Colorado MEDtech, Inc. Announces Second Quarter Results.Business/Health Editors & Technology 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)--Feb. 5, 2002 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, today announced results for its second quarter ended December December: see month. 31, 2001. Sales in the second quarter were $17,688,000 compared to $18,687,000 for the same period in the prior year. The Company had a second quarter net loss of $818,000 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 6 cents. In the second quarter of the prior year, the company had a net loss of $676,000 and a loss per share, on a diluted basis, of 5 cents. Compared to results in the first quarter of fiscal year 2002 (ended September September: see month. 30, 2001), the second quarter results represent a reduction in net loss of $328,000 (29%) and a 3 cent reduction in loss per diluted share. The reduction in net income compared to the prior year was primarily due to a decrease in outsourcing services revenue and gross margin, and increased quality expenses in connection with the response to 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. Sales in the six months ended December 31, 2001, were $34,708,000 compared to $35,759,000 for the same period in the prior year. For the six months ended December 31, 2001, the Company had a net loss of $1,964,000 and a loss per share, on a diluted basis, of 15 cents. In the same period of the prior year, the company had a net loss of $342,000 and a loss per share, on a diluted basis, of 3 cents. "Our cost reduction efforts this quarter were effective and our overall financial performance improved," 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. . "We were pleased that during this quarter we resolved the FDA warning letter and won the Wedel we·del intr.v. we·deled, we·del·ling, we·dels To ski on snow by means of wedeln. [Back-formation from wedeln.] Verb 1. arbitration arbitration Process of resolving a dispute or a grievance outside a court system by presenting it for decision to an impartial third party. Both sides in the dispute usually must agree in advance to the choice of arbitrator and certify that they will abide by the . During the second half of the year, we will continue to focus on reducing costs and improving sales and profitability." Colorado MEDtech, Inc. is the full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. OneSource OutSource(TM) provider of advanced medical technology outsourcing services, including device and disposables development, software, medical device connectivity A generic term for connecting devices to each other in order to transfer data back and forth. It often refers to network connections, which embraces bridges, routers, switches and gateways as well as backbone networks. , 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. , February February: see month. 5, 2002, to discuss its second quarter results. Interested parties may listen to the call via Colorado MEDtech's website at www.cmed.com or by calling 877/440-9648. A replay of the call will be available until February 12, 2002, at 800/642-1687, passcode 3010803. The webcast replay will also be available until February 12, 2002. 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 indicative: see mood. 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)
December 31, 2001 June 30, 2001
----------------- -------------
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents $ 6,835,639 $ 8,127,076
Short-term investments 593,576 1,677,290
Accounts receivable, net 8,790,236 13,505,201
Inventories 10,383,610 11,720,505
Deferred income taxes 3,234,201 3,234,201
Income taxes receivable 2,206,414 976,507
Prepaid expenses and other 687,088 791,848
----------- -----------
Total current assets 32,730,764 40,032,628
PROPERTY AND EQUIPMENT, net 5,058,083 4,637,282
GOODWILL AND INTANGIBLES 3,483,273 3,585,772
NOTES RECEIVABLE -- RELATED PARTIES 849,798 999,796
INVESTMENT IN LAND 500,000 500,000
DEFERRED INCOME TAXES AND OTHER 1,798,669 1,644,455
----------- -----------
TOTAL ASSETS $ 44,420,587 $ 51,399,933
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Accounts payable $ 4,597,386 $ 7,168,168
Accrued product service costs 470,996 424,163
Accrued salaries and wages 2,316,911 3,054,307
Other accrued expenses 1,043,476 1,905,229
Customer deposits 2,396,284 3,451,332
Current portion of capital lease
obligation 43,392 41,715
----------- -----------
Total current liabilities 10,868,445 16,044,914
----------- -----------
Capital lease obligation, net of current
portion 11,380 33,503
----------- -----------
SHAREHOLDERS' EQUITY:
Common Stock, no par value, 25,000,000 shares
authorized; 13,041,583 and 12,967,319 issued
and outstanding at December 31, 2001, and
June 30, 2001, respectively 16,352,792 16,161,004
Retained earnings 17,210,297 19,174,464
Unrealized loss on available-for-sale
investment (22,327) (13,952)
----------- -----------
Total shareholders' equity 33,540,762 35,321,516
----------- -----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 44,420,587 $ 51,399,933
=========== ===========
COLORADO MEDTECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE- AND SIX-MONTH PERIODS ENDED DECEMBER 31, 2001 AND 2000
(UNAUDITED)
Three Months Ended Six Months Ended
December 31, December 31,
----------- -----------
2001 2000 2001 2000
---- ---- ---- ----
SALES AND SERVICE:
Outsourcing Services $ 6,946,866 $10,688,324 $13,281,834 $20,385,970
Medical Products 10,741,452 7,999,038 21,425,827 15,372,538
----------- ----------- ----------- -----------
Total Sales and
Service 17,688,318 18,687,362 34,707,661 35,758,508
----------- ----------- ----------- -----------
COST OF SALES AND SERVICE:
Outsourcing Services 6,731,234 7,714,537 12,286,236 13,986,144
Medical Products 6,065,237 5,391,021 12,698,489 10,430,806
----------- ----------- ----------- -----------
Total Cost of Sales 12,796,471 13,105,558 24,984,725 24,416,950
----------- ----------- ----------- -----------
GROSS PROFIT 4,891,847 5,581,804 9,722,936 11,341,558
----------- ----------- ----------- -----------
COSTS AND EXPENSES:
Marketing and selling 966,069 998,890 1,954,039 1,920,273
Operating, general and
administrative 3,775,319 4,382,988 8,140,816 7,698,667
Research and
development 1,035,347 1,199,545 1,867,606 2,213,103
Other operating expenses 470,530 328,670 1,067,510 597,118
----------- ----------- ----------- -----------
Total operating
expenses 6,247,265 6,910,093 13,029,971 12,429,161
----------- ----------- ----------- -----------
LOSS FROM OPERATIONS (1,355,418) (1,328,289) (3,307,035) (1,087,603)
OTHER INCOME, net 35,104 238,248 135,868 530,468
----------- ----------- ----------- -----------
LOSS BEFORE PROVISION
FOR INCOME TAXES (1,320,314) (1,090,041) (3,171,167) (557,135)
BENEFIT FOR INCOME TAXES (502,000) (414,000) (1,207,000) (215,000)
----------- ----------- ----------- -----------
NET LOSS $ (818,314) $ (676,041)$(1,964,167) $ (342,135)
=========== =========== =========== ===========
NET LOSS PER SHARE
Basic and Diluted $ (.06) $ (.05) $ (.15) $ (.03)
===== ===== ===== =====
WEIGHTED AVERAGE
SHARES OUTSTANDING
Basic and Diluted 12,963,968 12,623,373 12,967,347 12,523,120
=========== =========== =========== ===========
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