Colorado MEDtech, Inc. Announces Third 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)--May 7, 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 third quarter ended March 31, 2002. Sales in the third quarter were $17,662,000 compared to $20,958,000 for the same period in the prior year. The Company had a third quarter net loss of $556,000 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 4 cents, prior to $1,104,000 ($684,000 after taxes) of expenses related to the Gen-Probe settlement. Net loss for the quarter ended March 31, 2002, including settlement expenses, was $1,240,000, with a loss per share, on a diluted basis, of 9 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. . In the third quarter of the prior year, the company had a net loss of $635,000 and a loss per share, on a diluted basis, of 5 cents. Compared to results in the second quarter of fiscal year 2002 (ended December December: see month. 31, 2001), the third quarter results (excluding the expenses for the Gen-Probe settlement) represent a reduction in net loss of $262,000 (32%) and a 2 cent reduction in loss per diluted share. Sales in the nine months ended March 31, 2002 were $52,370,000 compared to $56,716,000 for the same period in the prior year. For the nine months ended March 31, 2002, the Company had a net loss of $3,204,000 and a loss per share, on a diluted basis, of 25 cents. In the same period of the prior year, the company had a net loss of $978,000 and a loss per share, on a diluted basis, of 8 cents. "I am happy to report another quarter of improved operating results, and our return to positive operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. ," 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, Chairman 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 again narrowed our loss in a business climate that is challenging our industry. During this quarter we continued to take significant strides in improving the company and preparing it for the future. We acquired Barzell Whitmore Whitmore may mean: Places
v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. positioning and stabilizing stabilizing, v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. devices used in 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 image-guided minimally invasive surgery minimally invasive surgery Laparoscopic surgery, see there. See Laparoscopic cholecystectomy. . This strategic acquisition broadens our profitable CIVCO business, and in its first two months has contributed revenue and earnings to the business. Also during the third quarter, we reached a settlement in the Gen-Probe matter, which is allowing us to continue to focus on our core business objectives of returning Colorado MEDtech to profitability and achieving sales growth." "Our accomplishments in the third quarter come on the heels of two other significant issues resolved earlier in the fiscal year: in October 2001 we resolved 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 and were able to increase production in our Longmont, Colorado The City of Longmont is a home rule municipality located in Boulder County and Weld County, Colorado, United States. Longmont is the 13th most populous city in the State of Colorado. The word "Longmont" comes from Longs Peak, a prominent mountain named for explorer Stephen H. medical manufacturing facility, and in December 2001 we 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 . Now, in what we expect will pave PAVE Cardiology A clinical trial–Post AV Node Ablation Evaluation the way for continued cost savings and efficiencies, we began consolidating all of our Colorado operations into a single facility. We expect the move to be largely complete in July 2002. I am very proud of the employees of Colorado MEDtech who continue to work hard for the success of our company." Colorado MEDtech, Inc. is the OneSource 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 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, May 7, 2002 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 877/848-3527. A replay of the call will be available until May 21, 2002 at 800/642-1687, passcode 4053346. The webcast replay will also be available until May 21, 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 facility consolidation, 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 facility consolidation may not result in cost savings and efficiencies 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 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
