CHATSWORTH, Calif., March 31, 2003 (PRIMEZONE) -- International Remote Imaging Systems, Inc. (AMEX:IRI), a manufacturer and marketer of automated IVD urinalysis systems and medical devices used in hospitals and reference clinical laboratories worldwide, today reported financial results for the fourth quarter and the year ended Dec. 31, 2002.
Net revenues for the fourth quarter totaled $7.38 million, a 1% decrease from the corresponding period a year ago. Net income was $112,000, or $0.01 per diluted share, on 11.5 million weighted average diluted shares outstanding, as compared to $524,000, or $0.05 per diluted share, on 11.4 million weighted average diluted shares outstanding in the comparable period of 2001.
For the year, net revenues totaled $28.2 million, or a 1.6% decrease from the prior year. Net income was $877,000, or $0.08 per diluted share, on 11.5 million weighted average diluted shares outstanding, compared with a net income of $1.5 million, or $0.14 per diluted share, on 11 million weighted average diluted shares outstanding in 2001.
"We are pleased to report a small profit, maintaining our streak of 13 quarters of continuing profits," stated Dr. John A. O'Malley, the Company's Chairman. "This was accomplished through careful corporate and financial management controls while meeting the challenge of selling and shipping the Company's established instrument line as we transition to the new iQ(tm)200 system."
Dr. Kshitij Mohan, the Company's new President and Chief Executive Officer, said that the financial results were positive even with heavy investments for future growth. "We maintained a profit while continuing to invest heavily in research and development, paying down debt and making capital investments in our facilities in preparation for the anticipated growth expected upon release of the iQ200 system".
During the fourth quarter, International Remote Imaging Systems incurred total product technology expenditures of $1.7 million as compared to $1.6 million in the year-ago period.
Reviewing the business segments for the fourth quarter, revenues from urinalysis products totaled $5.9 million, a small increase from the $5.8 million realized in the comparative period one year ago. Revenues from the small laboratory devices segment were $1.5 million, a decrease of 10% from the year-ago quarter, primarily due to a decrease in OEM business from StatSpin's main customer serving the veterinarian market.
The Company's operating expenses increased by $1.3 million in the 2002 year over the prior year, due to many factors, including additional expenses associated with marketing efforts in the urinalysis sector, the addition of senior management as the Company structures itself for growth associated with the pending launch of its new iQ200 system, and a 7% increase in its net research and development expenses.
For the year, revenues from the urinalysis segment totaled $22.4 million compared to $22.0 million in the prior year. Sales of small laboratory devices decreased to $5.8 million compared to $6.7 million, due to decreased sales to its major OEM customer.
The Company enlarged and modernized its facilities in 2002 in anticipation of increased production with the launch of its new iQ200 system, investing over $1.8 million. It also continued to pay down its long-term debt, reducing it by over $1 million. Despite these, and other investments, the Company maintained net cash of more than $1.3 million, and had an additional $2.8 million available under its line of credit at the end of December 2002.
Looking toward the release of the iQ200, Dr. Mohan said that the Company is making good progress. "We are in final negotiations with European and Asian medical instrument distributors for the iQ200 and have begun to increase the size of our sales staff in North America," Dr. Mohan said. "On the manufacturing side, the substantial improvements to our Iris Diagnostics Division's quality systems infrastructure resulted in a flawless inspection recently by the U.S. Food and Drug Administration. In addition, we have nearly completed the certification process and received the required ISO 9001, EN 13485, and EN 46001 certifications in February and expect to certify to the CE Mark of approval for the European Union before anticipated shipments of the iQ200 system by the end of the second quarter."
Dr. Mohan stated that as anticipated, the Company expects to report a loss in the first quarter of 2003, as it transitions toward the launch of the iQ200 system, and subsequent to the launch, expects a return to profitability.
The Company will hold a conference call with investors at 4:30 p.m. EST today. To participate in the call, dial 1-800-915-4836 approximately 10 minutes before the call is scheduled to begin. International callers should dial 973-317-5319.
THE COMPANY
International Remote Imaging Systems, Inc. has an established reputation as a leader in automated urinalysis technology and image flow cytometry. The Company's Iris Diagnostics Division is a leader in automated urinalysis technology with workstations in major medical institutions throughout the world. Using a patented Automated Intelligent Microscopy (AIM) technology and Auto Analyte Recognition software (AAR), a significant reduction in the cost and time consuming steps for manual microscopic analysis can be achieved.
