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BIRD MEDICAL REPORTS THIRD QUARTER RESULTS

 BIRD MEDICAL REPORTS THIRD QUARTER RESULTS
 PALM SPRINGS, Calif., Nov. 3 /PRNewswire/ -- Bird Medical


Technologies Inc. (NASDAQ: BMTI) today reported financial results for the third quarter and nine months ended Sept. 30, 1992.
 Revenue for the quarter was $10,682,000, a growth of 12 percent from last year's third quarter revenue of $9,570,000. The company reported a loss for the recent third quarter of $(1,427,000) compared with a net loss in the prior year of $(999,000). On a per share basis, the net loss for the third quarter of 1992 was (23 cents) compared with a net loss of (16 cents) per share in 1991. Included in the net loss for the 1992 third quarter was a one-time $1,073,000 after tax charge (17 cents per share) related to the restructuring of the company's Life Design Systems Inc. (LDS) subsidiary. Last year's third quarter loss was attributable to the discontinuance of the Highland Medical distribution subsidiary which resulted in a charge of $(1,059,000).
 For the nine months, revenues totaled $31,025,000, a 17-percent increase from the $26,431,000, through Sept. 30, 1991. The company reported a net loss of $(1,602,000) through the first nine months of 1992 compared with a $(378,000) loss for the same period last year. The net loss per share for the nine-month period was (26 cents) compared with 1991's (6 cents).
 The net loss for the third quarter reflected the LDS restructuring charge, continued operating losses at LDS, litigation expenses related to the LDS acquisition and lower gross margins at Bird Products.
 "We have made the tough decisions essential for LDS to operate profitably as we expand its sales volume," said Thomas E. Winter, president and chief executive officer. In September 1992, the company's board of directors approved a plan for LDS intended to increase efficiency and improve profitability of the subsidiary. This decision resulted in a $1.6-million (pretax) restructuring charge for the consolidation of facilities, relocation of employees, write-offs of certain machinery and intangible assets and renegotiation of certain agreements. "As previously announced, the costly and time-consuming litigation associated with the LDS acquisition is behind us, and we are optimistic that the changes we are implementing now will allow LDS to achieve profitable operation during 1993.
 "There were some very promising developments during the quarter in our other businesses," Winter continued. "The order backlog for our ventilator products grew by 16 percent in the three months since June 30, 1992. September was the second highest month for new orders in the company's history.
 "The company continues to position itself to take advantage of new growth areas in the ventilator business. We received a $4.9-million contract award from the Defense Logistics Agency for a transport ventilator during October as well as several additional smaller government contract awards earlier during the third quarter," said Winter. "We were also pleased to receive FDA clearance recently to market our Flow-Synchronization upgrade for our V.I.P. Bird Infant- Pediatric ventilators. Sales of this system, along with a new graphics monitor currently awaiting clearance from the FDA, are expected to improve operating margins at Bird Products."
 Winter added, "Sales of specialty infection control equipment and disposables produced by the Stackhouse subsidiary continued to grow and gross margins expanded over last year's third quarter. We introduced the ES 2000 smoke evacuator during the third quarter, serving the needs of clinicians with hospital electro-surgery operating duties and further expanding the market for Stackhouse products.
 "During the quarter, we were able to generate $1.3 million in cash flow from operations, and as a result, reduce our aggregate debt level," added Winter. "While we have a challenging task ahead of us, we are optimistic that our core operations are improving. Our focus continues on developing new products, improving cash flow, reducing debt, and returning the company to profitability."
 Bird Medical Technologies Inc. manufactures and markets respiratory care and specialty infection control capital equipment and disposable products through its three divisions: Bird Products, Stackhouse and Bird Life Design.
 BIRD MEDICAL TECHNOLOGIES INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited in thousands, except per share data)
 Three months Nine months
 ended Sept. 30 ended Sept. 30
 1992 1991 1992 1991
 Net sales $10,682 $9,570 $31,025 $26,431
 Cost of sales 6,004 5,194 17,364 13,524
 Gross Profit 4,678 4,376 13,661 12,907
 Operating Expenses;
 Marketing and sales 2,073 1,654 5,739 4,552
 General and admin-
 istrative 1,879 1,538 5,101 3,890
 Engineering, research
 and development 854 784 2,461 2,165
 Royalties 170 195 497 560
 Restructuring
 charges 1,627 -- 1,627 --
 Total operating
 expenses 6,603 4,171 15,425 11,167
 Operating income
 (loss) (1,925) 205 (1,764) 1,740
 Interest expense, net 254 119 649 270
 Income (loss) from continuing
 operations before
 provision (benefit)
 for income taxes (2,179) 86 (2,413) 1,470
 Provision (benefit)
 for income taxes (752) 26 (811) 531
 Income (loss) from cont-
 inuing operations (1,427) 60 (1,602) 939
 Loss from discontinued
 operations net of income
 tax benefit of 706 for three
 months and 878 for six
 months (1991) --- (1,059) --- (1,317)
 Net loss $(1,427) $ (999) $ (1,602) $ (378)
 Income (loss) per
 common share:
 Continuing
 operations $ (0.23) $ 0.01 $ (0.26) $ 0.15
 Discontinued
 operations $ --- $(0.17) $ --- $ (0.21)
 Net loss per
 common share $ (0.23) $(0.16) $ (0.26) $ (0.06)
 Weighted average
 numbers of shares
 used in earnings per share
 computations 6,277 6,325 6,278 6,329
 BIRD MEDICAL TECHNOLOGIES INC.
 Consolidated Balance Sheets
 (Dollars in thousands except par value amounts)
 (unaudited)
 Sept. 30, Dec. 31,
 1992 1991
 ASSETS
 Current Assets:
 Cash $ 506 $ 392
 Accounts receivable, net
 of allowance for doubtful accounts
 of $801 and $569 8,130 8,474
 Inventories 9,830 10,764
 Refundable and deferred income
 taxes 1,797 2,323
 Prepaid expenses and other
 current assets 408 321
 Net assets of discontinued
 operations --- 624
 Total current assets 20,671 22,898
 Deferred income taxes 183 ---
 Restricted cash --- 1,927
 Land and building, net 10,275 8,408
 Machinery and equipment, net 3,837 3,457
 Intangible and other assets, net 4,210 3,833
 Total $ 39,176 $ 40,523
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current Liabilities:
 Short-term borrowings and current
 portion of long term debt $ 740 $ 2,793
 Accounts payable 1,278 2,162
 Accrued employee compensation 1,013 825
 Other accrued liabilities 3,756 2,111
 Net liabilities of discontinued
 operations --- 359
 Total current liabilities 6,787 8,250
 Industrial Development Revenue
 Bonds 5,200 5,400
 Long-term debt 11,717 9,762
 Shareholders' Equity:
 Common stock, $0.01 par value,
 15,000,000 shares authorized;
 6,276,681 (1992) and 6,286,476
 (1991) shares outstanding 63 63
 Additional paid-in capital 13,871 13,910
 Retained earnings 1,538 3,138
 Total shareholders' equity 15,472 17,111
 Total $ 39,176 $ 40,523
 -0- 11/3/92
 /CONTACT: Doug Sherk or Jenifer Kirtland, 415-296-7383, or David Walke or Miriam Adler, 212-986-5900, all of Morgen-Walke Associates, for Bird Medical Technologies/
 (BMTI) CO: Bird Medical Technologies; Life Design Systems Inc. ST: California IN: MTC SU: ERN


GT-TM -- SF001 -- 1892 11/03/92 06:31 EST
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