Delayed Product Introductions and Reduced Hospital Purchases Impact Revenues
MUNDELEIN, Ill., Oct. 5 /PRNewswire/ -- Bio-logic Systems Corp.
(Nasdaq: BLSC) today reported lower sales of its computer-assisted medical
diagnostic equipment in the second fiscal quarter ended August 31, 2000,
resulting in net income just better than breakeven. Although the profit of
$18,413 was well below the year earlier level, it compared favorably with the
first quarter's loss of $187,675.
One of the two principal reasons for the disappointing sales -- the
delayed debut of new products for the company's line of hearing screening
devices for infants -- has been corrected with shipments of its ABaer(TM) and
Navigator Pro(R) products in full swing beginning in August, the final month
of the quarter. However, management indicated that sales continue to be
negatively impacted by hospitals' capital expenditure delays following last
year's increased outlays to address Y2K concerns and more competitor activity.
As a result, sales of $5.9 million for the second quarter were down 11
percent from the $6.6 million achieved in last year's second quarter. Net
income was $18,413, or $.01 per diluted share, for the period compared with
$723,750, or $0.17 per diluted share, for the same quarter a year ago.
For the first six months, the company reported a net loss of $169,262,
equal to $0.04 per share. This compares with a profit of $1.4 million, or
$0.35 per diluted share, for the first half of fiscal 2000. Sales were 13
percent lower at $11.2 million versus $12.9 million for the similar period
last year.
In addition to the new auditory product launches, President Roderick G.
Johnson said he is encouraged by "excellent international demand, especially
in audiology/hearing, and strong sales in our supplies division, where volume
is up 30 percent year-to-date. Our Japanese distributor, Mansson K.K., a
subsidiary of Gaedelius, signed on a sub-distributor, Mochida Pharmaceutical
Co., to sell to the Ob/Gyn market for newborn screening. A several hundred
unit order was received from the sub-distributor, most of which will be
shipped in the fiscal third quarter." Johnson also noted recent improvement
in sales of products for monitoring sleep disorders and neurological problems,
principally epilepsy. He further pointed to an attractive pipeline of new and
upgraded products as lending optimism to his outlook for the second half.
Looking ahead, Johnson expects improved sales will expand profit margins
as hospital orders begin to increase, thereby leveraging the existing
operating infrastructure.
Bio-logic's financial condition remains strong and well positioned to
support the company's growth objectives. Cash and cash equivalents are in
excess of $5 million, with working capital of almost $12 million, and long-
term debt at a nominal $56,000.
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 audio-logical 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 results 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
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended Six months ended
August 31, August 31,
2000 1999 2000 1999
NET SALES $5,864,022 $6,590,484 $11,183,399 $12,868,768
COST OF SALES 1,942,322 1,917,890 3,803,568 3,914,814
Gross profit 3,921,700 4,672,594 7,379,831 8,953,954
OPERATING EXPENSES:
Selling, general
and administrative 3,077,389 2,892,790 6,030,750 5,561,174
Research and
development 883,585 829,942 1,730,051 1,513,462
Total operating
expenses 3,960,974 3,722,732 7,760,801 7,074,636
OPERATING INCOME
(LOSS) (39,274) 949,862 (380,970) 1,879,318
OTHER INCOME (EXPENSE):
Interest income 86,051 60,961 172,820 119,488
Interest expense (15,799) (4,682) (18,830) (12,106)
Miscellaneous (5,390) (916) (8,107) (1,445)
INCOME (LOSS) BEFORE
INCOME TAXES 25,588 1,005,225 (235,087) 1,985,255
PROVISION (BENEFIT)
FOR INCOME TAXES 7,175 281,475 (65,825) 555,875
NET INCOME (LOSS) $18,413 $723,750 $(169,262) $1,429,380
EARNINGS (LOSS) PER
SHARE:
Basic $0.01 $0.18 $(0.04) $0.36
Diluted $0.01 $0.17 $(0.04) $0.35
AVERAGE SHARES
OUTSTANDING:
Basic 4,124,208 3,987,152 4,121,126 3,991,092
Diluted 4,260,723 4,139,531 4,299,561 4,082,413
SELECTED BALANCE SHEET DATA
As of As of
August 31, February 29,
2000 2000
Cash and cash equivalents $5,080,994 $4,959,902
Current assets 15,512,329 16,242,693
Total assets 18,681,287 19,168,147
Current liabilities 3,546,581 3,812,111
Long-term obligations 55,510 139,670
Shareholders' equity 14,903,397 15,040,567
SOURCE Bio-Logic Systems Corp.
 back to top
CONTACT:
Gabriel Raviv, CEO, or Roderick G. Johnson,
President & COO, both of Bio-logic Systems Corp., 847-949-5200;
or General, Leslie Hunziker, 312-640-6760, or Investor, Leslie
Loyet, 312-640-6672, both of The Financial Relations Board
|
