SANTA CLARA, Calif., May 9 /PRNewswire/ -- Applied Imaging Corp.
(Nasdaq: AICX), the leading supplier of automated genetic imaging systems for
the analysis of chromosomes in cancer and prenatal disorders, announced today
its results for the first quarter ended March 31, 2000.
    For the quarter, revenues were $3.7 million, an increase of 38% compared
to revenues of $2.7 million for the first quarter of 1999.  Increased revenues
reflect increases in sales of existing genetic instrumentation as well as
sales of new products, including the Genus(TM) System for genetic analysis of
plants and animals and the MDS(R) System for the detection of cancer cells.
New products accounted for 14% of instrument revenues for the first quarter.
    The Company's first quarter operating loss was $1.3 million, or $0.10 per
share, compared to a loss of $1.8 million, or $0.16 per share, for the same
period in 1999.
    "We are extremely pleased with our strong first quarter results," said
Jack Goldstein, Chairman and CEO.  "We continue to execute our strategy in
human, plant and animal genetics and, most importantly, in cancer pathology
with the MDS platform.  Demand for this multi-parameter image-analysis system
among cancer researchers appears to be strong based upon the large number of
sales leads generated during the quarter."
    "In March," continued Goldstein, "the company achieved a major milestone
by receiving ISO 9001 certification for our facility in Newcastle, U.K.  Also,
after the close of the quarter, we strengthened our management team by
bringing in Barry Hotchkies as Chief Financial Officer and Diane Oates as Vice
President, Regulatory Affairs and Quality Systems.  Lastly, on May 5, we filed
with the U.S. Food and Drug Administration for 510(k) clearance of the
SlideScan(TM) System, the clinical version of the MDS platform.  Results
generated in clinical trials both in Europe and the U.S. clearly demonstrated
significant improvements in accuracy and reproducibility when using the system
to detect cancer cells versus manual microscopy."
    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 is expanding its efforts in scanning and imaging applications in
the cancer pathology field, as well as providing key reagents in this area.
Applied Imaging has installed over 1,800 systems in 800 laboratories in more
than 35 countries.
    This press release contains forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995, regarding, among other
matters, the Company's future financial performance as well as its research
and development and product development efforts.  Forward-looking statements
address matters that are subject to a number of risks and uncertainties,
including the uncertainty of clinical studies and regulatory approvals.
Actual results could differ materially from those projected in the
forward-looking statement as a result of a number of factors including the
failure of the Company to successfully develop and commercialize its
micrometastasis or genetic instrument business, and other such factors as set
forth in the Company's form 10-K for the year ended December 31, 1999 as filed
with the Securities and Exchange Commission.
    For additional information on Applied Imaging via fax, please dial
1-800-PRO-INFO, (732-544-2850 outside of the U.S.), code AICX.


                    APPLIED IMAGING CORP. AND SUBSIDIARIES
               Condensed Consolidated Statements of Operations
               (Unaudited, in thousands, except per share data)


                                                         Three months ended
                                                              March 31,
                                                        2000           1999
    Revenues
    Cost of revenues                                  $3,681         $2,665
      Gross profit                                     1,774          1,314
                                                       1,907          1,351
    Operating expenses
      Research and development                           880          1,131
      Sales and marketing                              1,470          1,061
      General and administrative                         679            720
      Amortization of intangibles                         63
      Restructuring costs                                               224
        Total cost and expenses                        3,092          3,136

    Other income (expense), net                          (97)           (21)
    Net loss                                         $(1,282)       $(1,806)
    Net loss per share- basic and diluted             $(0.10)        $(0.16)
    Weighted average shares outstanding               13,189         11,530


                    Condensed Consolidated Balance Sheets
                                (In thousands)

                                                    March 31,    December 31,
                                                       2000            1999
    ASSETS                                         (Unaudited)

    Cash and marketable securities                    $7,012         $8,406
    Other current assets                               7,578          7,886
    Property and equipment, net                        1,022          1,014
    Other assets, net                                  2,450          2,438
    Total Assets                                     $18,062        $19,744

    LIABILITIES AND STOCKHOLDERS' EQUITY

    Current liabilities                               $8,244         $9,160
    Other liabilities                                  1,755          1,972
    Stockholders' equity                               8,063         $8,612
    Total Liabilities and Stockholders' Equity       $18,062        $19,744

Link to this page: