Bio-logic Reports 15% Increase in Third Quarter Earnings Per Share.MUNDELEIN, Ill. -- 12% Sales Increase Led by Continued Strength in Sleep Systems; Board of Directors Declares Three-for-Two Stock Split Bio-logic Systems Corp. (Nasdaq:BLSC BLSc Bachelor of Library Science BLSC Black Lion Swimming Club (UK) BLSC Boulders, Silt and Clay (lithological term) BLSC Bond Lake Skating Club (Oak Ridges, Ontario, Canada) ), a designer and marketer of computerized computerized adapted for analysis, storage and retrieval on a computer. computerized axial tomography see computed tomography. medical electro-diagnostic equipment and disposables, today reported financial results for the fiscal third quarter and nine months ended November 30, 2004. The company reported strong sales growth in sleep systems, and in hearing supplies and accessories. Third Quarter Results Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the third quarter ended November 30, 2004 increased 11.5 percent to $7.8 million, compared to $7.0 million for the same quarter of the prior fiscal year. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. decreased, however, to 64.3 percent from 65.1 percent for the same period of the prior fiscal year, due primarily to changes in product mix within electro-diagnostic products and systems, partially offset by reduced inventory reserves. Total selling, general and administrative expense (SG&A) for the quarter increased $265,000 to $3.2 million, compared to $2.9 million for the third quarter of fiscal 2004. This increase was due primarily to expenses associated with the higher sales, certain professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. , which included approximately $70,000 for Sarbanes-Oxley compliance, and bad debt expense, partially offset by reductions in provisions for medical plan costs. Research and development expense (R&D) increased $94,000 to $1.1 million, compared to $1.0 million for the same period of the prior fiscal year, due primarily to higher payroll-related expenses and increased software development costs, partially offset by a reduction in consulting expenses and an increase in the capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. of software development costs. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the quarter increased 16 percent to $713,000, compared to $613,000 for the same quarter of the prior fiscal year. Net income for the quarter was $672,000, or $0.15 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, a 15 percent increase compared to $582,000, or $0.13 per diluted share, in the third quarter of fiscal 2004. Nine Months Results For the nine months ended November 30, 2004, net sales increased 10.1 percent to $22.3 million, compared to $20.2 million for the same period of the prior fiscal year. Gross profit margin decreased, however, to 66.1 percent from 66.6 percent, due mainly to changes in product mix within electro-diagnostic products and systems. SG&A for the first nine months of fiscal 2005 increased $650,000 to $9.5 million, compared to $8.9 million for the same period in fiscal 2004. The increase was primarily due to expenses associated with the higher sales, certain professional services, including approximately $70,000 for Sarbanes-Oxley compliance, and bad debt expense, partially offset by reductions in provisions for medical plan costs. R&D increased $229,000 to $3.4 million, compared to $3.1 million in the prior fiscal year, primarily due to higher payroll-related expenses and increased software development costs, partially offset by reduced consulting expenses and an increase in the capitalization of software development costs. The company had operating income of $1.8 million in the first nine months of fiscal 2005, compared to $1.5 million for the first nine months of fiscal 2004, a 26 percent increase. Net income for the nine months increased 19 percent to $1.5 million, or $0.32 per diluted share, compared to $1.3 million, or $0.28 per diluted share, for the same period of the prior fiscal year. Cash and cash equivalents at November 30, 2004 were $15.0 million, an increase of $2.3 million from the February 29, 2004 fiscal year end. Book value per share at the end of the fiscal 2005 third quarter increased to $5.18, up from $4.86 at the end of fiscal 2004. "The solid sales and earning gains in the third quarter were again led by our sleep product line," said Roderick G. Johnson, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "Sleep apnea sleep apnea, episodes of interrupted breathing during sleep. Obstructive sleep apnea is a common disorder in which relaxation of muscles in the throat repeatedly close off the airway during sleep; the person wakes just