EXHIBIT 99.1
PRESS RELEASE:
BIO-LOGIC REPORTS $0.06 PER SHARE EARNINGS FOR FIRST QUARTER
Receives FDA Clearance for Stacked ABR
Launches Major Educational Marketing Initiative in Hearing Diagnostics and
Infant Screening
MUNDELEIN, IL, June 19, 2003 - Bio-logic Systems Corp. (Nasdaq: BLSC), a
designer and marketer of computerized medical electro-diagnostic equipment and
disposables, today reported financial results for the fiscal 2004 first quarter
ended May 31, 2003.
Net sales for the first quarter decreased 13 percent to $6.3 million, compared
with $7.2 million for the same quarter a year ago, due to lower sales in the
company's Neurology business. Gross profit margin increased to 69.3 percent from
68.1 percent, due mainly to continued improvement in cost management. Total
operating expense for the quarter was $4.0 million, compared to $4.3 million
reported last year. The decrease was due to lower selling, general and
administrative expenses, partially offset by lower net capitalized costs in
research and development.
Operating income for the quarter was $379,000 compared to $612,000 for the same
quarter last year. Net income for the quarter was $274,000 or $0.06 per diluted
share, compared to $388,000 or $0.09 per share in the first quarter of fiscal
2003.
Cash at the end of the quarter was $9.8 million, a $.8 million decrease from the
balance at the company's February 28, 2003 fiscal year end, due primarily to a
reduction in accounts payable. Book value per share grew to $4.42, up from $4.36
at the end of the fiscal year.
"Sales and income for the quarter were down compared to last year due to lower
worldwide Neurology sales, which we believe to be a temporary deferral of orders
that will come through later in the year," commented Roderick G. Johnson,
president and chief operating officer. "Although Neurology had a difficult
quarter, we continued to enjoy solid sales on the Hearing side of the business.
Domestically, strong diagnostic systems and disposables growth, led by the Ear
Muffin(TM) and our proprietary Tree Tip(TM), basically offset lower sales of
infant screening products in this maturing market. International also showed
good growth across all major product lines, including infant screening and
diagnostic systems.
"There were some positive developments in the quarter that we expect to
favorably impact sales later in the year. In May, we received FDA 510(k)
clearance for Stacked ABR, a product that enables ENT physicians and
audiologists to screen patients in their offices for auditory nervous system
abnormalities. This technology offers significant savings compared to the more
costly alternative of undergoing a MRI procedure. We also released a new
patent-pending adapter enabling the Ear Muffin to be used across all competitor
product lines, allowing for further penetration of this significant base of
disposables business. A recent revision also added the Ear
Muffin to our Novation hospital alliance contract, which now provides member
hospitals a choice of over-the-ear disposable earphones.
"In addition, we launched a new marketing initiative aimed at educating users in
the latest technologies and thinking in hearing diagnostics and infant screening
through a seminar program being held in 23 cities throughout the U.S., as well
as in selected international markets. These seminars utilize a world-class
faculty of leading clinical practitioners and researchers, and emphasize our
M.A.S.T.E.R(TM) software, used to characterize an infant's hearing loss, and
Stacked ABR. The five domestic and nine international seminars held to date have
been both well attended and well received. We anticipate that this program,
coupled with the continued innovation and enhancement of our Hearing product
line, will enable us to make further market gains in this area in the future,"
Johnson concluded.
About Bio-logic
Bio-logic Systems Corp., headquartered in Mundelein, IL, designs, develops,
assembles and markets computer-based electro-diagnostic systems for use by
hospitals, clinics, universities and physicians. The systems conduct tests that
are typically used by medical practitioners to aid in the diagnosis of certain
neurological disorders, brain disorders and tumors and sensory disorders,
including audiological and hearing screening and diagnosis.
Except for descriptions of historical facts, this release contains
forward-looking statements that involve known and unknown risks, which may cause
the company's actual results in the future to differ materially from those
currently anticipated. These results include, among others, fluctuations in
sales and operating results; the company's ability to recruit and train the
necessary number of sales representatives and installation technicians; risks
associated with international operations including monetary crisis; regulatory,
competitive and contractual risks; the effects of economic conditions; and the
availability of capital to finance planned growth, as well as other risks
detailed from time to time in the company's filings with the Securities and
Exchange Commission.
Bio-logic Systems Corp and Subsidiaries
Consolidated Statement of Operations
Unaudited
In Thousands, Except for Per Share Data
Three Months Ended
May 31,
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2003 2002
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NET SALES $ 6,319 $ 7,232
COST OF SALES 1,942 2,306
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Gross Profit 4,377 4,926
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OPERATING EXPENSES:
Selling, general & administrative 2,854 3,337
Research & development 1,144 977
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Total operating expenses 3,998 4,314
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OPERATING INCOME 379 612
OTHER INCOME (EXPENSE):
Interest income 16 37
Interest expense - -
Miscellaneous 2 (2)
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Total other income 18 35
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INCOME BEFORE INCOME TAXES 397 647
PROVISION FOR INCOME TAXES 123 259
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NET INCOME $ 274 $ 388
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RETAINED EARNINGS, BEGINNING OF PERIOD 13,562 12,112
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RETAINED EARNINGS, END OF PERIOD $ 13,836 $ 12,500
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EARNINGS PER SHARE:
Basic $ 0.07 $ 0.09
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Diluted $ 0.06 $ 0.09
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BASIC SHARES OUTSTANDING 4,197,856 4,193,094
DILUTED SHARES OUTSTANDING 4,383,016 4,335,493
SELECTED BALANCE SHEET DATA
As of As of
May 31, February 28,
2003 2003
----------------- ---------------
Cash and marketable securities $ 9,841 $ 10,678
Current assets 20,161 21,028
Total assets 24,179 25,190
Current liabilities 4,929 6,223
Long-term obligations - -
Shareholders' equity 18,569 18,287