Cardiac Science 8-K Cardiac Science Announces Q3 Results

Exhibit 99.1

Cardiac Science Announces Q3 Results

Q3 Revenue of $34.5 Million

Bothell, WA — November 9, 2010 —Cardiac Science Corporation [NASDAQ: CSCX], a global leader in automated external defibrillator (AED) and diagnostic cardiac monitoring devices, today announced its financial results for the third quarter of 2010.

The Company’s third quarter revenue of $34.5 million consisted of $11.8 million in cardiac monitoring products revenue, $18.1 million in defibrillation products revenue and $4.5 million in service revenue.

Defibrillation products revenue was down 16% compared to the prior year third quarter, due principally to the absence of any Japanese AED revenue in the current quarter as a result of the previously announced termination of our Japanese distribution arrangement, compared to approximately $2.9 million in the third quarter of last year. As previously announced, the Company has signed an agreement with a new Japanese distributor, but does not expect meaningful AED sales in Japan until the second half of 2011.

Third quarter 2010 cardiac monitoring products revenue was down 9% compared to the prior year third quarter, due primarily to market softness and a temporary delay in availability of newly released products near quarter end. The Company was not able to ship approximately $1.0 million in recently introduced cardiac monitoring products that were ordered for delivery during the quarter due to initial delays in availability of components in quantities sufficient to meet demand. The Company expects to ship the backordered products during the fourth quarter.

Service revenue for the third quarter of 2010 was up 6% compared to the same quarter last year.

Gross margin was 46.7% for the third quarter of 2010. Gross margin for the third quarter of the prior year was 0.2%, including the effect of a charge of $18.5 million for estimated costs relating to a corrective AED field action. Excluding this charge, Pro Forma Gross Margin in the third quarter of 2009 would have been 47.8%. The slight decline in gross margin in the third quarter of 2010 compared to pro forma gross margin in the third quarter of 2009 was primarily the result of a lower proportion of defibrillation products revenue in the current year, as AEDs generally yield higher gross margins than cardiac monitoring products and services.

Operating expenses for the quarter were $22.5 million, compared to $22.8 million for the third quarter of 2009. Operating expenses in the current quarter included approximately $0.8 million in costs relating to the Company’s efforts to sell all or a portion of the Company, including costs relating to the recently announced agreement with Opto Circuits (India) Ltd.

The Company reported a net loss of $6.4 million, or $0.27 loss per share, in the third quarter of 2010. This compares to a net loss of $66.5 million, or $2.85 per share, in

the third quarter of 2009. Our net loss for the third quarter of 2009 included an initial charge of $18.5 million related to our AED corrective and a charge of $44.0 million to increase the valuation allowance against the Company’s deferred income tax assets. EBITDA for the third quarter of 2010 was negative $4.7 million and Adjusted EBITDA, which excludes stock-based compensation expense, was negative $4.1 million.

The Company reported net cash used in operations of $4.0 million for the third quarter of 2010, including $2.7 million used in activities relating to the Company’s ongoing AED corrective actions. The Company had $6.7 million in cash and cash equivalents as of September 30, 2010.

Pending Acquisition by Opto Circuits (India) Ltd

On October 19, 2010 the Company announced that it had entered into an Agreement and Plan of Merger with Opto Circuits (India) Ltd. (“Opto Circuits”), pursuant to which Opto Circuits has agreed to acquire all of the outstanding shares of Cardiac Science common stock for $2.30 per share. The transaction, which has been unanimously approved by the boards of directors of both companies, will take the form of an all-cash tender offer by a wholly-owned subsidiary of Opto Circuits, followed by a second-step merger of that subsidiary with Cardiac Science, as a result of which any shares that have not been validly tendered into the offer will be converted into the right to receive cash equal to the offer price of $2.30 per share. The tender offer by Opto Circuits, which was commenced on November 1, 2010, is subject to customary conditions, including that shares representing at least sixty percent (60%) of Cardiac Science’s outstanding shares of common stock are validly tendered into the offer. The companies are targeting a fourth quarter 2010 closing, assuming satisfaction of closing conditions and successful execution of the tender offer process. Upon completion of the merger, Cardiac Science will become a wholly-owned subsidiary of Opto Circuits.