enough to take a gasping breath. monitoring continues to be a growing area of clinician clinician /cli·ni·cian/ (kli-nish´in) an expert clinical physician and teacher. cli·ni·cian n. and patient interest, and our Sleepscan(TM) products, further bolstered by the recently introduced Sleepscan VISION(TM), are well regarded in the marketplace. The pace of growth in our domestic hearing system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. continued to be more moderate than in recent years. International system sales in both the quarter and year-to-date are only slightly ahead of the prior year, and continue to be led by the Navigator(R) Pro M.A.S.T.E.R(TM) and AEP AEP - Application Environment Profile ." Looking Forward "We are encouraged by the recent strong growth in sleep apnea monitoring and are continuing to emphasize that market in our sales efforts. The HALO Ear Muffin(TM), our over-the-ear acoustic coupler A device that connects a terminal or computer to the handset of a telephone. It contains a shaped foam bed that the handset is placed in, and it also may contain the modem. that has been demonstrated to be equivalent to the Natus(R), ALGO ALGO Algorithm (R) Flexicoupler(TM), continues to gain customer acceptance, and we expect it to be an important engine of growth in our disposable products Disposable products are items that are not intended by the manufacturer to be reused more than once or a few times as compared to more permanent serviceable and reusable items. Some products that have disposable versions are:
"During the third quarter we began shipping our new and exclusive CHAMP(TM) software for use in the detection of Meniere's Disease Mé·nière's disease n. A pathological condition of the inner ear that is characterized by dizziness, ringing in the ears, and progressive loss of hearing. Also called auditory vertigo, endolymphatic hydrops, labyrinthine vertigo. , an affliction that affects over 2.6 million Americans. Meniere's Disease is characterized char·ac·ter·ize tr.v. character·ized, character·iz·ing, character·iz·es 1. To describe the qualities or peculiarities of: characterized the warden as ruthless. 2. by attacks of vertigo vertigo (vûr`tĭgō), sensations of moving in space or of objects moving about a person and the resultant difficulty in maintaining equilibrium. , fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. hearing loss, ringing in the ear (tinnitus Tinnitus Definition Tinnitus is hearing ringing, buzzing, or other sounds without an external cause. Patients may experience tinnitus in one or both ears or in the head. ) and a sense of fullness in the ear. CHAMP was developed in cooperation with the inventor INVENTOR. One who invents or finds out something. 2. The patent laws of the United States authorize a patent to be issued to the original inventor; if the invention is suggested by another, he is not the inventor within the meaning of those laws; but in that , Manuel Don, Ph.D. at the House Ear Institute, and operates on our versatile Navigator(R) Pro platform. Bio-logic has the exclusive license and has applied for a patent. CHAMP will be featured in a program hosted by House Ear Institute & House Clinic at the 5th International Symposium on Meniere's Disease & Inner Ear Homeostasis homeostasis Any self-regulating process by which a biological or mechanical system maintains stability while adjusting to changing conditions. Systems in dynamic equilibrium reach a balance in which internal change continuously compensates for external change in a feedback Disorders in April 2005," Johnson concluded. Stock Split On January 7, 2005, Bio-logic's Board of Directors declared a three-for-two stock split on its Common Stock, to be effected as a 50 percent stock dividend. The new shares and cash payments in lieu of Instead of; in place of; in substitution of. It does not mean in addition to. fractional shares Fractional share Stocks amounting to less than one full share, usually resulting from splits, acquisitions, exchanges, or dividend reinvestment programs. fractional share Less than one share of stock, that is, one-third or one-half a share. will be distributed on February 11, 2005, to stockholders of record on January 26, 2005. As a result of the split, stockholders will receive one additional share of Common Stock for every two shares owned on January 26, 2005. Cash payments in lieu of fractional shares will be based on the closing price of the Common Stock on the record date. "As a direct response to an increasing interest from the investment community, management feels that the planned stock split, which may result in greater share liquidity by increasing the number of shares in the public float, is