Exhibit 99
BAXTER'S SALES AND EARNINGS GROW IN 2002
Sales Advance 10 Percent in the Fourth Quarter, Full-Year 2002
Earnings from Continuing Operations Increase 11 Percent in Quarter, 15 Percent
for Full-Year, Excluding Special Charges
DEERFIELD, Ill., January 22, 2003 - Baxter International Inc. (NYSE:BAX) today
reported its financial results for the fourth quarter and full-year 2002, with
sales from continuing operations advancing 10 percent in the quarter and for the
year.
Sales from continuing operations in the fourth quarter totaled $2.26 billion, up
from the $2.06 billion reported for the same period last year. Foreign exchange
contributed 2 percentage points of growth in the quarter. Domestic sales grew 5
percent, and international sales increased 14 percent.
For the full-year, Baxter reported sales from continuing operations of $8.11
billion, an increase from the $7.36 billion reported for 2001. Foreign exchange
had no effect on the full-year sales. Domestic sales totaled $3.97 billion, an
increase of 7 percent over last year, and international sales totaled $4.14
billion, an increase of 14 percent.
Excluding discontinued operations and special charges in 2001 and 2002, Baxter's
earnings in the quarter totaled $363 million, or $0.59 per diluted share, an
increase of 11 percent over the fourth quarter of 2001. Baxter's earnings in the
fourth quarter of 2002 included special charges related to the acquisitions of
Epic Therapeutics and ESI Lederle, and the planned divestiture of the majority
of the company's Renal services portfolio. In the fourth quarter of 2001,
Baxter's earnings included special charges related to the company's acquisition
of Asta Medica Onkologie and the discontinuation of the Althane series of
dialyzers. Including these charges, Baxter reported net income of $9 million for
the fourth quarter of 2002, or $0.02 per diluted share. This compares with a net
loss of $75 million, or ($0.13) per diluted share, reported for the fourth
quarter of 2001.
"Our solid fourth quarter performance enabled us to continue to invest
significantly in our research and development programs," said Harry M. Jansen
Kraemer, Jr., chairman and chief executive officer. Baxter's investment in
research and development increased 23 percent in the fourth quarter, to $142
million.
For the full year, excluding discontinued operations and charges, Baxter's
earnings increased 15 percent to $1.24 billion, or 13 percent to $2.00 per
diluted share, from the $1.07 billion, or $1.77 per diluted share reported last
year. Including charges and discontinued operations, Baxter's net earnings
totaled $778 million, or $1.26 per diluted share. This compares with net income
of $612 million, or $1.00 per diluted share, reported in 2001.
Baxter's investment in research and development increased 18 percent to $501
million in 2002. The company generated $468 million in operational cash flow
from continuing operations (i.e. cash flow of $1.32 billion before capital
expenditures) in 2002.
"Despite a challenging environment, we delivered solid sales and earnings growth
and cash flow in 2002," Kraemer said. "We advanced several exciting products
through our pipeline and the regulatory review process, expanded our production
capacity, invested in new technologies, and
completed a number of important acquisitions. All of these initiatives position
us well to drive long-term growth that is profitable, sustainable and capital
efficient."
BioScience
Sales of Baxter's BioScience products grew 7 percent in the fourth quarter, to
$842 million. Full-year sales of BioScience products totaled $3.10 billion, an
increase of 11 percent.
Contributing to the growth in 2002 were Recombinate Antihemophilic Factor,
vaccines and biosurgery products. Baxter once again led the industry in
production of recombinant treatment for hemophilia, and in 2002 submitted
filings with Canadian, European and United States regulatory authorities for the
company's new Antihemophilic Factor (Recombinant), Plasma/Albumin Free Method
(rAHF-PFM). Baxter's rAHF-PFM is the first Factor VIII recombinant therapy to be
clinically developed and prepared without the addition of any human- or
animal-derived raw materials in the cell culture process, purification or final
formulation. Also in 2002, Baxter grew its vaccines business with licensure of
its NeisVac-C vaccine in several additional countries and completed bulk
shipments of smallpox vaccine to partner Acambis, Inc. on behalf of the U.S.
government. The company also received licensure for its InfluJect influenza
vaccine in the Netherlands, and began construction of two state-of-the-art
vaccine production facilities in Krems, Austria and Bohumile, Czech Republic.
