Exhibit 99.1
COMPANY CONTACT:
Steve P. Loomis,
Chief Financial Officer
sloomis@cdic.com
800-778-4825 Ext. 1015
CardioDynamics Reports 22% Revenue Growth in First Quarter 2008
Fifth Consecutive Quarter of Year Over Year Revenue Growth,
Largest in Four Years
SAN DIEGO, April 10 /PRNewswire-FirstCall/ -- CardioDynamics (Nasdaq: CDIC), the
innovator and leader of Impedance Cardiography (ICG) technology, today reported
financial results for fiscal first quarter 2008.
Financial Highlights of First Quarter 2008 Compared with First Quarter 2007
- -- Net sales increased 22% to $5.8 million, up from $4.7 million
- -- Record $2.3 million international sales, an increase of 364% from $0.5
million
- -- ICG sensor revenue increased 1% to $1,501,000, representing 26% of net sales,
up from $1,488,000, or 31% of sales
- -- Operating loss reduced 38% to $852,000, from $1.4 million
- -- Cash, equivalents and short-term investments increased to $7.6 million, up
from $3.8 million
Additional Key Operating Milestones for the First Quarter of 2008
- -- ICG device sales increased 93% to 266 units, up from a total of 138 units
- -- Installed base of BioZ monitors and modules increased 12% to over 8,000 units
- -- Carried nearly $1.0 million of order backlog into the second quarter of 2008
- -- Field headcount totaled 70 field associates, up from 66 one year ago
- -- Entered into distribution and technology license agreements with Recorders
and Medicare Systems, Ltd. (RMS), one of the largest manufacturers of
medical equipment in India.
First Quarter 2008 Operating Results Discussion
The Company reported a net sales increase of 22% to $5.8 million. Sales growth
was primarily driven by a 364% increase in international sales and a 14%
increase in the average unit sales price of BioZ monitors compared with the
first quarter of 2007. The significant growth in international sales during the
quarter was the result of the fulfillment of two large hospital customer orders
including the Instituto de Salud del Estado de Mexico (ISEM), the hospital
network of the state of Mexico within the country of Mexico, and an undisclosed
(at the customer's request) eastern European multi-hospital purchaser.
ICG device sales of 266 units included 52 ICG Modules, 214 ICG monitors, 62 of
which were BioZ Dx systems, 6 BioZ Monitors, and 146 Medis ICG monitors.
Overall gross margin percentage decreased 5% to 69%, largely due to the non-cash
provision of $231,000 of additional reserve for excess, slow moving or obsolete
inventory. The additional reserve is primarily driven by lower projected sales
of our older model BioZ monitors and the continued success of our BioZ trade-up
program.
A 1% reduction in operating expenses was achieved through an 18% decrease in
general and administrative expense and 29% reduction in research and development
spending during the period, partially offset by increased investment in selling
and marketing personnel and programs. The increased revenue and gross margin
coupled with reduced operating expenses resulted in an operating loss
improvement of 38% to $852,000, from $1.4 million in the same period in 2007.
Overall net loss improved by 10%, to $1.5 million, or ($0.03) per diluted share.
CEO Comments and Outlook
"We are very pleased with 22% growth in the first quarter, our best growth
quarter in four years," stated Michael K. Perry, Chief Executive Officer of
CardioDynamics. "We continued to make good progress in reducing the operating
loss, down 38% to $852,000, which includes $242,000 of non-cash charges for
depreciation, amortization and equity compensation. We are off to a good start
in the second quarter having already shipped the sizeable backlog that resulted
from domestic orders booked late in the first quarter. Additionally, we recently
increased our U.S. field sales and clinical staff by six additional associates
and have hired a dedicated recruiter to assist with our efforts to add talented
field personnel. Our sights remain on achieving at least 15% revenue growth for
2008 and delivering positive operating cash flow in the fourth quarter."
Perry added, "We are energized to partner with RMS in India through our
previously announced Distribution and Technology License Agreements. RMS has an
extensive presence in the developing healthcare market in India, which we
believe will be instrumental in helping drive continued market adoption of our
proprietary BioZ(R) ICG technology. Additionally, we believe RMS to be a solid
technology partner to potentially utilize for low cost development, clinical
research and manufacturing."
Conference Call Information
Michael K. Perry, Chief Executive Officer, and Steve P. Loomis, Chief Financial
Officer, will host a summary of CardioDynamics' first quarter 2008 results in a
conference call today, Thursday April 10, 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/phoenix.zhtml?p=irol-
eventDetails&c=86923&eventID=1810586 (Please copy and paste link, and remove
extra space after second hyphen.)
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 diagnostic and monitoring
devices and markets proprietary ICG sensors. 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, Philips
Medical Systems and Mindray. 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 the success of recruiting
efforts and relationship with RMS, anticipated revenue growth rates and cash
flow projections, 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 growth companies, as
well as other risks detailed in the Company's filings with the SEC, including
its 2007 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
--------------------------
February 29, February 28,
2008 2007
------------ ------------
Net sales $ 5,762 $ 4,727
Cost of sales 1,775 1,220
-------- --------
Gross margin 3,987 3,507
-------- --------
Research and development
314 443
Selling and marketing 3,722 3,444
General and administrative 771 945
Amortization of intangible assets 32 55
-------- --------
Loss from operations
(852) (1,380)
Other expense, net (166) (207)
-------- --------
Loss before income taxes and minority interest
(1,018) (1,587)
Minority interest in income of subsidiary (134) (14)
Income tax provision (463) (54)
Income (loss) from discontinued operations, net of tax 127 (7)
-------- --------
Net loss $ (1,488) $ (1,662)
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Net loss per common share:
Basic and diluted $ (0.03) $ (0.03)
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Weighted-average shares used in per share calculation:
Basic and diluted 49,750 48,831
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Selected Consolidated Balance Sheet Data February 29, November 30,
2008 2007
------------ ------------
Cash and cash equivalents $ 7,601 $ 8,362
Accounts receivable, net 3,854 4,475
Inventory, net 1,527 1,670
Total current assets 13,586 15,164
Long-term assets 4,708 4,703
Total assets 18,294 19,867
Total current liabilities 5,091 5,620
Long-term liabilities 4,444 4,318
Total liabilities 9,535 9,938
Minority interest 560 407
Shareholders' equity 8,199 9,522