CULVER CITY, Calif., April 1, 2002 (PRIMEZONE) -- Careside, Inc. (AMEX:CSA), a provider of Point-of-Care blood analysis instrumentation and records management, announced today results for the fourth quarter and year ended December 31, 2001. For the fourth quarter of 2001, the Company had revenues of $344,000, with a net loss of $5.3 million, or $0.34 net loss per share, compared to revenues of $105,000, with a net loss of $4.7 million, or $0.49 net loss per share, for the prior year's fourth quarter.
For the year ended December 31, 2001, the Company reported revenues of $1.0 million, with a net loss of $20.4 million, or $1.64 net loss per share, versus revenues of $741,000, with a net loss of $16.9 million, or $1.92 net loss per share, for 2000. The 2001 fourth quarter and year-end results of operations include a one-time $1.7 goodwill write-off and year to date results include an additional $4.7 million in non-cash accounting charges associated with the Company's financing efforts and dividends to preferred stockholders.
The 2000 fourth quarter and year-end results of operations include a $600,000 charge to provide inventory reserves and $200,000 in non-cash accounting charges associated with the Company's financing efforts and dividends to preferred stockholders. During 2001, approximately $2.7 million of expense was recorded as cost of goods, which had previously been recorded as development expense prior to the fourth quarter of 2000 when the company was in the development stage.
Careside reported in its Form 10-K, filed on March 29, 2002, that it had sufficient liquidity and capital resources to take it through at least the first quarter of 2002. Careside has received bridge loans that have provided recent financing sufficient for the company's immediate needs pending the close of the next financing. Careside has been working diligently to secure additional financing but has not closed on any 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. Careside's audit report continues to be modified with a going concern opinion for the year 2001 as a result of its cash and liquidity position at December 31, 2001. "In addition to working on securing additional sources of capital, Careside has taken steps to reduce its monthly burn rate," stated W. Vickery Stoughton, Careside's CEO. "This has been done without negatively affecting sales, customer support and manufacturing and will enable the company to stretch its capital Resources."
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 future financings, are forward-looking statements that involve risks and uncertainties. Key factors which may impact these statements include the ability of the Company to obtain financing on terms deemed acceptable to it under the circumstances, product acceptance in the market, regulatory and other forces within the health care market, and other challenges inherent in sales, marketing and manufacturing, and the other factors discussed in the Company's prospectus that was effective in 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.
Abbreviated Consolidated Statements of Operations
(in thousands) Three months ended Year ended
Dec. 31, (unaudited) Dec. 31,
----------------------- --------------------
2000 2001 2000 2001
---- ---- ---- ----
SALES, net $ 105 $ 344 $ 741 $ 1,025
COST OF SALES 690 1,008 1,001 4,088
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GROSS PROFIT (585) (664) (260) (3,063)
OPERATING EXPENSES:
Research and development
-- product 2,359 590 9,074 2,878
Research and development
-- Information Tech 406 398 898 1,165
Sales and marketing 799 1,133 3,657 3,915
General and
administrative 175 697 2,124 2,130
Impairment of goodwill -- 1,662 -- 1,662
Goodwill amortization 142 94 567 520
-------- -------- -------- --------
Total operating
expenses 3,881 4,574 16,320 12,270
-------- -------- -------- --------
OPERATING LOSS: (4,466) (5, 238) (16,580) (15,333)
INTEREST INCOME
(EXPENSE) (103) (92) (123) (336)
-------- -------- -------- --------
NET LOSS $ (4,569) $ (5,330) $(16,703) $(15,669)
-------- -------- -------- --------
Non-cash charges
associated with
Preferred Stock $ 183 $ -- $ 236 $ 4,739
-------- -------- -------- --------
NET LOSS to common
stockholders $ (4,752) $ (5,330) $(16,939) $(20,408)
NET LOSS PER SHARE $ (0.49) $ (0.34) $ (1.92) $ (1.64)
Weighted average number
of common stock and
common stock
equivalents
outstanding 9,535 15,480 8,800 12,423
Abbreviated Consolidated Balance Sheets
(in thousands) Dec. 31, Dec. 31,
2000 2001
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,789 $ 39
Accounts receivable 104 158
Inventories 2,698 2,498
Prepaid expenses and other 174 481
PROPERTY AND EQUIPMENT (net) 5,643 3,964
DEPOSITS 24 24
GOODWILL (net) 2,231 50
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Total Assets $12,663 $ 7,214
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LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES 4,744 5,649
LONG-TERM DEBT 1,215 492
MANDITORILY REDEEMABLE Series B 1,054 --
STOCKHOLDERS' EQUITY 5,650 1,073
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Total liabilities and
Stockholders' equity $12,663 $ 7,214
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