Last month, the company announced an agreement to acquire a plasma-derived
treatment for hereditary emphysema, Aralast(TM), and 42 plasma collection
centers in the United States from Alpha Therapeutic Corporation, which will
expand Baxter's biopharmaceutical product portfolio and enhance the economics of
the company's plasma business by increasing the number of fractions it obtains
from a liter of plasma.
Baxter's BioScience business develops and produces biopharmaceuticals from
plasma and through recombinant methods to treat hemophilia, immune deficiencies
and other blood-related disorders, as well as vaccines and biosurgery products.
Medication Delivery
Sales of Baxter's Medication Delivery products advanced 16 percent in the fourth
quarter, to $964 million. For the full-year, sales grew 14 percent to $3.32
billion.
Strong contributors to Medication Delivery growth in the quarter and year were
anesthesia products and drug delivery technologies. Baxter's fast-growing
anesthesia and critical care business will further expand in 2003, as a result
of the company's recent acquisition of ESI Lederle from Wyeth. Baxter also
expanded its drug delivery technology portfolio in 2002, with its acquisition of
privately-held Epic Therapeutics. Baxter provides a range of proprietary and
specialized drug formulation and delivery platforms for traditional
pharmaceutical companies, including ready-to-use pre-filled syringes, vials and
intravenous bags.
Baxter's Medication Delivery business offers a single source for medication
delivery products and services, including drug delivery, intravenous solutions,
sets, infusion pumps, parenteral nutrition products, anesthesia devices and
pharmaceutical agents.
Renal
Baxter's Renal sales increased 4 percent in the fourth quarter to $455 million.
For the full year, sales totaled $1.70 billion, an increase of 2 percent.
In the fourth quarter, the company received approval from the U.S. Food and Drug
Administration for both a new peritoneal dialysis solution and a new
hemofiltration system. Extraneal (icodextrin) peritoneal dialysis solution
offers the potential for increased removal of fluid from the blood stream during
dialysis. The Accura Hemofiltration System is used in critical care settings to
deliver continuous renal replacement and plasma therapies.
Baxter also announced in the fourth quarter its intent to divest the majority of
the services component of its Renal business and focus primarily on products
used in the treatment of kidney disease.
Baxter's Renal business provides a complete and complimentary portfolio of
dialysis-related products used in the treatment of patients with kidney disease.
Outlook for 2003
"Our milestone achievements in 2002 position us well for 2003 and beyond,"
Kraemer said. "We expect to launch a number of important products across all of
our businesses in 2003, and move other promising therapies through the
development pipeline and regulatory review process."
Looking ahead to full-year 2003, Baxter expects to achieve sales growth from
continuing operations in the 10 to 12 percent range, earnings per share in the
$2.22 to $2.29 range, and to generate cash flow from operations of $1.3 billion
to $1.5 billion before capital expenditures. For the first quarter of 2003, the
company expects to grow sales 7 to 10 percent, and to achieve earnings per
diluted share of $0.42 to $0.45.
Baxter International Inc., through its subsidiaries, assists health-care
professionals and their patients with treatment of complex medical conditions,
including cancer, hemophilia, immune disorders, kidney disease and trauma. The
company applies its expertise in medical devices, pharmaceuticals and
biotechnology to make a meaningful difference in patients' lives.
