EXHIBIT 99
NEWS RELEASE
MARQUETTE MEDICAL SYSTEMS, INC.
REPORTS THIRD QUARTER EARNINGS
OF $0.37 PER SHARE
Milwaukee, Wisconsin, February 10, 1997 - Marquette Medical Systems, Inc.
today reported net income of $5.9 million, or $0.37 per share, for the
third quarter ended January 31, 1997. This compares with a net loss of
$30.7 million, or $1.89 per share, in the prior year's third quarter.
Last year's loss was attributable to a one-time charge of $35.7 million
related to the write-off of purchased research and development in-process
related to the E for M Corporation, an international medical equipment,
software and supplies company serving patient monitoring and cardiology,
which was acquired on January 1, 1996. Excluding this charge, the net
income in the prior year's quarter was $5.0 million, or $0.31 per share.
Net income for the nine-month period ended January 31, 1997 was $14.4
million, or $0.89 per share. This compares with a net loss of $25.6
million in the same period last year. Exclusive of the previously
mentioned one-time charge, the net income for last year's nine-month
period was $10.1 million, or $0.62 per share.
Net sales for the third quarter were $137.7 million, an increase of 24.8%
from net sales of $110.3 million in last year's quarter. Net sales for
the nine-month period increased 44.7% to $399.4 million from $275.9
million last year. All product lines achieved significant growth over
last year. The growth is mainly attributable to an expanded product line
and to the improved distribution gained in the E for M acquisition.
more
Third Quarter Earnings - page 2
Gross profit for the quarter was $67.5 million, an increase of $13.9
million from last year. For the nine-month period, gross profit increased
to $194.2 million from $136.1 million last year. In addition, the Company
increased its gross margins to 49.0% for the quarter from 48.6% for last
year's quarter. This increase is attributable to more efficient
utilization of capacity at the Company's manufacturing facilities and the
continued benefits associated with the integration of E for M operations
into Marquette's operations.
Operating income increased to $10.6 million for the quarter from $9.6
million for last year's third quarter, excluding the one-time charge
recorded last year. For the nine-month period, operating income increased
49.4% to $27.4 million from $18.3 million last year, excluding the one-
time charge recorded last year.
"We continue to experience a strong incoming order rate for all divisions.
We attribute the strong orders to both added depth of our product line
from the introduction of products at lower price points, and development
of products for use in new care areas. In addition, we are continuing to
expand our global presence in order to capitalize on the increasing
international demand for health care technology." said Timothy C.
Mickelson, President.
Milwaukee-based Marquette Medical Systems (Nasdaq: MARQA) is a leading
manufacturer of medical equipment and systems for diagnostic cardiology,
patient monitoring and integration of clinical information. Additional
information is available at the Company's website, http://www.mei.com.
###
FOR FURTHER INFORMATION CONTACT:
Timothy C. Mickelson Mary M. Kabacinski
President Chief Financial Officer
Marquette Medical Systems, Inc. Marquette Medical Systems, Inc.
(414) 355-5000 (414) 355-5000
MARQUETTE MEDICAL SYSTEMS, INC.
CONSOLIDATED FINANCIAL INFORMATION
UNAUDITED (000's)
Three Months Ended Nine Months Ended
January 31 January 31
1997 1996 1997 1996
Net sales $137,714 $110,309 $399,416 $275,946
Gross profit $ 67,480 $ 53,578 $194,175 $136,062
Operating income $ 10,592 $(26,114) $ 27,374 $(17,372)
Net Income $ 5,898 $(30,665) $ 14,384 $(25,642)
Per Class A Common Share:
Net Income $ .37 $ (1.89) $ .89 $ (1.58)
Shares used in per
share calculation 16,121 16,255 16,252 16,238
MARQUETTE MEDICAL SYSTEMS, INC.
CONSOLIDATED FINANCIAL INFORMATION
UNAUDITED (000's)
Three Months Ended Nine Months Ended
January 31 January 31
1997 1996 1997 1996
Net Sales $137,714 $110,309 $399,416 $275,946
Cost of Sales 70,234 56,731 205,241 139,884
-------- -------- -------- --------
Gross profit 67,480 53,578 194,175 136,062
-------- -------- -------- --------
Engineering Expenses 12,180 8,961 35,967 25,142
Selling Expenses 33,003 26,798 97,246 70,832
General and Administrative
Expenses 11,705 8,233 33,588 21,760
Purchased In-Process R&D Charge -- 35,700 -- 35,700
-------- -------- -------- --------
Total operating expenses 56,888 79,692 166,801 153,434
-------- -------- -------- --------
Income (loss) from operations 10,592 (26,114) 27,374 (17,372)
Interest Expense 2,480 1,239 6,669 2,474
Other Income, net (1,192) 54 (2,310) (473)
-------- -------- -------- --------
Income (loss) before provision
for income taxes 9,304 (27,407) 23,015 (19,373)
Provision for Income Taxes 3,406 3,258 8,631 6,269
-------- -------- -------- --------
Net Income (Loss) $ 5,898 $ (30,665) $ 14,384 $ (25,642)
======== ========= ======== =========
Net Income per Class A
Common Share $ .37 $ (1.89) $ .89 $ (1.58)
======== ========= ======== =========
Shares used in per
share calculation 16,121 16,255 16,252 16,238
======== ========= ======== =========