Bird Medical Technologies reports a 29% increase in earnings in fiscal 1994.

PALM SPRINGS, Calif.--(BUSINESS WIRE)--Feb. 6, 1995--Bird Medical Technologies Inc. (NASDAQ:BMTI) Monday announced sales and earnings for the fourth quarter and the fiscal year ended Dec. 31, 1994.

Net sales for the full year ended Dec. 31 were $53.8 million in 1994 versus $52.5 million the previous year. Net earnings in 1994 were $1.7 million, or $0.27 per share, compared with net income of $1.3 million, or $0.21 per share, in 1993 -- an increase of 29% year to year.

Net sales for the final quarter of the year were $12.9 million in 1994 compared with $16.8 million reported in the fourth quarter of 1993. Net earnings for the quarter were $0.08 per share in 1994 versus $0.10 per share in the comparable period the prior year.

The fourth quarter of 1993 included the non-recurring sale of $3.8 million of military transport ventilators, which added approximately $0.03 to 0.04 per share to earnings in the period. When adjusted for the sale of equipment to the U.S. military, earnings in the December quarter were 30% higher than the comparable quarter in 1993.

When adjusted for the military contract, sales and earnings of the company for all of 1994 rose 8% and 41%, respectively.

Phil Troilo, chairman and president of Bird Medical Technologies, indicated that the sale of infant and commercial transport ventilators, accessories, parts and service in 1994 grew at double digit rates. International business increased 14% this past year and now accounts for well over one-half of capital equipment sales.

Troilo indicated that "the year's results reinforced the importance of the company's continuing investment in the development of new products. Our VIP infant ventilator, introduced in 1991, has increasingly become the standard for ventilation for neonates in the United States and our Avian transport ventilator, introduced in 1993, has become the leading intra-hospital transport ventilator in the country in a little more than a year."

This past year, Bird invested more than 9% of its sales in product development to broaden its participation in the respiratory care and infection control equipment markets. Troilo estimated that more than one-fourth of Bird's business comes from products which the company has added during the past three and one-half years.

While concerned with the softness of the domestic markets for capital equipment, Troilo indicated that he remains encouraged by the response of customers around the world to the array of products and features introduced by the company during the past several years that have advanced the state of technology and enhanced clinical outcomes.

"When you consider the commercial potential of products in development and the features of our current line of products," Troilo commented, "it is difficult not to be excited about the longer term opportunities to continue to be very much a part of the growth of health care markets around the world and the prospects to further broaden Bird's role in the less traditional markets emerging in health care in this country."

Bird Medical Technologies is a leading manufacturer of respiratory care and infection control products.

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Bird Medical Technologies Inc.
Consolidated Statements of Operations
(Unaudited in thousands, except per share data)

                                             Twelve months
                                             ended Dec. 31,
                                           1994         1993
                                          -------------------
Net Sales                                  $53,798   $52,499
Cost of sales                               26,578    25,999
      Gross Profit                          27,220    26,500

Operating Expenses:
Marketing and sales                         11,109    10,787
General and Administrative                   6,770     7,213
Engineering, research and development        4,942     4,717
Royalties                                      562       557
                                           ------------------
       Total operating expenses             23,383    23,274

Operating Income                             3,837     3,226
Interest Expense, net                          983     1,094
Income before provision for income taxes     2,854     2,132
Provision for income taxes                   1,165       830
Net income                                  $1,689    $1,302
Net income per common share:                 $0.27     $0.21
Weighted average number of shares
 used in earnings per share
 computations                                6,302     6,277

Bird Medical Technologies Inc.
Consolidated Statements of Operations
(Unaudited in thousands, except per share data)

                                              Three months
                                             ended Dec. 31,
                                            1994       1993
                                           ------------------
Net Sales                                  $12,905   $16,862
Cost of sales                                6,103     8,465
   Gross Profit                              6,802     8,397