A webcast of Baxter's fourth quarter conference call for investors can be
accessed live from a link on Baxter's website at www.baxter.com beginning at
7:30 a.m. CST on January 22, 2003. The company will be making investor
presentations on the following dates during the first quarter of 2003: January
28 and February 4. In addition, Baxter will host its annual growth conference in
Chicago on March 13, and will webcast that conference. The company will report
its first quarter results on Thursday, April 17, 2003, and will conduct a
conference call for investors at 7:30 a.m. CDT. A webcast of this call and
accompanying slide presentation can be accessed from a link on Baxter's website
on April 17. Please visit Baxter's website for additional information about
these events.
(Accura, Baxter, Extraneal, InfluJect, NeisVac-C and Recombinate are trademarks
of Baxter International Inc.)
This news release contains forward-looking statements that involve risks and
uncertainties, including the effect of economic conditions, actions of
regulatory bodies, product development risks, product demand and market
acceptance, the impact of competitive products and pricing, foreign currency
exchange rates and other risks detailed in the company's filings with the
Securities and Exchange Commission. These forward-looking statements are based
on estimates and assumptions made by management of the company and are believed
to be reasonable, though are inherently uncertain and difficult to predict.
Actual results or experience could differ materially from the forward-looking
statements.
Attachments
. Consolidated Statements of Income for the three- and twelve- month
periods ended December 31, 2002 and 2001, prepared in accordance with
generally accepted accounting principles (GAAP).
. Condensed Operational Cash Flow Information and Changes in Net Debt
for the twelve months ended December 31, 2002 and 2001
. Pro Forma Schedule I - Consolidated Statements of Income for the
three- and twelve-month periods ended December 31, 2002 and 2001,
prepared on a pro forma basis for continuing operations only, with a
reconciliation to amounts reported in accordance with GAAP.
. Net Sales from Continuing Operations for the three- and twelve-month
periods ended December 31, 2002 and 2001, including sales by operating
segment and geographic region.
. Key Product Line Sales for 2002, by operating segment, for the four
quarters and full year.
. Pro Forma Schedule II - Restated Consolidated Statements of Income for
prior 2001 and 2002 quarters, prepared on a pro forma basis for
continuing operations only, with a reconciliation to amounts reported
in accordance with GAAP.
. Schedule III - Restated Consolidated Statements of Income for prior
2001 and 2002 quarters, for discontinued operations only.
FOR ADDITIONAL INFORMATION:
[GRAPHIC]Media Contacts:
Deborah Spak, (847) 948-2349
Sally Benjamin Young, (847) 948-2304
Investor Contacts:
[GRAPHIC] Neville Jeharajah, Baxter, (847) 948-2875
Mary Kay Ladone, Baxter, (847) 948-337
BAXTER INTERNATIONAL INC.
Consolidated Statements of Income
(unaudited) (A)
(in millions, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
2002 2001 2002 2001
Net sales $ 2,261 $ 2,062 $ 8,110 $ 7,356
Costs and expenses
Cost of goods sold 1,203 1,086 4,318 3,944
Marketing and administrative
expenses 412 404 1,562 1,440
Research and development expenses 142 115 501 426
IPR&D and other special charges (B) 138 469 189 469
Goodwill amortization -- 11 -- 43
Interest, net 10 14 51 68
Other expense (income) 10 (8) 92 (13)
Total costs and expenses 1,915 2,091 6,713 6,377
Income (loss) from continuing operations
before income taxes and cumulative
effect of accounting change 346 (29) 1,397 979
Income tax expense 87 43 364 304
Income (loss) from continuing operations
before cumulative effect of
accounting change 259 (72) 1,033 675
Discontinued operations (250) (3) (255) (11)
Income (loss) before cumulative effect
of accounting change 9 (75) 778 664
Cumulative effect of accounting change -- -- -- (52)
Net income (loss) $ 9 ($75) $ 778 $ 612
Earnings (loss) per basic common share:
Continuing operations, before cumulative
effect of accounting change $ 0.43 ($0.12) $ 1.72 $ 1.15
Discontinued operations (0.42) (0.01) (0.43) (0.02)
Cumulative effect of accounting change -- -- -- (0.09)
Total $ 0.01 ($0.13) $ 1.29 $ 1.04
Earnings (loss) per diluted common share:
Continuing operations, before cumulative
effect of accounting change $ 0.42 ($0.12) $ 1.67 $ 1.11
Discontinued operations (0.40) (0.01) (0.41) (0.02)
Cumulative effect of accounting
change -- -- -- (0.09)
Total $ 0.02 ($0.13) $ 1.26 $ 1.00
Weighted average number of common
shares outstanding
Basic 598 592 600 590
Diluted 619 592 618 609
(A) All share and per-share information has been restated for the May 30, 2001
two-for-one stock split.
