Cardiac Science Announces Third Quarter 2000 Results; Revenue Increases 31 Percent Over Second Quarter to $1,209,000.Business Editors/Health and Medical Writers BIOWIRE2K IRVINE, Calif.--(BW HealthWire)--Nov. 14, 2000 Cardiac Science Inc. (Nasdaq: DFIB), the developer of 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, Tuesday announced record revenue of $1,209,682 for the quarter ended Sept. 30, 2000, representing a 31 percent increase in revenue compared with the quarter ended June 30, 2000. Revenue for the quarter is attributed to the sale of 213 Powerheart bedside defibrillator-monitors and related proprietary disposable defibrillation electrodes Electrodes Tiny wires in adhesive pads that are applied to the body for ECG measurement. Mentioned in: Electrocardiography . For the nine-month period ending Sept. 30, 2000 revenues totaled $2,759,286, as compared with no revenues for the same nine-month period in 1999. Powerheart represents the first commercial product to utilize Cardiac Science's proprietary tachyarrhythmia tachyarrhythmia /tachy·ar·rhyth·mia/ (tak?e-ah-rith´me-ah) any disturbance of the heart rhythm in which the heart rate is abnormally increased. tach·y·ar·rhyth·mi·a n. detection and defibrillation technology and related disposable defibrillation electrodes. A total of 483 devices have been sold since market introduction of Powerheart earlier this year. "We anticipate continued revenue growth as our life-saving automatic defibrillation technology gains adoption in the hospital marketplace through the sale of Powerheart devices and as a result of the integration of our technology into Medtronic Physio-Control's new LIFEPAK(R) hospital 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 the launch of our innovative module for use with patient monitoring systems and unique wearable defibrillator," 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. "We also anticipate that as the installed base of Powerhearts grow, we will experience significantly higher margins resulting from the sale of our proprietary disposable defibrillation electrodes." On July 1, 2000 the company acquired Cadent ca·dent adj. 1. Having cadence or rhythm. 2. Archaic Falling, as water or tears. [Latin cad Medical Corp. for 4.2 million shares of restricted common stock. The company has accounted for the acquisition using the purchase method of accounting. A significant portion of the acquisition price was allocated to in-process research and development and intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. . Accordingly certain non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) associated with the acquisition including in-process research and development and the amortization of intangibles are included in the company's net loss for the third quarter. The company reported a third quarter net loss of $20,044,441 or 88 cents a share. That compares with a net loss of $1,724,804 or 18 cents a share for the third quarter in 1999. Included in the loss for the third quarter of 2000 were non-cash expenses of $15,665,573, or 69 cents a share primarily related to the Cadent acquisition. For the nine-month period ending Sept. 30, 2000 the company reported a net loss of $25,560,592 or 1.47 cents a share, as compared with a net loss of $4,828,892 or 52 cents a share for the nine months ended Sept. 30, 1999. Included in the loss for the nine months ended Sept. 30, 2000 were non-cash expenses of $15,734,323, or 90 cents a share primarily related to the Cadent acquisition. Research and development expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Automatic Defibrillation Module and the Personal Wearable Defibrillator, products currently under development, as well as costs for the Powerheart, totaled approximately $5.5 million or 52 percent of the loss for the nine-month period, exclusive of costs related to the Cadent acquisition. Marketing expenses relating to the introduction and market launch of the Powerheart totaled approximately $2.8 million or 26 percent of the loss year to date exclusive of costs related to the Cadent acquisition. The Automatic Defibrillation Module(TM) utilizes the company's proprietary detection and defibrillation technologies, and is envisioned to be integrated into standard bedside patient monitors. About Cardiac Science Cardiac Science develops and markets life-saving external cardiac defibrillator devices and proprietary software that monitor and automatically treat cardiac arrest cardiac arrest n. Abbr. CA A sudden cessation of cardiac function, resulting in loss of effective circulation. Cardiac arrest A condition in which the heart stops functioning. patients. RHYTHMx ECD ECD Early Childhood Development ECD Electron Capture Detector ECD Energy Citations Database ECD Executive Creative Director (advertising) ECD Ethyl Cysteinate Dimer ECD Electron Capture Dissociation ECD Electronic Civil Disobedience (TM) tachyarrhythmia detection and defibrillation software, the company's core proprietary technology platform, has multiple applications including use in external defibrillators, wearable defibrillators and standard patient monitors that are widely used in hospitals throughout the world. Powerheart, Cardiac Science's first commercial product, continuously monitors in-hospital patients at risk of sudden cardiac arrest, 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 when appropriate, automatically delivers defibrillation shocks within seconds and without human intervention to re-establish the heart's normal rhythm. The ability to respond to a life-threatening heart rhythm within seconds saves lives and minimizes a loss of oxygen to the brain, thereby eliminating potential neurological neurological, neurologic pertaining to or emanating from the nervous system or from neurology. neurological assessment evaluation of the health status of a patient with a nervous system disorder or dysfunction. damage and a diminished quality of life that often occurs when defibrillation is withheld for even a few minutes. Powerheart began shipping in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. in early 2000 and is currently used in hospitals worldwide. Cardiac Science's global sales network consists of prominent distributors in 41 countries encompassing Asia, the Middle East, Europe, South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. and North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . The company has an exclusive agreement with Medtronic Physio-Control, a division of Medtronic, Inc., the worldwide market leader in external defibrillator products, to distribute the Powerheart in the United States, Canada, and nine European countries. For more information, visit http://www.cardiacscience.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 include, but are not limited to: The Powerheart's safety and efficacy, its ability to increase survival rates for in-hospital cardiac arrest victims, its ability to improve patient-care and lessen less·en v. less·ened, less·en·ing, less·ens v.tr. 1. To make less; reduce. 2. Archaic To make little of; belittle. v.intr. To become less; decrease. patient debilitation debilitation being in a state of debility. ; the company's ability to successfully integrate its technology into Medtronic Physio-Control's LIFEPAK products; future expenditures for marketing and development; and applications of the company's technology. Cardiac Science cautions that these statements are qualified by various known and unknown factors that could cause actual results to differ materially from those reflected by the forward-looking statements. Such factors include, but are not limited to: future economic, regulatory, and market conditions; future business decisions; market and clinical users' acceptance of new and existing products; impact of competitive products and pricing; and changing market conditions. Information on these and other factors are detailed 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, 1999 and other documents filed with the Securities and Exchange Commission. The Powerheart and RHYTHMx ECD are a trademark of Cardiac Science Inc. LIFEPAK is a trademark of Medtronic Physio-Control.
Cardiac Science Inc.
Consolidated Condensed Summary of Operations
(Unaudited)
3 Months Ended 9 Months Ended
Sept. 30, Sept. 30,
2000 1999 2000 1999
Sales $ 1,209,682 $ -- $ 2,759,286 $ --
Gross profit 149,580 -- 306,593 --
Operating expenses:
Research and
development 3,066,953 1,126,098 5,490,834 2,795,408
Selling 957,134 252,871 2,783,600 932,792
General and
administrative 1,699,081 342,917 3,144,222 1,092,542
Acquired in-process
research and
development 13,587,026 -- 13,587,026 --
Amortization of
goodwill
and other
intangibles 567,652 -- 567,652 --
Amortization of
unearned
compensation 775,500 -- 775,500 --
Net loss $(20,044,441) $(1,724,804) $(25,560,592) $(4,828,892)
Net loss per
share (basic
and diluted) $ (0.88) $ (0.18) $ (1.47) $ (0.52)
Weighted average
number of shares
used in the
computation of
net loss
per share 22,884,154 9,517,750 17,391,455 9,208,182
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