Colorado MEDtech, Inc. Announces First-Quarter Results.Business Editors/Health & Medical Writers BOULDER Boulder, city, United States Boulder, city (1990 pop. 83,312), seat of Boulder co., N central Colo.; inc. 1871. A Rocky Mountain resort and a suburb of Denver, it is the seat of the Univ. of Colorado (1876). , Colo.--(BW HealthWire)--Nov. 6, 2001 Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. MEDtech, Inc. (Nasdaq:CMED CMED Coordinated Medical Emergency Direction CMED Central Massachusetts Emergency Dispatch ), a provider of advanced medical technology outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. services and medical imaging products, announced today results for its first quarter ended September September: see month. 30, 2001. Sales in the first quarter were $17,019,000 compared to $17,071,000 for the same period in the prior year. The Company had a first-quarter net loss of $1,146,000 and a loss per share, on a 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. basis, of 9 cents. In the first quarter of the prior year, the company had net income of $334,000 and earnings per share, on a diluted basis, of 3 cents. The reduction in net income was primarily due to increased quality and administrative expenses, and to a decrease in outsourcing services gross margin caused by decreased capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. in the RELA product development and manufacturing business unit. "Our business in the first quarter continued to be affected by the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. warning letter. However, since we announced the resolution of the warning letter on October October: see month. 15, 2001, we have seen an increase in the sales opportunities for future orders and we are actively pursuing this business," said Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and K. Onody, 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. . "With resolution of the warning letter, we have begun shipping products that were impacted by the letter and will reduce our quality consulting expenses. In addition, we continue to implement other cost reduction measures which resulted in a 9% reduction in 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. in the first quarter compared to the fourth quarter of the prior year. These measures, combined with planned holiday facility shutdowns in our second quarter, are helping us reduce expenses in what we perceive to be a softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. business climate." Colorado MEDtech, Inc. is a leading full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. One Source OutSource(TM) provider of advanced medical technology outsourcing services, including device and disposables development, software, medical device connectivity, manufacturing, system components for medical imaging and ultrasound ultrasound or sonography, in medicine, technique that uses sound waves to study and treat hard-to-reach body areas. In scanning with ultrasound, high-frequency sound waves are transmitted to the area of interest and the returning echoes recorded accessories. Conference Call Colorado MEDtech will hold a conference call at 8:00 a.m. MST See micro systems technology. (10:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy ) on Tuesday Tuesday: see week. , November November: see month. 6, 2001, to discuss its fourth- quarter and fiscal year results. Interested parties may listen to the call via Colorado MEDtech's website at www.cmed.com or by calling 877/362-3954. A replay of the call will be available until November 13, 2001, at 800/642-1687, passcode 2186410. The webcast replay will also be available until November 13, 2001. 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. The statements in this news release and in the conference call that are not historical facts, including those regarding the financial impact of cost reduction measures, are forward-looking statements that represent management's beliefs and assumptions based on currently available information. Forward-looking statements can be identified by the use of words such as "believes," "intends," "estimates," "may," "will," "should," "anticipated," "expected" or comparable terminology or by discussions of strategy. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot assure that these expectations will prove to be correct. Such statements involve risks and uncertainties including, but not limited to, the risk that the cost reduction measures may not have the impact necessary to improve results or to offset the slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in business or that other factors may offset such impact, the risk that the Company's existing level of orders may not be indicative of the level or trend of future orders, the risk that the Company may not successfully complete the work encompassed by current or future orders, the risk that unforeseen technical or production difficulties may adversely impact project timing and financial performance, the risk of an adverse result in pending or potential 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. , the risks associated with regulation by the Federal Food and Drug Administration including compliance with the Quality System Regulation, the risk that acquired companies cannot be successfully integrated with the Company's existing operations and the risk that a downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in general economic conditions or customer budgets may adversely affect research and development and capital expenditure budgets of potential customers upon which the Company is dependent. Should one or more of these risks materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. (or the consequences of such a development worsen wors·en tr. & intr.v. wors·ened, wors·en·ing, wors·ens To make or become worse. worsen Verb to make or become worse worsening adjn ), or should the underlying assumptions prove incorrect, actual results could differ materially from those forecasted or expected. These factors are more fully described in the Company's documents filed from time to time with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update publicly or revise such statements whether as a result of new information, future events or otherwise.
