Company Announces 15% Quarterly Revenue Increase Over Prior Year and Sixth
Consecutive Quarter of Year Over Year Revenue Growth
SAN DIEGO, July 1 /PRNewswire-FirstCall/ -- CardioDynamics (Nasdaq: CDIC),
the innovator and leader of BioZ(R) Impedance Cardiography (ICG) technology,
today reported financial results for fiscal second quarter 2008. Highlights
include 18% revenue increase for first half fiscal 2008, 15% quarterly revenue
increase over prior year and sixth consecutive quarter of year over year
revenue growth.
Sales Highlights of Second Quarter 2008 Compared with Second Quarter 2007
-- Net sales increased 15% to $6.2 million, up from $5.4 million
-- Over 8,200 ICG monitors and modules sold to date, up 12% from 7,300 one
year ago
-- ICG device sales totaled 217 units, including 137 ICG monitors, 108 of
which were BioZ Dx systems, 14 BioZ monitors, and 15 Medis ICG monitors
-- ICG sensor revenue increased 1% to $1.7 million, comprising 28% of
total sales, and increased 14% sequentially over first quarter 2008
-- International and new market revenue grew 11% to $782,000
Key Financial Results of Second Quarter 2008 Compared with Second Quarter
2007
-- Gross profit margin was 71%, up from 63%
-- Operating loss was $476,000, an improvement of $1.0 million, or 68%,
from $1.5 million
-- Net loss was reduced 62% to $732,000, or ($0.10) per diluted share,
from a net loss from continuing operations of $1.9 million, or ($0.28) per
diluted share
-- Operating cash use was $490,000, down 43%, from an operating cash use
from continuing operations of $860,000
-- Cash, cash equivalents and short-term investments at May 31, 2008, of
$6.9 million, up 47% from $4.7 million at May 31, 2007
Additional Key Operating Milestones for the Second Quarter 2008
-- Released significant ICG study demonstrating nearly three times the
national average blood pressure control rates at the American Society for
Hypertension Annual Scientific meeting
-- Completed one-for-seven reverse split of company's common stock
-- Regained compliance with Nasdaq listing requirements
Second Quarter 2008 Operating Results Discussion
The Company reported a net sales increase of 15% to $6.2 million. ICG
sales growth was due to a combination of 8% higher average domestic ICG
monitor sales prices, a 20% increase in domestic ICG System sales and an 11%
improvement in international and new market revenue (primarily due to
increased revenue from pharmaceutical companies). The higher average domestic
sales price indicates continued physician acceptance and a solid value
proposition for ICG technology. The improvement in international and new
market revenue is a result of the Company's increased focus on non-Medicare
reimbursement dependant markets. Recurring sensor revenue grew 14%
sequentially from first quarter 2008 to $1.7 million, and was up 1% compared
to the same period in 2007.
Gross margin as a percentage of sales increased from 63% to 71% in the
second quarter of 2008, largely due to a higher net average sales price per
unit, lower manufacturing expenses and reduced inventory charges related to
potential excess, slow-moving or obsolete inventory. Operating expenses were
held flat at $4.9 million and increased revenue, along with improved gross
margins, drove a 68% improvement in the operating loss. The reduced operating
loss, coupled with sound working capital management, resulted in a 43%
reduction in operating cash usage to $490,000 in the quarter, down from an
$860,000 operating cash use from continuing operations in the same quarter of
2007.
CEO Comments and Outlook
Michael K. Perry, Chief Executive Officer of CardioDynamics, stated, "We
are very pleased with the 18% revenue growth achieved in the first half of
2008 and 15% during the second quarter. Sales momentum continues strong and
with steady improvement throughout the business, we completed our sixth
consecutive quarter of year over year revenue growth. We are making very good
progress in expanding gross margins and reducing the operating loss, down 68%
to $476,000, which includes $247,000 of non-cash charges for depreciation,
amortization and equity compensation. We see sizable opportunity to continue
to grow the business and recently hired 12 new sales and clinical personnel to
replace open positions and further expand our field sales force. Our
operating plan remains to achieve at least 15% revenue growth for 2008 and
deliver positive operating cash flow in the fourth quarter."