Non-GAAP and Pro Forma Financial Information

This news release contains a discussion of EBITDA, Adjusted EBITDA and Pro Forma Gross Margin which are non-GAAP financial measures provided as a complement to results provided in accordance with U.S. generally accepted accounting principles (“GAAP”). We define the term “EBITDA” as earnings before net interest, income taxes, depreciation, and amortization. We define “Adjusted EBITDA” as EBITDA before stock-based compensation and, in the case of the third quarter of 2009, before corrective action costs associated with a corrective AED field action. “Pro Forma Gross Margin” for the third quarter of 2009 refers to Gross Profit before costs associated with corrective actions as a percentage of Total Revenues. These measures are not substitutes for measures determined in accordance with GAAP, and may not be comparable to the same measures as reported by other companies. EBITDA and Adjusted EBITDA are an integral part of the internal management reporting and planning process and are the primary measures used by management to evaluate the operating performance of the Company. The components of these measures include the key revenue and expense items for which operating managers are responsible and upon which their performance is evaluated. The Company also uses Adjusted EBITDA for planning purposes and in presentations to its board of directors. Pro Forma Gross Margin for the third quarter of 2009 is being presented because of the impact of the extraordinary charges related to the corrective actions on the Company’s Gross Margin for the three month period ended September 30, 2009. Presentation of Gross Margin excluding this charge allows for a comparison of the Company’s performance on a basis that management believes is more consistent from period to period. Reconciliations of EBITDA and Adjusted EBITDA to Net Loss

and Pro Forma Gross Margin to Gross Margin, the most comparable GAAP measures, are contained in this press release.

About Cardiac Science

Cardiac Science develops, manufactures, and markets a family of advanced diagnostic and therapeutic cardiology devices and systems, including automated external defibrillators (AED), electrocardiograph devices (ECG/EKG), cardiacstress treadmill and systems,PC-based diagnostic workstations,Holter monitoring systems, hospital defibrillators,vital signs monitors,cardiac rehabilitation telemetry systems, andcardiology data management systems (informatics) thatconnect with hospital information (HIS),electronic medical record (EMR), and other information systems. The company sells a variety of related products and consumables and provides a portfolio of training, maintenance, and support services. Cardiac Science, the successor to the cardiac businesses that established the trustedBurdick^®,HeartCentrix^®,Powerheart^®, andQuinton^® brands, is headquartered in Bothell, Washington. With customers in almost 100 countries worldwide, the company has operations in North America, Europe, and Asia. For information, call 425.402.2000 or visithttp://www.cardiacscience.com.

Forward-Looking Statements

This press release contains forward-looking statements. The words “believe,” “expect,” “intend,” “anticipate,” variations of such words, and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. Forward-looking statements in this press release include, but are not limited to, those relating to Cardiac Science Corporation’s future AED sales in Japan, expected shipments of backordered products in the fourth quarter of 2010, and expectations regarding the closing of the transaction with Opto Circuits. These are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Actual results and performance may vary significantly from those expressed or implied in such statements. Factors that could cause or contribute to such varying results and other risks include those more fully described in the Annual Report on Form 10-K filed by Cardiac Science Corporation for the year ended December 31, 2009, as updated by subsequent quarterly reports on Form 10-Q. Cardiac Science Corporation undertakes no duty or obligation to update the information provided herein.

For more information,

Company Contact:	Investor Contact:	Media Contact:
Mike Matysik	Matt Clawson	Christopher Gale
Cardiac Science Corporation	Allen & Caron	EVC Group Inc.
Senior Vice President and CFO	949.474.4300	646.201.5431
425.402.2009	matt@allencaron.com	203.570.4681
		cgale@evcgroup.com

LOGO:http://www.cardiacscience.com/images/main_logo.gif
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— Tables to Follow —

Cardiac Science Corporation and Subsidiaries
Condensed Consolidated Statements of Operations (unaudited)
(in thousands, except share and per share amounts)

