Company Reports Significantly Improved Results
SANTA CLARA, Calif., Aug. 10 /PRNewswire/ -- Applied Imaging Corp.
(Nasdaq: AICX) today announced that in the second quarter of 1999 it reduced
its net operating loss to $1.1 million or $0.09 per share compared to a net
loss of $2.1 million or $0.24 per share for the same quarter in 1998. These
results reflect the impact of the company's ongoing cost reduction programs
and its shift in research and development efforts to the field of cancer
micrometastasis. Second quarter total revenues were $3.1 million compared to
revenues of $3.3 million for the second quarter of 1998.
Net loss for the first half of 1999 was $2.9 million or $0.25 per share
versus a loss of $4.6 million or $0.56 per share for the first half of 1998.
For the six-month period, total revenues were $5.8 million compared to
$6.0 million for the same period in 1998. Although total revenues were down
slightly from the prior year, year to date sales of cytogenetic products and
services were up about 4% when adjusted for discontinued products.
"I am pleased with the continuous improvement in our core cytogenetic
instrument sales in key markets," said Jack Goldstein, Chairman and CEO.
"We are also focusing on the careful management of expenses associated
with running the business. In the first six months of the year, our
expenses decreased $1.8 million from the same period last year, a reduction of
23%. In addition, gross profit margins were up 6% for the second quarter."
Recently, the company announced the acquisition of the cytogenetic
instrument business from Vysis, Inc. The effect of consolidating these two
businesses gives Applied Imaging the most comprehensive product line in the
field, an expanded world wide service and support capability and a close
collaboration with the leading DNA probe reagent company in the cytogenetic
market. "We are expecting this strategic alliance to result in improved sales
performance worldwide," added Goldstein.
Goldstein stated, "During the quarter, most of the company's development
resources were focused on our Micrometastasis Detection System (MDS(TM)). In
May, we announced the launch of the MDS at the International Society of
Hematotherapy and Graft Engineering (ISHAGE)."
MDS is a sophisticated research imaging tool that is utilized in the
detection and genetic characterization of micrometastatic cancer cells.
Micrometastasis status may be utilized for the initial staging of cancer
patients and to monitor patients for the early detection of disease recurrence
following treatment. A study presented at the ISHAGE meeting by a leading
cancer research group at the Norway Radium Hospital concluded that "the MDS
performs screening of stained slides from bone marrow and lymph node samples
from cancer patients with significantly higher sensitivity than manual
screening...Using the automated MDS, 182 cells were detected, 42 of which were
missed by manual screening." Further research is being undertaken to
determine if micrometastasis detection can be accomplished from peripheral
blood in addition to its current applications in bone marrow and lymph node
biopsies as well as in stem cell transplants.
The foregoing statement is a forward-looking statement within the meaning
of Section 27A of the Securities Act and Section 21E of the Securities
Exchange Act. 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 or commercialize its
micrometastasis or prenatal screening system, lack of regulatory approval, and
other such factors asset forth in the Company's form 10K for the year ended
December 31, 1998, as filed with the Securities and Exchange Commission.
Applied Imaging Corporation, based in Santa Clara, California, develops,
manufactures, and markets automated clinical analysis systems used by
laboratories for cancer and prenatal genetics. The Company markets its
products worldwide and has more than 1200 instruments at 650 customer sites in
over 35 countries. Applied Imaging is a publicly traded company listed on the
Nasdaq Stock Market under the symbol AICX.
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 Six months ended
June 30, June 30,
1999 1998 1999 1998
Revenues $3,141 $3,295 $5,806 $5,969
Cost of revenues 1,389 1,636 2,703 2,876
Gross profit 1,752 1,659 3,103 3,093
Operating expenses
Research and development 1,090 1,529 2,221 3,451
Sales and marketing 1,134 1,267 2,195 2,596
General and administrative 697 727 1,417 1,455
Restructuring costs -- 353 224 353
Total cost and expenses 2,921 3,876 6,057 7,855
Other income (expense), net 78 91 57 158
Net loss $(1,091) $(2,126) $(2,897) $(4,604)
Net loss per share
- basic and diluted $(0.09) $(0.24) $(0.25) $(0.56)
Weighted average
shares outstanding 11,539 8,716 11,534 8,192
Condensed Consolidated Balance Sheets
(In thousands)
June 30, Dec. 31,
1999 1998
(Unaudited)
ASSETS
Cash and marketable securities $8,508 $11,728
Other current assets 4,871 5,426
Property and equipment, net 1,311 1,569
Other assets, net 106 85
Total Assets $14,796 $18,808
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $5,082 $6,401
Other liabilities 53 64
Stockholders' equity 9,661 12,343
Total Liabilities and Stockholders' Equity $14,796 $18,808
SOURCE Applied Imaging Corp.
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CONTACT:
Mike Braden, Corporate Controller of Applied
Imaging Corp., 408-562-0250; or General, Traci McCarty, or
Investors, Janet Nelson, both of The Financial Relations Board,
415-986-1591
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