The Company also announced the retirement of Russ Bergen as its Vice
President of Operations. Perry stated, "We are grateful for the fine
contribution that Russ has made to CardioDynamics as our Vice President of
Operations for the past ten years. He was responsible for establishing and
growing our excellent operations team that consistently delivered high quality
products and services, and also oversaw the manufacturing and launch of three
generations of proprietary, impedance cardiography systems. We wish him the
very best in this new stage of life."
Conference Call Information
Michael K. Perry, Chief Executive Officer, and Steve P. Loomis, Chief
Financial Officer, will host a summary of CardioDynamics' second quarter 2008
results in a conference call today, Tuesday, July 1, 2008, at 4:30 p.m. (EDT).
To access the conference call, dial 800-346-7359 (Code 7784). International
participants can call 973-528-0008 (Code 7784). A replay of the call will be
available for 30 days following the call at 800-332-6854 (Code 7784). The
international replay number is 973-528-0005 (Code 7784). The Internet webcast
can be accessed through the Investor Relations section of the Company's
website at http://www.cdic.com or at
http://phx.corporate-ir.net/playerlink.zhtml?c=86923&s=wm&e=1873789
About CardioDynamics
CardioDynamics (Nasdaq: CDIC), the ICG Company, is the innovator and
leader of an important medical technology called impedance cardiography (ICG).
The Company develops, manufactures and markets noninvasive ICG products and
medical device electrodes. The Company's ICG Systems are being used by
physicians around the world to help battle the number one killer of men and
women -- cardiovascular disease. Partners include GE Healthcare, Philips
Medical Systems and Mindray. For additional information, please refer to the
company's Web site at http://www.cdic.com.
Forward-Looking (Safe Harbor) Statement
Except for historical and factual information contained herein, this press
release contains forward-looking statements, such as revenue growth rates and
cash flow projections, increasing physician acceptance of ICG technology,
diversification and new market development, success of clinical trials or
investments in core technology, the accuracy of which is necessarily subject
to uncertainties and risks including the Company's primary dependence on the
BioZ product line, and various uncertainties characteristic of early stage
companies, as well as other risks detailed in the Company's filings with the
SEC, including its 2007 Form 10-K. The Company does not undertake to update
the disclosures contained in this press release.
CardioDynamics International Corporation
In thousands, except per share data (unaudited)
Selected Consolidated Three Months Ended Six Months Ended
Operational Results May 31, May 31,
2008 2007 2008 2007
Net sales $6,180 $5,380 $11,942 $10,107
Cost of sales 1,772 1,966 3,547 3,186
Gross margin 4,408 3,414 8,395 6,921
Research and development 370 454 684 897
Selling and marketing 3,721 3,680 7,443 7,124
General and administrative 761 720 1,532 1,665
Amortization of intangible assets 32 30 64 85
Loss from operations (476) (1,470) (1,328) (2,850)
Other expense, net (192) (241) (358) (448)
Loss before income taxes and
minority interest (668) (1,711) (1,686) (3,298)
Minority interest in income of
subsidiary (11) (21) (145) (35)
Income tax provision (53) (196) (516) (250)
Income (loss) from discontinued
operations - (11,102) 127 (11,109)
Net loss $(732) $(13,030) $(2,220) $(14,692)
Net loss per common share:
Basic and diluted $(0.10) $(1.86) $(0.31) $(2.10)
Weighted-average shares used in per
share calculation:
Basic and diluted 7,193 7,005 7,150 6,990
Selected Consolidated May 31, November 30,
Balance Sheet Data 2008 2007
Cash and cash equivalents $6,936 $8,362
Accounts receivable, net 3,797 4,475
Inventory, net 1,196 1,670
Total current assets 12,472 15,164
Long-term assets 4,778 4,703
Total assets 17,250 19,867
Total current liabilities 8,151 5,620
Long-term liabilities 910 4,318
Total liabilities 9,061 9,938
Minority interest 495 407
Shareholders' equity 7,694 9,522
SOURCE CardioDynamics
-0- 07/01/2008
/CONTACT: Steve P. Loomis of CardioDynamics, 1-800-778-4825, ext. 1015,
sloomis@cardiodynamics.com/
/Web site: http://www.cdic.com /
(CDIC)
CO: CardioDynamics
ST: California
IN: HEA MTC
SU: ERN CCA PER
CW-CD
-- LATU545 --
7310 07/01/2008 16:05 EDT http://www.prnewswire.com