	Three Months Ended September 30,
	2010						2009
	$			%			$			%
Revenues:
Cardiac monitoring products	$	11,836			34.3	%	$	13,000			33.4	%
Defibrillation products		18,149			52.6	%		21,646			55.7	%
Total product revenues		29,985			87.0	%		34,646			89.1	%
Service		4,495			13.0	%		4,238			10.9	%
Total revenues		34,480			100.0	%		38,884			100.0	%
Cost of revenues:
Products		15,244			50.8	%		17,194			49.6	%
Corrective action costs		—			n/m			18,500			47.6	%
Service		3,149			70.1	%		3,095			73.0	%
Total cost of revenues		18,393			53.3	%		38,789			99.8	%
Gross profit:
Products		14,741			49.2	%		17,452			50.4	%
Service		1,346			29.9	%		1,143			27.0	%
Gross profit		16,087			46.7	%		95			0.2	%
Operating expenses:
Research and development		4,266			12.4	%		4,270			11.0	%
Sales and marketing		11,215			32.5	%		11,923			30.7	%
General and administrative		7,058			20.5	%		6,571			16.9	%
Total operating expenses		22,539			65.4	%		22,764			58.5	%
Operating loss		(6,452	)		-18.7	%		(22,669	)		-58.3	%
Other income:
Interest income		7			0.0	%		23			0.1	%
Other income, net		229			0.7	%		158			0.4	%
Total other income		236			0.7	%		181			0.5	%
Loss before income tax expense:		(6,216	)		-18.0	%		(22,488	)		-57.8	%
Income tax expense		(117	)		-0.3	%		(43,923	)		-113.0	%
Net loss		(6,333	)		-18.4	%		(66,411	)		-170.8	%
Less: Net income attributable to noncontrolling interests		(43	)		-0.1	%		(135	)		-0.3	%
Net loss attributable to Cardiac Science Corporation	$	(6,376	)		-18.5	%	$	(66,546	)		-171.1	%
Net loss per share attributable to Cardiac Science Corporation:
Basic	$	(0.27	)				$	(2.85	)
Diluted	$	(0.27	)				$	(2.85	)
Weighted average shares outstanding:
Basic		23,831,807						23,368,778
Diluted		23,831,807						23,368,778

Cardiac Science Corporation and Subsidiaries
Condensed Consolidated Statements of Operations (unaudited)
(in thousands, except share and per share amounts)

	Nine Months Ended September 30,
	2010						2009
	$			%			$			%
Revenues:
Cardiac monitoring products	$	37,362			36.0	%	$	40,151			35.0	%
Defibrillation products		53,062			51.2	%		61,413			53.6	%
Total product revenues		90,424			87.2	%		101,564			88.6	%
Service		13,266			12.8	%		13,098			11.4	%
Total revenues		103,690			100.0	%		114,662			100.0	%
Cost of revenues:
Products		46,319			51.2	%		49,261			48.5	%
Corrective action costs		11,000			12.2	%		18,500			16.1	%
Service		9,499			71.6	%		9,376			71.6	%
Total cost of revenues		66,818			64.4	%		77,137			67.3	%
Gross profit:
Products		33,105			36.6	%		52,303			51.5	%
Service		3,767			28.4	%		3,722			28.4	%
Gross profit		36,872			35.6	%		37,525			32.7	%
Operating expenses:
Research and development		13,100			12.6	%		11,358			9.9	%
Sales and marketing		36,429			35.1	%		34,392			30.0	%
General and administrative		20,652			19.9	%		18,536			16.2	%
Total operating expenses		70,181			67.7	%		64,286			56.1	%
Operating loss		(33,309	)		-32.1	%		(26,761	)		-23.3	%
Other income:
Interest income		25			0.0	%		55			0.0	%
Other income, net		323			0.3	%		555			0.5	%
Total other income		348			0.3	%		610			0.5	%
Loss before income tax expense:		(32,961	)		-31.8	%		(26,151	)		-22.8	%
Income tax expense		(308	)		-0.3	%		(42,563	)		-37.1	%
Net loss		(33,269	)		-32.1	%		(68,714	)		-59.9	%
Less: Net income attributable to noncontrolling interests		(204	)		-0.2	%		(476	)		-0.4	%
Net loss attributable to Cardiac Science Corporation	$	(33,473	)		-32.3	%	$	(69,190	)		-60.3	%
Net loss per share attributable to Cardiac Science Corporation:
Basic	$	(1.41	)				$	(2.98	)
Diluted	$	(1.41	)				$	(2.98	)
Weighted average shares outstanding:
Basic		23,717,287						23,209,181
Diluted		23,717,287						23,209,181

Cardiac Science Corporation and Subsidiaries
Condensed Consolidated Balance Sheets (unaudited)
(in thousands)

	September 30, 2010		December 31, 2009
ASSETS
Current assets:
Cash and cash equivalents	$	6,690	$	26,866
Accounts receivable, net		20,781		24,228
Inventories		23,902		23,581
Prepaid expenses and other current assets		2,775		3,702
Total current assets		54,148		78,377
Other assets		687		872
Machinery and equipment, net of accumulated depreciation		8,019		8,406
Deferred income taxes		31		31
Intangible assets, net of accumulated amortization		25,183		27,988
Investments in unconsolidated entities		308		386
Total assets	$	88,376	$	116,060
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	10,568	$	11,030
Accrued liabilities		13,323		12,216
Warranty liability		3,933		4,028
Deferred revenue		7,744		7,919
Corrective action liabilities		18,757		15,249
Total current liabilities		54,325		50,442
Deferred income taxes		5,389		5,389
Total liabilities		59,714		55,831
Equity:
Cardiac Science Corporation shareholders’ equity		27,211		58,936
Noncontrolling interests		1,451		1,293
Total equity		28,662		60,229
Total liabilities and equity	$	88,376	$	116,060

