Cardiotronics Systems Inc. announces second-quarter results.CARLSBAD, Calif.--(BUSINESS WIRE)--Aug. 5, 1996--Cardiotronics Systems Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CDIO CDIO Conceive Design Implement Operate (engineering model) CDIO Collateral Duty Intelligence Officer ) reported that sales for the second quarter ended June 30, 1996, were $2,637,776, representing a 36 percent increase from sales of $1,932,563 for the second quarter of 1995. Sales for the first half of 1996 increased 29 percent to $4,936,918 from $3,822,495 in the first half of 1995. Increases in both direct sales to hospitals and sales to OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers contributed to this growth. For the second quarter, Cardiotronics reported a net loss of $313,376, or 66 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. , compared with a net loss of $1,694,194, or $3.59 per share, for the second quarter of 1995. Cardiotronics' net loss for the first half of 1996 was reduced to $572,386, or $1.20 per share, from $2,695,852, or $5.71 per share, in the first half of 1995. The reduction in the company's net loss in 1996 was due to higher sales, reduced patent-litigation expense and the impact of cost-reduction programs implemented during the fourth quarter of 1995. Ronald Bromfield, president and chief executive officer of Cardiotronics, said: ``We are pleased to report that the sales growth and improving operating results experienced during the first quarter of 1996 continued in the second quarter of 1996. ``Cardiotronics experienced a positive cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses in the second quarter and a small operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before interest and amortization. These results were achieved while at the same time maintaining our continued commitments to both advancing and protecting our technology base. ``In the second quarter, we increased our R&D expenditures by 66 percent and also incurred litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. expense of $96,604 related to our patent-infringement action against Katecho. Regarding this litigation, we are pleased to report that a motion for summary judgment motion for summary judgment n. a written request for a judgment in the moving party's favor before a lawsuit goes to trial and based on recorded (testimony outside court) affidavits (or declarations under penalty of perjury), depositions, admissions of fact, answers filed by Katecho was rejected in a detailed decision on July 19, 1996.'' Cardiotronics Systems develops, manufactures and markets medical devices for the acute management of heart-rate disorders. When applied to a patient's chest, the company's disposable stimulation electrodes replace traditional 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 paddles and facilitate external 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. and pacing. Heart-rate disorders are suffered by millions of patients each year who are experiencing a heart attack or who are undergoing an interventional heart procedure such as coronary angioplasty, cardiac arrhythmia cardiac arrhythmia n. See cardiac dysrhythmia. Cardiac arrhythmia An irregular heart rate or rhythm. Mentioned in: Holter Monitoring, Stress Test cardiac arrhythmia ablation or open-heart surgery open-heart surgery Any surgical procedure opening the heart and exposing one or more of its chambers, most often to repair valve disease or correct congenital heart malformations (see congenital heart disease). . -0-
Cardiotronics Systems Inc. and Subsidiary
Condensed Consolidated Statements of Operations
(unaudited)
Three months ended Six months ended
June 30, June 30,
1996 1995 1996 1995
Net sales $ 2,637,776 $ 1,932,563 $ 4,936,918 $ 3,822,495 Cost of sales 1,447,265 1,145,875 2,581,057 1,999,444 Gross margin 1,190,511 786,688 2,355,861 1,823,051 Selling and marketing expenses 514,275 796,488 1,034,026 1,447,135 General and administrative expenses 434,860 781,887 922,395 1,386,418 Research and development expenses 135,264 81,401 250,395 174,702 Patent-litigation expenses 96,604 491,525 120,573 848,504 Amortization of intangible assets 171,302 234,873 343,310 469,745 Total operating expenses 1,352,305 2,386,174 2,670,699 4,326,504 Loss from operations (161,794) (1,599,486) (314,838) (2,503,453)
Other income (expense)
Interest income 8,593 13,320 15,922 24,656
Interest expense (141,464) (108,028) (280,183) (217,055)
Other, net (18,711) -- 6,713 --
(151,582) (94,708) (257,548) (192,399)
Net loss $ (313,376) $(1,694,194) $ (572,386) $(2,695,852) Net loss per common share (66 cents) $ (3.59) $ (1.20) $ (5.71) Weighted average number of common shares outstanding(a) 475,811 471,802 475,147 471,802
(a) - Excludes preferred stock convertible into 2,892,031 shares of
common stock in 1996 and 1995.
CONTACT: Cardiotronics Systems Inc., Carlsbad Scott P. Youngstrom, 619/431-9446 |
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