Exhibit 99
CARDIODYNAMICS REPORTS FIRST QUARTER 2005 RESULTS
SAN DIEGO, April 6 /PRNewswire-FirstCall/ -- CardioDynamics (Nasdaq: CDIC), the
innovator and leader of Impedance Cardiography (ICG) technology, today reported
its financial results for its fiscal first quarter 2005. Highlights included the
Company's 27th consecutive quarter of year-over-year quarterly sales growth and
a 21% increase in first quarter 2005 sales over the same period a year ago.
First Quarter 2005 Results:
Net sales for the first quarter 2005 were $9.7 million, an increase of 21% over
net sales of $8.0 million for the same quarter last year. ICG revenue decreased
10% over the same period in 2004 primarily due to the Company's transition from
direct sales to a hybrid sales model involving its direct sales team and two new
distribution sales partners, Physician Sales & Service, Inc. (PSS) and the
Caligor division of Henry Schein. The Company reported a net loss of $644,000,
or ($0.01) per diluted share for the first quarter of 2005, compared with net
income of $761,000, or $0.02 per diluted share reported in the same quarter last
year.
Operating expenses for first quarter 2005 grew 35% to $7.3 million compared with
$5.4 million for the same period in 2004. The increase in operating costs was
largely due to the additions of Vermed and Medis; increased investment in sales,
clinical and marketing personnel; expenditures associated with the BioZ Dx
product launch; and a $760,000 increase in general and administrative expenses,
the majority of which was driven by regulatory compliance costs associated with
Section 404 of the Sarbanes-Oxley Act and year-end audit fees.
Operating Highlights:
During first quarter 2005, sales of ICG devices totaled 238 units including 190
ICG monitors, of which 83 were BioZ Dx systems, 48 were ICG modules and 24 were
Medis ICG monitors. The number of ICG systems and modules sold to date totals
over 5,200. At the end of fiscal first quarter 2005, field associates totaled 89
people, including 52 U.S. territory managers and 22 clinical application
specialists.
Combined ICG and electrocardiograph (ECG) sensor revenue in the first quarter
2005 was $4.1 million, representing 42% of total net sales. During the quarter,
Vermed contributed $2.4 million to net sales. ICG sensor revenue for the first
quarter 2005 was $1.6 million (22% of total ICG net sales), an increase of 6%,
compared with $1.5 million (19% of total ICG net sales) in the same quarter
2004.
The Company paid down its bank loan by over $700,000 during the quarter and had
$4.9 million in cash at the end of the first quarter 2005.
Overall gross margin for the first quarter 2005 was 65%; gross margin for the
ICG business was 73% and for the ECG business was 44%. This compares to 77% for
the ICG business in the same quarter last year before Vermed was acquired. The
decrease in overall gross margin was a result of lower gross margins earned on
the ECG sensor products and a higher volume of lower-priced U.S. and
international distributor business.
CEO Comments and Outlook:
Michael K. Perry, Chief Executive Officer, stated, "As previously discussed,
after a successful pilot in the second half of 2004, we made a strategic
decision to transition our entire sales team to a direct-distributor sales
model. By capitalizing on the close physician relationships of over 1,100
distributor sales representatives, we expect to increase physician access and
decrease our sales cycle. This transition required an investment in training and
relationship development, which resulted in overall lost productivity in the
first quarter. We view this productivity loss as temporary and have already seen
improved productivity in several markets around the country."
Perry added, "Initial response to the new BioZ Dx has been very positive -- the
technological advancements and streamlined solution will help us increase market
adoption and stay ahead of potential competition. In addition to the compelling
articles recently published in the American Journal of Hypertension supporting
ICG, we are looking forward to presenting the results of our important
multi-center CONTROL study at the American Society of Hypertension meeting next
month. With the successful launch of the BioZ Dx, our new sales model in place,
and over 5,000 units in our customer base, we are well positioned to restore
sales growth, improve operating efficiencies, and deliver increased shareholder
value."
Conference Call Information:
Michael K. Perry, Chief Executive Officer, will host a summary of
CardioDynamics' first quarter 2005 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/05/q1/cdic_1q2005.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 potential growth rates,
resumption of sales productivity, success of distributor partner relationships
and clinical studies, the accuracy of which are necessarily subject to
uncertainties and risks including the Company's primary 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 2004 Form 10-K/A. 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,
2005 2004
------------ ------------
Net Sales $ 9,678 $ 8,015
Cost of Sales 3,347 1,855
Gross Margin 6,331 6,160
Research and Development 664 833
Selling and Marketing 5,184 4,013
General and Administrative 1,337 577
Amortization of Intangible Assets 130 --
Income (loss) from Operations (984) 737
Other Income (Expense), net (58) 95
Income (loss) before Income Taxes (1,042) 832
Income Tax Benefit (Provision) 427 (71)
Minority Interest (29) --
Net Income (Loss) $ (644) $ 761
Net Income (Loss) per Common Share,
- Basic and Diluted $ (0.01) $ 0.02
Weighted-Average Number of Shares
Used in Per Share Calculation:
- Basic 48,748 46,550
- Diluted 48,748 49,532
Selected Consolidated Balance Sheet Data
February 28, November 30,
2005 2004 Change
------------ ------------ ------------
Cash and Cash Equivalents $ 4,890 $ 6,801 (28)%
Accounts Receivable, net 10,541 11,674 (10)%
Inventory, net 5,870 4,647 26%
Current Assets 26,001 27,257 (5)%
Long-term Assets 30,969 30,773 1%
Total Assets 56,970 58,030 (2)%
Current Liabilities 7,792 7,764 --
Long-term Liabilities 4,629 5,338 (13)%
Total Liabilities 12,421 13,102 (5)%
Minority Interest 233 194 20%
Shareholders' Equity 44,316 44,734 (1)%
SOURCE CardioDynamics
-0- 04/06/2005
/CONTACT: Bonnie Ortega, Investor Relations, Ext. 1005,
bortega@cardiodynamics.com, or Irene Paigah, Media Relations, Ext. 1012,
ipaigah@cardiodynamics.com, both of CardioDynamics, +1-800-778-4825/
/Web site: http://www.irconnect.com/primecast/05/q1/cdic_1q2005.html /
/Web site: http://www.cdic.com /