Cholestech Reports Record Net Income On 78 Percent Revenue Growth in the Third Fiscal Quarter.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)--Jan. 28, 1998--Cholestech Corporation (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 :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 continued strong demand for the Company's products, gross margin improvements, and ongoing management of spending led to a record net income and generated $1.1 million of positive cash flow in the third quarter of fiscal 1998. This marks the fifth consecutive quarter the Company improved its position in cash, cash equivalents, and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has . For the three-month period ended December December: see month. 26, 1997, the company recorded revenues of $5.7 million, a 78 percent increase over the $3.2 million reported in the same quarter a year ago. Net income in the third quarter was $584,000, or $.05 per share. A year ago, Cholestech reported a net loss of $163,000, or $0.01 per share in the comparable period. Gross margin in the third fiscal quarter improved to 53 percent of revenues compared with 48 percent of revenues in the same quarter of fiscal 1997 and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. continued to grow significantly more slowly than revenues. For the first nine months of fiscal 1998, revenues grew to $15.3 million, a 70 percent increase over the $9.0 million reported in the comparable period of fiscal 1997. For the first nine months of the current fiscal year, Cholestech reported net income of $1.1 million, or $.10 per share, compared with a loss of $811,000, or $.08 per share in the same period of fiscal 1997. "Our business strategy continues to deliver strong growth, resulting in this quarter's record 8 percent operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: ," said Warren E. Pinckert II, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Cholestech. "During the quarter we shipped a record number of Cholestech L-D-X(R) Systems, a 200 percent increase over the same quarter a year ago. These systems will expand our growing installed base, and will enhance our ability to sell more disposable disposable Nursing adjective Referring to that which is discarded or disposed of noun An item used in health care-related Pt contact which is discarded after use–eg masks, gloves, gowns, needles, paper products, syringes, wipes. See Biohazardous waste. cassettes in the future. In addition, we have continued to improve gross margins despite the challenges we face as capacity is increased to meet demand." The Cholestech L-D-X System is currently the only preventive-care testing system waived under CLIA CLIA Clinical Laboratory Improvement Amendments of 1988 Congressional legislation that promulgated quality assurance practices in clinical labs, and required them to measure performance at each step of the testing process from the beginning to the end-point of a '88 that can conduct multiple diagnostic tests from a single drop of blood and provide results -- in less than five minutes -- that are as accurate as similar tests performed in clinical and hospital labs. Cholestech's portfolio of CLIA-waived products is designed to offer efficient and economic diagnostic screening and therapeutic monitoring options which will ultimately enable people to lead longer, healthier, and more active lives. Statements regarding increased market presence, expanded installed base, increased cassette A removable magnetic tape storage module that contains supply and takeup reels (hubs) in the same housing. Most audio tapes and videotapes use cassettes as well as backup tape technologies such as DAT, 8mm and Magstar MP (see below). sales, product leadership, and future profitability are forward looking statements, the accuracy of which is necessarily subject to risks and uncertainties. Actual results may be affected by factors set forth in the Company's Securities and Exchange Commission filings including the Company's Registration Statement on Form S-1 and prospectus dated June June: see month. 28, 1996 and Form 10-Q Form 10-Q See 10-Q. for the quarter ended September September: see month. 26, 1997. -0-
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
Thirteen weeks ended
12/26/97 12/27/96
Revenues:
Domestic $ 4,856 $ 2,942
International 793 227
5,649 3,169
Cost of products sold 2,668 1,662
Gross profit 2,981 1,507
Operating expenses:
Sales and marketing 1,297 989
Research and development 485 365
General and administrative 735 495
Total operating expenses 2,517 1,849
Income (loss) from operations 464 (342)
Other income (expense), net 133 179
Income (loss) before taxes 597 (163)
Provision for income taxes 13 --
Net income (loss) $ 584 $ (163)
Earnings per common shares
Net income (loss) $ .05 $ (0.01)
Weighted average common shares 11,307,794 11,176,669
Earnings per common shares -
assuming dilution
Net income (loss) $ .05 $ (0.01)
Weighted average common shares
and equivalents outstanding 12,097,634 11,176,669
Thirty-nine weeks ended
12/26/97 12/27/96
Revenues:
Domestic $ 13,574 $ 8,085
International 1,690 900
15,264 8,985
Cost of products sold 7,364 4,931
Gross profit 7,900 4,054
Operating expenses:
Sales and marketing 3,784 2,858
Research and development 1,482 818
General and administrative 1,883 1,374
Total operating expenses 7,149 5,050
Income (loss) from operations 751 (996)
Other income (expense), net 414 185
Income (loss) before taxes 1,165 (811)
Provision for income taxes 25 --
Net income (loss) $ 1,140 $ (811)
Earnings per common shares
Net income (loss) $ .10 $ (0.08)
Weighted average common shares 11,264,564 10,103,329
Earnings per common shares -
assuming dilution
Net income (loss) $ .10 $ (0.08)
Weighted average common shares
and equivalents outstanding 11,833,778 10,103,329
CONTACT: Cholestech Corporation Andrea Tiller (Chief Financial Officer), 510/732-7200 Lola Moenich (Investor Relations Investor relations The process by which the corporation communicates with its investors. ), 510/293-8096 www.cholestech.com or Manning, Selvage selvage - chad & Lee Michele Parisi, 408/453-9194 ext. 14 |
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