ZOLL Medical Corporation Announces First Quarter Results; First Quarter Results Show Continued Improvement.CHELMSFORD, Mass. -- ZOLL Medical Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ZOLL), a manufacturer of resuscitation resuscitation /re·sus·ci·ta·tion/ (-sus?i-ta´shun) restoration to life of one apparently dead. cardiopulmonary resuscitation devices and software solutions, today announced revenues of $55,460,000 for the first quarter of fiscal 2006, an increase of 10% compared to revenues of $50,629,000 in the first quarter of last year. Net income for the quarter was $1,132,000, compared to a net loss of $566,000 in the prior year. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.12 compared to 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. loss per share of 6 cents in the prior year. Ending backlog was approximately $8 million. First quarter sales to the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market increased 15% to $42.2 million, compared to $36.6 million for the comparable prior-year period. Sales to the North American hospital market increased 16% to $16.1 million, compared to $13.9 million in the first quarter of last year. Sales to the North American pre-hospital market increased 18% to $21.4 million, compared to the same period last year. International sales decreased 5% to $13.3 million, compared to $14.0 million in the first quarter last year. AED AED - Automated Engineering Design sales to all markets increased 15% to $9.5 million, compared to $8.2 million in the prior-year period. Total AutoPulse(R) shipments were $1.5 million in the quarter, compared to $1.7 million in the first quarter of the prior year. The prior year first-quarter AutoPulse shipments included an acquired backlog of approximately $700,000. Richard A. Packer packer /pack·er/ (pak´er) an instrument for introducing a dressing into a cavity or a wound. pack·er n. 1. An instrument for tamponing. 2. See plugger. , President and Chief Executive Officer of ZOLL, commented, "We are pleased to have completed another successful quarter, achieving slightly more at the bottom line than we anticipated. Our efforts were led by continued improvement in our EMS shipments due to the strength shown by our new E Series product. As new products typically take two to three quarters to move into the marketplace in our business, we are still in the early stages of acceptance of the E Series." "North American hospital shipments showed improvement over the prior year," Mr. Packer added. "However, we need to increase our efforts to drive improved performance in this market to be successful this year. AED revenue growth was strong again this quarter, led by significant growth in shipments to International markets. Overall, International sales were somewhat disappointing given the progress demonstrated last year, although the results may have suffered from comparison to a strong first quarter last year. We have made significant investments in our International operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. over the last few years and we need to continue to focus on improving the return from this market." With respect to the AutoPulse, Mr. Packer noted, "Shipments in the first quarter were lower than we had anticipated. We believe the market is taking time to absorb the data reported from various clinical trials. We remain confident in the opportunity the product provides, the sales force remains excited about the product, and we made significant progress in the International market this quarter. Additionally, we hope a recently signed agreement, adding the AutoPulse to our contract with Novation The substitution of a new contract for an old one. The new agreement extinguishes the rights and obligations that were in effect under the old agreement. A novation ordinarily arises when a new individual assumes an obligation to pay that was incurred by the original party , Inc., one of the largest Hospital Group Purchasing Organizations A group purchasing organization is an entity that leverages the purchasing power of a group of businesses to obtain discounts from vendors based on the collective buying power of the GPO members. Many GPOs are funded by administrative fees that are actually paid by the vendors. in the U.S., will help validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data the need for the AutoPulse in the hospital market. We will push forward with the AutoPulse and believe that revenues should rise throughout the year." Mr. Packer further observed, "Another piece of our efforts to broaden our resuscitation product portfolio should also fall into place, with the likely acquisition of Lifecor, Inc., the wearable defibrillator defibrillator, device that delivers an electrical shock to the heart in order to stop certain forms of rapid heart rhythm disturbances (arrhythmias). The shock changes a fibrillation to an organized rhythm or changes a very rapid and ineffective cardiac rhythm to a company. Our long-term involvement in the start-up of this business has led to a viable business selling into in an untapped market. The business has achieved break even performance, and has been growing strongly. We are encouraged by another strong performance last month and expect to exercise our option to acquire this business in the near future." Mr. Packer concluded, "Overall, Q1 was another step in the right direction. We will be looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. progress from both the AutoPulse and our Hospital business over the course of 2006. In addition to these areas, continued progress with the E Series and our AED products will be essential in meeting the Company's objectives. We believe these objectives are attainable with the continued success of our product offerings." ZOLL will host a