Colorado MEDtech, Inc. Announces Increased Revenues for the Third Quarter.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)--May 8, 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 Boulder, Colorado-based 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, today announced results for its third quarter and nine-month period ended March 31, 2001. Revenues for the three months ended March 31, 2001, were $21.0 million, compared to $18.3 million for the same quarter of the prior year, a 14% increase. The Company recorded a third quarter loss of $635,000 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 $.05 per share. These results compare to net income of $790,000 and earnings per share of $.06, on a diluted basis, in the same quarter of the prior year. Revenues for the nine months ended March 31, 2001, were $56.7 million, compared to $57.0 million for the same period in the prior year. Net loss for the nine months ended March 31, 2001, was $978,000, compared to net income of $3.9 million for the same period last year. The Company lost $.08 per share, on a diluted basis, for the nine months ended March 31, 2001, compared to earning $.29 per share, on a diluted basis, in the prior year. "Over the past nine months our revenues have increased quarter over quarter, our bookings are up approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 20% compared to last year, and we have improved our infrastructure and quality systems," 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, 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. and Chairman. "As we stated last quarter, we expected to have a loss during the second half of our fiscal year. The operating results for the quarter are consistent with the program we previously announced and our expectations for it. Further, in April we instituted a cost reduction program with expected annual savings of up to approximately $2.0 million." Colorado MEDtech, Inc., through its wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. and operating divisions, is a leading full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. OneSource OutSource outsource verb To assign specific work to a 3rd party for a specific length of time at an set price and service level Managed care To use outside labor to perform functions–billing and collections, accounting, janitorial services, ER (TM) provider of advanced medical technology outsourcing, which includes development, software, medical device communications and manufacturing services, and medical imaging, which includes critical system components 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. MDT MDT abbr. Mountain Daylight Time MDT (in the US and Canada) Mountain Daylight Time MDT n abbr (US) (= mountain daylight time) → (10:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ) on Tuesday Tuesday: see week. , May 8, 2001, to discuss its third quarter results. Interested parties may listen to the call via Colorado MEDtech's website at www.cmed.com or by calling 800/388-8975. A replay of the call will be available until May 15, 2001, at 800/428-6051, passcode 180853. The webcast replay will also be available until May 15, 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 regarding the financial impact of the cost reduction program are forward-looking statements that represent management's beliefs and assumptions based on currently available information. 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 reductions in workforce will not produce the expected level of savings or have the expected cost, the risk that developments in the company's manufacturing business will require new investment that may offset the expected expense reductions, and the risk that expenses associated with compliance with the Federal Food and Drug Administration Quality System Regulation may offset the expected expense reductions. 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 Incorrect means to not be correct and may also refer to:
COLORADO MEDTECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
March 31, 2001 June 30, 2000
CURRENT ASSETS: -------------- -------------
Cash and cash equivalents $ 8,570,795 $ 8,560,065
Short-term investments 2,719,256 8,190,621
Accounts receivable, net 13,655,772 13,662,053
Inventories, net 15,451,261 8,512,540
Deferred income taxes and other
current assets 4,540,433 3,141,121
------------- -------------
Total current assets 44,937,517 42,066,400
------------- -------------
PROPERTY AND EQUIPMENT, net 4,481,636 4,568,811
------------- -------------
GOODWILL AND INTANGIBLES, net 3,864,750 316,337
------------- -------------
NOTES RECEIVABLE -- RELATED PARTIES 999,796 -
------------- -------------
LAND, DEFERRED INCOME TAXES
AND OTHER ASSETS 1,244,468 1,340,315
------------ -------------
TOTAL ASSETS $ 55,528,167 $ 48,291,863
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
March 31, 2001 June 30, 2000
CURRENT LIABILITIES: -------------- -------------
Accounts payable $ 8,208,740 $ 5,440,413
Accrued salaries and wages 2,796,299 2,390,201
Accrued product service costs 400,024 394,361
Customer deposits 4,250,776 2,647,132
Other accrued expenses 2,815,963 1,951,128
Current debt 40,901 46,120
------------- -------------
Total current liabilities 18,512,703 12,869,355
------------- -------------
LONG-TERM DEBT, net 44,242 75,218
------------- -------------
SHAREHOLDERS' EQUITY:
Common stock 16,113,103 13,468,486
Retained earnings 20,903,678 21,881,289
Unrealized loss on available-for-sale
investments (45,559) (2,485)
------------- -------------
Total shareholders' equity 36,971,222 35,347,290
------------- -------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 55,528,167 $ 48,291,863
============ ===========
COLORADO MEDTECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE- AND NINE- MONTH PERIODS ENDED MARCH 31, 2001 AND 2000
(UNAUDITED)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------- -------------------
2001 2000 2001 2000
------- --------- -------- -----------
SALES AND SERVICE:
Outsourcing Services $ 9,217,606 $10,810,305 $29,603,576 $33,296,586
Medical Products 11,740,055 7,539,291 27,112,593 23,710,791
------------ ----------- ----------- -----------
Total Sales and
Service 20,957,661 18,349,596 56,716,169 57,007,377
------------ ----------- ----------- -----------
COST OF SALES AND SERVICE:
Outsourcing Services 6,499,414 7,211,235 20,485,558 21,955,947
Medical Products 7,941,635 4,764,874 18,372,441 14,019,362
----------- ----------- ----------- -----------
Total Cost of Sales
and Service 14,441,049 11,976,109 38,857,999 35,975,309
----------- ----------- ----------- -----------
GROSS PROFIT 6,516,612 6,373,487 17,858,170 21,032,068
----------- ----------- ----------- -----------
COSTS AND EXPENSES:
Marketing and selling 1,066,151 934,731 2,986,424 3,175,727
Operating, general and
administrative 5,123,238 3,182,070 13,419,023 9,293,859
Research and
development 1,557,837 1,183,100 3,770,940 2,920,814
----------- ----------- ----------- -----------
Total operating
expenses 7,747,226 5,299,901 20,176,387 15,390,400
----------- ----------- ----------- -----------
(LOSS) EARNINGS FROM
OPERATIONS (1,230,614) 1,073,586 (2,318,217) 5,641,668
OTHER INCOME, net 215,138 130,806 745,606 519,878
----------- ----------- ----------- -----------
(LOSS) EARNINGS BEFORE
INCOME TAXES (1,015,476) 1,204,392 (1,572,611) 6,161,546
Provision for income
taxes (380,000) 414,000 (595,000) 2,212,000
----------- ----------- ----------- -----------
NET (LOSS) INCOME $ (635,476) $ 790,392 $ (977,611)$ 3,949,546
=========== =========== ========== ===========
NET (LOSS) INCOME PER SHARE
Basic $ (.05) $ .06 $ (.08) $ .33
=========== =========== =========== ===========
Diluted $ (.05) $ .06 $ (.08) $ .29
=========== =========== =========== ===========
WEIGHTED AVERAGE
SHARES OUTSTANDING
Basic 12,871,864 12,178,694 12,591,716 12,012,482
=========== =========== ========== ===========
Diluted 12,871,864 13,185,968 12,591,716 13,469,542
=========== =========== ========== ===========
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