COLORADO MEDTECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
September 30, 2001 June 30, 2001
------------------ -------------
CURRENT ASSETS:
Cash and cash equivalents $ 7,098,519 $ 8,127,076
Short-term investments 1,694,492 1,677,290
Accounts receivable, net 11,113,724 13,505,201
Inventories 11,451,537 11,720,505
Deferred income taxes 3,234,201 3,234,201
Prepaid expenses and other 2,025,149 1,768,355
------------- -------------
Total current assets 36,617,622 40,032,628
------------- -------------
PROPERTY AND EQUIPMENT, net 4,694,709 4,637,282
GOODWILL AND INTANGIBLES 3,533,273 3,585,772
NOTES RECEIVABLE -- RELATED PARTIES 999,796 999,796
INVESTMENT IN LAND 500,000 500,000
DEFERRED INCOME TAXES AND OTHER 1,631,756 1,644,455
------------- -------------
TOTAL ASSETS $ 47,977,156 $ 51,399,933
============= =============
CURRENT LIABILITIES:
Accounts payable $ 6,213,957 $ 7,168,168
Accrued product service costs 406,769 424,163
Accrued salaries and wages 2,692,129 3,054,307
Other accrued expenses 1,645,564 1,905,229
Customer deposits 2,770,940 3,451,332
Current portion of capital lease obligation 42,545 41,715
------------- -------------
Total current liabilities 13,771,904 16,044,914
Capital lease obligation, net of current
portion 22,550 33,503
------------- -------------
Total liabilities 13,794,454 16,078,417
------------- -------------
SHAREHOLDERS' EQUITY:
Common stock 16,179,176 16,161,004
Retained earnings 18,028,611 19,174,464
Unrealized loss on available-for-sale
investment (25,085) (13,952)
------------- -------------
Total shareholders' equity 34,182,702 35,321,516
------------- -------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 47,977,156 $ 51,399,933
============= =============
COLORADO MEDTECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000
(UNAUDITED)
2001 2000
-------- --------
SALES AND SERVICE:
Outsourcing Services $ 6,334,968 $ 9,697,646
Medical Products 10,684,375 7,373,500
------------- -------------
Total Sales and Service 17,019,343 17,071,146
------------- -------------
COST OF SALES AND SERVICE:
Outsourcing Services 5,555,002 6,271,607
Medical Products 6,633,252 5,039,785
------------- -------------
Total Cost of Sales and Service 12,188,254 11,311,392
------------- -------------
GROSS PROFIT 4,831,089 5,759,754
------------- -------------
COSTS AND EXPENSES:
Marketing and selling 987,970 921,383
Operating, general and administrative 4,365,497 3,315,680
Research and development 832,259 1,013,558
Other operating expenses 596,980 268,447
------------- -------------
Total operating expenses 6,782,706 5,519,068
------------- -------------
(LOSS) EARNINGS FROM OPERATIONS (1,951,617) 240,686
OTHER INCOME (EXPENSE), net 100,764 292,220
------------- -------------
(LOSS) INCOME BEFORE PROVISION
FOR INCOME TAXES (1,850,853) 532,906
(BENEFIT) PROVISION FOR INCOME TAXES (705,000) 199,000
------------- -------------
NET (LOSS) INCOME $ (1,145,853) $ 333,906
============= =============
NET (LOSS) INCOME PER SHARE
Basic $ (.09) $ .03
============= =============
Diluted $ (.09) $ .03
============= =============
WEIGHTED AVERAGE
SHARES OUTSTANDING
Basic 12,970,726 12,422,867
============= =============
Diluted 12,970,726 13,155,868
============= =============
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion