May 5 2010
Company Returns to Profitability
- Net income for Q1 2010 of $0.2 million
- Cash-flow from operations of $1.5 million for the quarter.
- Revenue from FORE-SIGHT® Absolute Cerebral Oximeter related products increased by 45% to $1.4 million
- 42 FORE-SIGHT monitor shipments during the quarter; total installed base increased to 280.
CAS Medical Systems, Inc. (Nasdaq:CASM), today reported first quarter 2010 revenues of $8.5 million, an increase of $0.1 million, or 1%, compared to revenues of $8.4 million for the first quarter of 2009. The Company reported net income of $0.2 million, or $0.02 per basic and diluted common share, compared to a net loss of $0.9 million, or ($0.08) per basic and diluted common share, reported for the first quarter of the prior year.
Revenues for the first quarter ended March 31, 2010 were led by sales of OEM products and FORE-SIGHT monitors and sensors and were partially offset by reductions in sales of bedside monitoring products. FORE-SIGHT sales were $1.4 million for the first quarter of 2010, an increase of $0.5 million, or 45%, over the $0.9 million reported for the first quarter of 2009.
Operating income was $0.3 million for the first quarter of 2010, compared to an operating loss of $1.4 million for the same period of the prior year, and was generated by improved gross profit levels and lower operating expenses. Gross profit levels as a percentage of sales increased to 35% from 29% and operating expenses as a percentage of sales improved to 31% from 46% when comparing the first quarter of 2010 to the first quarter of 2009. Personnel reductions implemented during 2009, along with other cost cutting measures, were primarily responsible for the reduction in operating expenses of $1.1 million to $2.7 million for the first quarter of 2010 from $3.8 million reported for the first quarter of 2009.
Cash provided by operations was $1.5 million for the three months ended March 31, 2010, compared to cash used of $0.9 million for the three months ended March 31, 2009. During the three months ended March 31, 2010, the Company reduced its bank debt by $0.9 million. Cash and cash equivalents increased by $0.5 million at March 31, 2010 to $1.7 million from $1.2 million as of December 31, 2009. Additionally, the Company has filed for a federal income tax refund of $0.9 million resulting from the carry back of 2009 net operating losses.
Commenting on the results, Andrew Kersey, President and CEO of CASMED, said, "We are pleased to be reporting favorable results for the first quarter of 2010. Improvements in key operating metrics including gross profit, spending and inventory management have resulted in favorable cash flows, reduced debt levels, and a return to profitability. These operational improvements allow us to continue our planned increased investments in FORE-SIGHT in the key areas of sales and marketing as well as in clinical research and engineering.
"We have continued to make progress with the FORE-SIGHT product line. For the quarter, we shipped 42 monitors to customers and achieved record revenues for FORE-SIGHT. We believe our efforts over the past six months to increase customer awareness and provide education on the benefits of absolute cerebral oximetry have led to an expanding pipeline of potential FORE-SIGHT business. During the quarter we presented the FORE-SIGHT system at 16 tradeshows worldwide and were supported by the presentation of a number of new clinical abstracts on the use of the technology. We have continued to enhance global distribution channels and believe that our increased presence will lead to further sales opportunities."
SOURCE CAS Medical Systems, Inc.