(B) Other special charges include costs to exit selected R&D programs in 2002
and acquisition-related costs and costs associated with ceasing
manufacturing operations relating to the A, AF and AX series dialyzers in
2001.
Key Ratios (as a percent of sales from continuing operations)
Gross margin 46.8% 47.3% 46.8% 46.4%
Marketing and administrative
expenses 18.2% 19.6% 19.3% 19.6%
BAXTER INTERNATIONAL INC.
Condensed Operational Cash Flow Information and Changes in Net Debt
(unaudited)
Condensed Operational Cash Flow Information
(in millions) (Brackets denote cash outflows) Twelve Months Ended
December 31,
2002 2001
Income from continuing operations before Q1, 2001
cumulative effect of accounting change $ 1,033 $ 675
IPR&D and other special charges 189 469
Other adjustments, primarily non-cash items 585 529
After-tax interest, net 40 54
Operational cash inflow 1,847 1,727
Changes in balance sheet items
Accounts receivable (276) (114)
Inventories (269) (177)
Accounts payable and accrued liabilities 54 (89)
Other (40) (32)
Capital expenditures (848) (759)
Operational cash outflow (1,379) (1,171)
Operational cash flow -- continuing operations 468 556
Operational cash flow -- discontinued operations (41) (53)
Total operational cash flow $ 427 $ 503
Changes in Net Debt
(in millions) Increase (decrease) Twelve Months Ended
December 31,
2002 2001
Net debt, January 1 $ 2,105 $ 1,781
Operational cash flow (427) (503)
Dividends 348 341
Acquisitions, including assumed debt 514 869
Issuances of stock (414) (500)
Purchases of treasury stock 1,169 288
Other, including the effect of exchange rate changes 140 (171)
Increase in net debt 1,330 324
Net debt, December 31 $ 3,435 $ 2,105
Key statistics, December 31:
Days sales outstanding 54.5 51.9
Inventory turns 2.7 3.2
Net-debt-to-capital ratio (A) 40.8% 35.9%
(A) The net-debt-to-capital ratio was calculated in accordance with the
company's primary credit agreements, which give 70% equity credit to the
company's December 2002 $1.25 billion issuance of equity units.
Operational cash flow is defined as cash flow provided by operations plus
after-tax interest, plus the tax effect of divestiture gains (losses) less
capital expenditures.
BAXTER INTERNATIONAL INC.
