Exhibit 99.1
COMPANYCONTACT:
Steve P. Loomis,
Chief financial Officer
sloomis@cardiodynam.com
800-778-4825 Ext. 1015
CardioDynamics Reports Fourth Quarter and Fiscal 2007 Results
with 10% Revenue Growth in 2007
First Year of Growth in Past Three Years
and Fourth Consecutive Quarterly Revenue Increase Over Prior Year
SAN DIEGO, CA--February 7, 2008--CardioDynamics (Nasdaq: CDIC), the innovator
and leader of BioZ(R) Impedance Cardiography (ICG) technology, today reported
financial results for its fourth quarter and fiscal 2007. Operating results are
for the ICG business and do not include results for Vermed which was sold on
August 31, 2007.
Key Financial and Operating Results for Fourth Quarter 2007 Compared with Fourth
Quarter 2006
o Net ICG sales increased 8% to $6.2 million, up from $5.7 million
o International sales increased 57% to $1.0 million, up from $633,000
o ICG sensor revenue increased 13% to $1.7 million, or 28% of total
sales, up from $1.5 million
o ICG monitor sales increased 11% to 174 units, 100 of which were BioZ
Dx systems, 16 BioZ monitors, and 58 Medis ICG monitors, up from 157
ICG monitors
o ICG gross profit margin improved slightly to 65%
o ICG gross profit margin was 65%, up from 59%
Key Financial and Operating Results of Fiscal 2007 Compared with Fiscal 2006
o Net ICG sales increased 10% to $21.9 million, up from $19.8 million
o ICG sensor revenue increased 8% to $6.7 million, or 31% of total
sales, up from $6.2 million
o 542 ICG monitors sold, up 9% from 499 monitors
o Nearly 7,800 ICG monitors and modules sold to date, up 11% from one
year ago
o ICG gross profit margin was 68%, up from 62%
o Operating loss was $4.8 million, an improvement of $3.0 million, or
38%
o Operating cash use of $1.1 million, an improvement of $931,000, or 47%
o Cash, cash equivalents and short term investments increased $4.5
million to $8.4, principally as a result of the sale of Vermed
o Bank debt of $1.7 million was retired during in 2007
Additional Key Operating Milestones for the Fourth Quarter and Fiscal 2007
o Completed $8 million sale of Vermed business
o Received FDA clearance for new ICG clinical parameters and electronic
medical record (EMR) interface capability for our BioZ Dx System
o Commenced landmark PREVENT-HF trial, a multinational randomized
controlled trial evaluating whether serial BioZ monitoring in chronic
heart failure management will delay or prevent heart failure-related
hospitalizations compared with standard clinical care
o Obtained expanded hypertension coverage from local Medicare
contractors for ICG technology in Georgia, Alabama, Mississippi, and
South Carolina
o Entered into strategic alliance agreement with Amarex Clinical
Research and a joint marketing agreement with Spacelabs Healthcare,
Inc. for pharmaceutical and device clinical trial research
o Named for the ninth consecutive year in Deloitte & Touche's
prestigious listing of the 50 fastest growing technology, media,
telecommunications, and life sciences companies in San Diego
Fourth Quarter and Fiscal 2007 Operating Results Discussion
The Company reported net sales increase of 8% to $6.2 million in the fourth
quarter 2007 and 10% for full year 2007 to $21.9 million, representing the first
year of growth in the last three years. Fourth quarter ICG sales growth was
driven by a combination of a 57% increase in international sales and a 13%
increase in ICG sensor revenue. Additionally, through ongoing efforts to improve
sales force hiring and training, late Q3 2007 new hires contributed 33% of
domestic equipment sales in Q4 2007.
ICG sensor revenue was $1.7 million in the fourth quarter of 2007 and $6.7
million for the full year 2007, up 13% and 8%, respectively, over the same
periods in 2006. Solid sensor revenue growth continued in the fourth quarter due
to the clinical sales team's focused customer service efforts and expansion of
the BioZ Activation Process (BAP), which assists physician offices in
appropriately assessing and monitoring patients for whom clinicians need BioZ
data. To date, there are over 2,000 offices who have initiated the BAP into
assessment of patients.
Gross margin as a percentage of sales increased from 62% to 68% in fiscal 2007,
largely due to lower manufacturing costs, average unit sales price improvements,
increased mix of recurring sensor revenue and lower inventory reserve
requirements.