------
March 31, 2002 June 30, 2001
--------------- --------------
CURRENT ASSETS:
Cash and cash equivalents $ 4,046,472 $ 8,127,076
Short-term investments 589,210 1,677,290
Accounts receivable, net 9,568,202 13,505,201
Inventories 7,718,446 11,720,505
Deferred income taxes 3,234,201 3,234,201
Prepaid expenses and other 1,106,662 791,848
Income taxes receivable 2,947,370 976,507
-------------- --------------
Total current assets 29,210,563 40,032,628
PROPERTY AND EQUIPMENT, net 5,174,436 4,637,282
GOODWILL AND INTANGIBLES, net 5,961,116 3,585,772
NOTES RECEIVABLE -? RELATED PARTIES 715,489 999,796
INVESTMENT IN LAND 500,000 500,000
DEFERRED INCOME TAXES AND OTHER 1,671,751 1,644,455
-------------- --------------
TOTAL ASSETS $ 43,233,355 $ 51,399,933
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Accounts payable $ 4,418,064 $ 7,168,168
Accrued product service costs 518,614 424,163
Accrued salaries and wages 2,122,803 3,054,307
Other accrued expenses 1,169,172 1,905,229
Customer deposits 2,292,256 3,451,332
Current portion of capital
lease obligation 44,242 41,715
-------------- --------------
Total current liabilities 10,565,151 16,044,914
Capital lease obligation,
net of current portion - 33,503
-------------- --------------
Total Liabilities 10,565,151 16,078,417
SHAREHOLDERS' EQUITY:
Common Stock, no par value,
25,000,000 shares authorized;
13,168,583 and 12,967,319
issued and outstanding at
March 31, 2002 and
June 30, 2001, respectively 16,700,307 16,161,004
Retained earnings 15,970,614 19,174,464
Unrealized loss on
available-for-sale investments (2,717) (13,952)
-------------- --------------
Total shareholders' equity 32,668,204 35,321,516
-------------- --------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 43,233,355 $ 51,399,933
============== ==============
COLORADO MEDTECH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE-MONTH PERIODS ENDED MARCH 31, 2002 AND 2001
(UNAUDITED)
Three Months Ended Nine Months Ended
March 31, March 31,
------------------------- -------------------------
2002 2001 2002 2001
------ ------ ------ ------
SALES AND SERVICE:
Outsourcing
Services $ 6,958,751 $ 9,217,606 $ 20,240,585 $ 29,603,576
Medical
Products 10,703,223 11,740,055 32,129,050 27,112,593
----------- ----------- ----------- ------------
Total Sales
and Service 17,661,974 20,957,661 52,369,635 56,716,169
----------- ----------- ----------- ------------
COST OF SALES AND SERVICE:
Outsourcing
Services 6,736,328 6,499,414 19,022,160 20,485,558
Medical Products 6,306,957 7,941,635 19,005,850 18,372,441
----------- ----------- ----------- ------------
Total Cost of
Sales and
Service 13,043,285 14,441,049 38,028,010 38,857,999
----------- ----------- ----------- ------------
GROSS PROFIT 4,618,689 6,516,612 14,341,625 17,858,170
----------- ----------- ----------- ------------
COSTS AND
EXPENSES:
Research and
development 879,414 1,557,837 2,747,020 3,770,940
Marketing and
selling 940,181 1,066,151 2,894,220 2,986,424
Operating, general
and
administrative 3,409,733 4,659,380 11,550,549 12,358,047
Other operating
expenses 1,286,127 463,858 2,353,637 1,060,976
----------- ----------- ----------- ------------
Total operating
expenses 6,515,455 7,747,226 19,545,426 20,176,387
----------- ----------- ----------- ------------
LOSS FROM
OPERATIONS (1,896,766) (1,230,614) (5,203,801) (2,318,217)
OTHER INCOME, net 45,083 215,138 180,951 745,606
----------- ----------- ----------- ------------
LOSS BEFORE BENEFIT
FOR INCOME TAXES (1,851,683) (1,015,476) (5,022,850) (1,572,611)
BENEFIT FOR
INCOME TAXES (612,000) (380,000) (1,819,000) (595,000)
----------- ----------- ----------- -------------
NET LOSS $ (1,239,683) $ (635,476) $ (3,203,850) $ (977,611)
=========== =========== =========== =============
NET LOSS PER SHARE
Basic and
diluted $ (.09) $ (.05) $ (.25) $ (.08)
==== ==== ==== ====
WEIGHTED AVERAGE
SHARES OUTSTANDING
Basic and
diluted 13,114,961 12,871,898 13,015,833 12,591,727
========== ========== ========== ==========
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