Cardiac Science Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(in thousands)

	Three Months Ended
	September 30,
	2010			2009
Operating Activities:
Net loss	$	(6,333	)	$	(66,411	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation		577			674
Depreciation and amortization		1,516			1,595
Amortization of debt issuance costs		45			—
Deferred income taxes		—			43,996
Changes in operating assets and liabilities, net of businesses acquired:
Accounts receivable, net		3,237			(5,552	)
Inventories		634			9
Prepaid expenses and other assets		553			509
Accounts payable		(1,976	)		1,672
Accrued liabilities		593			(672	)
Warranty liability		(48	)		56
Corrective action liabilities		(2,695	)		18,500
Deferred revenue		(55	)		539
Net cash used in operating activities		(3,952	)		(5,085	)
Investing Activities:
Purchases of machinery and equipment		(289	)		(1,034	)
Proceeds from repayment of note		80			27
Purchase of intangible assets		—			(370	)
Net cash used in investing activities		(209	)		(1,377	)
Financing Activities:
Proceeds from exercise of stock options and issuance of shares under employee stock purchase plan		73			161
Minimum tax withholding on restricted stock awards		(12	)		(13	)
Debt issuance costs		(181	)		—
Net cash provided by (used in) financing activities		(120	)		148
Effect of exchange rate changes on cash and cash equivalents		86			74
Net change in cash and cash equivalents		(4,195	)		(6,240	)
Cash and cash equivalents, beginning of period		10,885			37,868
Cash and cash equivalents, end of period	$	6,690		$	31,628

Cardiac Science Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows (unaudited)
(in thousands)

	Nine Months Ended
	September 30,
	2010			2009
Operating Activities:
Net loss	$	(33,269	)	$	(68,714	)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation		1,797			1,887
Depreciation and amortization		4,724			4,662
Amortization of debt issuance costs		45			—
Deferred income taxes		—			42,231
Changes in operating assets and liabilities, net of businesses acquired:
Accounts receivable, net		3,219			3,165
Inventories		(363	)		(1,321	)
Prepaid expenses and other assets		1,213			545
Accounts payable		(250	)		(785	)
Accrued liabilities		1,172			(963	)
Warranty liability		(63	)		65
Corrective action liabilities		3,508			18,500
Deferred revenue		(175	)		(131	)
Net cash used in operating activities		(18,442	)		(859	)
Investing Activities:
Purchases of machinery and equipment		(1,634	)		(2,688	)
Proceeds from repayment of note		82			110
Purchase of intangible assets		—			(370	)
Cash paid for acquisitions		—			(54	)
Net cash used in investing activities		(1,552	)		(3,002	)
Financing Activities:
Proceeds from exercise of stock options and issuance of
shares under employee stock purchase plan		225			897
Minimum tax withholding on restricted stock awards		(106	)		(110	)
Debt issuance costs		(181	)		—
Net cash provided by (used in) financing activities		(62	)		787
Effect of exchange rate changes on cash and cash equivalents		(120	)		47
Net change in cash and cash equivalents		(20,176	)		(3,027	)
Cash and cash equivalents, beginning of period		26,866			34,655
Cash and cash equivalents, end of period	$	6,690		$	31,628

Cardiac Science Corporation and Subsidiaries
Reconciliation of GAAP Results to Non-GAAP Results (unaudited)
(in thousands)

	Reconciliation of Net Loss Attributable to Cardiac Science
	Corporation to Adjusted EBITDA
	Three Months Ended						Three Months Ended
	September 30, 2010						September 30, 2009
				% of revenue						% of revenue
Net loss attributable to Cardiac Science Corporation	$	(6,376	)		-18.5	%	$	(66,546	)		-171.1	%
Depreciation and amortization		1,561			4.5	%		1,595			4.1	%
Interest income		(7	)		0.0	%		(23	)		-0.1	%
Income tax expense		117			0.3	%		43,923			113.0	%
EBITDA		(4,705	)		-13.6	%		(21,051	)		-54.1	%
Stock-based compensation		577			1.7	%		674			1.7	%
Corrective action costs		—						18,500
Adjusted EBITDA	$	(4,128	)		-12.0	%	$	(1,877	)		-4.8	%

	Reconciliation of Gross
	Margin to Pro Forma Gross Margin
	Three Months Ended
	September 30, 2009
			% of revenue
Gross profit	$	95		0.2	%
Corrective action costs		18,500		47.6	%
Pro forma gross profit	$	18,595		47.8	%

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