Tight expense control resulted in a 1% overall reduction in 2007 operating
expenses with research and development decreasing 13%, sales and marketing
increasing 5%, and general and administration expenses decreasing 17%. An
overall 3% decrease in company personnel coupled with an $869,000 reduction in
external audit fees were the largest contributors to the expense savings and
were part of the Company's efforts to accelerate the return to profitability.
Operating loss improved 29% sequentially to $829,000, compared to an operating
loss of $1.2 million in third quarter 2007. The operating loss for fiscal 2007
was $4.8 million, a 38% improvement from fiscal 2006 operating loss of $7.8
million.
CEO Comments and Outlook
Michael K. Perry, Chief Executive Officer of CardioDynamics, stated, "We were
very pleased with the continued improvement in our key operating metrics during
the fourth quarter and throughout 2007. This was our first year of revenue
growth in the past three years and our team worked diligently to deliver four
consecutive growth quarters and 10% overall growth in 2007. Sensor revenue
growth continued strong in the fourth quarter at 13% and demonstrates the
clinical usefulness and expanding need for ICG. We were particularly pleased in
reducing the operating loss by 38%, a $3.0 million improvement over 2006.
Perry continued, "Completing the sale of Vermed was important for our company
during 2007 and has allowed us to focus our resources on the proprietary ICG
business, which represents the greatest potential for growth. We are planning
for another year of double-digit revenue growth in 2008 and have, as a major
objective, achievement of a positive operating cash flow quarter before the end
of the year. Over the next five years, we intend to make ongoing investments in
clinical research and product development to establish ICG in the treatment
guidelines for heart failure and hypertension."
Conference Call Information
Michael K. Perry, Chief Executive Officer, and Steve P. Loomis, Chief Financial
Officer, will host a summary of CardioDynamics' fourth quarter and fiscal 2007
results in a conference call today, Thursday February 7, 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 one month 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=1748762
About CardioDynamics
CardioDynamics (Nasdaq: CDIC), 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. 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 and Philips Medical Systems. 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 expectation of the
continued revenue growth path including double digit revenue growth in 2008, the
achievement of positive operating cash flow, investments in clinical research
and product development, 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 2006 Form 10-K. The Company does not undertake to update the disclosures
contained in this press release.
CardioDynamics International Corporation
In thousands, except per share data (unaudited)
Selected Consolidated Operational Results
Three Months Ended Twelve Months Ended
November 30, November 30,
------------------ -------------------
2007 2006 2007 2006
------- ------- -------- -------
Net sales $ 6,151 $ 5,708 $ 21,850 $19,783
Cost of sales 2,157 2,025 6,897 7,594
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Gross margin 3,994 3,683 14,953 12,189
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Research and development 389 484 1,706 1,964
Selling and marketing 3,679 3,027 14,780 14,096
General and administrative 723 885 3,160 3,820
Amortization of intangible assets 32 32 147 119
------- ------- -------- -------
Loss from operations (829) (745) (4,840) (7,810)
Gain (loss) on derivative instruments -- (274) -- 1,190
Other expense, net (166) (250) (846) (756)
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Loss before income taxes and minority interest (995) (1,269) (5,686) (7,376)
Income tax provision (126) (60) (321) (174)
Minority interest in income of subsidiary (33) (19) (78) (38)
Income (loss) from discontinued operations -- 218 (10,614) 894
------- ------- -------- -------
Net loss $(1,154) $(1,130) $(16,699) $(6,694)
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Net loss per common share:
Basic and diluted $ (0.02) $ (0.02) $ (0.34) $ (0.14)
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Weighted-average shares used in per share calculation:
Basic and diluted 49,318 48,831 49,100 48,819
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Selected Consolidated Balance Sheet Data
November 30,
-----------------
2007 2006
------- -------
Cash and cash equivalents $ 7,896 $ 2,368
Short-term investments 466 1,510
Accounts receivable, net 4,475 4,587
Inventory, net 1,670 2,727
Total current assets 15,164 15,517
Long-term assets 4,703 20,871
Total assets 19,867 36,388
Total current liabilities 5,620 5,884
Long-term liabilities 4,318 4,796
Total liabilities 9,938 10,680
Minority interest 407 302
Shareholders' equity 9,522 25,406