Arrhythmia Research Technology Announces Third Quarter Earnings.Business Editors & Medical/Biotech Writers AUSTIN, Texas--(BUSINESS WIRE)--Nov. 14, 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 $2,108,247 and net income of $21,933 for the third quarter of 2000 compared to revenue of $2,609,674 and net income of $175,938 for 1999. For the nine months ended Sept. 30, revenue was $7,515,164 and net income was $768,506 for 2000 compared to revenue of $7,974,128 and net income of $372,189 for 1999. Included in the 2000 totals (as reported in the second quarter) was revenue of $1,000,000 ($760,000 net of tax) arising from a one-time payment by GE Marquette Medical Systems ("GE") to terminate a commission agreement between ART and Prucka Engineering Inc. ("PEI") for CardioLab sales that was due to expire Dec. 31, 2002. The special commission payment added $.22 to net income per share in 2000.
Third Quarter Nine Months
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2000 1999 2000 1999
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Revenue 2,108,247 2,609,674 7,515,164 7,974,128
Net income 21,933 175,938 768,506 372,189
Net income per share .01 .05 .23 .11
Weighted average shares 3,323,229 3,439,310 3,403,422 3,439,310
The decline in sales reflected reduced orders by two large customers of Micron Products Inc. sensors and snaps over the summer period. The backlog for Micron has recovered to a level that indicates revenues should improve in the fourth quarter of 2000. Net income was $21,933 for the third quarter of 2000 compared to $175,938 for 1999, the decline directly attributable to no commission income from PEI and the lower Micron sales volume. Included in the revenues and net income for the nine months ended Sept. 30, 2000 is $1,000,000 of revenue and $760,000 of net income from a one-time payment by GE to terminate a commission agreement for CardioLab sales that was due to expire Dec. 31, 2002. Excluding the effect of commissions from CardioLab sales as reported in the 2000 and 1999 results of operations, revenues would be $6,515,164 and net income would be $8,506 in 2000 compared to revenues of $7,603,005 and net income of $93,432 in 2000. In addition to lower sales and related lower profits, legal expenses of $121,710 were incurred in 2000 in connection with the environmental investigation by the Attorney General's office of Massachusetts. The investigation has been concluded with no adverse actions and all significant legal costs were expensed in the first six months of 2000. 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 substantially lower than 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. than provided for in the 1999 valuation allowance for deferred tax assets. In addition to savings generated by the cost reductions at the Texas headquarters and manufacturing cost reductions at Micron, ART's conversion of 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 should supplement the planned improvement in sales and earnings in 2001 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's proprietary and patented technologies. 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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