Angeion Reports Fourth Quarter and Year End 2000 Results; International Sales Increase 50%, Continued Recovery in US Orders

Apr 02, 2001, 01:00 ET from Angeion Corporation

    SAINT PAUL, Minn., April 2 /PRNewswire/ --
     Angeion Corporation (Nasdaq:   ANGN) reported today a net loss of
 $2.1 million, or $0.61 per diluted share for the fourth quarter ended
 December 31, 2000.  For the year ended December 31, 2000, the Company reported
 net income of $4.4 million or $1.22 per diluted share.  These compare to a net
 loss of $5.1 million, or $1.28 per diluted share and net income of
 $1.6 million, or $0.39 per diluted share for the quarter and year ended
 December 31, 1999, respectively.
     Net income for the year ended December 31, 2000 included a one-time gain
 of $11.9 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 $1.1 million in rental and other expenses also related to the
 discontinued ICD business.  For the year ended December 31, 1999, net income
 included a one-time gain of  $31.1 million related to the settlement of a
 lawsuit and granting of non-exclusive licensing rights to some of the ICD
 technology, which was partially offset by $27.7 million in operating losses
 sustained in the ICD business.
     Revenue of $4.2 million and $17.1 million for the quarter and year ended
 December 31, 2000, respectively, was all generated from Angeion's Medical
 Graphics Corporation subsidiary, which was acquired in December of 1999.
 Medical Graphics' revenue for the quarter and year ended December 31, 1999 was
 $6.1 million and $22.2 million, respectively.
     "Although, as projected, Medical Graphics' total 2000 revenue was below
 1999's level, the current trends are positive," said Richard Jahnke, Angeion's
 President and CEO.  "International sales have increased by nearly 51% over
 1999's level, reflecting our strategic focus in this area during 2000, an
 emphasis that will continue in 2001.  In our domestic business, the new order
 rate for equipment has also increased every quarter since the first quarter of
 2000.  We are continuing to see improvements in 2001.  In addition, our
 service revenue, including service contracts, training, and non-contract
 service calls, is up 28% reflecting the steps that we have taken to improve
 service levels by strengthening our direct service organization rather than
 relying on third party service organizations.  We are also encouraged by the
 level of interest in our new cardiac rehabilitation and disease prevention
 product offering that we are just beginning to introduce to our customers.
 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.
     "As we have previously reported, 2000 was a disappointing year for
 domestic sales from our Medical Graphics subsidiary," Jahnke continued.  "This
 was primarily due to temporary reductions in United States hospital capital
 budgets throughout the year.  These reductions offset the cash flow associated
 with large 1999 capital expenditures that were made to upgrade hospital
 computer systems for Y2K compliance.  This factor, in combination with our
 decision to discontinue the distribution of sleep disorder products during the
 second quarter of 2000 and a reduction in software upgrade sales, resulted in
 a decline in domestic revenue from comparable periods in 1999.  Based on what
 we observed during the last half of 2000 and the beginning of 2001, we believe
 that the capital budget issues in 2000 were an aberration in an historically
 stable market.  The capital budget reduction impact diminished throughout 2000
 while domestic equipment orders increased each quarter.  As we expected, this
 trend of improved domestic order rates has continued in the first quarter of
 2001.
     "We anticipate that revenue in the first quarter of 2001 will be lower
 than in 2000 due to the impact of the combination of discontinuing
 distribution of the sleep products in the second quarter of 2000 and the last
 minute Y2K software upgrades that were included in the first quarter of 2000.
 However, we expect that our domestic core product orders will increase over
 the 2000 level.  As a result, we 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."
     Medical Graphics EBITDA (earnings before interest, taxes, depreciation and
 amortization) through December 31, 2000 declined to a loss of $1.9 million
 from a profit of $2.0 million through December 31, 1999.  The reduction is
 substantially all the result of lower sales levels and the write off of
 $332,000 of sleep disorder diagnostic equipment associated with the
 termination of the distribution of those products.  These impacts were only
 partially offset by improvements in core product marginal contributions.
     Founded in 1986, Angeion Corporation acquired Medical Graphics
 ( http://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.
 
                      Angeion Corporation and Subsidiaries
                  Condensed Consolidated Financial Statements
                     (In thousands, except per share data)
 
                                   Three Months Ended    Twelve Months Ended
                                       December 31,           December 31,
     Consolidated Statements
      of Operations                   2000      1999        2000      1999
 
     Revenues                        $4,217     $608      $17,051     $608
     Net loss from continuing
      operations                     (1,870)    (333)      (6,430)  (1,866)
     Income (loss) from discontinued
      operations                       (252)  (4,799)      10,833    3,432
     Net income (loss)              $(2,122) $(5,132)      $4,403   $1,566
 
     Net income (loss) per share -
      basic and diluted
       Continuing operations         $(0.54)  $(0.08)      $(1.79)  $(0.47)
       Discontinued operations        (0.07)   (1.20)        3.01     0.86
         Net income (loss)           $(0.61)  $(1.28)       $1.22    $0.39
 
                                                             December 31,
     Consolidated Balance Sheets                            2000     1999
 
     Current assets                                       $15,178  $15,181
     Equipment, intangibles and other assets               15,379   18,556
       Total assets                                       $30,557  $33,737
 
     Current liabilities                                   $3,515   $6,248
     Long-term debt                                        20,198   20,198
     Shareholders' equity                                   6,844    7,291
       Total Liabilities and equity                       $30,557  $33,737
 
     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.
 
