Cholestech Reports Third Quarter of Fiscal 1999 Results.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. 27, 1999--Cholestech Corp. (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 strong sales in the Physician Office Laboratory market for the company's products, offset by reduced new customer placements during the holiday season, resulted in sales of $5.4 million for the quarter ended Dec. 25, 1998. Gross margins for the third quarter were 52 percent, unchanged from the same quarter of the prior fiscal year, but down from the 55 percent realized in the first half of the current fiscal year. Margins were adversely affected by reduced production of 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. cassettes as the company sought to bring its inventory levels in line with current demand. Additionally, 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. increased 11 percent over the same quarter of the prior fiscal year. Research and Development was a large component of the increase, increasing 24 percent over the third quarter of last year as the company expanded its efforts to bring its liver enzyme enzyme, biological catalyst. The term enzyme comes from zymosis, the Greek word for fermentation, a process accomplished by yeast cells and long known to the brewing industry, which occupied the attention of many 19th-century chemists. test closer to commercial availability. Net income for the third quarter was $189,000, or $0.02 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. ), down from $584,000, or $0.05 per share (diluted) in the third quarter of fiscal 1998. "This quarter continued our growth in the physician office market where we enjoyed a year to year 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. 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). unit increase of 63%," 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. "Also encouraging was the fact that we have nearly doubled our year to date sales in our newest market, the pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. , over the prior year. These areas of growth were offset by a decrease in sales to the health promotion market. We are attacking this issue by implementing programs to expand the number of health promotion testing venues, broadening our distribution programs, and exploring potential strategic alliances." Pinckert continued "We are also in the process of putting in place additional programs aimed at increasing our gross margin. We expect to continue to reduce our inventory levels over the next few quarters as these programs take effect." The Cholestech L.D.X(R) System is currently the only preventive care Preventive care is a set of measures taken in advance of symptoms to prevent illness or injury. This type of care is best exemplified by routine physical examinations and immunizations. The emphasis is on preventing illnesses before they occur. See also
Cholestech's portfolio of CLIA-waived products is designed to offer efficient and economic diagnostic screening and therapeutic monitoring options that the company believes will ultimately enable people to lead longer, healthier, and more active lives. Statements regarding the future performance of the company, including statements regarding expanded testing venues, broader distribution programs, strategic alliances, inventories, and future gross margins are forward looking statements, the accuracy of which is necessarily subject to risks and uncertainties. Actual results may be affected by additional factors set forth in the company's Securities and Exchange Commission filings including the company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended March 27, 1998, and Form 10-Q Form 10-Q See 10-Q. for the quarter ended June 26, 1998. Note to Editors: Cholestech L.D.X is a registered trademark of Cholestech Corp. -0-
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Thirteen weeks ended Thirty-nine weeks ended
12/25/98 12/26/97 12/25/98 12/26/97
Revenues:
Domestic $ 4,732 $ 4,856 $ 14,047 $ 13,574
International 660 793 2,137 1,690
------- ------- ------- -------
5,392 5,649 16,184 15,264
Cost of products
sold 2,602 2,718 7,488 7,419
Gross Profit 2,790 2,931 8,696 7,845
Operating expenses:
Sales and marketing 1,462 1,411 4,908 4,061
Research and
development 669 539 2,097 1,599
General and
administrative 624 529 1,755 1,459
Other 0 0 575 0
Total operating
expenses 2,755 2,479 9,335 7,119
Income (loss)
from operations 35 452 (639) 726
Interest & other
income, net 154 145 566 439
Income (loss)
before taxes 189 597 (73) 1,165
Provision for
income taxes 0 13 13 25
Net income (loss) $ 189 $ 584 $ (86) $ 1,140
Net income (loss)
per share:
Basic $ 0.02 $ 0.05 $ (0.01) $ 0.10
Diluted $ 0.02 $ 0.05 $ (0.01) $ 0.10
Shares used to
compute net
income (loss)
per share:
Basic 11,487 11,308 11,478 11,265
Diluted 11,578 12,098 11,478 11,834
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