Cardiotronics announces 1994 results, facilities reorganization and bank financing.CARLSBAD, Calif.--(BUSINESS WIRE)--April 18, 1995--Cardiotronics Tuesday announced that sales in 1994 reached $2,923,909, compared with $1,273,293 in 1993. The company's net loss in 1994 was $2,682,032, compared with $971,863 in 1993. These results were affected significantly by the company's acquisition of R2 Medical, which was effective Sept. 30, 1994. Cardiotronics' fourth quarter was its first reporting period to include the results of R2 Medical. The company's fourth-quarter consolidated sales reached $1,718,904. Due to different fiscal reporting periods, comparable prior-year results are not available. However, management estimates that combined sales of the two companies in the prior-year fourth quarter would have been approximately $1,350,000, indicating year-over-year growth of approximately 27 percent. This growth was aided by continued expansion of the stimulation 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 market, and by increased productivity of Cardiotronics' field sales organizations, which numbered 16 professionals at year end. Cardiotronics' fourth-quarter loss of $1,526,711 included significant non-recurring charges associated with R2's operations, which were closed in March 1995. The integration of the operations of Cardiotronics and R2 Medical have been proceeding smoothly. The transition of R2's distributor business to Cardiotronics' direct sales force is close to being completed, although the 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. impact on sales is being realized slowly due to above-normal inventories at the customer and distributor level. In March 1995, Cardiotronics reached several milestones regarding its facilities reorganization. R2's manufacturing and corporate headquarters facility in Chicago has been closed, and all manufacturing activities have been consolidated in Carlsbad. Cardiotronics' administrative offices have been moved to a new 22,000-square-foot facility, also located in Carlsbad. Management anticipates that all current Cardiotronics and former R2 operations will be consolidated in this new facility by June 30, 1995. Cardiotronics also announced that it has completed its previously announced plan to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. a $4 million loan from Warburg, Pincus & Co. in conjunction with the acquisition of R2 Medical. The company has established a $5 million revolving credit agreement Revolving credit agreement A legal commitment in which a bank promises to lend a customer up to a specified maximum amount during a specified period. revolving credit agreement See line of credit. with the Bank of Boston Connecticut. Cardiotronics develops, manufactures and markets medical devices utilized for the acute management of heart rate disorders. Applied to a patient's chest, Cardiotronics' disposable stimulation electrodes Electrodes Tiny wires in adhesive pads that are applied to the body for ECG measurement. Mentioned in: Electrocardiography facilitate the 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 of patients experiencing an irregular heart rate as a result of either a heart attack or an interventional cardiac procedure such as coronary angioplasty angioplasty (ăn`jēōplăs'tē), any surgical repair of a blood vessel, especially balloon angioplasty or percutaneous transluminal coronary angioplasty, a treatment of coronary artery disease. , catheter ablation Catheter Ablation Definition Catheter ablation of an irregular heartbeat involves having a tube (a catheter) inserted into the heart through which electrical energy is sent to either reset the heartbeat or stop the heart from beating so a mechanical 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). . Cardiotronics' common stock is traded over the counter by several market makers. CONTACT: Cardiotronics, Carlsbad Tim Way, 800/441-9446 or 619/431-9446 |
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