a good opportunity to increase the marketability of our shares and make it easier to invest in the company," said Gabriel Raviv, chairman and chief executive officer. About Bio-logic Bio-logic Systems Corp., headquartered in Mundelein, IL, designs, develops, assembles and markets computer-based electro-diagnostic systems and related disposables for use by hospitals, clinics, school districts, universities and physicians. The systems conduct tests that are typically used by medical practitioners to aid in the diagnosis of certain neurological disorders This is a list of major and frequently observed neurological disorders (e.g. Alzheimer's disease), symptoms (e.g.back pain), signs (e.g. aphasia) and syndromes (e.g. Aicardi syndrome). , brain disorders and tumors and sensory disorders, including audiological and hearing screening and diagnosis. Cautionary Note Regarding 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. This release contains forward-looking statements (as such term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934), including statements under the caption "Looking Forward," that reflect management's current expectations about Bio-logic's future results, performance, prospects and opportunities. Management has attempted to identify these forward-looking statements by using words such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "could," "should" or similar expressions, but these words are not the exclusive way of identifying these statements. These forward-looking statements are based on information currently available to management and are subject to a number of risks, uncertainties and other factors that could cause Bio-logic's actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include general economic and business conditions, turnover in Bio-logic's sales force, lack of acceptance of new technology by clinicians and other healthcare professionals, the results of research and development efforts, technological changes, competition, potential changes in regulation by the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. , costs relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc manufacturing of products, the timing of customer orders, the ability of certain suppliers to meet requirements, Internal Revenue Service determinations and other facts affecting the realization of the anticipated tax credits and other factors detailed from time to time in Bio-logic's filings with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, Bio-logic undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this release.
Bio-logic Systems Corp. and Subsidiaries
Condensed Consolidated Statement of Operations and Retained Earnings
(Unaudited)
(In Thousands, Except for Share Amounts and Per Share Data)
Three Months Ended Nine Months Ended
November 30, November 30,
--------------------- ---------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
NET SALES $ 7,765 $ 6,962 $ 22,257 $ 20,208
COST OF SALES 2,775 2,431 7,542 6,746
---------- ---------- ---------- ----------
Gross Profit 4,990 4,531 14,715 13,462
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Selling, general
& administrative 3,183 2,918 9,518 8,868
Research &
development 1,094 1,000 3,372 3,143
---------- ---------- ---------- ----------
Total operating
expenses 4,277 3,918 12,890 12,011
---------- ---------- ---------- ----------
OPERATING INCOME 713 613 1,825 1,451
OTHER INCOME (EXPENSE):
Interest income 34 39 94 77
Interest expense (8) - (16) -
Miscellaneous - - 1 2
---------- ---------- ---------- ----------
Total other
income 26 39 79 79
---------- ---------- ---------- ----------
INCOME BEFORE INCOME
TAXES 739 652 1,904 1,530
PROVISION FOR INCOME
TAXES 67 70 415 274
---------- ---------- ---------- ----------
NET INCOME $ 672 $ 582 $ 1,489 $ 1,256
========== ========== ========== ==========
RETAINED EARNINGS,
BEGINNING OF PERIOD 16,261 14,236 15,444 13,562
---------- ---------- ---------- ----------
RETAINED EARNINGS, END
OF PERIOD $ 16,933 $ 14,818 $ 16,933 $ 14,818
========== ========== ========== ==========
EARNINGS PER SHARE:
Basic $ 0.16 $ 0.14 $ 0.35 $ 0.30
========== ========== ========== ==========
Diluted $ 0.15 $ 0.13 $ 0.32 $ 0.28
========== ========== ========== ==========
BASIC SHARES
OUTSTANDING 4,217,684 4,204,347 4,245,736 4,201,534
DILUTED SHARES
OUTSTANDING 4,632,981 4,473,315 4,588,571 4,418,709
SELECTED BALANCE SHEET DATA
As of As of
November 30, February 29,
2004 2004
---------- ----------
Cash and marketable
securities $ 15,037 $ 12,750
Current assets 24,637 22,955
Total assets 28,970 27,194
Current liabilities 6,204 6,243
Shareholders' equity 21,983 20,279
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion