Bio-logic Reports 45% Earnings Increase On 19% Sales Growth for Third Quarter; Cash Builds to $10 Million.Business Editors MUNDELEIN, Ill.--(BUSINESS WIRE)--Dec. 19, 2002 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 related disposables, today reported financial results for the fiscal 2003 third quarter and nine months ended November 30, 2002. 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 of $7.6 million were 19.4 percent higher compared to the same period a year ago. The sales increase was due primarily to hearing screening and diagnostics (1) Software routines that test hardware components (memory, keyboard, disks, etc.). Diagnostics are often stored in ROM chips and activated on startup. (2) Error messages in a programmer's source code that refer to statements or syntax that the compiler or assembler systems and disposables in both the domestic and international markets. 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 to 66.3 percent from 67.5 percent, due mainly to shifts in product mix. Total operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. for the quarter increased to $4.1 million compared with $3.7 million for the same period last year, due primarily to higher R&D costs, from both overall increases in spending and a decrease in software projects capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. during the current quarter. 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 grew by 46.2 percent to $0.9 million compared to $0.6 million for the same quarter last year. Net income for the quarter increased 45 percent to $0.6 million, or $0.14 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, compared to $0.4 million, or $0.09 per diluted share, in the third quarter of fiscal 2002. At quarter end, Bio-logic had no debt and $10.0 million in cash, an increase of $3.6 million from the fiscal year ended February 28, 2002. The increase is attributable to continuing improvements in accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and inventory management. Book value per share grew to $4.30, up from $4.10 at the end of last fiscal year. "The quarter was highlighted by strong results in both product systems and supplies in our domestic and international hearing divisions," commented 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. . "Also, our cash flow was strong, giving us an opportunity to begin the stock purchase plan we announced during the quarter." Nine Month Results For the nine months ended November 30, 2002, net sales decreased 1.2 percent to $22.0 million, compared with $22.2 million for the prior year, primarily due to the nonrecurring $3.1 million Canadian order in the first quarter of fiscal 2002. Gross profit as a percent of sales increased 3.8 percentage points to 67.6 percent from 63.8 percent, due to cost improvements and lower obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. provisions. Operating income for the period was $1.7 million versus $2.0 million for the same period a year ago. Interest income of $103,000 declined by $64,000 for the first nine months due to lower money market rates. Net income for the period was $1.1 million, or $0.26 per diluted share, compared with $1.3 million, or $0.30 per diluted share, for the same period a year ago. Looking Forward "The introduction of our new diagnostic system, M.A.S.T.E.R(TM) (Multiple Auditory auditory /au·di·to·ry/ (aw´di-tor?e) 1. aural or otic; pertaining to the ear. 2. pertaining to hearing. au·di·to·ry adj. Steady State Evoked Response e·voked response n. An alteration in the electrical activity of a particular part of the nervous system as a result of receiving a sensory stimulus. ), on the same hardware platform as our hearing screening products provides important growth potential in the coming quarters and should help offset a leveling off of growth due to the maturing hearing screening market in the U.S. We have seen strong interest in the M.A.S.T.E.R system through our educational seminars. M.A.S.T.E.R is used to characterize an infant's hearing loss and produces an audiogram au·di·o·gram n. A graphic record of hearing ability for various sound frequencies. Audiogram A chart or graph of the results of a hearing test conducted with audiographic equipment. that is used by the audiologist Audiologist A person with a degree and/or certification in the areas of identification and measurement of hearing impairments and rehabilitation of those with hearing problems. to set hearing aid parameters. M.A.S.T.E.R uses Auditory Steady State Response (ASSR ASSR abbr. Autonomous Soviet Socialist Republic ) technology and uniquely assesses up to four frequencies per ear simultaneously. By testing eight frequencies at one time, we can achieve a higher accuracy than competitive systems, as well as shortening the total testing time," commented 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 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 sensory /sen·so·ry/ (sen´sor-e) pertaining to sensation. sen·so·ry adj. 1. Of or relating to the senses or sensation. 2. disorders, including audiological and hearing screening and diagnosis. Except for descriptions of historical facts, this 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. that involve known and unknown risks, which may cause the company's actual results in the future to differ materially from those currently anticipated. These results include, among others, fluctuations in sales and operating results; the company's ability to recruit and train the necessary number of sales representatives and installation technicians; risks associated with international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. including monetary crisis; regulatory, competitive and contractual risks; the effects of economic conditions; and the availability of capital to finance planned growth, as well as other risks detailed from time to time in the company's filings with the Securities and Exchange Commission. Financial Table Follows...
Bio-logic Systems Corp and Subsidiaries
Consolidated Statement of Operations
Unaudited
In Thousands, Except for Per Share Data
Three Months Ended Nine Months Ended
November 30, November 30,
------------------ -----------------
2002 2001 2002 2001
-------- -------- -------- --------
NET SALES $ 7,559 $ 6,333 $ 21,965 $ 22,239
COST OF SALES 2,549 2,056 7,126 8,061
-------- -------- -------- --------
Gross Profit 5,010 4,277 14,839 14,178
-------- -------- -------- --------
OPERATING EXPENSES:
Selling, general
& administrative 3,070 3,017 9,644 9,712
Research &
development 1,038 643 3,494 2,407
-------- -------- -------- --------
Total operating
expenses 4,108 3,660 13,138 12,119
-------- -------- -------- --------
OPERATING INCOME 902 617 1,701 2,059
OTHER INCOME (EXPENSE):
Interest income 41 29 103 167
Interest expense (4) (1) (4) (8)
Miscellaneous (4) 13 (4) (72)
-------- -------- -------- --------
Total other
income 32 41 95 88
-------- -------- -------- --------
INCOME BEFORE INCOME
TAXES 934 658 1,796 2,147
PROVISION FOR INCOME
TAXES 354 258 693 841
-------- -------- -------- --------
NET INCOME $ 580 $ 400 $ 1,103 $ 1,306
======== ======== ======== ========
RETAINED EARNINGS,
BEGINNING
OF PERIOD 12,635 11,516 12,112 10,610
-------- -------- -------- --------
RETAINED EARNINGS,
END OF PERIOD $ 13,215 $ 11,916 $ 13,215 $ 11,916
======== ======== ======== ========
EARNINGS PER SHARE:
Basic $ 0.14 $ 0.10 $ 0.26 $ 0.32
======== ======== ======== ========
Diluted $ 0.14 $ 0.09 $ 0.26 $ 0.30
======== ======== ======== ========
BASIC SHARES
OUTSTANDING 4,198,583 4,187,772 4,196,049 4,175,529
DILUTED SHARES
OUTSTANDING 4,263,362 4,342,723 4,302,591 4,322,676
SELECTED BALANCE SHEET DATA
As of As of
November 30, February 28,
2002 2002
----------- -----------
Cash and marketable securities $ 10,006 $ 6,385
Current Assets 20,088 19,117
Total Assets 23,955 22,942
Current liabilities 5,019 5,131
Long-term obligations 0 0
Shareholders' equity 18,314 17,189
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