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CEOCFO Monthly Analyst |
"You may print this
interview" Angeion Corporation
Telephone: 651/484-4874 FOR IMMEDIATE RELEASE Contact: Richard Jahnke, President & CEO Angeion Reports First Quarter 2001 Results; SAINT PAUL, MN (May 15, 2001) -- Angeion Corporation (Nasdaq: ANGN) reported today a net loss of $1.3 million, or $0.38 per diluted share, for the first quarter ended March 31, 2001. This compares to net income of $9.9 million, or $2.43 per diluted share for the quarter ended March 31, 2000. The net loss for the quarter ended March 31, 2001 included a loss of $29,000 from expenses associated with discontinued operations. Net income for the quarter ended March 31, 2000 included a one-time gain of $11.7 million, net of taxes, primarily related to the non-exclusive licensing of patent rights to some of the Company’s technology for the implantable cardioverter defibrillator (ICD) business, which was discontinued during the first quarter of 2000. This gain was partially offset by approximately $667,000 in rental and other expenses also related to the discontinued ICD business. Revenue of $4.1 million for the quarter ended March 31, 2001 and $4.9 million for the quarter ended March 31, 2000, respectively, was all generated from Angeion’s Medical Graphics Corporation subsidiary, which was acquired in December of 1999. The lower revenue in the first quarter of 2001, compared to the first quarter of 2000, resulted from a combination of two factors: discontinuing the distribution of sleep products in the second quarter of 2000 and last minute Y2K software upgrades that were sold in the first quarter of 2000. “Although Medical Graphics’ first quarter 2001 revenue was below first quarter 2000, as a previous announcement projected, the current trends are positive,” said Richard Jahnke, Angeion’s President and CEO. "First quarter 2001 domestic core product orders increased by more than 30% as compared to the 2000 level. In addition, international orders increased by more than 10% in the first quarter of 2001, as compared to the same period in 2000. This continues to build on a very positive trend established in 2000 when international sales grew by more than 50%. Also, gross margins increased to 41.3 % compared to 38.2 % in 2000, as a result of our cost reduction programs and the elimination of low margin sleep products from the revenue mix. We are continuing to see improvement in our domestic order rates and expect that revenue in the second quarter of 2001 will show an increase compared to second quarter 2000 revenue, and a sequential increase over first quarter 2001 revenue. -more- Angeion First Quarter Page 2 "We also continue to be encouraged by the level of interest in our new cardiac rehabilitation and disease prevention product offerings that we began actively marketing in late March," continued Jahnke. "These products represent a significant growth opportunity with a potential market size that we estimate to be in the range of $500 million to $1 billion. We expect to have our first installations in the second quarter of 2001.” Medical Graphics EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter ended March 31, 2001 declined to a loss of $160,000, compared to a profit of $24,000 for the same period in 2000. The reduction was substantially all the result of lower sales levels that were only partially offset by improvements in core product gross margins. Founded in 1986, Angeion Corporation acquired Medical Graphics (www.medgraphics.com) in December 1999. Medical Graphics develops, manufactures and markets non-invasive cardio-respiratory diagnostic systems and related software for the management and improvement of cardio-respiratory health.
The
discussion above contains forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These
statements by their nature involve substantial risks and uncertainties. Actual results may differ materially depending on
a variety of factors. Additional information
with respect to the risks and uncertainties faced by the Company may be found in, and the
prior discussion is qualified in its entirety by, the other risk factors that are
described from time to time in Angeion’s Securities and Exchange Commission reports,
including but not limited to the Annual Report on Form 10-K for the year ended December
31, 2000, and subsequently filed reports. -End-
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