PRO FORMA SCHEDULE I
Consolidated Statements of Income
(unaudited)
(in millions, except per share data)
(per share data restated for two-for-one stock split)
Three Months Ended Twelve Months Ended
December 31, December 31,
2002 2001 Change 2002 2001 Change
CONTINUING OPERATIONS:
NET SALES $2,261 $2,062 10% $8,110 $7,356 10%
GROSS PROFIT 1,058 976 8% 3,792 3,412 11%
% to Sales 46.8% 47.3% 46.8% 46.4%
MARKETING AND
ADMINISTRATIVE EXPENSES 412 404 2% 1,562 1,440 8%
% to Sales 18.2% 19.6% 19.3% 19.6%
RESEARCH AND
DEVELOPMENT EXPENSES 142 115 23% 501 426 18%
GOODWILL AMORTIZATION -- 11 (100%) -- 43 (100%)
OPERATING INCOME 504 446 13% 1,729 1,503 15%
% to Sales 22.3% 21.6% 21.3% 20.4%
INTEREST, NET 10 14 (29%) 51 68 (25%)
OTHER EXPENSE (INCOME) 10 (8) (225%) 22 (13) (269%)
INCOME BEFORE INCOME TAXES 484 440 10% 1,656 1,448 14%
INCOME TAX EXPENSE 121 113 7% 420 374 12%
NET INCOME $ 363 $ 327 11% $1,236 $1,074 15%
BASIC EPS $ 0.61 $ 0.56 9% $ 2.06 $ 1.82 13%
DILUTED EPS $ 0.59 $ 0.53 11% $ 2.00 $ 1.77 13%
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
Basic 598 592 600 590
Diluted 619 612 618 609
RECONCILIATION OF PRO FORMA AMOUNTS TO
GAAP AMOUNTS
Net Income
Pro forma net income from
continuing operations $ 363 $ 327 $ 1,236 $1,074
IPR&D and other special
charges (A) (104) (399) (155) (399)
Asset impairment charges -- -- (48) --
Cumulative effect of
accounting change -- -- -- (52)
Discontinued operations (250) (3) (255) (11)
GAAP net income (loss) $ 9 ($75) $ 778 $ 612
Diluted EPS
Pro forma net income from
continuing operations $ 0.59 $ 0.53 $ 2.00 $ 1.77
IPR&D and other special
charges (A) (0.17) (0.65) (0.25) (0.66)
Asset impairment charges -- -- (0.08) --
Cumulative effect of
accounting change -- -- -- (0.09)
Discontinued operations (0.40) (0.01) (0.41) (0.02)
GAAP net income (loss) $ 0.02 ($0.13) $ 1.26 $ 1.00
(A) Other special charges include costs to exit selected R&D programs in 2002
and acquisition-related costs and costs associated with ceasing
manufacturing operations relating to the A, AF and AX series dialyzers in
2001.
Baxter International Inc.
Net Sales from Continuing Operations
Period Ending December 31, 2002
(Unaudited)
Q4 Q4 % YTD YTD %
($ in Millions) 2002 2001 Growth 2002 2001 Growth
BioScience
United States 422 444 (5%) 1,554 1,494 4%
International 420 345 21% 1,542 1,292 19%
Total 842 789 7% 3,096 2,786 11%
Medication Delivery
United States 603 527 15% 2,020 1,835 10%
International 361 306 18% 1,297 1,070 21%
Total 964 833 16% 3,317 2,905 14%
Renal
United States 102 100 2% 400 392 2%
International 353 340 4% 1,297 1,273 2%
Total 455 440 4% 1,697 1,665 2%
Baxter International Inc.
United States 1,127 1,071 5% 3,974 3,721 7%
International 1,134 991 14% 4,136 3,635 14%
Total 2,261 2,062 10% 8,110 7,356 10%
Baxter International Inc.
Key Product Line Sales
Period Ending December 31, 2002
(Unaudited)
Q1 % Q2 % Q3 %
($ in Millions) 2002 growth 2002 growth 2002 growth
BioScience
Recombinant 232 31% 247 28% 255 29%
Plasma Proteins 1 238 9% 241 (9%) 251 (3%)
Antibody Therapy 76 5% 73 (13%) 83 1%
Transfusion Therapies 2 130 9% 131 5% 130 (1%)
Medication Delivery
IV Therapy 223 (1%) 240 5% 244 7%
Drug Delivery 132 21% 134 17% 147 34%
Electronic Infusion Systems 151 0% 163 1% 168 (1%)
Anesthesia 121 (3%) 162 17% 152 8%
Renal
PD Therapy 300 3% 304 1% 325 6%
HD Therapy 97 (5%) 99 (5%) 106 (4%)
Q4 % FY %
($ in Millions) 2002 growth 2002 growth
BioScience
Recombinant 265 11% 999 24%
Plasma Proteins 1 278 0% 1,008 4%
Antibody Therapy 86 (5%) 318 (3%)
Transfusion Therapies 2 157 (8%) 548 0%
Medication Delivery
IV Therapy 275 12% 982 6%
Drug Delivery 167 23% 580 24%
Electronic Infusion Systems 214 4% 696 2%
Anesthesia 194 22% 629 12%
Renal
PD Therapy 333 3% 1,262 3%
HD Therapy 116 5% 418 (2%)
1 Excludes Antibody Therapy and includes plasma-derived hemophilia products
(FVII, FVIII, FIX and FEIBA), albumin, biosurgery and other plasma-based
products
2 Formerly referred to as Fenwal
BAXTER INTERNATIONAL INC.
