Colorado MEDtech, Inc. Announces Second-Quarter and Six-Month Results.Business and Health Editors 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. 8, 2000 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 medical products and services company, today announced results for its second quarter and six-month period ended December December: see month. 31, 1999. The Company previously announced that second quarter sales and earnings would be lower due to one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charges for the acquisition of CIVCO Medical Instruments Co., Inc. (CIVCO) and 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. of some development and manufacturing programs. Net income in the second quarter was $.9 million compared to $1.9 million in the second quarter last year and earnings 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, were 7 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. compared to 15 cents per share in the same period last year. Sales in the second quarter were $18.0 million, compared to $18.3 million in the same period last year. Net income for the six-months ended December 31, 1999 was $3.2 million compared to $3.8 million for the same period last year on sales of $38.7 million compared to $34.4 million for the same period in the prior year. Earnings per share, on a diluted basis, for the six months were 23 cents compared to 29 cents in the prior year. The Company had one-time charges of $.7 million during the quarter ended December 31, 1999 and $1.1 million for the six-month period for expenses related to the acquisition of CIVCO and to the centralization cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. of the Company's manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. into one location. If the Company had not incurred these one-time expenses the earnings per share, on a diluted basis, would have been 10 cents per share for the quarter and 28 cents per share for the six months ended December 31, 1999. &uot;These results are consistent with the reduced estimates we provided in December. Our one-time charges during the last two quarters related to acquisitions and our manufacturing operations have decreased our net income, but I feel that these expenses are an investment in the Company's future,&uot; said John V. Atanasoff, 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. . &uot;We have also implemented some cost-cutting activities to reduce our expenses in the future.&uot; Statements in this news release which are not historical facts are 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. subject to risks and uncertainties which could cause actual results to differ materially from those set forth in or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by forward-looking statements. Those risks include, but are not limited to, 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 such orders, 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. These factors are more fully described in the Company's documents filed with the Securities and Exchange Commission, including its 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 June June: see month. 30, 1999 and its Form S-3 filed February February: see month. 7, 2000, copies of which the Company will provide on request. 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. provider of advanced medical products and comprehensive 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.
COLORADO MEDTECH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, 1999 June 30, 1999
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,969,882 $ 8,499,714
Short-term investments 11,940,852 14,394,870
Accounts receivable, net 14,274,333 11,932,749
Inventories, net 9,306,409 5,512,155
Deferred income taxes and
other current assets 2,865,072 2,353,432
------------- -------------
Total current assets 40,356,548 42,692,920
------------- -------------
PROPERTY AND EQUIPMENT, net 4,925,675 4,341,931
------------- -------------
GOODWILL, net 2,058,023 1,582,039
------------- -------------
LAND, DEFERRED INCOME TAXES
AND OTHER ASSETS 1,264,173 1,354,124
------------ -------------
TOTAL ASSETS $ 48,604,419 $ 49,971,014
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 6,060,570 $ 5,842,194
Accrued salaries and wages 2,098,852 4,519,996
Accrued product service
costs 369,358 313,409
Customer deposits 3,120,001 3,482,841
Other accrued expenses 2,225,875 3,043,878
Income taxes payable - 564,274
Current debt 49,798 590,616
------------- -------------
Total current
liabilities 13,924,454 18,357,208
------------- -------------
LONG-TERM DEBT, net 95,968 1,163,711
------------- -------------
SHAREHOLDERS' EQUITY:
Common stock 12,524,444 11,158,446
Retained earnings 22,049,889 19,263,269
Unrealized gain on available-for-
sale investment 9,664 28,380
------------- -------------
Total shareholders'
equity 34,583,997 30,450,095
------------- -------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 48,604,419 $ 49,971,014
============= =============
COLORADO MEDTECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
December 31, December 31,
1999 1998 1999 1998
-------------------------- --------------------------
SALES AND SERVICE:
Outsourcing
Services $ 10,716,979 $ 11,373,008 $ 22,486,280 $ 20,908,506
Medical
Products 7,282,237 6,955,344 16,171,500 13,482,308
------------ ------------ ------------ ------------
Total Sales 17,999,216 18,328,352 38,657,780 34,390,814
------------ ------------ ------------ ------------
COST OF SALES
AND SERVICE:
Outsourcing
Services 7,295,166 6,966,803 14,744,713 13,077,330
Medical
Products 4,453,745 4,026,073 9,254,488 7,541,045
------------ ------------ ------------ ------------
Total Cost of
Sales 11,748,911 10,992,876 23,999,201 20,618,375
------------ ------------ ------------ ------------
GROSS PROFIT 6,250,305 7,335,476 14,658,579 13,772,439
------------ ------------ ------------ ------------
COSTS AND
EXPENSES:
Marketing and
selling 1,028,937 971,841 2,240,995 1,871,427
Operating,
general and
administrative 2,909,855 2,593,112 6,111,790 4,896,821
Research and
development 937,104 745,498 1,737,714 1,454,144
------------ ------------ ------------ ------------
Total
operating
expenses 4,875,896 4,310,451 10,090,499 8,222,392
------------ ------------ ------------ ------------
EARNINGS FROM
OPERATIONS 1,374,409 3,025,025 4,568,080 5,550,047
OTHER (EXPENSE)
INCOME, net 190,785 (85,765) 389,072 63,372
------------ ------------ ------------ ------------
EARNINGS BEFORE
INCOME TAXES 1,565,194 2,939,260 4,957,152 5,613,419
Provision for
income taxes 647,000 1,025,000 1,798,000 1,839,000
------------ ------------ ------------ ------------
NET INCOME $ 918,194 $ 1,914,260 $ 3,159,152 $ 3,774,419
============ ============ ============ ============
NET INCOME PER
SHARE
Basic $ .08 $ .17 $ .26 $ .33
============ ============ ============ ============
Diluted $ .07 $ .15 $ .23 $ .29
============ ============ ============ ============
WEIGHTED AVERAGE
SHARES
OUTSTANDING
Basic 11,987,480 11,239,069 11,930,280 11,357,961
========== ========== ========== ==========
Diluted 13,378,266 12,940,457 13,556,338 13,011,852
========== ========== ========== ==========
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