Exhibit 99.1
CardioDynamics Reports 25th Consecutive
Quarter of Year-Over-Year Quarterly Revenue Growth and 42% Increase in
Third Quarter 2004 Sales
SAN DIEGO--(BUSINESS WIRE)--Sept. 22, 2004--
Company Increases Field Associates and Adds
National Sales Partners
CardioDynamics (Nasdaq:CDIC), the innovator and leader of
Impedance Cardiography (ICG) technology and manufacturer of BioZ(R)
noninvasive cardiac function monitoring systems, today reported its
25th consecutive quarter of year-over-year quarterly sales growth and
a 42% increase in third quarter 2004 sales over the same period last
year.
Third Quarter 2004 Results:
Net sales for the third quarter 2004 were $11.1 million, an
increase of 42% over net sales of $7.8 million for the same period
last year. The Company recorded net income of $992,000, or $0.02 per
diluted share, a 19% increase, compared with net income of $833,000,
or $0.02 per diluted share reported in third quarter 2003. For the
nine months ended August 31, 2004, net sales were $29.4 million, an
increase of 37%, and net income was $2.7 million ($0.05 per diluted
share), an increase of 85% compared, to $1.5 million ($0.03 per
diluted share), for the same period in 2003. Net income during the
quarter was effected by increased investment in additional sales and
clinical personnel, regulatory compliance costs associated with
Sarbanes-Oxley, and expenses attributable to the design and future
launch of the BioZ Dx, the Company's co-developed product with Philips
Medical Systems.
Operating Highlights:
During third quarter 2004, shipments of ICG devices totaled 284
units, including 236 ICG monitors, an increase of 21% over third
quarter 2003, and 48 ICG modules. Included in shipments for the
quarter were eight Medis ICG monitors and 14 BioZ systems under the
Company's rental and guarantee programs. The total number of ICG
systems and modules sold to date is now over 4,700 (including 117
cumulative Medis units). Currently, field associates total 79 people,
including 50 U.S. territory managers and 19 clinical application
specialists.
Combined ICG and electrocardiograph (ECG) sensor revenue was $4.1
million, representing 37% of total net sales in the third quarter
2004. During the quarter, Vermed contributed $2.4 million to net
sales. ICG sensor revenue for the third quarter 2004 was $1.7 million
(20% of total ICG net sales), an increase of 16%, compared to $1.5
million (19% of total ICG net sales) in the same quarter 2003.
Operating cash flow for third quarter 2004 was a record $1.7
million, an increase of 162% or $1.0 million, compared to $637,000 in
the same quarter 2003. For the nine months ended August 31, 2004,
operating cash flow was $3.6 million, an increase of 206% or $2.4
million, compared to $1.2 million for the same nine-month period in
2003. The Company ended the third quarter 2004 with $7.1 million in
cash and paid down its bank term loan by over $1 million during the
quarter.
Gross margin for the third quarter 2004 was 69%, of which the ICG
business was 75% and Vermed was 45%. This compares to 77% for ICG
business in the same quarter last year. The decrease in overall gross
margin was the result of lower gross margins associated with Vermed's
ECG sensor products and an increase in lower-priced U.S. and
international distributor business. The Company is currently piloting
two new sales partnership programs with the Caligor division of Henry
Schein and Physician Sales & Service, Inc. (PSS).
CEO Comments and Outlook:
"The third quarter was one of investment for CardioDynamics,"
stated Michael K. Perry, Chief Executive Officer. "In addition to
growing the number of territory managers to a record level, we
significantly increased the number of clinical application specialists
by 36% over the previous quarter. We believe this investment will
improve productivity by allowing our territory sales managers to focus
on new system sales, as our clinical team drives recurring revenue
growth through support of our expanding customer base."
Perry added, "We enter the fourth quarter 2004 with a strong sales
and clinical force armed with the multi-center PREDICT study results
demonstrating ICG as the most powerful predictor of heart failure
outcomes. We look forward to the initial launch of the BioZ Dx, our
co-developed product with Philips, and manufacturing of our ICG
sensors at Vermed. We believe these strategic initiatives will
contribute appreciably to our operating performance in fiscal 2005. In
the coming months, we intend to build additional awareness for our ICG
technology, accelerate revenue growth, and improve ICG sensor margins.
