EXHIBIT 99.1
CHOLESTECH CORPORATION
UNAUDITED PRO FORMA CONDENSED BALANCE SHEET AS OF
SEPTEMBER 27, 2002
(IN THOUSANDS, EXCEPT SHARE DATA)
HISTORICAL
SEPTEMBER 27,
2002 ADJUSTMENTS PRO FORMA
---- ----------- ---------
ASSETS
Cash and cash equivalents $ 7,636 $ -- $ 7,636
Marketable securities 7,346 -- 7,346
Accounts receivable, net 4,523 -- 4,523
Inventories, net 5,260 (31)(A) 5,229
Notes receivable -- 250(B) 250
Prepaid expenses and other current assets 1,821 (17)(A) 1,804
--------- --------- ---------
Total current assets 26,586 202 26,788
Property and equipment, net 7,424 (639)(A) 6,785
Long-term investments 10,754 -- 10,754
Goodwill, net 3,143 (3,143)(C) --
--------- --------- ---------
Total assets $ 47,907 $ (3,580) $ 44,327
========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses $ 3,242 $ 441(D),(G) $ 3,683
Accrued payroll and benefits 2,694 347(F) 3,041
Other liabilities 101 -- 101
--------- --------- ---------
Total current liabilities 6,037 788 6,825
--------- --------- ---------
SHAREHOLDERS' EQUITY:
Common stock 81,714 -- 81,714
Accumulated other comprehensive income 99 -- 99
Accumulated deficit (39,943) (4,368)(E) (44,311)
--------- --------- ---------
Total shareholders' equity 41,870 (4,368) 37,502
--------- --------- ---------
Total liabilities and shareholders' equity
$ 47,907 $ (3,580) $ 44,327
========= ========= =========
NOTES TO UNAUDITED PRO FORMA CONDENSED BALANCE SHEET AS OF SEPTEMBER 27, 2002
The following pro forma adjustments are based upon the book value of tangible
and intangible assets sold.
(A) Assets transferred to ImpactHealth in conjunction with the Sale.
(B) Amounts receivable from ImpactHealth in conjunction with the Sale,
excluding amounts payable contingent on future performance, including future
royalties.
(C) Historical value of goodwill related to WellCheck, gross value $4.0
million, and net value $3.1 million.
(D) Estimated costs of the Sale transaction of $120,000.
(E) Estimated loss on the Sale.
(F) Severance for terminated employees.
(G) Lease exit costs.
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CHOLESTECH CORPORATION
UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS FOR THE
TWENTY-SIX WEEKS ENDED SEPTEMBER 27, 2002
(IN THOUSANDS)
HISTORICAL
TWENTY-SIX WEEKS
ENDED
SEPTEMBER 27, 2002 ADJUSTMENTS(1) PRO FORMA
------------------ -------------- ---------
Revenue $ 23,721 $ 661 $ 23,060
Cost of Revenue 9,799 519 9,280
-------- -------- --------
Gross Profit 13,922 142 13,780
======== ======== ========
Operating expenses
Sales and marketing 7,316 1,199 6,117
Research and development 1,419 -- 1,419
General and administrative 2,760 164 2,596
-------- -------- --------
Total operating expenses 11,495 1,363 10,132
-------- -------- --------
Income (loss) from operations 2,427 (1,221) 3,648
Interest and other income, net 217 -- 217
-------- -------- --------
Income before provisions for income taxes 2,644 (1,221) 3,865
Provision for (benefit from) income taxes 107 (49) 156
-------- -------- --------
Income (loss) from continuing operations $ 2,537 $ (1,172) $ 3,709
======== ======== ========
Net income (loss) per share:
Basic $ 0.19 $ (0.09) $ 0.28
======== ======== ========
Diluted $ 0.18 $ (0.08) $ 0.26
======== ======== ========
Shares used to compute net income (loss) per share:
Basic 13,472 13,472 13,472
======== ======== ========
Diluted 14,372 14,372 14,372
======== ======== ========
NOTES TO UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS FOR THE
TWENTY-SIX WEEKS ENDED SEPTEMBER 27, 2002
(1) The adjustments include the elimination of WellCheck operations. Sales
from the Diagnostic Products segment to WellCheck were not eliminated from
the unaudited pro forma condensed statement of operations because based on
the terms of the Purchase and Supply Agreement between the Company and
ImpactHealth, dated December 23, 2002, such sales are expected to
continue. The sales price between the Company and ImpactHealth is expected
to continue to approximate the historical inter-segment transfer price to
WellCheck.
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CHOLESTECH CORPORATION
UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS FOR THE
FISCAL YEAR ENDED MARCH 29, 2002
(IN THOUSANDS)
HISTORICAL
FISCAL YEAR
ENDED
MARCH 29, 2002 ADJUSTMENTS(1) PRO FORMA
-------------- -------------- ---------
Revenue $ 47,366 $ 5,735 $ 41,631
Cost of Revenue 19,009 1,997 17,012
-------- -------- --------
Gross Profit 28,357 3,738 24,619
-------- -------- --------
Operating expenses
Sales and marketing 13,836 3,721 10,115
Research and development 2,564 -- 2,564
General and administrative 6,375 1,040 5,335
Website and related costs 246 246 --
-------- -------- --------
Total operating expenses 23,021 5,007 18,014
-------- -------- --------
Income (loss) from operations 5,336 (1,269) 6,605
Interest and other income, net 449 -- 449
-------- -------- --------
Income before provisions for income taxes 5,785 (1,269) 7,054
Provision for (benefit from) income taxes 235 (51) 286
-------- -------- --------
Income (loss) from continuing operations $ 5,550 $ (1,218) $ 6,768
======== ======== ========
Net income (loss) per share:
Basic $ 0.44 $ (0.09) $ 0.53
======== ======== ========
Diluted $ 0.40 $ (0.09) $ 0.49
======== ======== ========
Shares used to compute net income (loss) per share:
Basic 12,658 12,658 12,658
======== ======== ========
Diluted 13,730 13,730 13,730
======== ======== ========
NOTES TO UNAUDITED PRO FORMA CONDENSED STATEMENT OF OPERATIONS FOR THE FISCAL
YEAR ENDED MARCH 29, 2002
(1) The adjustments include the elimination of WellCheck operations. Sales
from the Diagnostic Products segment to WellCheck were not eliminated from
the unaudited pro forma condensed statement of operations because based on
the terms of the Purchase and Supply Agreement between the Company and
ImpactHealth, dated December 23, 2002, such sales are expected to
continue. The sales price between the Company and ImpactHealth is expected
to continue to approximate the historical inter-segment transfer price to
WellCheck.
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