Cardiac Science (NASDAQ:DFIB)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Cardiac Science Charts. Click Here for more Cardiac Science Charts.](/p.php?pid=staticchart&s=N%5EDFIB&p=8&t=15)
Cardiac Science Announces 2004 Fourth Quarter, Year End Results
IRVINE, Calif., Feb. 28 /PRNewswire-FirstCall/ -- Cardiac Science, Inc.
(NASDAQ:DFIB), a leading manufacturer of life-saving automatic public-access
defibrillators (AEDs) and provider of comprehensive AED/CPR training services,
today reported revenue of $20.7 million for the fourth quarter ended December
31, 2004, with revenue for the full 2004 year totaling $68.5 million, as
compared to $17.7 million and $62 million, respectively, reported for the same
prior year periods. Revenue from the sale of AEDs and related services for the
fourth quarter ended December 31, 2004 totaled $20.2 million, a 28 percent
increase over the $15.8 million in the same period last year, as a result of
strong international sales in Japan and the United Kingdom.
The gross profit margin for the fourth quarter and year ended December 31, 2004
was 54.5 percent and 55.7 percent, respectively, compared to 43.4 percent and
53.9 percent in the same prior year periods. The gross margins for the prior
year periods included a one-time inventory impairment charge related to legacy
products. Gross margins in the fourth quarter of 2004 were impacted by a
higher mix of sales to Japan and the British government which had lower gross
margins, and certain non-recurring increases in manufacturing costs.
Operating expenses for the three months ended December 31, 2004 were $13.1
million, compared to the $12.7 million in the same quarter in 2003. The 2004
fourth quarter increase compared to last year included significantly higher
legal expenses of approximately $800,000, largely related to increased activity
in the patent litigation against Phillips. Legal expenses for the fourth
quarter totaled $1.4 million.
The operating loss for the fourth quarter and year ended December 31, 2004 was
$1.8 million and $11.9 million, respectively, compared to an operating loss of
$5.0 million and $7.1 million in the same periods in 2003. The net loss for
the fourth quarter of 2004 was $3.4 million, or $0.04 loss per share, as
compared to $6.5 million, or $0.08 loss per share in the fourth quarter of
2003. The net loss for the year ended December 31, 2004 was $18.7 million, or
$0.22 loss per share, compared to $12.5 million, or $0.18 loss per share for
2003.
The December 31, 2004 balance sheet showed cash and cash equivalents of $13.9
million.
Cardiac Science Chairman and CEO Raymond W. Cohen said that management was
encouraged by the strong AED revenue growth in the fourth quarter and continued
robust interest from potential customers in the AED product category,
particularly from the corporate workplace sector.
Cohen added, "the Powerheart AED G3 product line continued to be our principal
revenue driver complemented by the company's AED/CPR training services which
contributed $1.8 million of the quarter's revenue. International sales grew at
a higher than expected rate in the quarter as we benefited from delivering over
half of the $3 million sole-supplier British government contract. Demand for
Cardiac Science manufactured products in the Japanese market was especially
strong and accounted for 50 percent of international revenue in the fourth
quarter. This strength in the international market was partially offset by
lower sales to U.S. distributors reflecting the company's strategic shift from
smaller dealers to recently signed large distribution partners such as Airgas
Safety, Concentra Health Services, Hagemeyer North America and Fisher Safety."
Financial Outlook
Excluding the impact of any pending mergers, the company expects revenue for
2005 to range from $75 million to $80 million based on sales of its core AED
product line growing between 15 percent and 22 percent over the 2004 level of
$56.7 million. The company expects revenue from its AED products and AED/CPR
training business to account for 95 percent of total sales.
The company estimates that its gross profit margin will range between 55
percent and 58 percent of revenue, with quarterly variability driven by sales
mix, manufacturing volumes and market conditions which could affect average
selling prices.
Excluding the impact of any stock based compensation expense; the company
expects its operating expenses to range between $45 million and $48 million,
with additional variability possible as a result of higher than expected legal
fees associated with the Phillips litigation.
Giving effect to the estimated stock based compensation expense, the company
anticipates that its operating results will range from an operating profit of
$400,000 to an operating loss of $8.2 million. The company expects its net
loss to range from $8.7 million to $17.2 million, or $0.10 to $0.20 per share.
Conference Call Information
Management will host a conference call regarding its results for the fourth
quarter and year ended December 31, 2004 which will be broadcast live on the
Internet at 9:00 a.m. EST on March 1, 2005. Management encourages shareholders
and other interested parties to listen to the live webcast by going to the
company's website at http://www.cardiacscience.com/. Web participants should
go to the company's website at least 15 minutes prior to the start of the call
to register, download, and install any necessary audio software. The online
archive of the call will be available immediately following the conference
call.