The StatSpin(r) subsidiary, based in Norwood, Mass., is a worldwide leader in accelerated sample preparation for blood, body fluids and urine analysis. The subsidiary makes innovative centrifuges and blood analysis products, including the world's fastest blood separator (30 seconds). StatSpin's worldwide markets include medical institutions, commercial laboratories, clinics, doctors' offices, veterinary labs and research facilities. Its bench top centrifuges are dedicated to applications for manual specimen preparation for coagulation, cytology, hematology, and urinalysis.
Advanced Digital Imaging Research, LLC, is a research and development subsidiary based in the Houston, Texas area. ADIR assists in the advancement of proprietary imaging technology while conducting government-sponsored research and development in medical imaging and software, and contract research for corporate clients.
SAFE HARBOR PROVISION
This news release contains forward-looking statements made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, the Company's views on future commercial revenues, market growth, capital requirements, new product introductions, and are generally identified by phrases such as "thinks," "anticipates," "believes," "estimates," "expects," "intends," "plans," and similar words. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statement. These statements are based upon, among other things, assumptions made by, and information currently available to, management, including management's own knowledge and assessment of the Company's industry, competition and capital requirements. Other factors and uncertainties that could affect the Company's forward-looking statements include, among other things, the following: unexpected technical and marketing difficulties inherent in major product development efforts such as the current project to improve the Company's urinalysis workstation product line; the potential need for changes in long-term strategy in response to future developments; future advances in diagnostic testing methods and procedures, as well as potential changes in government regulations and healthcare policies, both of which could adversely affect the economics of the diagnostic testing procedures automated by the Company's products; rapid technological change in the microelectronics and software industries; and increasing competition from imaging and non-imaging based in-vitro diagnostic products. The Company refers interested persons to its most recent Annual Report on Form 10-K and its other SEC filings for a description of additional uncertainties and factors that may affect forward-looking statements. The Company assumes no duty to update its forward-looking statements.
Financial Tables (Audited) (in 000s)
Consolidated Performance for year ended December 31
2002 2001
---- ----
Net revenues $28,188 $28,648
Net income $ 877 $ 1,539
Income per share -
basic: $ 0.08 $ 0.15
diluted: $ 0.08 $ 0.14
Weighted average number of
common shares outstanding -
basic: 10,565,941 9,978,532
diluted: 11,542,449 11,002,586
Segment and consolidated performance for year
Ended December 31, 2002
Urinalysis Small Devices Consolidated
---------- ------------- ------------
Net revenues $22,359 $5,829 $28,188
Segment profit $2,738 $1,589 $4,327
Corporate expenses $(2,866)
Income from continuing
operations before tax $1,461
Ended December 31, 2001
Urinalysis Small Devices Consolidated
---------- ------------- ------------
Net revenues $21,954 $6,694 $28,648
Segment profit $3,742 $1,907 $5,649
Corporate expenses $(3,084)
Income from continuing
operations before tax $2,565
Balance Sheet
December 31
2002 2001
---- ----
Net Working Capital $6,445 $8,636
Total Assets $27,383 $26,503
Long-term Debt $1,862 $3,255
Total Shareholders' Equity $17,349 $15,965
Consolidated Performance for Quarter Ended December 31
2002 2001
---- ----
Net revenues $7,383 $7,452
Net income $112 $524
Income per share -
basic: $0.01 $0.05
diluted: $0.01 $0.05
Weighted average number
of common shares outstanding -
basic: 10,843,060 10,042,379
diluted: 11,523,689 11,372,762
Segment and consolidated performance for quarter
Ended December 31, 2002
Urinalysis Small Devices Consolidated
---------- ------------- ------------
Net revenues $5,928 $1,455 $7,383
Segment profit $452 $417 $869
Corporate expenses $(683)
Income from continuing
operations before tax $186
Ended December 31, 2001
Urinalysis Small Devices Consolidated
---------- ------------- ------------
Net revenues $5,828 $1,624 $7,452
Segment profit $452 $417 $869
Corporate expenses $(705)
Income from continuing
operations before tax $873