 

SOURCE Angeion Corporation
    SAINT PAUL, Minn., April 2 /PRNewswire/ --
     Angeion Corporation (Nasdaq:   ANGN) reported today a net loss of
 $2.1 million, or $0.61 per diluted share for the fourth quarter ended
 December 31, 2000.  For the year ended December 31, 2000, the Company reported
 net income of $4.4 million or $1.22 per diluted share.  These compare to a net
 loss of $5.1 million, or $1.28 per diluted share and net income of
 $1.6 million, or $0.39 per diluted share for the quarter and year ended
 December 31, 1999, respectively.
     Net income for the year ended December 31, 2000 included a one-time gain
 of $11.9 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 $1.1 million in rental and other expenses also related to the
 discontinued ICD business.  For the year ended December 31, 1999, net income
 included a one-time gain of  $31.1 million related to the settlement of a
 lawsuit and granting of non-exclusive licensing rights to some of the ICD
 technology, which was partially offset by $27.7 million in operating losses
 sustained in the ICD business.
     Revenue of $4.2 million and $17.1 million for the quarter and year ended
 December 31, 2000, respectively, was all generated from Angeion's Medical
 Graphics Corporation subsidiary, which was acquired in December of 1999.
 Medical Graphics' revenue for the quarter and year ended December 31, 1999 was
 $6.1 million and $22.2 million, respectively.
     "Although, as projected, Medical Graphics' total 2000 revenue was below
 1999's level, the current trends are positive," said Richard Jahnke, Angeion's
 President and CEO.  "International sales have increased by nearly 51% over
 1999's level, reflecting our strategic focus in this area during 2000, an
 emphasis that will continue in 2001.  In our domestic business, the new order
 rate for equipment has also increased every quarter since the first quarter of
 2000.  We are continuing to see improvements in 2001.  In addition, our
 service revenue, including service contracts, training, and non-contract
 service calls, is up 28% reflecting the steps that we have taken to improve
 service levels by strengthening our direct service organization rather than
 relying on third party service organizations.  We are also encouraged by the
 level of interest in our new cardiac rehabilitation and disease prevention
 product offering that we are just beginning to introduce to our customers.
 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.
     "As we have previously reported, 2000 was a disappointing year for
 domestic sales from our Medical Graphics subsidiary," Jahnke continued.  "This
 was primarily due to temporary reductions in United States hospital capital
 budgets throughout the year.  These reductions offset the cash flow associated
 with large 1999 capital expenditures that were made to upgrade hospital
 computer systems for Y2K compliance.  This factor, in combination with our
 decision to discontinue the distribution of sleep disorder products during the
 second quarter of 2000 and a reduction in software upgrade sales, resulted in
 a decline in domestic revenue from comparable periods in 1999.  Based on what
 we observed during the last half of 2000 and the beginning of 2001, we believe
 that the capital budget issues in 2000 were an aberration in an historically
 stable market.  The capital budget reduction impact diminished throughout 2000
 while domestic equipment orders increased each quarter.  As we expected, this
 trend of improved domestic order rates has continued in the first quarter of
 2001.
     "We anticipate that revenue in the first quarter of 2001 will be lower
 than in 2000 due to the impact of the combination of discontinuing
 distribution of the sleep products in the second quarter of 2000 and the last
 minute Y2K software upgrades that were included in the first quarter of 2000.
 However, we expect that our domestic core product orders will increase over
 the 2000 level.  As a result, we 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."
     Medical Graphics EBITDA (earnings before interest, taxes, depreciation and
 amortization) through December 31, 2000 declined to a loss of $1.9 million
 from a profit of $2.0 million through December 31, 1999.  The reduction is
 substantially all the result of lower sales levels and the write off of
 $332,000 of sleep disorder diagnostic equipment associated with the
 termination of the distribution of those products.  These impacts were only
 partially offset by improvements in core product marginal contributions.
     Founded in 1986, Angeion Corporation acquired Medical Graphics
 ( http://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.
 
                      Angeion Corporation and Subsidiaries
                  Condensed Consolidated Financial Statements
                     (In thousands, except per share data)
 
                                   Three Months Ended    Twelve Months Ended
                                       December 31,           December 31,
     Consolidated Statements
      of Operations                   2000      1999        2000      1999
 
     Revenues                        $4,217     $608      $17,051     $608
     Net loss from continuing
      operations                     (1,870)    (333)      (6,430)  (1,866)
     Income (loss) from discontinued
      operations                       (252)  (4,799)      10,833    3,432
     Net income (loss)              $(2,122) $(5,132)      $4,403   $1,566
 
     Net income (loss) per share -
      basic and diluted
       Continuing operations         $(0.54)  $(0.08)      $(1.79)  $(0.47)
       Discontinued operations        (0.07)   (1.20)        3.01     0.86
         Net income (loss)           $(0.61)  $(1.28)       $1.22    $0.39
 
                                                             December 31,
     Consolidated Balance Sheets                            2000     1999
 
     Current assets                                       $15,178  $15,181
     Equipment, intangibles and other assets               15,379   18,556
       Total assets                                       $30,557  $33,737
 
     Current liabilities                                   $3,515   $6,248
     Long-term debt                                        20,198   20,198
     Shareholders' equity                                   6,844    7,291
       Total Liabilities and equity                       $30,557  $33,737
 
     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.
 
 SOURCE  Angeion Corporation