ChromaVision Reports First Quarter 2001 Results

Revenue Doubles For Second Straight Quarter As

ACIS(TM) System Placements Accelerate



Apr 10, 2001, 01:00 ET from ChromaVision Medical Systems, Inc.

    SAN JUAN CAPISTRANO, Calif., April 10 /PRNewswire/ -- ChromaVision Medical
 Systems, Inc. (Nasdaq: CVSN), the leading provider of automated cell-imaging
 systems and manufacturer of the ACIS(TM) system, today announced results for
 its first quarter ended March 31, 2001.
     In the first quarter of 2001, overall revenues totaled approximately
 $949,000 a four-fold increase from $204,000 posted in the first quarter of the
 prior year and more than double the revenues for the fourth quarter of 2000.
 This marks the second consecutive quarter in which the Company doubled its
 overall revenues and the fifth consecutive quarter that fee-per-use revenues
 have increased forty-five percent or more.  As a basis for future revenue
 growth, the Company executed contracts for the placement of 27 new ACIS
 systems during the quarter, compared to 28 total contracts executed in the
 entire prior year.
     The Company incurred a net loss of $3.6 million, or $0.18 loss per share
 for the first quarter of 2001, as compared to a net loss of $3.2 million or
 $0.16 loss per share for the comparable period in 2000.  The increase in the
 net loss for this year's first quarter was primarily due to continued
 expansion of the sales and marketing organization to support commercialization
 of the ACIS system and research and development costs.
     ChromaVision Chairman and CEO Douglas S. Harrington, M.D. stated,
 "Individual customer utilization of our ACIS system continues to accelerate
 over each period.  The number of new customer contracts signed during the
 quarter is almost double that of last quarter, while our funnel of prospects
 and qualified sales leads continues to expand.
     "We have really seen the market turn," said Harrington.  "Laboratories
 that initially took a cautious approach to the technology are eagerly adopting
 our ACIS system, marketing the system to their clients, expanding their usage
 to multiple capabilities, and asking for more."
 
     About ChromaVision Medical Systems, Inc.
     ChromaVision Medical Systems, Inc., of San Juan Capistrano, CA, markets
 its Automated Cellular Imaging System (ACIS(TM)), a versatile automated
 microscopy system with the ability to detect, count and classify cells of
 clinical interest based on color, size and shape to assist pathologists in
 making critical medical decisions.  Peer-reviewed clinical data and
 publications support that ACIS is able to substantially improve the accuracy,
 sensitivity, and reproducibility of cell imaging.  Unlike manual methods of
 viewing and analysis, the ACIS system combines proprietary, color-based
 imaging technology with automated microscopy and commercially available stains
 and reagents.  The ACIS system has been adopted by many of the top medical
 organizations in the United States and Europe.
     ChromaVision Medical Systems, Inc. (Nasdaq: CVSN) was formed by XL Vision,
 Inc., and is a Safeguard Scientifics, Inc. (NYSE:   SFE) and VennWorks LLC
 partner company.
 
     ChromaVision and ACIS are trademarks of ChromaVision Medical Systems.
 
     The statements contained herein regarding ChromaVision Medical Systems,
 Inc. contain forward-looking statements that involve risks and uncertainty.
 Future events and the Company's actual results could differ materially from
 the results reflected in these forward-looking statements.  Factors that might
 cause such a difference include, but are not limited to, the performance and
 acceptance of the Company's system in the market place, the Company's ability
 to establish a successful sales and marketing organization, continuation of
 favorable third party payer reimbursement for tests performed using the
 Company's system, unanticipated expenses or liabilities or other adverse
 events affecting cash flow, uncertainty of success in developing any new
 software applications, failure to obtain FDA clearance or approval for
 particular applications, possible disagreement by the FDA with ChromaVision's
 views as to the breadth of its FDA clearance, further objections by the FDA to
 ChromaVision's reworded promotional materials, and dependence on third parties
 for collaboration in developing new tests and in distributing the Company's
 systems and tests performed on the system.
 
 
                         ChromaVision Medical Systems, Inc.
 