About Cardiac Science
Cardiac Science develops, manufactures and markets Powerheart(R)-brand
public-access defibrillators (AEDs) and offers comprehensive AED/CPR training
services that facilitate successful deployments. The company also makes the
Powerheart(R) CRM(TM), the only FDA-cleared therapeutic patient monitor that
instantly and automatically treats hospitalized cardiac patients who suffer
life-threatening heart rhythms. Cardiac Science products are sold by its 55
person direct sales force and a network of distributors in the U.S., and
through international distributors in over 60 countries worldwide. Cardiac
Science also manufactures its AED products on a private label basis for other
leading medical companies including Nihon Kohden (Japan), Quinton Cardiology
Systems and GE Healthcare. For more information, please visit
http://www.cardiacscience.com/.
This news release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. In addition, from time
to time the company, or its representatives, have made or may make
forward-looking statements orally or in writing. The words "estimate",
"potential", "intended", "expect", "anticipate", "believe", and other similar
expressions or words are intended to identify forward looking statements. Such
forward-looking statements include, but are not limited to the achievement of
future revenue growth and other expected financial results. Cardiac Science
cautions that these statements are subject to substantial risks and
uncertainties and are qualified by important factors that could cause actual
results to differ materially from those reflected by the forward- looking
statements and should not be relied upon by investors when making an investment
decision. Information on these and other factors is detailed in the company's
Form 10-K for the year ended December 31, 2003, subsequent quarterly filings,
and other documents filed by the company with the Securities and Exchange
Commission.
Contact: Matt Clawson (Investors), or Roderick de Greef
Len Hall (Media) EVP & Chief Financial Officer
Allen & Caron Inc Cardiac Science, Inc.
(949) 474-4300 (949) 797-3800
Cardiac Science, Inc.
Consolidated Statement of Operations
(Unaudited)
In thousands, except share and per share amounts
Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
Revenue $20,653 $17,703 $68,513 $61,982
Cost of goods sold 9,395 7,099 30,362 25,626
Inventory Impairment 2,917 2,917
Gross profit 11,258 7,687 38,151 33,439
Operating expenses:
Sales and marketing 5,448 5,689 23,959 18,616
Research and development 1,529 1,599 6,027 5,538
General and administrative 5,720 4,920 19,241 14,720
Amortization of intangible
assets 405 445 1,931 1,656
Gain on sale of product lines
and other, net -- -- (1,077) --
Total operating expenses 13,102 12,653 50,081 40,530
Loss from operations (1,844) (4,966) (11,930) (7,091)
Interest and other expense,
net (1,602) (1,525) (6,739) (5,891)
Loss before minority
interest and discontinued
operations (3,446) (6,491) (18,669) (12,982)
Minority interest in
consolidated subsidiary -- -- -- (48)
Income from discontinued
operations -- -- -- 493
Net loss $(3,446) $(6,491) $(18,669) $(12,537)
Net loss per share
(basic and diluted) $(0.04) $(0.08) $(0.22) $(0.18)
Weighted average number of
shares used in the
computation of net loss
per share 86,195,893 77,927,862 83,123,701 69,848,014
Cardiac Science, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
In thousands
December 31, December 31,
2004 2003
ASSETS
Current assets:
Cash and cash equivalents $13,913 $8,871
Accounts receivable, net 17,978 20,410
Inventory 9,680 9,575
Prepaid expenses 2,517 2,154
Total current assets 44,088 41,010
Property and equipment, net 4,932 7,003
Goodwill and other intangibles, net 150,221 151,485
Other assets 4,093 3,503
203,334 203,001
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 8,266 8,955
Accrued expenses and other current
liabilities 6,836 6,595
Deferred revenue 1,940 2,479
Total current liabilities 17,042 18,029
Senior secured promissory notes 52,623 46,481
Other long term liabilities 754 900
Total stockholders' equity 132,915 137,591
$203,334 $203,001
DATASOURCE: Cardiac Science, Inc.
CONTACT: Investors, Matt Clawson, , or Media, Len
Hall, , both of Allen & Caron Inc, +1-949-474-4300, for
Cardiac Science, Inc.; or Roderick de Greef, EVP & Chief Financial Officer of
Cardiac Science, Inc., +1-949-797-3800,
Web site: http://www.cardiacscience.com/