Sales Momentum Continues, Supported by Increasing Demand for New Products And
Investments in Personnel
MUNDELEIN, Ill., Jan. 6 /PRNewswire/ -- Bio-logic Systems Corp.
(Nasdaq: BLSC) today reported continued strong results for its fiscal 2000
third quarter and nine months ended November 30, 1999. In the latest three
months, net sales increased 53 percent over last year's comparable quarter led
by steady demand for the company's new Ceegraph XL long-term
epilepsy-monitoring device and its advanced software options. During the
quarter, Bio-logic increased its investment in process improvements as well as
sales, service, customer support and manufacturing personnel to better manage
order fulfillment and an expanding customer base. Net income for the fiscal
2000 third quarter was substantially higher than a year ago as Bio-logic reaps
the benefits of major investments made last year in development of the
Ceegraph XL and comprehensive software and hardware upgrades.
"We are very pleased with the successive sales growth we achieved so far
in each quarter of fiscal 2000," said Gabriel Raviv, chairman and chief
executive officer. "The Ceegraph XL technology has given us a competitive
advantage in the marketplace, driving the sales momentum we're experiencing.
We are putting a lot of effort now into improving the manufacturing,
installation, and maintenance of this new product, and are adding production,
engineering and service support to accelerate that objective. As a result,
cost of sales is elevated while we work through the improvement process, but
enhanced efficiencies should bring accelerated shipments and installations,
and will open the door for the aggressive cross-selling of our complete
product offering.
"In addition to successfully attracting new accounts with our epilepsy
monitoring systems, we are expanding sales to our existing customer base by
offering an upgraded Windows platform for both our EEG and Sleep product lines
as well as additional system options. More and more, customers are looking
for a single vendor to supply all of their needs. As a technology and service
leader with a cost-effective, comprehensive diagnostic offering, hospitals are
choosing Bio-logic as their vendor of choice."
Sales for the fiscal 2000 third quarter increased 53 percent to
$6.7 million compared with $4.4 million in the similar fiscal 1999 quarter.
The sales increase was supported, in part, by the continued expansion of
Bio-logic's sales network by 13 percent over last year, the increasing demand
for new products, and expanded market opportunities. Domestic sales rose
71 percent, while international sales declined 39 percent from a year earlier
due to the continued adverse impact of the Asian economic crisis. SG&A and
R&D expenses were 36 percent and 11 percent higher, respectively, quarter-
over-quarter as staffing levels were increased in line with expected growth.
Total operating expenses as a percent of sales, however, declined nearly
11 percent in the latest three months compared with a year ago. Net income
was $449,849, or $0.11 per diluted share, compared with $27,544, or $0.01 per
share, a year ago.
For the nine months, Bio-logic reported a 57 percent increase in net sales
to $19.6 million from $12.4 million last year. Operating expenses as a
percent of sales declined nearly 15 percent. Net income was $1.9 million, or
$0.46 per diluted share, compared with a net loss of $100,732, or $0.03 per
diluted share, for the nine months a year earlier.
While the company's neurology products propelled sales growth in both the
quarter and nine months, its Sleep and audiology products continued to show
notable sales increases. The audiology market is expanding, led by increasing
legislation mandating newborn hearing screening. The company has several
products addressing this segment of the market and is capitalizing on the
legislation by offering hospitals product trials and training, and educational
seminars and materials.
New product development is a key part of the company's growth strategy and
an important element to expanding market share. Bio-logic is currently
developing new products and product upgrades for its audiology line,
positioning itself to respond to the expanding needs in this market.
Collaborations with leading institutions, such as the House Ear Institute in
California, offer the company pre-approved technology sources that accelerate
product development and the product approval process, allowing the company to
bring the latest diagnostic techniques to market much faster. Bio-logic plans
to actively utilize beneficial collaborations going forward, as appropriate.
Financial Position
The company's cash position decreased to $5.6 million at November 30,
1999, from $6.0 million on February 28, 1999. Long-term debt as a percent of
capitalization decreased to 7 percent, and the current ratio was 4.1 to 1.
Shareholders' equity increased to $14.6 million, or nearly 15 percent.
Outlook
"We are making great strides in keeping up with demand for our systems.
As one of only four competitors offering a 64/128 channel long-term epilepsy
monitoring system, our product, with its modular design, provides a cost-
effective means of upgrading systems as next-generation models are introduced.
This is an important differentiating factor to hospitals with budget
constraints that are determined to get the best product for their dollar,"
said Raviv.
"Over the last nine months, we've been dedicated to putting the staff in
place to support the growth we are experiencing. In the current fourth
quarter and the early part of next year, we will be working diligently to
train the new sales and service representatives and to ensure the installation
and operation of our new systems are seamless. Of course, at the same time
we'll continue moving the company forward, developing new products and
addressing new market opportunities."
Bio-logic Systems Corp., headquartered in Mundelein, Ill., designs,
develops, assembles and markets computer-based electrodiagnostic 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.
Safe Harbor Statement
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 risks 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.
To receive Bio-logic's latest news release and other corporate documents,
free of charge via fax, simply dial 1-800-PRO-INFO. Use company ticker BLSC.
BIO-LOGIC SYSTEMS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
THREE MONTHS ENDED NINE MONTHS ENDED
Nov. 30, Nov. 30, Nov. 30, Nov. 30,
1999 1998 1999 1998
NET SALES $6,720,744 $4,380,800 $19,589,513 $12,449,281
COST OF SALES 2,214,163 1,357,619 6,128,978 3,949,753
Gross Profit 4,506,581 3,023,181 13,460,535 8,499,528
OPERATING EXPENSES:
Selling, general
& administrative 3,068,905 2,259,874 8,630,079 6,582,739
Research
& development 870,549 785,339 2,384,011 2,241,061
Total Operating
Expenses 3,939,454 3,045,213 11,014,090 8,823,800
OPERATING INCOME
(LOSS) 567,127 (22,032) 2,446,445 (324,272)
OTHER INCOME
(EXPENSE):
Interest Income 58,765 69,959 178,253 198,316
Interest expense (5,203) (5,468) (17,309)
(23,657)
Miscellaneous 4,110 (1,240) 2,665 (1,644)
INCOME (LOSS) BEFORE
INCOME TAXES 624,799 41,219 2,610,054 (151,257)
PROVISION (BENEFIT)
FOR INCOME TAXES 174,950 13,675 730,825 (50,525)
NET INCOME (LOSS) $449,849 $27,544 $1,879,229 $(100,732)
EARNINGS (LOSS)
PER SHARE:
Basic $0.11 $0.01 $0.47 $(0.03)
Diluted $0.11 $0.01 $0.46 $(0.03)
BASIC SHARES
OUTSTANDING 4,007,120 4,015,536 3,996,435 4,009,103
DILUTED SHARES
OUTSTANDING 4,235,239 4,050,893 4,099,125 4,009,103
SELECTED BALANCE SHEET DATA
As of As of
November 30, February 28,
1999 1999
Cash and marketable securities 5,581,248 5,957,112
Current Assets 16,291,259 13,385,871
Total Assets 18,984,337 16,038,207
Current liabilities 3,941,175 2,793,361
Long-term obligations 179,172 294,618
Shareholders' equity 14,619,095 12,705,333
SOURCE Bio-Logic Systems Corp.
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CONTACT: Gabriel Raviv, CEO, or Roderick G. Johnson, President & COO, both of Bio-Logic Systems Corp., 847-949-5200; or General Info., Leslie Hunziker, 312-640-6760, Media Info., Darcy Bretz, 312-266-7800, or Investor Info., Leslie Loyet, 312-640-6672, all of The Financial Relations Board
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