SANTA CLARA, Calif., July 31 /PRNewswire-FirstCall/ -- Applied Imaging
Corp. (Nasdaq: AICX) today announced that revenues were $4.8 million in the
second quarter of 2003, a decrease of 10% from the $5.3 million reported in
the second quarter of 2002. Sales in the first half of 2003 were
$10.2 million, the same level as reported in the first half of 2002.
The Company posted a net loss of $331,000 in the second quarter of 2003,
or a loss of $0.02 per share, compared to $150,000 in net income, or $0.01 per
share, in the second quarter of 2002. For the first half of 2003, the net
loss was $599,000 ($0.04 per share) versus a net loss of $342,000 ($0.02 per
share) in the first half of 2002. The Company generated cash from operations
totaling $1.1 million in the first half of 2003 compared to consuming
$1.4 million in cash during the first half of 2002.
"Clearly, we had a challenging quarter," said Carl Hull, Applied Imaging
President and Chief Executive Officer. "Our sales for the quarter fell below
expectations due primarily to the commercial consequences of the Warning
Letter we received from the FDA concerning promotional issues with our
Ariol(TM) system. While I am pleased that we were able to rapidly and
satisfactorily respond to the questions raised by the FDA, we did lose or
defer a limited number of U.S. clinical sales during the quarter as a result.
We were, however, successful in selling our Ariol systems to the
pharmaceutical, research and international markets.
"We also continue to make progress on several operational milestones for
the year," continued Mr. Hull. "We will release a new version of our
CytoVision(R) system in the third quarter that enhances our customers'
productivity, particularly for new multi-parameter DNA probe assays. We have
completed a new regulatory submission for a key cancer marker on the Ariol
system and we plan to initiate clinical trials for two additional markers in
the third quarter. Furthermore, our agreement with the Wellcome Trust Sanger
Institute calls for the development of new applications, which will further
expand the capabilities of our Ariol system and lead to promising new market
opportunities that will drive our long-term growth. Finally, as a result of
improved collections of our accounts receivables, we have maintained a
positive cash flow from operations for the first six months of this year."
Applied Imaging Second 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 second quarter and first half results. The
teleconference can be accessed by calling 303-262-2075 or 800-257-7063 at
least five minutes prior to the beginning of the call. The webcast will be
available live on the Internet at the Company's Web site, http://www.aicorp.com,
under Investor Relations. A replay of the call will be available through
August 6, 2003, by dialing 303-590-3000 or 800-405-2236, passcode 545116. A
replay of the webcast will be available online through the Company's Web site
for 30 days.
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 throughout the world for the analysis of chromosomes in cancer
and prenatal disorders. The Company markets a range of 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 timing and success of the Company's new product and
application launches, regulatory submissions and clinical trials are
forward-looking statements within the meaning of the Safe Harbor. The
Company's actual results could differ materially from those anticipated in
these forward-looking statements as a result of a number of risks,
uncertainties and other factors, including, but not limited to, those
discussed in the Company's filings with the Securities and Exchange
Commission, including the form 10-K for the year ended December 31, 2002. The
forward-looking statements are made as of July 31, 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
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Three months ended Six months ended
June 30, June 30,
2003 2002 2003 2002
Revenues $4,815 $5,345 $10,230 $10,192
Cost of revenues 2,001 2,031 4,165 3,836
Gross profit 2,814 3,314 6,065 6,356
Operating expenses:
Research and development 934 856 1,781 1,678
Sales and marketing 1,790 1,700 3,645 3,436
General and administrative 456 634 1,269 1,331
Restructuring -- -- -- 222
Total operating expenses 3,180 3,190 6,695 6,667
Operating income (loss) (366) 124 (630) (311)
Other income (expense), net 35 26 31 (31)
Net income (loss) $(331) $150 $(599) $(342)
Net income (loss) per share
- basic $(0.02) $0.01 $(0.04) $(0.02)
- diluted $(0.02) $0.01 $(0.04) $(0.02)
Weighted average shares outstanding
- basic 15,940 15,851 15,927 15,739
- diluted 15,940 16,229 15,927 15,739
Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
2003 2002
(Unaudited)
ASSETS
Cash, restricted cash and cash equivalents $3,272 $3,053
Other current assets 7,435 9,203
Property and equipment, net 864 1,014
Other assets 2,426 2,426
Total assets $13,997 $15,696
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $7,892 $8,989
Other liabilities 275 333
Stockholders' equity 5,830 6,374
Total liabilities and stockholders' equity $13,997 $15,696
SOURCE Applied Imaging Corp.
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Related links:
http://www.aicorp.com
CONTACT:
Barry Hotchkies, CFO of Applied Imaging,
+1-408-562-0250; or Jocelyn Hunter of FRB|Weber Shandwick,
+1-415-248-3433, for Applied Imaging
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