter, the Company also announced clearance of its CARESIDE(TM) Magnesium and CO2, blood tests by the U.S. Food and Drug Administration (FDA), bringing the current number of cleared or exempt tests on the CARESIDE Analyzer(TM) to 36. CARESIDE's Magnesium test measures the magnesium concentration in anti-coagulated blood and plasma. Magnesium deficiency or elevation is a common sign of a variety of diseases and conditions. The test is frequently included as part of a routine lab profile. Carbon Dioxide (CO2,) is an important test since it is included on all test panels currently approved by Medicare for reimbursement.
In early November, the Company submitted for FDA review the results of its clinical studies to validate its product for point-of-care use. While the Careside Analyzer is already approved for sale, point-of-care designation will allow improved operating flexibility for its customers and allow marketing materials to reference point-of-care use. These studies were conducted during the third quarter.
Mr. Stoughton added, "On the business development front, we reached a milestone by adding a hematology component to our system, and by initiating our efforts to define a distribution network for Europe. We are moving forward with plans and submissions that would allow sales into international markets during 2000.
"Our sales force has been attending the major trade shows our potential clients participate in to demonstrate first hand the benefits of the CARESIDE Analyzer. We believe we are well-poised to execute our strategy of bringing to market the first comprehensive, integrated blood-testing system that may be performed at the same location as the patient and will produce accurate results in less than 15 minutes."
CARESIDE, Inc., based in Culver City, California is developing a proprietary blood testing system including its CARESIDE Analyzer(TM) a blood diagnostic device, and accompanying record management software. The Company plans to manufacture and distribute the product to health care providers in the U.S. and abroad.
Safe Harbor: Statements in this press release regarding CARESIDE Inc. which are not historical facts are forward-looking statements that involve risks and uncertainties. Such forward-looking statements include the date of market launch, the price of the instrument, and date of FDA submission. Key factors which may impact these statements include technological hurdles, study site efficiency, and other challenges inherent in product research, development, manufacturing, marketing, and other factors discussed in the Company's prospectus. 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
Three months ended Nine months ended
Sept. 30, Sept. 30,
1998 1999 1998 1999
OPERATING EXPENSES:
Research and
development costs 2,460 2,075 6,159 5,931
Sales and marketing 57 308 184 577
General and
administrative 178 422 465 957
Total operating
expenses 2,695 2,805 6,808 7,465
OPERATING LOSS: (2,695) (2,805) (6,808) (7,465)
INTEREST INCOME
(EXPENSE): 80 59 196 (654)
NET LOSS $(2,615) $(2,746) $(6,612) $(8,119)
Dividend payable on
Preferred Stock $-- $26 $-- $29
NET LOSS to common
shareholders $(2,615) $(2,772) $(6,612) $(8,148)
NET LOSS PER SHARE $(0.51) $(0.39) $(1.48) $(1.39)
Weighted average number
of common stock 5,084 7,084 4,477 5,868
and common stock equivalents outstanding
Abbreviated Balance Sheets
Dec. 31, 1998 Sept. 30, 1999
ASSETS (unaudited)
CURRENT ASSETS
Cash and cash equivalents $3,927 $8,533
Inventories -- 122
Prepaid expenses and other 82 120
PROPERTY AND EQUIPMENT (net) 3,386 5,546
DEFERRED OFFERING COSTS 498 --
DEPOSITS 18 15
Total Assets $7,911 $14,336
LIABILITIES AND
STOCKHOLDER'S EQUITY
CURRENT LIABILITIES 1,717 3,374
LONG-TERM DEBT 2,045 1,272
STOCKHOLDER'S EQUITY 4,149 9,690
Total liabilities and
stockholder's equity $7,911 $14,336
CONTACTS: Jim Koch, CFO
Careside, Inc.
310-338-6767
Linda Press
Sitrick And Company
310-788-2850