Operating Expenses:
Marketing and Sales                          2,865     3,111
General and Administrative                   1,364     2,241
Engineering, research and development        1,334     1,624
Royalties                                      143       144
                                           ------------------
   Total operating expenses                  5,706     7,120

Operating income                             1,096     1,277
Interest expense, net                          276       261
Income before provision for income taxes       820     1,016
Provision for income taxes                     334       394
Net income                                    $486      $622
Net income per common share:                 $0.08     $0.10
Weighted average number of shares
 used in earnings per share
 computations                                6,306     6,277

Bird Medical Technologies Inc.
Consolidated Balance Sheet
(Unaudited in thousands, except par value amounts)

                                          Dec. 31,       Dec. 31,
                                            1994          1993
                                         ----------     ----------
ASSETS
Current Assets:
 Cash                                          $34           $397
 Accounts Receivable                        11,308          8,457
 Inventories                                 9,835         10,701
 Deferred income taxes                       1,619          1,619
 Prepaid expenses and other
  current assets                             1,204          1,282
        Total current assets                24,000         22,456

Property and equipment, net                 13,682         13,885
Intangible and other assets, net             2,519          3,484

Total Assets                               $40,301        $39,825

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Current portion of long-term debt            $1,381         $1,742
Accounts payable                              2,096          2,215
Accrued employee compensation                 1,768          1,243
Other accrued liabilities                     2,763          4,364
                                          ----------     ----------
   Total current liabilities                  8,008          9,564

Long-term debt                               13,509         13,255

Shareholders' Equity:
 Common Stock, $0.01 par value,
 15,000,000 shares authorized;
 6,276,681 shares outstanding
 at Dec. 31, 1993, and 6,302,481
 outstanding at Sept. 30, 1994                   63             63
Additional paid-in capital                   13,960         13,871
Retained earnings                             4,761          3,072
  Total shareholders' equity                 18,784         17,006
Total liabilities and shareholders' equity  $40,301        $39,829

Bird Medical Technologies Inc.
Consolidated Cash Flows
(Unaudited in thousands, except par value amounts)

                                          Dec. 31,     Dec. 31,
                                            1994         1993
                                         ---------    ---------
Cash flows from Operating Activities:
 Net income (loss)                       $1,689       $1,302
 Adjustments to reconcile net
  income (loss) to net cash provided
  by operating activities:
 Depreciation of property and equipment:  1,597        1,416
 Loss on sale of property and equipment     (1)           73
 Amortization of intangible assets          400          545
 Deferred income taxes                        0          (72)
 Effect on cash of changes in operating
  assets and liabilities, net of the
  effect of business acquisition:
    Accounts receivable                 (2,851)        1,812
    Inventories                            866        (1,524)
    Prepaid expenses and other
     current assets                        448          (420)
    Accounts payable                      (119)         (403)
    Accrued employee compensation         (525)          185
    Other accrued liabilities             (195)          760
    Income taxes payable                  (357)          733
                                       ---------     --------
  Net cash provided by operating
   activities                              952         4,407

Cash Flows from Investing Activities:
 Acquisition of business
 Property and equipment additions       (1,407)       (1,473)
 Proceeds from property and
  equipment dispositions                    14             4
 Change in restricted cash from
  industrial development revenue bonds
 Increase in intangibles and
  other assets                              95           (78)

Net cash used in investing activities   (1,298)       (1,547)

Cash Flows from Financing Activities:
 Short-term borrowings                    (361)
 Issuance (repayment) of long-term debt    254        (2,711)
 Issuance of common stock                   90
 Repurchase of common stock
   Net cash provided by (used in)
   financing activities                    (17)       (2,711)

Net increase (decrease) in cash           (363)          149
Cash, beginning of year                    397           248

Cash, end of year                          $34          $397

CONTACT: Bird Medical Technologies Inc.

Robert Corbett, 619/778-7200

Morgen-Walke Associates Inc.

Doug Sherk, Jenifer Kirtland, Kevin Mirise,

415/296-7383

Sue Rodney or Dave Faupel, 212/850-5600