[0] Adac Laboratories Reports Financial Results for the Second Quarter of Fiscal 2000; Strong PET Imaging Performance Fuels Improved Financial Results.Business Editors and High Tech Writers MILPITAS Milpitas (mĭl'pē`təs), city (1990 pop. 50,686), Santa Clara co., W Calif., a suburb of San Jose, southeast of San Francisco; inc. 1954. Manufactures include computers and paint. , Calif.--(BUSINESS WIRE)--April 27, 2000 ADAC ADAC Allgemeiner Deutscher Automobil Club (German automobile club) ADAC Aboriginal Drug and Alcohol Council ADAC Art Directors and Artists Club (Sacramento, California) ADAC Alcohol and Drug Abuse Council Laboratories (Nasdaq: ADAC) today announced its financial results for the second quarter of fiscal 2000. For the second quarter of fiscal 2000, revenues were $90.0 million compared to $87.4 million reported for the second quarter of fiscal 1999. Net income for the second quarter of fiscal 2000 was $3.1 million, or $0.15 per share, compared to a net loss, excluding pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and non-ordinary charges, of $7.9 million, or $0.39 per share, for the second quarter of fiscal 1999. The results for the second quarter of fiscal 1999 included pre-tax restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of $0.8 million and pre-tax non-ordinary charges of $17.2 million. "We are pleased with the results for the second quarter," said R. Andrew Eckert Eck·ert , John Presper 1919-1995. American engineer who contributed to the development of ENIAC (Electronic Numeral Integrator and Calculator), the first electronic computer (1946). , ADAC's chairman and chief executive officer. "As expected, improved gross margins and tight control of operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. delivered strong earnings performance in the quarter. In particular, our company is benefiting from the rapidly growing demand for C-PET(TM), our dedicated positron emission tomography positron emission tomography: see PET scan. positron emission tomography (PET) Imaging technique used in diagnosis and biomedical research. (PET) product. We received orders for 16 C-PET units during the second quarter. This compares to 10 units ordered in the first quarter and a run rate of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. three units per quarter during fiscal 1999. The growth in the PET market is helping to offset the soft demand we are experiencing in our two software businesses. The results for both our radiation therapy products and healthcare information systems businesses have been below plan year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. as both markets remain quite sluggish. However, the strong growth in our profitable PET business is a very positive trend for the Company." ADAC also made a number of important strategic announcements in the past three months, including:
-- The receipt of 510(k) marketing clearance from the U.S. Food and
Drug Administration (FDA) for its revolutionary Skylight(TM)
gantry-free nuclear imaging gamma camera. Skylight's innovative
design increases flexibility and productivity for clinicians and
will be particularly beneficial in addressing their most
challenging patient imaging situations.
-- An agreement with Seattle Systems to jointly develop and market
product capabilities that will enable hospitals to transfer
clinical data between ADAC's nuclear medicine imaging products
and Seattle Systems' cardiovascular information management
systems. Clinicians will then be able to access integrated
patient records from anywhere, at any time via Seattle Systems'
CardioChart.com(TM) secure web portal.
-- The receipt of 510(k) marketing clearance for its Pinnacle3(TM)
Version 5.0, the latest release of ADAC's Pinnacle3 3D radiation
therapy planning software. Additionally, the Company announced
that it will release its implementation of forward planning
intensity modulated radiation therapy (IMRT) in June 2000.
-- The introduction of SmartSim(TM), a fully integrated CT (computed
tomography) simulation and radiation therapy planning package,
that enables the Company to enter the largely untapped market for
CT simulation products.
-- The introduction of QuadRIS(TM) OnLine, a web-based radiology
report accessing application. The Company also announced its
intention to offer QuadRIS in an ASP (application service
provider) model to meet the needs of a broader set of radiology
customers.
-- The formation of a strategic alliance with OptiMed Technologies,
a leader in cardiac image management, to provide CAATi(TM), an
integrated cardiac catheterization lab image archive and
information management system. The CAATi System enables
physicians to obtain quick access to all catheterization data and
can improve diagnostic efficiency.
