Cholestech Reports 1st Quarter Results as Diagnostics Business Continues Growth Trend.Business Editors/Medical & High Tech 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.--(BUSINESS WIRE)--July 26, 2000 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 its first quarter of fiscal 2001 net income rose 77 percent on a 54 percent revenue increase from the same quarter of last year. For the three months ended June June: see month. 30, Cholestech had net income of $949,000, or $0.08 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. ), on revenues of $8.9 million. Both amounts are records for any first quarter in the company's history and compare with net income of $536,000, or $0.05 per share (diluted), on revenues of $5.8 million in the first quarter of fiscal 2000. The company attributed its performance to continuing strong growth in its core Diagnostics (1) Software routines that test hardware components (memory, keyboard, disks, etc.). Diagnostics are often stored in ROM chips and activated on startup. (2) Error messages in a programmer's source code that refer to statements or syntax that the compiler or assembler business, which provides the only comprehensive monitoring system that performs a full lipid lipid Any of a diverse class of organic compounds, found in all living things, that are greasy and insoluble in water. One of the three large classes of substances in foods and living cells, lipids contain more than twice as much energy (calories) per unit of weight as the test for cholesterol outside the medical laboratory. International demand nearly doubled, especially in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , while domestic demand increased 48 percent over
the same quarter last year.
Cholestech has also created two new business units tied closely to its core business -- WellCheck, which is targeted to become the first nationwide consumer-focused cholesterol testing Cholesterol Test Definition The cholesterol test is a quantitative analysis of the cholesterol levels in a sample of the patient's blood. Total serum cholesterol (TC) is the measurement routinely taken. service, and WellCheck.com, an online tool kit enabling those 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. or diabetes to monitor their conditions and access resources to better manage cholesterol. Both new businesses are expected to significantly increase demand for the company's proprietary multi-analyte Cholestech L-D-X(R) testing system that is comprised of an analyzer analyzer /ana·ly·zer/ (an´ah-li?zer) 1. a Nicol prism attached to a polarizing apparatus which extinguishes the ray of light polarized by the polarizer. 2. and single-use cassettes. "Our core Diagnostics business continues to reflect the growing demand for accurate and more convenient risk assessment outside of the hospital laboratory," said Warren E. Pinckert II, president and chief executive officer. "With the recent launch of WellCheck.com, our cholesterol management site, and the planned expansion of WellCheck, our national testing service, we expect to increase demand for the Cholestech L-D-X(R) System." "WellCheck will bring affordable heart disease risk assessment to consumer-convenient locations. Those tested will be offered a personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. cholesterol management program via WellCheck.com," he added. "Our goal -- through effective personal health management -- is to help significantly reduce heart disease, the number one killer of Americans." "Looking forward over the next few quarters, we expect: our core Diagnostics business to sustain last fiscal year's sales growth rate of 23 percent on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis; and WellCheck to continue double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. revenue growth, adjusted for inter-company eliminations. At the same time WellCheck.com will not realize material revenues in fiscal 2001," Pinckert said. "Cholestech's earnings will be affected by the timing of further investments in our WellCheck testing services and WellCheck.com personal health management web site. Investors should remember that our goal is to drive higher volume through our core business by providing easier access to testing and personalized cholesterol management through the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the ." The company's first quarter records come on the heels of an unusually strong, 14-week fourth quarter in which Cholestech earned $1.4 million, or $0.11 per share (diluted), on revenues of $8.6 million. The company will conduct a conference call on fiscal first quarter results beginning at 7 a.m. (PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT ) today. The call will be available to all investors and media via the company's website www.cholestech.com or by dialing 888/793-1698 and entering reservation number 15850055. A replay of the call will be aired from approximately 9 a.m. today until 4 p.m. on July July: see month. 31 at the company's website or by dialing 800/633-8284 and entering reservation number 15850055 and following operator instructions. About Cholestech Cholestech is committed to helping people successfully improve their health. Working together, the Cholestech business units of Diagnostic Products, WellCheck(TM), and WellCheck.com can provide simple, accessible, and reliable personal health information to health care practitioners and consumers in over 35 countries around the world. By offering efficient and economic diagnostic screening for cholesterol, blood sugar, and liver function, Cholestech hopes to help more people understand whether or not they face potentially serious health risks. Therapeutic monitoring options using the Cholestech L-D-X(R) System can help patients monitor their progress as they work with their health care provider to reduce their risk of cardiovascular cardiovascular /car·dio·vas·cu·lar/ (-vas´ku-ler) pertaining to the heart and blood vessels. car·di·o·vas·cu·lar adj. Abbr. and other diseases. Working together with health care providers, our goal is to ultimately enable people to lead longer, healthier, and more active lives. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement of Cholestech Corporation under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This 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. as defined in the Private Securities Litigations Reform Act of 1995, including statements regarding: WellCheck becoming the first nationwide, consumer-focused cholesterol testing service; WellCheck and WellCheck.com's positively impacting demand for the Cholestech L-D-X(R) System; production increasing due to a third production line; the core diagnostics business sustaining a 23% growth rate; and realizing a 60% gross margin. Actual results may differ materially from those in the forward-looking statements due to risks and uncertainties, including: those inherent in acquisitions of technologies and businesses; integration issues; unanticipated expenditures; changing relationships with customers, suppliers, and strategic partners; potential contractual, intellectual property, or employment issues; delays; the loss of a significant customer; the availability and pricing of competing products and services and the resulting effects on sales and pricing of our products and services; and other factors. Note to Editors: 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. Financial schedules attached. Cholestech executives available for interviews on either financial results or business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . Contact Joe Graceffo, Kalt Rosen & Co., 415/397-2686 or Graceffo@KRC-PR.com.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts, unaudited)
Thirteen weeks ended
6/30/00 6/25/99
Net revenues:
Domestic $ 7,485 $ 5,061
International 1,403 714
----- -----
8,888 5,775
Cost of revenues 3,417 2,600
Gross profit 5,471 3,175
Sales & marketing 2,250 1,538
Research & development 896 594
General & administrative 1,373 594
Other 150 46
Total operating expenses 4,669 2,772
Operating income (loss) 802 403
Net interest and other income (expense) 188 149
Provision for income taxes 41 16
Net income $ 949 $ 536
Net per share:
Basic $ 0.08 $ 0.05
Diluted $ 0.08 $ 0.05
Shares used to compute
net income per share:
Basic 11,976 11,518
Diluted 12,486 11,546
SEGMENT RESULTS OF OPERATIONS
Thirteen weeks ended 6/30/00
Diagnostic
Products WellCheck WellCheck.com Cholestech
Net revenues $ 7,980 $ 908 $ --- $ 8,888
Cost of revenues 3,334 83 --- 3,417
Gross profit 4,646 825 --- 5,471
Sales & marketing 1,774 447 29 2,250
Research
& development 505 0 392 896
General &
administrative 675 277 420 1,373
Other --- 150 --- 150
Total operating
expenses 2,954 874 841 4,669
Operating
income (loss) $ 1,692 $ (49) $ (841) $ 802
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