Cholestech Reaches Agreement to Settle All Claims in a 1999 Securities Class Action Lawsuit.Business Editors/Health & Legal Writers HAYWARD Hayward, city (1990 pop. 111,498), Alameda co., W Calif.; settled 1851, inc. 1876. It is an important commercial and distribution center for farm products. Manufactures include wire, plastics, metal and paper products, textiles, machinery, and motor vehicles. , Calif.--(BW HealthWire)--June 26, 2001 Cholestech Corporation (Nasdaq:CTEC CTEC Course and Teacher Evaluation Council (Northwestern University, Office of the Register) CTEC Certified Technical Education Center CTEC Certified Technical Education Center (Microsoft) ) today announced that it has reached an agreement to settle all claims with plaintiffs in the 1999 securities class action, Ree n. 1. See Rei. v. t. 1. To riddle; to sift; to separate or throw off. v. Pinckert, pending against the Company and certain of its current and former officers. The Company's insurance carrier will pay the settlement amount of $3 million. The Company will incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. an additional charge of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $706,000 to earnings for the period ended March 30, 2001, resulting in a total of $1.3 million recorded for the period as related to payment of legal fees and insurance costs. The Company's revised results of operations reflecting this additional charge for the fourth quarter and fiscal year 2001 are presented below. The earnings per share impact of this additional charge will result in an added loss of $.06 per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) for the fiscal year ended March 30, 2001. The settlement is subject to approval of the United States District Court for the Northern District of California The United States District Court for the Northern District of California is the Federal district court whose jurisdiction comprises following counties: Alameda, Contra Costa, Del Norte, Humboldt, Lake, Marin, Mendocino, Monterey, Napa, San Benito, San Francisco, San Mateo, Santa . "While we deny any allegations of wrongdoing wrong·do·er n. One who does wrong, especially morally or ethically. wrong  do , we believe that
agreeing to this settlement is in the best financial interests of the
Company and its shareholders," said Warren Warren.1 City (1990 pop. 144,864), Macomb co., SE Mich., a suburb of Detroit; est. 1837, inc. as a city 1957. It is an important metalworking center where steel is processed. E. Pinckert, president and chief executive officer of Cholestech Corporation. "We are pleased to put this matter behind us. Now, we can focus on the exciting market opportunities for the Company in light of the new NIH "Not invented here." See digispeak. NIH - The United States National Institutes of Health. cholesterol guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. to detect, evaluate and treat the millions of American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of adults with high cholesterol Cholesterol, High Definition Cholesterol is a fatty substance found in animal tissue and is an important component to the human body. It is manufactured in the liver and carried throughout the body in the bloodstream. . We believe that Cholestech is uniquely positioned to provide the tools and information necessary to improve access for widespread cholesterol screening, as well as therapeutic monitoring of the projected 36 million Americans who are expected to use statin drugs Noun 1. statin drug - a medicine that lowers blood cholesterol levels by inhibiting HMG-CoA reductase lipid-lowering medication, lipid-lowering medicine, statin . We are pleased that management can now direct its full attention on the strengths of our business without the distraction Distraction Divination (See OMEN.) Porlock a “person from Porlock” interrupted Coleridge while he was recollecting the dream on which he based “Kubla Khan”. [Br. Lit.: Poems of Coleridge in Magill IV, 756] of 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. ." About Cholestech Cholestech is committed to enabling people to lead longer, healthier and more active lives. Cholestech's Diagnostic Products and WellCheck(TM) business units provide easy to use, accessible tools and information to health care practitioners and consumers in over 35 countries around the world. Cholestech offers efficient and economic diagnostic screening for cholesterol, blood sugar and liver liver, largest glandular organ of the body, weighing about 3 lb (1.36 kg). It is reddish brown in color and is divided into four lobes of unequal size and shape. The liver lies on the right side of the abdominal cavity beneath the diaphragm. function at the point of care. Health care providers can use the Cholestech L-D-X System to initiate INITIATE. A right which is incomplete. By the birth of a child, the husband becomes tenant by the curtesy initiate, but his estate is not consummate until the death of the wife. 2 Bouv. Inst. n. 1725. and monitor the progress of patient therapy. By providing effective disease management solutions, Cholestech's goal is to be a leading provider of health management solutions for chronic diseases. Cholestech L-D-X(R), WellCheck(TM) and WellCheck.com are registered trademarks of Cholestech Corporation. All other trademarks mentioned in this document are the property of their respective owners. For more information about Cholestech and its products visit us on the Web at www.cholestech.com. WellCheck.com is available to the general public at www.wellcheck.com.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per-share amounts, unaudited)
Thirteen weeks ended Fifty-two weeks ended
3/30/01 3/31/00 3/30/01 3/31/00
------- ------- ------- -------
Net revenues:
Domestic $ 7,912 $ 6,724 $30,576 $22,691
International 2,326 1,968 6,427 4,859
------- ------- ------- -------
10,238 8,692 37,003 27,550
------- ------- ------- -------
Cost of revenue 4,299 3,324 15,280 11,212
------- ------- ------- -------
Gross profit 5,939 5,368 21,723 16,338
------- ------- ------- -------
Operating expense:
Sales & marketing 3,259 1,984 11,388 7,032
Research & development 548 774 2,586 3,021
Website operation & content 607 0 1,952 0
General & administrative 1,292 1,268 5,079 3,510
Goodwill amortization 205 100 709 100
Legal and related 1,312 --- 1,312 219
Impairment charge 1,958 --- 1,958 ---
------- ------- ------- -------
Operating expense 9,181 4,126 24,984 13,882
------- ------- ------- -------
Operating income (loss) (3,242) 1,242 (3,261) 2,456
Net interest and other
income (expense) 187 249 655 805
Provision (benefit) for
income taxes (22) 58 --- 129
------- ------- ------- -------
---
Net income (loss) $(3,033) $ 1,433 $(2,606) $ 3,132
======= ======= ======= =======
Net income (loss) per share:
Basic $ (0.25) $ 0.12 $ (0.22) $ 0.27
Diluted $ (0.25) $ 0.12 $ (0.22) $ 0.26
Shares used to compute net income
(loss) per share:
Basic 12,099 11,901 12,046 11,724
Diluted 12,099 12,457 12,046 11,920
SEGMENT RESULTS OF OPERATIONS
Fifty-two weeks ended 3/30/01, unaudited
Diagnostic WellCheck.com
Products WellCheck Cholestech
------- ------- ------- -------
Net revenues $32,489 $ 4,429 $ 85 $37,003
Cost of revenue 14,055 1,225 --- 15,280
------- ------- ------- -------
Gross profit 18,434 3,204 85 21,723
------- ------- ------- -------
Operating expenses:
Sales & marketing 7,969 2,736 683 11,388
Research & development 2,194 --- 392 2,586
Website operation & content --- --- 1,952 1,952
General & administrative 2,647 1,143 1,289 5,079
Goodwill amortization --- 709 --- 709
Legal and related 438 437 437 1,312
Impairment charge --- --- 1,958 1,958
------- ------- ------- -------
Operating expenses 13,248 5,025 6,711 24,984
------- ------- ------- -------
Operating income (loss) $ 5,186 $(1,821) $(6,626) $(3,261)
======= ======= ======= =======
Certain amounts in the financial statements have been reclassified to
conform to the current year's presentation. The reclassification had
no impact on previously reported income (loss) from operations or net
income (loss).
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion