SAN DIEGO, July 1 /PRNewswire-FirstCall/ -- CardioDynamics , the innovator and leader of BioZ(R) Impedance Cardiography (ICG) technology, today reported financial results for fiscal second quarter 2008. Highlights include 18% revenue increase for first half fiscal 2008, 15% quarterly revenue increase over prior year and sixth consecutive quarter of year over year revenue growth.
Sales Highlights of Second Quarter 2008 Compared with Second Quarter 2007
-- Net sales increased 15% to $6.2 million, up from $5.4 million
-- Over 8,200 ICG monitors and modules sold to date, up 12% from 7,300 one year ago
-- ICG device sales totaled 217 units, including 137 ICG monitors, 108 of which were BioZ Dx systems, 14 BioZ monitors, and 15 Medis ICG monitors
-- ICG sensor revenue increased 1% to $1.7 million, comprising 28% of total sales, and increased 14% sequentially over first quarter 2008
-- International and new market revenue grew 11% to $782,000
Key Financial Results of Second Quarter 2008 Compared with Second Quarter 2007
-- Gross profit margin was 71%, up from 63%
-- Operating loss was $476,000, an improvement of $1.0 million, or 68%, from $1.5 million
-- Net loss was reduced 62% to $732,000, or ($0.10) per diluted share, from a net loss from continuing operations of $1.9 million, or ($0.28) per diluted share
-- Operating cash use was $490,000, down 43%, from an operating cash use from continuing operations of $860,000
-- Cash, cash equivalents and short-term investments at May 31, 2008, of $6.9 million, up 47% from $4.7 million at May 31, 2007
Additional Key Operating Milestones for the Second Quarter 2008
-- Released significant ICG study demonstrating nearly three times the national average blood pressure control rates at the American Society for Hypertension Annual Scientific meeting
Second Quarter 2008 Operating Results Discussion
The Company reported a net sales increase of 15% to $6.2 million. ICG sales growth was due to a combination of 8% higher average domestic ICG monitor sales prices, a 20% increase in domestic ICG System sales and an 11% improvement in international and new market revenue (primarily due to increased revenue from pharmaceutical companies). The higher average domestic sales price indicates continued physician acceptance and a solid value proposition for ICG technology. The improvement in international and new market revenue is a result of the Company’s increased focus on non-Medicare reimbursement dependant markets. Recurring sensor revenue grew 14% sequentially from first quarter 2008 to $1.7 million, and was up 1% compared to the same period in 2007.
Gross margin as a percentage of sales increased from 63% to 71% in the second quarter of 2008, largely due to a higher net average sales price per unit, lower manufacturing expenses and reduced inventory charges related to potential excess, slow-moving or obsolete inventory. Operating expenses were held flat at $4.9 million and increased revenue, along with improved gross margins, drove a 68% improvement in the operating loss. The reduced operating loss, coupled with sound working capital management, resulted in a 43% reduction in operating cash usage to $490,000 in the quarter, down from an $860,000 operating cash use from continuing operations in the same quarter of 2007.
CEO Comments and Outlook
Michael K. Perry, Chief Executive Officer of CardioDynamics, stated, “We are very pleased with the 18% revenue growth achieved in the first half of 2008 and 15% during the second quarter. Sales momentum continues strong and with steady improvement throughout the business, we completed our sixth consecutive quarter of year over year revenue growth. We are making very good progress in expanding gross margins and reducing the operating loss, down 68% to $476,000, which includes $247,000 of non-cash charges for depreciation, amortization and equity compensation. We see sizable opportunity to continue to grow the business and recently hired 12 new sales and clinical personnel to replace open positions and further expand our field sales force. Our operating plan remains to achieve at least 15% revenue growth for 2008 and deliver positive operating cash flow in the fourth quarter.”
The Company also announced the retirement of Russ Bergen as its Vice President of Operations. Perry stated, “We are grateful for the fine contribution that Russ has made to CardioDynamics as our Vice President of Operations for the past ten years. He was responsible for establishing and growing our excellent operations team that consistently delivered high quality products and services, and also oversaw the manufacturing and launch of three generations of proprietary, impedance cardiography systems. We wish him the very best in this new stage of life.”
Conference Call Information
Michael K. Perry, Chief Executive Officer, and Steve P. Loomis, Chief Financial Officer, will host a summary of CardioDynamics’ second quarter 2008 results in a conference call today, Tuesday, July 1, 2008, at 4:30 p.m. (EDT). To access the conference call, dial 800-346-7359 (Code 7784). International participants can call 973-528-0008 (Code 7784). A replay of the call will be available for 30 days following the call at 800-332-6854 (Code 7784). The international replay number is 973-528-0005 (Code 7784). The Internet webcast can be accessed through the Investor Relations section of the Company’s website at http://www.cdic.com or at http://phx.corporate-ir.net/playerlink.zhtml?c=86923&s=wm&e=1873789
About CardioDynamics
CardioDynamics , the ICG Company, is the innovator and leader of an important medical technology called impedance cardiography (ICG). The Company develops, manufactures and markets noninvasive ICG products and medical device electrodes. The Company’s ICG Systems are being used by physicians around the world to help battle the number one killer of men and women -- cardiovascular disease. Partners include GE Healthcare, Philips Medical Systems and Mindray. For additional information, please refer to the company’s Web site at http://www.cdic.com.
Forward-Looking (Safe Harbor) Statement
Except for historical and factual information contained herein, this press release contains forward-looking statements, such as revenue growth rates and cash flow projections, increasing physician acceptance of ICG technology, diversification and new market development, success of clinical trials or investments in core technology, the accuracy of which is necessarily subject to uncertainties and risks including the Company’s primary dependence on the BioZ product line, and various uncertainties characteristic of early stage companies, as well as other risks detailed in the Company’s filings with the SEC, including its 2007 Form 10-K. The Company does not undertake to update the disclosures contained in this press release.
CONTACT: Steve P. Loomis of CardioDynamics, 1-800-778-4825, ext. 1015,
sloomis@cardiodynamics.com
Web site: http://www.cdic.com/
