COMPANY CONTACT:
Steve P. Loomis,
Chief Financial Officer
sloomis@cdic.com
800-778-4825 Ext. 1015
CardioDynamics Reports First Quarter 2009 Results
SAN DIEGO, April 9, CardioDynamics (Nasdaq: CDIC), the innovator and
leader of Impedance Cardiography (ICG) technology, today reported financial
results for fiscal first quarter 2009.
Financial Highlights of First Quarter 2009 Compared with First Quarter 2008
- -- Net sales of $5.1 million, a 12% decrease from $5.8 million, but a 3%
increase excluding large Eastern European hospital group sales in the
first quarters of 2008 and 2009
- -- ICG sensor revenue increased 12% to $1.7 million, representing 33% of net
sales, up from $1.5 million, or 26% of sales
- -- Gross margin as a percentage of net sales improved from 69% to 73%
- -- Reduced operating expenses by 2% to $4.8 million
- -- Operating loss was $1.0 million, which included $202,000 of non-cash
charges for depreciation, amortization and equity compensation
- -- Net loss from continuing operations of $1.5 million ($0.20 per share
loss), down 10% from $1.6 million ($0.23 per share loss)
Additional Key Operating Metrics for the First Quarter of 2009
- -- BioZ(R) system sales grew 12% to 76 units, compared to 68 units
- -- ICG device sales totaled 158 units bringing the cumulative total sold to
over 8,900 ICG monitors and modules, up 11% from 8,000 one year ago
- -- U.S. direct sales grew 19% to $3.9 million, up from $3.3 million
- -- Field headcount averaged 72 field associates, up from 70 one year ago
- -- Investors retained $5.25 million investment in Company's 8% convertible
notes
First Quarter 2009 Operating Results Discussion
The Company reported net sales of $5.1 million, a 12% decrease from $5.8
million, but a 3% increase excluding large Eastern European hospital group sales
through the Medis subsidiary in both first quarters 2008 and 2009. The decrease
in sales growth related to the Eastern European hospital group was offset by 19%
growth in U.S. direct sales which included a 12% increase in sensor sales. ICG
device sales of 158 units included 25 ICG Modules, 133 ICG monitors, 68 of which
were BioZ Dx(R) systems, 8 BioZ(R) Monitors, and 57 Medis ICG monitors.
Overall gross margin percentage improved 4% to 73%, largely due to the non-cash
provision of $313,000 of additional reserve for excess, slow moving or obsolete
inventory in the first quarter 2008 that did not re-occur in the first quarter,
2009. The additional reserve in first quarter 2008 was primarily driven by lower
projected sales of the older model BioZ(R) monitors and the success of the
BioZ(R) trade-up program.
A 2% reduction in operating expenses was achieved through a 4% decrease in sales
and marketing expenditures, partially offset by a 26% increased investment in
research and development during the period. Despite improved gross margins and
reduced operating expenses, lower consolidated revenue resulted in an operating
loss increase to $1.0 million, from $0.9 million in the same period in 2008. Net
loss from continuing operations improved by 10% to $1.5 million or ($0.20) per
diluted share.
CEO Comments and Outlook
"We were encouraged by continued growth in the business excluding the large
international opportunity that we recorded in first quarter, 2008," stated
Michael K. Perry, Chief Executive Officer of CardioDynamics. "We were
particularly pleased with the increased growth in our sensor business which was
up 12% during the quarter. This was the second consecutive quarter of
double-digit sensor revenue growth, the first time since 2007, and is a
testament to the success of our newly implemented Comprehensive Customer Care
(C3), and BioZ(R) ICG CERTIFIED programs."
Perry continued, "We continue to be optimistic regarding the remainder of the
year, but temper our projections given the global economic challenges, tight
credit conditions and low consumer confidence which all have an impact on
physician buying patterns. In an effort to augment overall revenue growth, we
launched a pilot sales program for a new partner product midway through the
quarter with a small group of our sales team. We will evaluate the progress in
the pilot program during the second quarter to decide whether to introduce the
product to the entire sales force during the second half of 2009."
Conference Call Information
Michael K. Perry, Chief Executive Officer, and Steve P. Loomis, Chief Financial
Officer, will host a summary of CardioDynamics' first quarter 2009 results in a
conference call today, Thursday April 9, 2009, 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 www.cdic.com or at:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=86923&eventID=
2141110
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 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 continued success of
our C3 and BioZ Certified programs, 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 2008 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 28, February 29,
2009 2008
------------ ------------
Net sales $ 5,072 $ 5,762
Cost of sales 1,355 1,775
------------ ------------
Gross margin 3,717 3,987
------------ ------------
Research and development 395 314
Selling and marketing 3,570 3,722
General and administrative 773 771
Amortization of intangible assets 26 32
------------ ------------
Loss from operations (1,047) (852)
Other expense, net (225) (166)
------------ ------------
Loss before income taxes and minority
interest (1,272) (1,018)
Minority interest in income of subsidiary (49) (134)
Income tax provision (139) (463)
Income from discontinued operations -- 127
------------ ------------
Net loss $ (1,460) $ (1,488)
============ ============
Net loss per common share:
Basic and diluted $ (0.20) $ (0.21)
============ ============
Weighted-average shares used in per
share calculation:
Basic and diluted 7,295 7,107
============ ============
Selected Consolidated Balance Sheet Data February 28, November 30,
2009 2008
- -------------------------------------------------------------- ------------
Cash and cash equivalents $ 4,562 $ 6,306
Accounts receivable, net 3,734 3,918
Inventory, net 1,558 1,490
Total current assets 10,299 12,138
Long-term assets 3,382 3,428
Total assets 13,681 15,566
Total current liabilities 3,862 4,499
Long-term liabilities 4,625 4,504
Total liabilities 8,487 9,003
Minority interest 473 472
Shareholders' equity 4,721 6,091