PRO FORMA SCHEDULE II
Consolidated Statements of Income
Restatement of Prior Quarters
Continuing Operations Only
(unaudited)
(in millions, except per share data)
(per share data restated for two-for-one stock split)
2001
Q1 Q2 Q3 Q4
NET SALES:
BIOSCIENCE $ 631 $ 686 $ 680 $ 789
MEDICATION DELIVERY 663 701 708 833
RENAL 395 409 421 440
TOTAL NET SALES 1,689 1,796 1,809 2,062
GROSS PROFIT 768 821 847 976
% to Sales 45.5% 45.7% 46.8% 47.3%
MARKETING AND
ADMINISTRATIVE EXPENSES 337 354 345 404
% to Sales 20.0% 19.7% 19.1% 19.6%
RESEARCH AND
DEVELOPMENT EXPENSES 103 104 104 115
GOODWILL AMORTIZATION 11 10 11 11
OPERATING INCOME 317 353 387 446
% to Sales 18.8% 19.7% 21.4% 21.6%
INTEREST, NET 18 17 19 14
OTHER EXPENSE (INCOME) 6 (9) (2) (8)
INCOME BEFORE INCOME TAXES 293 345 370 440
INCOME TAX EXPENSE 75 90 96 113
NET INCOME $ 218 $ 255 $ 274 $ 327
BASIC EPS $ 0.37 $ 0.44 $ 0.46 $ 0.56
DILUTED EPS $ 0.36 $ 0.43 $ 0.45 $ 0.53
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
Basic 590 590 589 592
Diluted 606 608 609 612
RECONCILIATION OF PRO FORMA
AMOUNTS TO GAAP AMOUNTS
Net Income from Continuing Operations
Pro forma net income from
continuing operations $ 218 $ 255 $ 274 $ 327
IPR&D and other special
charges (A) -- -- -- (399)
Asset impairment charges -- -- -- --
GAAP income (loss) from
continuing operations
before cumulative effect
of accounting change $ 218 $ 255 $ 274 $ (72)
Diluted EPS
Pro forma net income from
continuing operations $ 0.36 $ 0.43 $ 0.45 $ 0.53
IPR&D and other special
charges (A) -- -- -- (0.65)
Asset impairment charges -- -- -- --
GAAP income (loss) from
continuing operations
before cumulative effect
of accounting change $ 0.36 $ 0.43 $ 0.45 ($0.12)
2002
Q1 Q2 Q3
NET SALES:
BIOSCIENCE $ 746 $ 732 $ 776
MEDICATION DELIVERY 728 805 820
RENAL 401 408 433
TOTAL NET SALES 1,875 1,945 2,029
GROSS PROFIT 880 914 940
% to Sales 46.9% 47.0% 46.3%
MARKETING AND
ADMINISTRATIVE EXPENSES 393 380 377
% to Sales 21.0% 19.5% 18.6%
RESEARCH AND
DEVELOPMENT EXPENSES 115 123 121
GOODWILL AMORTIZATION -- -- --
OPERATING INCOME 372 411 442
% to Sales 19.8% 21.1% 21.8%
INTEREST, NET 16 14 11
OTHER EXPENSE (INCOME) 12 (6) 6
INCOME BEFORE INCOME TAXES 344 403 425
INCOME TAX EXPENSE 91 100 108
NET INCOME $ 253 $ 303 $ 317
BASIC EPS $ 0.42 $ 0.51 $ 0.52
DILUTED EPS $ 0.41 $ 0.49 $ 0.51
