SANTA CLARA, Calif., March 4 /PRNewswire-FirstCall/ --
Applied Imaging Corp. (Nasdaq: AICX) today announced preliminary unaudited
fiscal year 2002 results. The Company achieved record revenues of at least
$21.0 million, an increase of 13% over the $18.5 million reported in 2001.
This increase was driven primarily by the growth in sales of the Company's new
OncoPath(TM) products, SPOT(TM) and Ariol(TM).
The Company's net loss for the year was reduced by at least 81% to
$688,000 in 2002, or a loss of $0.04 per share, from the $3.5 million net loss
reported in 2001 or a loss per share of $0.23. The reduced net loss was due to
increased gross profit, from improved margin and incremental sales, and
reduced operating expenses attributable to the restructuring program
implemented in the first quarter of 2002.
"Although we are disappointed that top-line performance was below our
expectations, 2002 was another year of significant progress for Applied
Imaging. We achieved record revenues, reduced costs, reduced net loss and,
most importantly, launched two major new products, our Ariol and SPOT systems,
which we expect to be the catalyst for the Company's growth in 2003 and
beyond," said Carl Hull, Applied Imaging President and Chief Executive
Officer. "We remain very optimistic about the prospects for 2003. Every
indication from our clinical laboratory customers is that demand for genetic
testing services is increasing at 25-35% per year. We plan to capitalize on
that growth by increasing sales of our existing products and our new OncoPath
systems to these clinical customers. As a result, we expect 2003 sales to be
in the range of $24 to $27 million and profit for the year to be between
$1.2 and $1.8 million."
Sales for the fourth quarter were at least $4.9 million, or 7% below last
year's reported $5.3 million, due primarily to reduced sales outside of the
Americas and the phase-out of one of the Company's genetics products. The net
loss in 2002's fourth quarter of $729,000 compared to the breakeven
performance reported in 2001's fourth quarter. The net loss in the 2002 fourth
quarter was due primarily to reduced margins outside of the Americas and
higher operating expenses of $264,000, due to the impact of one-time expenses.
The Company has not yet completed its review, announced on February 3rd,
of specific distributor sales in 2001 and 2002. Completion of that review will
determine whether any adjustment may be required to the Company's
previously-issued financial statements.
Applied Imaging Fourth Quarter Earnings Conference Call
Applied Imaging management will hold a conference call today at
11:00 a.m. EST to present an overview of the results of 2002 and outlook for
2003. The teleconference can be accessed by dialing 302-262-2075 or
800-218-0713 at least five minutes before the scheduled beginning of the call.
Interested parties can also listen to the conference call live on the Internet
at the Investor Relations portion of Applied Imaging's website at
http://www.aicorp.com. A replay of the webcast will be available online through the
Company's website for 30 days. Additionally, a replay of the call will be
available through March 11, 2003 by dialing 303-590-3000, passcode 528183.
About Applied Imaging
Applied Imaging Corp., based in Santa Clara, California, is the leading
supplier of automated imaging systems utilized in genetics and pathology
laboratories for the analysis of chromosomes in cancer and prenatal disorders.
The Company markets a range of clinical and research imaging systems for
fluorescence and brightfield microscopy applications, including the Company's
Ariol(TM), MDS(TM), SPOT(TM), CytoVision(R), PowerGene(R) and QUIPS(R) product
lines. Applied Imaging has installed in excess of 3,000 systems in over
1,000 laboratories in more than 60 countries.
This press release contains forward-looking statements within the meaning
of the U.S. Private Securities Litigation Reform Act of 1995. Specifically,
statements concerning the Company's fiscal year 2001 and 2002 financial
results, 2003 sales and profit forecasts, potential for operating growth,
growth in market demand for genetic testing services and for the Company's
products, are forward-looking statements within the meaning of the Safe
Harbor. These statements are based on management's current expectations and
are subject to certain risks and uncertainties that could cause actual results
to differ materially. The Company's year-end financial results, as discussed
in this release, are preliminary and unaudited, and subject to adjustment in
connection with the Company's year-end audit, as well as the revenue
recognition review currently underway. Further information on potential risk
factors that could affect the Company, its business, its financial results and
its forecasts are detailed in the Company's periodic filings with the
Securities and Exchange Commission, including, but not limited to, those risks
and uncertainties listed in the section entitled "Management's Discussion and
Analysis of Financial Condition and Results of Operations -- Factors Affecting
Future Results," in Applied Imaging's annual report on Form 10-K for the year
ended December 31, 2001, as amended, filed with the Securities and Exchange
Commission. The forward-looking statements are made as of March 4, 2003 and
Applied Imaging is under no obligation to revise or update the forward-looking
statements.
For additional information on Applied Imaging visit the Company's website
at http://www.aicorp.com .
Applied Imaging Corp. and Subsidiaries
Preliminary Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Three months ended Twelve months ended
December 31, December 31,
2002 2001 2002 2001
Revenues $4,886 $5,252 $20,984 $18,537
Cost of revenues 2,154 2,022 8,214 7,726
Gross profit 2,732 3,230 12,770 10,811
Operating expenses:
Research and
development 906 826 3,416 3,900
Sales and marketing 1,907 1,763 7,083 7,457
General and
administrative 652 537 2,567 2,662
Amortization of
goodwill -- 75 -- 306
Restructuring costs -- -- 220 --
Other non-recurring
costs -- -- 108 --
Total operating
expenses 3,465 3,201 13,394 14,325
Operating income (loss) (733) 29 (624) (3,514)
Other income
(expense), net 4 1 (64) (18)
Net income (loss) $(729) $30 $(688) $(3,532)
Net income (loss)
per share
- basic $(0.05) $0.00 $(0.04) $(0.23)
- diluted $(0.05) $0.00 $(0.04) $(0.23)
Weighted average
shares outstanding
- basic 15,903 15,228 15,817 15,191
- diluted 15,903 15,489 15,817 15,191
Preliminary Condensed Consolidated Balance Sheets
(In thousands)
December 31, December 31,
2002 2001
(Unaudited)
ASSETS
Cash, restricted cash and
marketable securities $3,053 $3,435
Other current assets 9,203 7,241
Property and equipment, net 1,014 1,021
Other assets, net 2,426 2,400
Total assets $15,696 $14,097
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $8,989 $7,642
Other liabilities 333 396
Stockholders' equity 6,374 6,059
Total liabilities and stockholders' equity $15,696 $14,097
SOURCE Applied Imaging Corp.
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Related links:
http://www.aicorp.com
CONTACT:
Barry Hotchkies, CFO of Applied Imaging
Corp., +1-408-562-0250; or James Hoyne of FRB/Weber Shandwick,
+1-310-407-6555, for Applied Imaging Corp.
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