CHATSWORTH, Calif., Oct. 7, 2003 (PRIMEZONE) -- International Remote Imaging Systems, Inc. (AMEX:IRI), a manufacturer and marketer of automated IVD urinalysis systems and medical devices for hospitals and clinical laboratories worldwide, today announced that it sold and shipped 41 iQ(tm)200 Automated Urine Microscopy Analyzers to its global customers in the third quarter ending Sept. 30, 2003, a record for the Company.
The Company in the past typically sold in an entire year about 50 analyzers that were predecessors of the iQ200, the new product platform that was launched on August 5. The Iris Diagnostics Division also has manufactured an additional 15 units for demonstration, training and other internal uses.
"The successful launch and follow-up of the iQ200 system is testimony to the ability of our Company to move forward aggressively with its expansion program," stated Dr. Kshitij Mohan, Chief Executive Officer of International Remote Imaging Systems. "We expect that as our new system gets greater exposure in the marketplace, it will generate greater demand from our customers. In the meantime, we also continue to work on further enhancing the capabilities of the iQ200 system with respect to speed and other functions. Our strategy is to drive growth by expanding our worldwide markets using new sophisticated technology to meet basic unmet clinical needs and expand the utility of urinalysis as a diagnostic tool."
Cesar Garcia, the Company's President and Chief Operating Officer, said the Iris Diagnostics Division's sales and marketing efforts for the iQ200 are progressing according to plan. "More than half of the domestic orders received are from new customers and our expansion into international markets is on track," Mr. Garcia said. "This is validating our strategic approach to penetrate the mid-range domestic market and to aggressively pursue international markets where we were not previously able to compete due to cost and features of our predecessor analyzers. We are also pleased that the nearly $2 million that we invested in modernizing our production facilities is paying off as we are able to manufacture and ship larger numbers of units than before."
All of the domestic shipments during the third quarter were for the iQ200 Automated Urinalysis System, which consists of the Company's automated urine microscopic analyzer and an automated urine chemistry analyzer, the AUTION MAX(tm)AX-4280. The iQ200, when combined with the AX-4280, provides the only fully integrated system in the world performing complete urinalysis, chemistry and microscopy combined. The iQ200 System is faster and sells for about half the price of previous models, including the Company's 900UDx(tm) line of analyzers. The iQ200 microscopic analyzer is sold separately overseas.
Dr. Mohan also announced that California Bank and Trust, the lead bank for International Remote Imaging Systems, Inc., has agreed to more liberal conditions for its revolving line of credit of $6.5 million. The bank extended its forbearance and waivers of covenant violations that the Company reported in its last 10-Q regulatory filing and also relaxed its requirements for a minimum excess borrowing availability from $1 million to $400,000. In addition, in accordance with an agreement related to a Subordinated Note of the Company, the bank has required that payments of about $97,000 per month on that Subordinated purchase money Note should be deferred.
"We appreciate the cooperation by California Bank and Trust in liberalizing its conditions," Dr. Mohan said. "This provides us greater flexibility in investing adequate resources to manufacture and sell our products at a faster rate than we have ever done before. Our Accounts Receivables are growing as a result of the new product shipments and we expect that, barring unforeseen situations, we will continue to have a comfortable cash position that will allow us to meet our customers' demands in a timely manner as well as meet all our financial obligations. "
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.