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 LANGHORNE, Pa., Dec. 9 /PRNewswire/ -- Cabot Medical Corporation (NASDAQ-NMS: CBOT) today released preliminary financial information on its fiscal year ended Oct. 31, 1993.
 Sales for the full year were up 26 percent, from $55.0 million in 1992 to $69.6 million in 1993. Losses for the year increased from $2.2 million or $.23 per share in 1992 to $9.6 million or $1.03 per share. 1993 results included a full year of Surgitek operations vs. three months in 1992.
 The company also announced a dividend in the form of additional shares of Cabot Medical common stock equivalent to 10 percent of holdings for all Cabot Medical shareholders of record as of Dec. 31, 1993, payable on Jan. 14, 1994.
 Commenting on the year end results, Warren Wood, chairman and CEO, stated, "In 1993, we have witnessed the beginning of a restructuring of the U.S. healthcare delivery system. This restructuring has disrupted the purchasing patterns of our customers which resulted in a decrease in demand for certain of our products. As a result, we did not meet our sales and earnings targets during the year.
 "In recognition of this new reality in our marketplace, we took the necessary steps to better position our company to compete in this environment in the future. These steps included an overall reduction in operating costs and a rationalization of facilities and certain of our product lines along with the attendant inventories. These efforts resulted in a one time charge of approximately $10 million against fourth quarter earnings and a loss for the fiscal year, as previously announced.
 "We are entering 1994 with a more efficient organization, properly positioned to compete, and with a pipeline of exciting, new speciality products recently introduced or to be introduced shortly. We are confident that these factors together with a highly motivated dedicated and experienced management team and staff, will produce positive results in the coming year."
 Cabot Medical Corporation designs, develops, manufactures and markets a variety of medical devices and systems for less invasive general, gynecological and urological surgical and diagnostic procedures.
 Preliminary Statement Of Operations
 (Unaudited; in thousands, except per-share and share amounts)
 Fiscal year ended Oct. 31 1993 1992
 Net Sales $69,560 $54,998
 Cost of Sales $29,186 $27,665
 Gross Profit $40,374 $27,333
 Operating Expenses
 S G & A $28,108 $21,473
 R & D $ 4,791 $ 2,469
 Amortization $ 2,734 $ 752
 Restructuring $ 7,795 $ 2,941
 Operating (Loss) $(3,054) $ (302)
 Int. Inc. $ (9) $ (970)
 Int. Exp. $ 5,699 $ 3,852
 Other Inc $ (196) $ (169)
 Pretax Income(Loss) $(8,548) $(3,015)
 Income Tax(Benefit) $ 1,042 $ (822)
 Net Income $(9,590) $(2,193)
 Loss per Common
 Share and Common
 Share Equivalents
 Primary $ (1.03) $ (.23)
 Fully Diluted $ (1.03) $ (.23)
 Weighted average
 number of Common
 Shares and Common
 Share Equivalents
 Primary 9,354,820 9,374,359
 Fully Diluted 9,354,820 9,374,359
 -0- 12/9/93
 /CONTACT: Marvin Sharfstein of Cabot Medical, 215-752-8300/

CO: Cabot Medical Corporation ST: Pennsylvania IN: MTC SU: ERN

MK -- PH022 -- 2330 12/09/93 16:06 EST
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Publication:PR Newswire
Date:Dec 9, 1993

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