                   Summary Consolidated Statements of Operations
 
 
                               Three Months Ended       Three Months Ended
                                  March 31,          March 31,   December 31,
                               2001          2000       2001          2000
 
     Revenues:             $948,544      $203,896     $948,544      $442,854
 
     Cost of revenue:       205,728        67,275      205,728       106,260
     Gross Margin          $742,816      $136,621     $742,816      $336,594
 
     Gross Margin %             78%           67%          78%           76%
 
     Expenses:
     Selling, general
      and Administrative  2,579,464     1,956,280    2,579,464     2,716,265
     Research and
      Development         1,917,339     1,619,481    1,917,339     1,728,704
     Total Operating
      Expenses          $ 4,496,803   $ 3,575,761  $ 4,496,803   $ 4,444,969
 
     Loss from
      operations        $(3,753,987)  $(3,439,140) $(3,753,987)  $(4,108,375)
 
     Other income           115,181       248,084      115,181       210,040
 
     Net loss           $(3,638,806)  $(3,191,056) $(3,638,806)  $(3,898,335)
 
     Net loss per
      common share:
       Basic and diluted     ($0.18)      ($0.16)        ($0.18)      ($0.19)
 
     Weighted Average
      number of common
      shares outstanding 20,104,622    19,495,226   20,104,622    20,091,985
 
 
                         ChromaVision Medical Systems, Inc.
 
                        Summary Consolidated Balance Sheets
 
                                                     Mar 31,        Dec 31,
                                                       2001          2000
 
 
     Cash and cash equivalents                     $6,021,821     $9,797,698
     PP&E, net                                      4,344,930      4,453,881
     All other assets, net                          1,245,003        649,967
 
     Total assets                                 $11,611,754    $14,901,546
 
     Total current liabilities                     $1,989,135     $1,690,159
     Stockholder's equity                           9,622,619     13,211,387
 
     Total current liabilities and
     Stockholder's equity                         $11,611,754    $14,901,546
 
     For further information please contact Investors, Matt Clawson of Allen &
 Caron, Inc., 949-474-4300; or Kevin C. O'Boyle, Executive Vice President &
 CFO, or Patricia Sisson, Senior V.P., Marketing, Sales & Strategic Planning,
 both of ChromaVision Medical Systems, Inc., 888-443-3310.
 
 

SOURCE ChromaVision Medical Systems, Inc.
    SAN JUAN CAPISTRANO, Calif., April 10 /PRNewswire/ -- ChromaVision Medical
 Systems, Inc. (Nasdaq: CVSN), the leading provider of automated cell-imaging
 systems and manufacturer of the ACIS(TM) system, today announced results for
 its first quarter ended March 31, 2001.
     In the first quarter of 2001, overall revenues totaled approximately
 $949,000 a four-fold increase from $204,000 posted in the first quarter of the
 prior year and more than double the revenues for the fourth quarter of 2000.
 This marks the second consecutive quarter in which the Company doubled its
 overall revenues and the fifth consecutive quarter that fee-per-use revenues
 have increased forty-five percent or more.  As a basis for future revenue
 growth, the Company executed contracts for the placement of 27 new ACIS
 systems during the quarter, compared to 28 total contracts executed in the
 entire prior year.
     The Company incurred a net loss of $3.6 million, or $0.18 loss per share
 for the first quarter of 2001, as compared to a net loss of $3.2 million or
 $0.16 loss per share for the comparable period in 2000.  The increase in the
 net loss for this year's first quarter was primarily due to continued
 expansion of the sales and marketing organization to support commercialization
 of the ACIS system and research and development costs.
     ChromaVision Chairman and CEO Douglas S. Harrington, M.D. stated,
 "Individual customer utilization of our ACIS system continues to accelerate
 over each period.  The number of new customer contracts signed during the
 quarter is almost double that of last quarter, while our funnel of prospects
 and qualified sales leads continues to expand.
     "We have really seen the market turn," said Harrington.  "Laboratories
 that initially took a cautious approach to the technology are eagerly adopting
 our ACIS system, marketing the system to their clients, expanding their usage
 to multiple capabilities, and asking for more."
 