With over 2.7 million patients monitored, we are fundamentally
changing the way cardiovascular medicine is practiced around the
world."
Conference Call Information:
Michael K. Perry, Chief Executive Officer, will host a summary of
CardioDynamics' third quarter 2004 results in a conference call today
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 at
http://www.irconnect.com/primecast/04/q3/cdic_3q2004.html.
About CardioDynamics:
CardioDynamics (Nasdaq:CDIC), the ICG Company, is the innovator
and leader of breakthrough medical technology called Impedance
Cardiography (ICG). The Company develops, manufactures and markets
noninvasive diagnostic and monitoring technologies and electrodes. 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
www.cdic.com.
Forward-Looking (Safe Harbor) Statement:
Except for the historical and factual information contained
herein, this press release contains forward-looking statements, such
as market size, potential, growth and penetration rates, timing of
product releases, accelerating revenue growth, sales force
productivity, building ICG awareness, and improving ICG sensor
margins, the accuracy of which is necessarily subject to uncertainties
and risk,s including the Company's sole dependence on the BioZ product
line and various uncertainties characteristic of early growth
companies, as well as other risks detailed in the Company's filings
with the SEC, including its 2003 Form 10-K. The Company does not
undertake to update the disclosures contained in this press release.
CardioDynamics International Corporation
- ----------------------------------------------------------------------
Consolidated
Operational Results(a)
- --------------------
Three Months Ended Nine Months Ended
August 31, August 31,
------------------------ -------------------------
2004 2003 2004 2003
------------ ----------- ------------ ------------
Net Sales $11,075,000 $7,808,000 $29,360,000 $21,478,000
Cost of Sales 3,475,000 1,768,000 8,210,000 5,072,000
------------ ----------- ------------ ------------
Gross Margin 7,600,000 6,040,000 21,150,000 16,406,000
Research and
Development 1,036,000 782,000 3,094,000 2,302,000
Selling and
Marketing 4,490,000 3,935,000 12,796,000 11,286,000
General and
Administrative 887,000 528,000 2,226,000 1,506,000
Amortization of
Intangible Assets 128,000 - 206,000 -
------------ ----------- ------------ ------------
Income from
Operations 1,059,000 795,000 2,828,000 1,312,000
Other Income, net 22,000 102,000 143,000 267,000
Provision for
Income Taxes (67,000) (64,000) (238,000) (112,000)
Minority Interest (22,000) - (22,000) -
------------ ----------- ------------ ------------
Net Income $992,000 $833,000 $2,711,000 $1,467,000
============ =========== ============ ============
Net Income per
Common Share,
- Basic $0.02 $0.02 $0.06 $0.03
============ =========== ============ ============
- Diluted $0.02 $0.02 $0.05 $0.03
============ =========== ============ ============
Weighted-Average
Number of Shares
Used in Per Share
Calculation:
- Basic 48,022,000 46,202,000 47,325,000 46,190,000
============ =========== ============ ============
- Diluted 50,069,000 47,562,000 49,975,000 47,296,000
============ =========== ============ ============
Selected Consolidated Balance
Sheet Data(a) August 31, November 30,
- -------------------------------- 2004 2003 Change
----------- ------------ ------------
Cash and Short-term
Investments $7,083,000 $9,345,000 (24%)
Accounts
Receivable, net 10,393,000 9,560,000 9%
Inventory, net 4,656,000 3,163,000 47%
Current Assets 24,437,000 24,113,000 1%
Long-term Assets 21,967,000 2,535,000 767%
Total Assets 46,404,000 26,648,000 74%
Current Liabilities 6,750,000 2,909,000 132%
Long-term
Liabilities 5,550,000 719,000 672%
Total Liabilities 12,300,000 3,628,000 239%
Minority Interest 91,000 - 100%
Shareholders'
Equity 34,013,000 23,020,000 48%
(a) The foregoing results are unaudited and remain subject to
completion of the quarterly review by the Company's independent
auditors. These results may be subject to adjustments as result of
such review; however, at this time the company does not expect such
adjustments, if any, to have a material adverse effect on the
company's results of operation.
CONTACT: CardioDynamics
Investor Relations
Bonnie Ortega, 800-778-4825, Ext. 1005
bortega@cardiodynamics.com
or
Media Relations
Irene Paigah, 800-778-4825, Ext. 1012
ipaigah@cardiodynamics.com