Cardiac Science Announces 2000 Year- End Results; Record Revenue of $4.2 Million and Fourth Consecutive Quarter of Revenue Growth.Business Editors & Health/Medical Writers BIOWIRE2K IRVINE, Calif.--(BW HealthWire)--April 6, 2001 Cardiac Science Inc. (Nasdaq:DFIB), the developer of the Powerheart(R), the only hospital monitor that provides life-saving defibrillation Defibrillation Definition Defibrillation is a process in which an electronic device sends an electric shock to the heart to stop an extremely rapid, irregular heartbeat, and restore the normal heart rhythm. within seconds and without the aid of hospital staff, reported revenue of $4,242,000 and a net loss of $32,946,000, or $1.82 per share, for the year ended Dec. 31, 2000, compared with revenue of $103,000 and a net loss of $7,720,000, or 85 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the year ended Dec. 31, 1999. Included in the loss for the year ended Dec. 31, 2000, were non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of approximately $16,449,000, or 91 cents per share, primarily associated with the acquisition of Cadent ca·dent adj. 1. Having cadence or rhythm. 2. Archaic Falling, as water or tears. [Latin cad Medical. In addition, R&D expenses, largely related to the development of the Cardiac Rhythm Noun 1. cardiac rhythm - the rhythm of a beating heart heart rhythm regular recurrence, rhythm - recurring at regular intervals atrioventricular nodal rhythm, nodal rhythm - the normal cardiac rhythm when the heart is controlled by the Module(TM) totaled $8,248,000, accounting for 25% of the net loss for the year 2000. For the quarter ended Dec. 31, 2000, the company reported revenue of $1,483,000 and a net loss of $7,385,000, or 30 cents per share, compared with reported revenues of $103,000 and a net loss of $2,891,000, or 25 cents per share, for the quarter ended Dec. 31, 1999. "Through the continued support of our shareholders and the collective efforts of our employees, Cardiac Science realized a number of significant milestones in 2000. Revenue grew from $103,000 in 1999 to $4.2 million in 2000 as a result of the global introduction of our first commercial product, the Powerheart, which is now used in hospitals in over 20 countries and has saved 15 lives in the last six months alone," said Raymond W. Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. , president and chief executive officer. "In addition, we successfully integrated our acquisition of Cadent Medical and its proprietary wearable defibrillator defibrillator, device that delivers an electrical shock to the heart in order to stop certain forms of rapid heart rhythm disturbances (arrhythmias). The shock changes a fibrillation to an organized rhythm or changes a very rapid and ineffective cardiac rhythm to a and electrode electrode, terminal through which electric current passes between metallic and nonmetallic parts of an electric circuit. In most familiar circuits current is carried by metallic conductors, but in some circuits the current passes for some distance through a technology, we achieved a Nasdaq National Market listing with respected analyst coverage and we strengthened our board of directors and senior management team. "Our financial results reflect our continued, significant investment in the development of additional products through which we expect to increase the adoption rate for our unique, life-saving technology." About Cardiac Science Cardiac Science develops and markets life-saving external cardiac defibrillator devices and proprietary software that monitors a patient's cardiac activity, instantly detects the onset of a life- threatening heart rhythm Noun 1. heart rhythm - the rhythm of a beating heart cardiac rhythm regular recurrence, rhythm - recurring at regular intervals atrioventricular nodal rhythm, nodal rhythm - the normal cardiac rhythm when the heart is controlled by the and automatically delivers defibrillation without human intervention. The company's proprietary technology has multiple applications, including use in external and wearable defibrillators and with standard patient monitors widely used in hospitals throughout the world. The growth of the company's installed base of devices provides a potential recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue stream from the sale of proprietary disposable defibrillator electrodes Electrodes Tiny wires in adhesive pads that are applied to the body for ECG measurement. Mentioned in: Electrocardiography . Cardiac Science began marketing its first commercial product, the Powerheart, in early 2000. For more information on Cardiac Science, visit its Internet site at www.cardiacscience.com. In January 2001, Cardiac Science announced that it had offered to acquire all of the outstanding common stock of Artema Medical AB, a Scandinavian manufacturer of defibrillators, patient monitors and a proprietary expiratory ex·pi·ra·to·ry adj. Of, relating to, or involving the expiration of air from the lungs. expiratory relating to or employed in the expiration of air from the lungs. gas measurement module. Artema is publicly listed on the Stockholm Exchange O-List (Symbol:ARTM ARTM Analysis & Reporting Training Module ARTM Availability Reporting and Tracking Module (replaced by STASS FY96) ARTM Acquisition Reform Training Modules ). For the year ended Dec. 31, 2000, Artema reported approximately $28.4 million in revenue. Artema's products are sold via distributors in Europe, Asia and the Middle East. As consideration in the transaction, Artema shareholders will receive between 3.3 million and 4.4 million shares of Cardiac Science common stock. Cardiac Science expects the transaction to close in June 2001. On Feb. 14, 2001, Cardiac Science announced that it had entered into a merger agreement to acquire Survivalink Corp., a privately held Minneapolis-based company that is a leading provider of Automated External Defibrillators automated external defibrillator Emergency medicine A portable device designed for use by first-response personnel for out-of-hospital emergency treatment of Pts suffering from cardiac arrest. See First-response personnel. (AEDs). During the year ended Dec. 31, 2000, Survivalink reported it sold more than 6,000 AEDs, grew its revenue by more than 40 percent to $17.1 million and was profitable. Survivalink has more than 50 patents issued on its AED AED - Automated Engineering Design technology. As consideration in the transaction, Cardiac Science will pay $35.5 million in cash and $35.5 million in restricted common stock to Survivalink shareholders for a total purchase price of approximately $71 million. The offer is subject to certain shareholder approvals and is expected to close in June 2001. For more information on Survivalink, visit its Internet site at www.survivalink.com. This news 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. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Such forward-looking statements, including statements regarding the life saving potential of the company's technology, potential transactions between Cardiac Science and Artema and Survivalink, and the timetable for completing the Artema Medical AB and Survivalink Corp. acquisitions and the expected adoption rate of our technology, are based on current expectations that involve numerous risks and uncertainties. Actual results could differ materially from those anticipated in such forward-looking statements as a result of various known and unknown factors including, without limitation, future economic, competitive, regulatory and market conditions, future business decisions, market acceptance of the company's products and those factors discussed in the company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ending Dec. 31, 2000, and in other documents filed by the company with the Securities and Exchange Commission. In light of the significant uncertainties inherent in such forward-looking statements, the inclusion of such statements should not be regarded as a representation by the company or any other person that the company's objectives and plans will be achieved. Words such as "believes," "anticipates," "expects," "intends," "may" and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. The company undertakes no obligation to revise any of these forward-looking statements, and such statements should not be relied upon by investors when making an investment decision.
Cardiac Science Inc.
Consolidated Condensed Summary of Operations
Three Months Ended Dec. 31, Year Ended Dec. 31,
2000 1999 2000 1999
Net sales $ 1,483,000 $ 103,000 $ 4,242,000 $ 103,000
Gross profit $ 110,000 $ 5,000 $ 417,000 $ 5,000
Net loss $(7,385,000) $(2,891,000) $(32,946,000) $(7,720,000)
Basic and diluted
loss per share $ (0.30) $ (0.25) $ (1.82) $ (0.85)
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