     About ChromaVision Medical Systems, Inc.
     ChromaVision Medical Systems, Inc., of San Juan Capistrano, CA, markets
 its Automated Cellular Imaging System (ACIS(TM)), a versatile automated
 microscopy system with the ability to detect, count and classify cells of
 clinical interest based on color, size and shape to assist pathologists in
 making critical medical decisions.  Peer-reviewed clinical data and
 publications support that ACIS is able to substantially improve the accuracy,
 sensitivity, and reproducibility of cell imaging.  Unlike manual methods of
 viewing and analysis, the ACIS system combines proprietary, color-based
 imaging technology with automated microscopy and commercially available stains
 and reagents.  The ACIS system has been adopted by many of the top medical
 organizations in the United States and Europe.
     ChromaVision Medical Systems, Inc. (Nasdaq: CVSN) was formed by XL Vision,
 Inc., and is a Safeguard Scientifics, Inc. (NYSE:   SFE) and VennWorks LLC
 partner company.
 
     ChromaVision and ACIS are trademarks of ChromaVision Medical Systems.
 
     The statements contained herein regarding ChromaVision Medical Systems,
 Inc. contain forward-looking statements that involve risks and uncertainty.
 Future events and the Company's actual results could differ materially from
 the results reflected in these forward-looking statements.  Factors that might
 cause such a difference include, but are not limited to, the performance and
 acceptance of the Company's system in the market place, the Company's ability
 to establish a successful sales and marketing organization, continuation of
 favorable third party payer reimbursement for tests performed using the
 Company's system, unanticipated expenses or liabilities or other adverse
 events affecting cash flow, uncertainty of success in developing any new
 software applications, failure to obtain FDA clearance or approval for
 particular applications, possible disagreement by the FDA with ChromaVision's
 views as to the breadth of its FDA clearance, further objections by the FDA to
 ChromaVision's reworded promotional materials, and dependence on third parties
 for collaboration in developing new tests and in distributing the Company's
 systems and tests performed on the system.
 
 
                         ChromaVision Medical Systems, Inc.
 
                   Summary Consolidated Statements of Operations
 
 
                               Three Months Ended       Three Months Ended
                                  March 31,          March 31,   December 31,
                               2001          2000       2001          2000
 
     Revenues:             $948,544      $203,896     $948,544      $442,854
 
     Cost of revenue:       205,728        67,275      205,728       106,260
     Gross Margin          $742,816      $136,621     $742,816      $336,594
 
     Gross Margin %             78%           67%          78%           76%
 
     Expenses:
     Selling, general
      and Administrative  2,579,464     1,956,280    2,579,464     2,716,265
     Research and
      Development         1,917,339     1,619,481    1,917,339     1,728,704
     Total Operating
      Expenses          $ 4,496,803   $ 3,575,761  $ 4,496,803   $ 4,444,969
 
     Loss from
      operations        $(3,753,987)  $(3,439,140) $(3,753,987)  $(4,108,375)
 
     Other income           115,181       248,084      115,181       210,040
 
     Net loss           $(3,638,806)  $(3,191,056) $(3,638,806)  $(3,898,335)
 
     Net loss per
      common share:
       Basic and diluted     ($0.18)      ($0.16)        ($0.18)      ($0.19)
 
     Weighted Average
      number of common
      shares outstanding 20,104,622    19,495,226   20,104,622    20,091,985
 
 
                         ChromaVision Medical Systems, Inc.
 
                        Summary Consolidated Balance Sheets
 
                                                     Mar 31,        Dec 31,
                                                       2001          2000
 
 
     Cash and cash equivalents                     $6,021,821     $9,797,698
     PP&E, net                                      4,344,930      4,453,881
     All other assets, net                          1,245,003        649,967
 
     Total assets                                 $11,611,754    $14,901,546
 
     Total current liabilities                     $1,989,135     $1,690,159
     Stockholder's equity                           9,622,619     13,211,387
 
     Total current liabilities and
     Stockholder's equity                         $11,611,754    $14,901,546
 
     For further information please contact Investors, Matt Clawson of Allen &
 Caron, Inc., 949-474-4300; or Kevin C. O'Boyle, Executive Vice President &
 CFO, or Patricia Sisson, Senior V.P., Marketing, Sales & Strategic Planning,
 both of ChromaVision Medical Systems, Inc., 888-443-3310.
 
 SOURCE  ChromaVision Medical Systems, Inc.