Bio-logic Reports Third Quarter Earnings Per Share of $0.13; Hearing Educational Marketing Initiative Well Received by Marketplace; Cash Increases to $12.2 Million.Business Editors/Health/Medical Writers MUNDELEIN Mundelein (mən`dəlīn) village (1990 pop. 21,215), Lake co., NW of Chicago, NE Ill.; founded 1835 as Mechanics Grove, inc. 1909. The name was changed in 1926 to honor George Cardinal Mundelein. , Ill.--(BUSINESS WIRE)--Jan. 12, 2004 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 2004 third quarter and nine months ended November 30, 2003. 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 decreased 8 percent to $7.0 million, compared to $7.6 million for the same quarter a year ago. 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. increased to 68.9 percent from 66.3 percent, due mainly to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. changes in product mix toward hearing systems and supplies. Total 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. for the quarter increased to $4.2 million compared with $4.1 million last year, due to higher research and development (R&D) costs resulting primarily from increased royalty expenses and lower 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. software development costs, which were partially offset by lower selling, general and administrative (SG&A) expenses, due to decreased selling expenses and a reduction in professional fees and doubtful account provisions. 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 was $614,000, compared to $902,000 for the same period last year. Net income for the quarter was $582,000, or $0.13 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 $580,000, or $0.14 per diluted share, in the third quarter of fiscal 2003. Net income in the fiscal 2004 third quarter was favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted by a $165,000 income tax adjustment resulting from historical tax refunds Tax refund Money back from the government when too much tax has been paid or withheld from a salary. for research and experimentation expense. The company had $12.2 million in cash and cash equivalents at November 30, 2003, an increase of $1.5 million from February 28, 2003, the end of the prior fiscal year. Book value per share increased to $4.74, up from $4.43 at the end of the fiscal year. "Although this quarter had the highest sales of the year, both of our major business segments fell short compared to a strong fiscal 2003 performance. Neurology neurology (n  rŏl`əjē, ny–), study of the morphology, physiology, and pathology of the human nervous system. 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. improved compared to the
immediately preceding fiscal quarter, but this improvement was not
enough to offset continued declines resulting from increased competitive
activity and deferred purchasing decisions, particularly for epilepsy epilepsy, a chronic disorder of cerebral function characterized by periodic convulsive seizures. There are many conditions that have epileptic seizures. Sudden discharge of excess electrical activity, which can be either generalized (involving many areas of cells in monitoring. Our domestic hearing sales, which had been strong during the
first half of the year, also declined, primarily due to delays related
to the release of software in stages for the introduction of new
versions of diagnostic and screening products. We expect the release of
these software versions for the new hardware to be completed by the end
of the fourth quarter. International sales showed a 17 percent increase
over last year's third quarter, led by our hearing products, and
hearing supply sales, mainly due to our proprietary EarMuffin(TM),
continued to experience solid growth," 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. . "We concluded our global hearing marketing initiative for the year which featured our hearing 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 and infant screening products in a series of educational seminars presented throughout the country and in selected international markets," continued Johnson. "As emphasized in previous communications, this initiative was an important building block to increase market awareness and acceptance of the products Bio-logic offers. We were very pleased with the results of the program, which was presented to over 1,300 participants at 19 different sites throughout the U.S. and over 1,000 attendees at 13 international meetings, and found it to be a highly effective means of introducing advanced technologies such as MASTER(TM) and Stacked Stacked is an American television sitcom that premiered on Fox on April 13, 2005. On May 18, 2006, Stacked was cancelled, leaving five episodes unaired in the United States. The last episode aired on January 11, 2006. ABR (1) (AutoBaud Rate detect) The analysis of the first characters of a message to determine its transmission speed and number of start and stop bits. (2) (Available Bit R (TM)." Nine Month Results For the nine months ended November 30, 2003, net sales decreased 8 percent to $20.2 million, compared with $22.0 million for the same period last