Printer Friendly

QUEST MEDICAL INC. PROVIDES FOURTH QUARTER OUTLOOK

 DALLAS, Feb. 26 /PRNewswire/ -- Thomas C. Thompson, president of Quest Medical Inc. (NASDAQ-NMS: QMED), a manufacturer of proprietary disposable products for the health care industry, announced today that the company expects to report a net loss for the fourth quarter ended Dec. 31, 1992, of approximately $1,100,000, or about $.20 per share. This net loss is primarily because of a one-time, non-cash, pre-tax charge of approximately $1,250,000 related to the write-off of the assets of Clini-Therm Corp. acquired through Chapter 7 foreclosure proceedings in July 1991. Thompson added that revenue for the quarter is expected to be approximately $3,400,000, slightly below earlier expectations. Audited fourth quarter and 1992 results are expected to be released in March.
 For the fourth quarter of 1991, the company reported net earnings of $302,000, or $.06 per share, on revenue of $3,259,000.
 "While we remain optimistic about the commercial potential of the Prostek 3000 hyperthermia technology for the treatment of Benign Prostatic Hyperplasia (BPH), we have identified a number of product development opportunities in Quest's core cardiovascular market that appear to offer even more substantial returns on our research and development investment, and have decided not to invest further in the Prostek 3000. In addition, in today's regulatory environment, obtaining pre-market approval (PMA) for devices such as the Prostek 3000 can be expected to take much longer and to cost much more than was likely only a year or two ago. We hope the PMA process will be streamlined in the future," Thompson said.
 Thompson added that research and development expenses in the fourth quarter were nearly $500,000, including approximately $150,000 of one-time start-up expenses related to the development of a new myocardial protection system for protecting the heart during cardiovascular surgery, compared to about $200,000 for the fourth quarter of 1991. He said that this unusually high R&D expense, together with slightly lower than expected revenue, probably will result in a small operating loss before the one-time charge for the quarter.
 Thompson noted that Quest's financial condition remains very strong even after the anticipated fourth quarter results. Cash and cash equivalents are in excess of $6,600,000, working capital is approximately $11,300,000, and stockholders' equity is approximately $17,900,000, or about $3.50 per share.
 "Quest has identified what we believe to be a major opportunity in the changing market for myocardial protection systems. We are developing a sophisticated new system to automate and systematize certain critical myocardial protection functions for the cardiovascular surgical team, and expect to begin beta tests by the end of this year in preparation for commercial introduction of the new product in 1994. We believe the total market potential for this new system could be at least $40,000,000 annually in the United States alone. We also expect soon to begin releasing a number of additional new cardiovascular products that may contribute to revenue and earnings in 1993. We are budgeting R&D expense of approximately $1,500,000 to support these efforts in 1993 compared to R&D expense of $1,368,000 during 1992, which included approximately $300,000 for the discontinued hyperthermia product development," Thompson concluded.
 For the nine months ended Sept. 30, 1992, Quest reported net earnings of $1,368,000, or $.25 per share, on revenue of $10,222,000.
 Quest Medical Inc. develops, manufactures, and markets proprietary disposable products used in cardiovascular surgery, oncology, and IV therapy.
 -0- 2/26/93
 /CONTACT: F. Robert Merrill, VP-Finance of Quest Medical, 214-387-2740/
 (QMED)


CO: Quest Medical Inc. ST: Texas IN: MTC SU:

MS -- LA013 -- 0844 02/26/93 12:14 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 26, 1993
Words:614
Previous Article:UNICARE FINANCIAL REPORTS PROFITABLEFOURTH QUARTER AND 1992 YEAR-END RESULTS
Next Article:THERMO INSTRUMENT SYSTEMS ACQUIRES SPECTRA-PHYSICS ANALYTICAL, FORMING NEW UNIT
Topics:


Related Articles
QUEST MEDICAL INC. PRE-TAX OPERATING EARNINGS RISE TO $424,000 FOR THE FOURTH QUARTER FROM $17,000 LAST YEAR AS REVENUE INCREASES 81 PERCENT
QUEST MEDICAL, INC. (NASDAQ) SECOND QUARTER OPERATING EARNINGS ADVANCE 78 PERCENT ON 43 PERCENT REVENUE GAIN
QUEST MEDICAL INC. REPORTS FOURTH QUARTER, 1992 RESULTS
QUEST MEDICAL INC. ANNOUNCES FIRST QUARTER RESULTS
QUEST MEDICAL INC. SECOND QUARTER NET EARNINGS ARE $.12 PER SHARE VS. $.09 PER SHARE
QUEST MEDICAL INC. REPORTS THIRD QUARTER RESULTS
QUEST MEDICAL REPORTS SECOND QUARTER AND SIX MONTH RESULTS
Quest Medical To Explore Strategic Alternatives; Reports Preliminary Fourth Quarter and 1996 Results
Ventana Fourth-Quarter Sales to be Below Expectation.
Diametrics Announces Fourth Quarter 2000 Earnings Date; Conference Call to Be Broadcast on the Internet.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters