MINNEAPOLIS, May 14 /PRNewswire-FirstCall/ -- Biotel Inc. announces record sales for the third quarter ended March 31, 2007, having attained revenues of $2,990,000 versus $2,469,000 for the quarter ended March 31, 2006. Net earnings for the quarter ended March 31, 2007 were $190,000 compared to $130,000 for the quarter ended March 31, 2006. Revenues and net income for the nine months ended March 31, 2007 were $8,119,000 and $299,000, respectively, versus revenues and net income of $7,488,000 and $426,000, respectively, for the nine months ended March 31, 2006.
Biotel President and CEO Steve Springrose said, “Growth rates for contract manufacturing at Braemar and research services at Agility have been strong. Biotel business from these subsidiaries involves sales to medical corporations, where the Company’s core business has advanced 28.5% on the quarter ended March 31, from $2,196,000 a year ago to $2,820,000 for the quarter just ended. Increasing sales of Braemar event recorders and Holter devices along with the intensification of Agility contract research services are responsible for the growth.
Furthermore, nine month earnings for fiscal 2007 give an impression of Biotel profitability that is lower than our expectation going forward. This is because of one time charges experienced in the first quarter related to new product development expenses and management’s decision to advance the timeframe for completing the Agility purchase to an opportune time. In the quarter just ended, Biotel expended a very healthy 11.4% of revenues toward R&D. Product development expenses are expected to grow steadily with revenues going forward. Since the Agility purchase has been completed, no purchase related expenses are required for this business unit in coming periods.
Biotel continues to advance in accordance with its plans to become a development partner for medical corporations seeking new devices and clinical research services. Biotel has a strong position as a contract manufacturer of battery powered ECG diagnostic devices, liposuction equipment, and ECG research services for manufacturers evaluating products and collecting patient ECG information to be submitted to FDA. Biotel’s portfolio of products offered to diagnostic cardiology and cosmetic surgery manufacturers is expanding, with the development of Braemar’s new Holter and event recording devices and a new portable unit for liposuction procedures. Our Agility clinical ECG research subsidiary has continued its progress in signing contracts and supporting clinical trials utilizing Holter and event recorder data collection and management. We are happy to see our continued growth and profitability.”
3 months ended 3 months ended % March 31, 2007 March 31, 2006 Change Revenues $2,990,000 $2,469,000 + 21.1 % Net Income $190,000 $130,000 + 46.2 % Earnings Per Share, Basic $0.07 $0.05 Earnings Per Share, Diluted $0.07 $0.05 9 months ended 9 months ended % March 31, 2007 March 31, 2006 Change Revenues $8,119,000 $7,488,000 +8.4% Net Income $299,000 $426,000 - 29.8% Earnings Per Share, Basic $0.11 $0.16 Earnings Per Share, Diluted $0.11 $0.15
Biotel Inc.
CONTACT: Judy Naus of Biotel Inc., +1-651-286-8623, info@biotelinc.com
Web site: http://www.biotelinc.com/