year. Growth in the hearing business did not offset declines in neurology during the period. Gross profit as a percent of sales improved to 69.3 percent from 67.6 percent, due mainly to favorable changes in product mix toward hearing systems and supplies. Total operating expenses declined to $12.5 million in the first nine months of fiscal 2004 from $13.1 million last year, due to decreased SG&A primarily attributable to lower sales related expenses, professional fees and doubtful account provisions, partially offset by increased R&D costs resulting primarily from higher royalty expenses and lower capitalized software development costs. Operating income was $1.5 million compared to $1.8 million for the same period a year ago. Net income for the nine months was $1.3 million, or $0.28 per diluted share, compared with $1.1 million, or $0.26 per diluted share, for the same period a year ago. Through the first nine months of fiscal 2004, the Company has recorded $250,000 of the $650,000 of historical tax credits estimated to be available, with the remaining $400,000 expected to be filed and recorded in the fourth quarter, subject to the timing and nature of determinations by the Internal Revenue Service and state income tax authorities. Looking Forward "We expect to see incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. improvement in our neurology and sleep business, where the pipeline looks strong right now, and we anticipate some loosening loosening /loo·sen·ing/ (loo´sen-ing) freeing from restraint or strictness. loosening of associations of hospital spending on new systems toward the end of our fiscal year. On the domestic hearing side, there continues to be strong interest in our diagnostic products, which has offset declining sales in the maturing newborn screening newborn screening Neonatology The analysis of a neonate's blood for metabolic or other disorders to prevent mental retardation, disability or death market, and we expect the transition to new product versions to be completed and shipments to be back on track by the end of the fourth quarter of fiscal 2004. We believe that the expected end of the delays related to the conversion to new products, coupled with the impact of our marketing initiative, should result in a return of sales growth in the hearing business. Internationally, growth has continued to be robust for both hearing screening and diagnostic products. However, while we anticipate an improving fourth quarter, we do not expect full-year sales for the Company to reach fiscal 2003 levels, primarily due to the shortfalls in neurology," Johnson concluded. 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 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. 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 21E of the Securities Exchange Act of 1934), including statements regarding expected tax credits for the fiscal year, the expected completion of new hearing software releases, the anticipated impact of Bio-logic's marketing initiative and 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" 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or or any other reason after the date of this release. Financial Table Follows...
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,
--------------------- ---------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
NET SALES $ 6,962 $ 7,559 $20,208 $21,965
COST OF SALES 2,168 2,549 6,205 7,126
---------- ---------- ---------- ----------
Gross Profit 4,794 5,010 14,003 14,839
---------- ---------- ---------- ----------
OPERATING EXPENSES:
Selling, general &
administrative 2,918 3,070 8,867 9,644
Research & development 1,262 1,038 3,685 3,494
---------- ---------- ---------- ----------
Total operating
expenses 4,180 4,108 12,552 13,138
---------- ---------- ---------- ----------
OPERATING INCOME 614 902 1,451 1,701
OTHER INCOME (EXPENSE):
Interest income 38 41 77 103
Interest expense - (4) - (4)
Miscellaneous - (4) 2 (4)
---------- ---------- ---------- ----------
Total other income 38 32 79 95
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 652 934 1,530 1,796
PROVISION FOR INCOME TAXES 70 354 274 693
---------- ---------- ---------- ----------
NET INCOME $ 582 $ 580 $ 1,256 $ 1,103
========== ========== ========== ==========
RETAINED EARNINGS,
BEGINNING OF PERIOD 14,236 12,635 13,562 12,112
---------- ---------- ---------- ----------
RETAINED EARNINGS, END OF
PERIOD $14,818 $13,215 $14,818 $13,215
========== ========== ========== ==========
EARNINGS PER SHARE:
Basic $ 0.14 $ 0.14 $ 0.30 $ 0.26
========== ========== ========== ==========
Diluted $ 0.13 $ 0.14 $ 0.28 $ 0.26
========== ========== ========== ==========
BASIC SHARES OUTSTANDING 4,204,347 4,198,583 4,201,534 4,196,049
DILUTED SHARES OUTSTANDING 4,473,315 4,263,301 4,418,709 4,302,346
SELECTED BALANCE SHEET DATA
As of As of
November 30, February 28,
2003 2003
------------- ------------
Cash and marketable
securities $12,218 $10,678
Current assets 21,446 21,028
Total assets 25,190 25,190
Current liabilities 4,953 6,224
Long-term obligations - -
Shareholders' equity 19,557 18,286
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