Arrhythmia Research Technology Announces Second Quarter Earnings.Business Editors & Medical/Biotech Writers AUSTIN, Texas--(BUSINESS WIRE)--Aug. 21, 2000 Arrhythmia arrhythmia (ārĭth`mēə), disturbance in the rate or rhythm of the heartbeat. Various arrhythmias can be symptoms of serious heart disorders; however, they are usually of no medical significance except in the presence of Research Technology Inc. (AMEX AMEX See: American Stock Exchange :HRT HRT abbr. hormone replacement therapy Hormone replacement therapy (HRT) Also called estrogen replacement therapy, this controversial treatment is used to relieve the discomforts of menopause. )("ART"), reported revenue of $2,863,091 and net income of $644,842 for the second quarter of 2000 compared to revenue of $2,922,771 and net income of $197,382 for 1999. For the six months ended June 30, revenue was $5,406,917 and net income was $746,573 for 2000 compared to revenue of $5,364,454 and net income of $196,251 for 1999. Included in the 2000 totals was revenue of $1,000,000 ($760,000 net of tax) arising from a one-time payment by GE/Pruka to terminate a commission agreement for CardioLab sales that was due to expire Dec. 31, 2002. The special commission payment added $.22 to net income per share in 2000.
Second Quarter Six Months
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2000 1999 2000 1999
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Revenue 2,863,091 2,922,771 5,406,917 5,364,454
Net income 644,842 197,382 746,573 196,251
Net income per
share .19 .06 .22 .06
Weighted average
shares 3,376,710 3,440,601 3,421,316 3,440,601
Excluding the effect of commissions from CardioLab sales as reported in the 2000 and 1999 results of operations, revenue was $1,863,091 with a net (loss) of ($115,158) for the second quarter of 2000 compared to revenue of $2,593,625 with a net income of $88,764 in 1999. The majority of the $730,534 decline in sales occurred in Micron Products of sensors and snaps. This change was the result of customers building inventory in the first quarter and reducing orders in the second quarter. Legal expenses of $90,821 were incurred in the second quarter in connection with the environmental investigation by the Attorney General's office of Massachusetts. The company has been informed the investigation has concluded with no adverse actions. The drop in net income due to lower sales and legal expenses was partially offset by savings from closing down a startup polymer line in early 2000 and the contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction of operations in the Texas facility. For the six-month periods ended June 30, excluding the effect of commissions from CardioLab sales as reported in the 2000 and 1999 results of operations, revenue was $4,406,917 and a net (loss) of ($13,427) compared to revenue of $5,109,435 and net income of $27,938 in 1999. Two major Micron customers accounted for the lower revenue; a portion is expected to be recovered in the second half of 2000. Legal expenses of $121,710 were incurred in the six months ended June 30, 2000 in connection with the environmental investigation by the Attorney General's office of Massachusetts. All significant legal costs associated with the investigation have been expensed in the first six months of 2000. Net income improved slightly due to cost savings at both the Texas and Massachusetts operations. Research and development expenses have increased approximately 20% in 2000 as compared to 1999. ART is in the process of converting its bi-spec signal averaged ECG ECG electrocardiogram. ECG abbr. 1. electrocardiogram 2. electrocardiograph ECG Also called an electrocardiogram, it records the electrical activity of the heart. software from a DOS format To format an unformatted floppy fresh from the box, put it into drive A or B and type: format a: or format b: re> and answer the prompts. FLOPPY DISK SIZES There are four floppy disk capacities: Diameter Capacity Name 5.25" 1. to a Windows format and Micron has several projects in various stages of development. The major goals of the Company are focused on growth and exploiting its proprietary and patented technologies in an effort to improve sales and earnings in 2001. Net income is favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted in 2000 by an income tax rate that is one-half of that recorded in 1999. The reduced Federal income tax is due to the higher utilization of deferred tax deductions Tax deduction An expense that a taxpayer is allowed to deduct from taxable income. tax deduction See deduction. as a result of the $1,000,000 commission income to terminate the GE/Pruka agreement. 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. made herein are based on current expectations of the Company and involve a number of risks and uncertainties and should not be considered as guarantees of future performance. These statements are made under the Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Provisions 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. The factors that could cause actual results to differ materially include: interruptions or cancellation of existing contracts, impact of competitive products and pricing, product demand and market acceptance, risks, the presence of competitors with greater financial resources than the Company, product development and commercialization risks and an inability to arrange additional debt or equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. . |
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