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
Basic 600 602 603
Diluted 622 622 624
RECONCILIATION OF PRO FORMA
AMOUNTS TO GAAP AMOUNTS
Net Income from Continuing Operations
Pro forma net income from
continuing operations $ 253 $ 303 $ 317
IPR&D and other special
charges (A) -- (51) --
Asset impairment charges -- (48) --
GAAP income (loss) from
continuing operations
before cumulative effect
of accounting change $ 253 $ 204 $ 317
Diluted EPS
Pro forma net income from
continuing operations $ 0.41 $ 0.49 $ 0.51
IPR&D and other special
charges (A) -- (0.08) --
Asset impairment charges -- (0.08) --
GAAP income (loss) from
continuing operations
before cumulative effect
of accounting change $ 0.41 $ 0.33 $ 0.51
(A) Other special charges include acquisition-related costs and costs associated
with ceasing manufacturing operations relating to the A, AF and AX series
dialyzers in 2001.
BAXTER INTERNATIONAL INC.
SCHEDULE III
Consolidated Statements of Income
Restatement of Prior Quarters
Discontinued Operations Only
(unaudited)
(in millions, except per share data)
(per share data restated for two-for-one stock split)
2001
Q1 Q2 Q3 Q4
NET SALES:
BIOSCIENCE $ -- $ -- $ -- $ --
MEDICATION DELIVERY 6 7 8 9
RENAL 62 67 83 65
TOTAL NET SALES 68 74 91 74
GROSS PROFIT 3 5 8 8
% to Sales 4.4% 6.8% 8.8% 10.8%
MARKETING AND ADMINISTRATIVE EXPENSES 6 7 7 9
% to Sales 8.8% 9.5% 7.7% 12.2%
RESEARCH AND DEVELOPMENT EXPENSES -- -- 1 --
GOODWILL AMORTIZATION 1 1 1 1
OPERATING INCOME (4) (3) (1) (2)
% to Sales (5.9%) (4.1%) (1.1%) (2.7%)
INTEREST, NET 1 -- -- --
OTHER EXPENSE 1 -- 1 2
INCOME BEFORE INCOME TAXES (6) (3) (2) (4)
INCOME TAX EXPENSE (2) (1) -- (1)
NET INCOME ($4) ($2) ($2) ($3)
BASIC EPS ($0.01) ($0.01) $0.00 ($0.01)
DILUTED EPS ($0.01) ($0.01) $0.00 ($0.01)
2002
Q1 Q2 Q3
NET SALES:
BIOSCIENCE $ -- $ -- $ --
MEDICATION DELIVERY 11 12 12
RENAL 64 65 61
TOTAL NET SALES 75 77 73
GROSS PROFIT 6 7 6
% to Sales 8.0% 9.1% 8.2%
MARKETING AND
ADMINISTRATIVE EXPENSES 7 10 8
% to Sales 9.3% 13.0% 11.0%
RESEARCH AND
DEVELOPMENT EXPENSES -- -- 1
GOODWILL AMORTIZATION -- -- --
OPERATING INCOME (1) (3) (3)
% to Sales (1.3%) (3.9%) (4.1%)
INTEREST, NET -- -- --
OTHER EXPENSE 1 2 --
INCOME BEFORE INCOME TAXES (2) (5) (3)
INCOME TAX EXPENSE (2) (1) (2)
NET INCOME $ -- ($4) ($1)
BASIC EPS $ 0.00 ($0.01) $ 0.00
DILUTED EPS $ 0.00 ($0.01) $ 0.00