conference call on Thursday, January 26, 2006 at 10:30a.m. EST EST electroshock therapy. EST abbr. electroshock therapy to discuss its first-quarter financial results. This conference call will be accessible on the Company's home page at www.zoll.com. Recorded replays of the financial results conference call will be available on the web page beginning later that day. About ZOLL Medical Corporation ZOLL Medical Corporation is committed to developing technologies that help advance the practice of resuscitation. With products for pacing, defibrillation Defibrillation Definition Defibrillation is a process in which an electronic device sends an electric shock to the heart to stop an extremely rapid, irregular heartbeat, and restore the normal heart rhythm. , circulation, ventilation ventilation, process of supplying fresh air to an enclosed space and removing from it air contaminated by odors, gases, or smoke. Proper ventilation requires also that there be a movement or circulation of the air within the space and that the temperature and , and fluid resuscitation fluid resuscitation Critical care medicine The infusion of isotonic IV fluids to a hypotensive Pt with trauma; aggressive FR may disrupt thrombi, ↑ bleeding, and ↓ survival , ZOLL provides a comprehensive set of technologies that help clinicians, EMS professionals, and lay rescuers resuscitate re·sus·ci·tate v. To restore consciousness, vigor, or life to. sudden cardiac arrest cardiac arrest n. Abbr. CA A sudden cessation of cardiac function, resulting in loss of effective circulation. Cardiac arrest A condition in which the heart stops functioning. or trauma victims. ZOLL also designs and markets software that automates the documentation and management of both clinical and non-clinical information. ZOLL markets and sells its products in more than 140 countries. The company has direct operations, distributor networks, and business partners throughout the U.S., Canada, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , Europe, the Middle East, Asia, and Australia. For more information, visit www.zoll.com or call +1 (978) 421-9655. Certain statements contained in this press release, including statements regarding the anticipated development of the Company's business, our belief regarding the momentum of the E Series product, our belief regarding revenues related to AutoPulse sales, and our expectations regarding exercising our option to purchase Lifecor, Inc., and other statements contained herein regarding matters that are not historical facts, are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such 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. . Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those factors discussed in the section entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Risk Factors" in the Company's Annual Report on 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. filed with the SEC on December 15, 2005, including the future performance of the direct sales operations, uncertainties regarding the market acceptance and profitability of the ZOLL AED Plus, the AED Pro, the E Series, the Power Infuser in·fuse tr.v. in·fused, in·fus·ing, in·fus·es 1. To put into or introduce as if by pouring: infused new vigor into the movement. 2. and the AutoPulse, uncertainty regarding overall capital equipment expenditures in the hospital and pre-hospital markets, the impact of the acquisition of Revivant (now ZOLL Circulation) and any future acquisitions, and the other factors described. You should not place undue reliance on the forward-looking statements in this press release, and the Company disavows any obligation to update or supplement those statements in the event of any changes in the facts, circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , or expectations that underlie those statements. Copyright (C) 2006 ZOLL Medical Corporation. All rights reserved. 269 Mill Road, Chelmsford, MA 01824-4105. ZOLL, AED Plus, AutoPulse, AED Pro and Power Infuser are trademarks of ZOLL Medical Corporation.
ZOLL MEDICAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
January 1, October 2,
2006 2005
--------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 42,217 $ 36,270
Short-term investments 13,092 14,553
Accounts receivable, net 44,934 47,733
Inventory 37,354 38,637
Prepaid expenses and other current
assets 8,280 8,055
-------------- -------------
Total current assets 145,877 145,248
Property and equipment, net 25,050 23,492
Other assets, net 51,353 50,796
-------------- -------------
$ 222,280 $ 219,536
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 10,337 $ 9,020
Accrued expenses and other
liabilities 29,619 29,088
-------------- -------------
Total current liabilities 39,956 38,108
Total stockholders' equity 182,324 181,428
-------------- -------------
$ 222,280 $ 219,536
============== =============
ZOLL MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share)
Three Months Ended
January 1, January 2,
2006 2005
------------- -------------
Net sales $ 55,460 $ 50,629
Cost of goods sold 24,481 22,200
------------ ------------
Gross profit 30,979 28,429
Expenses:
Selling and marketing 19,349 19,667
General and administrative 4,948 4,273
Research and development 5,300 5,828
------------ ------------
Total expenses 29,597 29,768
Income (loss) from operations 1,382 (1,339)
Other income 283 344
------------ ------------
Income (loss) before taxes 1,665 (995)
Taxes (benefit) 533 (429)
------------ ------------
Net income (loss) $ 1,132 $ (566)
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Earnings (loss) per share:
Basic $ 0.12 $ (0.06)
============ ============
Diluted $ 0.12 $ (0.06)
============ ============
Weighted average common shares:
Basic 9,622 9,522
Diluted 9,694 9,522
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