Mr. Eckert commented, "These announcements continue to demonstrate ADAC's leadership role in technical innovation in the markets we serve and we believe provide us with an excellent platform to drive future growth." About ADAC Laboratories ADAC Laboratories is the world market-share leader in nuclear medicine and radiation therapy planning systems See spreadsheet and financial planning system. and a technology leader in providing clinical workflow The automatic routing of documents to the users responsible for working on them. Workflow is concerned with providing the information required to support each step of the business cycle. solutions, management information and knowledge systems to healthcare organizations in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . ADAC is headquartered in Milpitas, CA with its HealthCare Information Systems Division in Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; , TX. Additional information about ADAC can be found on its web site at www.adaclabs.com. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, including statements concerning the Company's future revenues, expenses and income, the markets for the Company's products, including the recent growth in the PET market, the Company's market position and the Company's product leadership and future product offerings. Factors that could cause actual results to differ materially from those contained in such forward-looking statements include, but are not limited to, the existence of significant competition in the markets served by the Company; the inability of the Company to successfully market its products; risks related to the growth prospects of the markets ADAC serves, including the PET market; the Company's dependence on successfully developing, introducing, manufacturing, and commercializing new products and developing enhancements to existing products. Further information on certain of these and other factors is described in the "Business Considerations" section of the Company's most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended October October: see month. 3, 1999. All forward-looking statements are based on information available to the Company on the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the Company assumes no obligation to update such statements.
ADAC LABORATORIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
April 2, October 3,
2000 1999
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 6,573 $ 5,796
Trade receivables, net 82,180 80,393
Tax and other receivables 2,831 2,265
Inventories, net 25,774 35,076
Prepaid expenses and
other current assets 6,414 5,620
Current deferred income taxes 14,523 13,717
--------- ---------
Total current assets 138,295 142,867
Service parts, net 18,599 18,297
Fixed assets, net 16,391 15,555
Capitalized software, net 20,216 17,417
Intangibles, net 39,229 41,024
Non-current deferred
income taxes 3,210 3,230
Other assets, net 1,437 1,272
--------- ---------
Total assets $ 237,377 $ 239,662
========= =========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Notes payable to banks $ 41,092 $ 51,961
Accounts payable 21,983 13,492
Deferred revenues 18,795 17,185
Accrued compensation 13,426 12,750
Customer deposits and advances 7,054 6,757
Warranty and installation 6,308 5,835
Other accrued liabilities 18,221 20,461
--------- ---------
Total current liabilities 126,879 128,441
Non-current liabilities
and deferred credits 3,897 3,708
--------- ---------
Total liabilities 130,776 132,149
--------- ---------
SHAREHOLDERS' EQUITY:
Preferred stock, no par value;
Authorized: 5,000 shares;
Issued and outstanding: none -- --
Common stock, no par value:
Authorized: 50,000 shares;
Issued and outstanding: 20,635 shares
as of April 2, 2000 and 20,542 shares
as of October 3, 1999 155,460 154,275
Accumulated deficit (45,214) (43,886)
Accumulated other comprehensive loss (3,645) (2,876)
--------- ---------
Total Shareholders' Equity 106,601 107,513
--------- ---------
Total Liabilities and
Shareholders' Equity $ 237,377 $ 239,662
========= =========
ADAC LABORATORIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
Three Six
Months Ended Months Ended
April 2 April 4 April 2 April 4
2000 1999 2000 1999
Revenues, net:
Product $ 67,596 $ 63,520 $ 134,277 $ 134,426
Service 22,417 23,873 46,058 47,246
-------- -------- -------- --------
90,013 87,393 180,335 181,672
-------- -------- -------- --------
Cost of revenues:
Product 41,033 55,697 82,720 94,782
Service 16,194 18,250 32,696 34,829
-------- -------- -------- --------
57,227 73,947 115,416 129,611
-------- -------- -------- ---------
Gross profit 32,786 13,446 64,919 52,061
-------- -------- -------- ---------
Operating expenses:
Marketing and sales 13,690 19,138 28,243 34,601
Research and development 4,468 4,478 9,545 8,844
General and administrative 7,862 15,888 15,720 24,227
Goodwill amortization 513 502 1,026 990
Restructuring charges -- 800 -- 3,300
Settlement of litigation
and related charges -- -- 10,340 --
--------- --------- --------- ---------
26,533 40,806 64,874 71,962
--------- --------- --------- ---------
Operating income (loss) 6,253 (27,360) 45 (19,901)
Other expense:
Interest and other, net 1,259 1,741 2,152 2,981
--------- --------- --------- ---------
Income (loss) before
provision (benefit)
for income taxes 4,994 (29,101) (2,107) (22,882)
Provision (benefit)
or income taxes 1,848 (8,310) (779) (5,947)
--------- --------- --------- ---------
Net income (loss) $ 3,146 $ (20,791) $ (1,328) $ (16,935)
========= ========= ========= =========
Net income (loss) per share
Basic $ 0.15 $ (1.02) $ (0.06) $ (0.83)
========= ========= ========= =========
Diluted $ 0.15 $ (1.02) $ (0.06) $ (0.83)
========= ========= ========= =========
Number of shares used in per
share calculations
Basic 20,637 20,456 20,611 20,414
========= ========= ========= =========
Diluted 21,175 20,456 20,611 20,414
========= ========= ========= =========
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