Cholestech Reports U.S. Pharmacy Launch and Strong International Sales During Second Quarter of Fiscal 1999.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)--Oct. 28, 1998--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 strong international sales and new marketing agreements with McKesson (NYSE NYSE See: New York Stock Exchange :MCK MCK McKinsey & Company (consulting firm) MCK Mohawk Council of Kahnawake (Quebec) MCK Mon Colle Knights (children's TV show) MCK Mirror Classes Kit MCK Maintenance Check ) and Bergen Brunswig Drug (NYSE:BBC BBC in full British Broadcasting Corp. Publicly financed broadcasting system in Britain. A private company at its founding in 1922, it was replaced by a public corporation under royal charter in 1927. ) helped Cholestech deliver $6.1 million in revenue for the second quarter ended September 25, 1998, up 30% from the previous quarter ended June 26, 1998. Revenues were also up from the $5.4 million recorded in the second quarter of fiscal 1998. Gross margins for the second quarter were 51 percent of revenue versus 50 percent of revenue in the same quarter of the prior fiscal year. During the second quarter, company management negotiated a $175,000 reduction in costs associated with its withdrawn public stock offering. This one-time, non-recurring credit is included in total operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. . Net income for the second quarter was $310,000, or $0.03 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. ), versus $437,000, or $0.04 per share (diluted) in the second quarter of fiscal 1998. "On balance we are pleased with the improvement in results over the previous quarter," 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. "We have begun to ship product to our two new partners in 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. market, McKesson and Bergen Brunswig. We experienced excellent shipments to our international customers and, if we adjust for last year's instrument program with Parke-Davis, our physician office sales increased approximately 50%. "Offsetting these strong performances was a decline in our health promotion segment growth rate. A year to year decline in testing performed at WalMart was the primary contributor." Pinckert continued, "As we move forward this year, our focus will be on expanding distribution outside of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , developing the pharmacy market with our new partners, continuing to penetrate the physician office market segment and continued expansion of the venues where health promotion is performed." 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 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 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 Corporation. -0-
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Thirteen weeks ended Twenty-six weeks ended
9/25/98 9/26/97 9/25/98 9/26/97
Revenues:
Domestic $ 5,144 $ 4,910 $ 9,315 $ 8,718
International 963 502 1,477 897
6,107 5,412 10,792 9,615
Cost of
products sold 2,984 2,705 4,886 4,701
Gross Profit 3,123 2,707 5,906 4,914
Operating expenses:
Sales and
marketing 1,818 1,394 3,446 2,650
Research and
development 729 555 1,428 1,060
General and
administrative 646 484 1,131 930
Other (175) 0 575 0
Total operating
expenses 3,018 2,433 6,580 4,640
Income (loss)
from operations 105 274 (674) 274
Interest & other
income, net 218 172 412 294
Income (loss)
before taxes 323 446 (262) 568
Provision for
income taxes 13 9 13 12
Net income (loss) $ 310 $ 437 $ (275) $ 556
Net income (loss)
per share:
Basic $ 0.03 $ 0.04 $ (0.02) $ 0.05
Diluted $ 0.03 $ 0.04 $ (0.02) $ 0.05
Shares used to
compute net income
(loss) per share:
Basic 11,473 11,260 11,473 11,253
Diluted 11,764 11,806 11,473 11,761
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