Diametrics Medical Reports First Quarter Results Intermittent Testing Product Sales Grow 47%

Apr 25, 2001, 01:00 ET from Diametrics Medical, Inc.

    ST. PAUL, Minn., April 25 /PRNewswire/ -- Diametrics Medical, Inc.
 (Nasdaq:   DMED) today announced sales for the first quarter, ended March 31, of
 $5,715,894, a 1% increase from $5,670,894, in the same period a year earlier.
 The company's net loss for the quarter was $1,127,900, or $0.04 per share,
 compared to $1,143,409, or $0.04 per share, in the prior year.
     Year over year sales of intermittent testing products grew 47% to record
 levels. More than 750 IRMA instruments were sold, while IRMA cartridge unit
 sales grew 41% to more than 330,000 units.  These gains were offset by a 37%
 reduction in sales of continuous monitoring products.
     Operating expenses declined 7% from last year's first quarter, driven by a
 15% decrease in selling, general and administrative (SG&A) expenses.  The
 decline in SG&A was the result of the transfer of most of the sales and
 marketing responsibility for the IRMA and Trendcare product lines to Agilent
 Technologies, Inc.  The company anticipates SG&A expenses to remain at
 approximately this level in future quarters.
     "While both our product lines incorporate leading edge technologies for
 emerging growth markets, the market for intermittent testing products is
 further along in its development, resulting in less sensitivity to external
 influences and economic conditions," said David T. Giddings, Diametrics'
 Chairman, CEO and President. "Also, new access devices are just now coming to
 the market for the continuous monitoring products that will enhance their ease
 of use and facilitate more rapid market penetration going forward."
     "We are pleased with the success we have had in developing new products
 and in establishing Diametrics' business.  In the near term, we anticipate our
 financial results will be affected by uncertainties regarding the initial
 impact of new product introductions on sales of existing hardware product
 lines, capital spending in the healthcare sector, the economy in general, and
 the transition of the IRMA and Trendcare distribution channel as a result of
 the pending sale of Agilent's healthcare business to Royale Philips
 Electronics.  We believe these are short-term issues, which should be resolved
 over the next few quarters," said Giddings.
     Diametrics will conduct a live webcast today, Wednesday, April 25, at
 10:00 a.m. Eastern Time at http://www.vcall.com. The company plans to discuss
 details of its first quarter results and outlook at that time. To listen to
 the live call, please go to vcall.com approximately thirty minutes before the
 conference call is scheduled to begin. You will need to register as well as
 download and install any necessary audio software. A replay of the call will
 be available for 30 days.
     Agilent Technologies, Inc. is the exclusive global distributor of
 Diametrics Medical's leading critical care products, the IRMA(R) SL Blood
 Analysis System, and the Trendcare(R) Continuous Blood Gas Monitoring System,
 including Paratrend(R) and Neotrend(TM). CODMAN, a Johnson & Johnson company,
 is the exclusive worldwide distributor of Diametrics' Neurotrend(TM) Cerebral
 Tissue Monitoring System. Neurotrend, continuously monitors oxygen, carbon
 dioxide, acidity and temperature in brain tissue or fluids, providing critical
 information to guide clinicians and surgeons in treating patients with severe
 head trauma or those requiring surgical intervention in the brain.
     Diametrics Medical, Inc. is a leader in critical care technology.  The
 company is dedicated to creating solutions that improve the quality of
 healthcare delivery through products and services that provide immediate,
 accurate and cost-effective time critical blood and tissue diagnostics.
 Additional information is available at the company's Web site,
 http//www.diametrics.com.
 
     Statements regarding the company's expectations about new and existing
 products, future financial performance and other forward-looking statements
 are subject to various risks and uncertainties, including, without limitation,
 demand and acceptance of new and existing products, technology advances and
 product obsolescence, competitive factors, and the availability of capital to
 finance growth. These and other risks are discussed in greater detail in the
 company's filings with the Securities and Exchange Commission.
 
     Tables follow:
 
                            DIAMETRICS MEDICAL, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)
 
                                                       Three Months Ended
                                                            March 31
                                                       2001            2000
 
     Net sales                                      $5,715,894     $5,670,894
 
     Cost of sales                                   4,401,153      4,269,957
 
       Gross profit                                  1,314,741      1,400,937
 
     Operating expenses:
       Research and development                      1,160,702      1,109,369
       Selling, general and administrative           1,245,932      1,471,498
 
       Total operating expenses                      2,406,634      2,580,867
 
     Operating loss                                 (1,091,893)    (1,179,930)
 
     Other income (expense), net                       (36,007)        36,521
 
     Net loss                                      $(1,127,900)   $(1,143,409)
 
     Basic and diluted net loss per common
      share                                             $(0.04)        $(0.04)
 
     Weighted average number of
     common shares outstanding                      26,722,744     26,008,225
 
                            DIAMETRICS MEDICAL, INC.
                     CONSOLIDATED CONDENSED BALANCE SHEETS
                                  (UNAUDITED)
 
                                            March 31,              December 31,
                                              2001                     2000
     ASSETS
      Current assets:
       Cash and cash equivalents           $1,606,713               $2,431,704
       Marketable securities                5,000,711                6,281,761
       Receivables                          5,733,763                6,682,129
       Inventories                          4,861,535                4,280,234
       Prepaid expenses and other current
        assets                                196,319                  397,406
 
        Total current assets               17,399,041               20,073,234
 
      Property and equipment, net           7,032,061                7,336,283
 
      Other assets                            283,648                  401,240
 
                                          $24,714,750              $27,810,757
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
      Current liabilities:
       Accounts payable and accrued
        expenses                           $2,958,279               $4,313,396
       Other current liabilities              719,891                1,426,140
 
      Total current liabilities             3,678,170                5,739,536
 
      Long-term liabilities, excluding
       current portion                      8,126,246                7,886,330
 
      Shareholders' equity                 12,910,334               14,184,891
 
                                          $24,714,750              $27,810,757
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X04757033
 
 

SOURCE Diametrics Medical, Inc.
    ST. PAUL, Minn., April 25 /PRNewswire/ -- Diametrics Medical, Inc.
 (Nasdaq:   DMED) today announced sales for the first quarter, ended March 31, of
 $5,715,894, a 1% increase from $5,670,894, in the same period a year earlier.
 The company's net loss for the quarter was $1,127,900, or $0.04 per share,
 compared to $1,143,409, or $0.04 per share, in the prior year.
     Year over year sales of intermittent testing products grew 47% to record
 levels. More than 750 IRMA instruments were sold, while IRMA cartridge unit
 sales grew 41% to more than 330,000 units.  These gains were offset by a 37%
 reduction in sales of continuous monitoring products.
     Operating expenses declined 7% from last year's first quarter, driven by a
 15% decrease in selling, general and administrative (SG&A) expenses.  The
 decline in SG&A was the result of the transfer of most of the sales and
 marketing responsibility for the IRMA and Trendcare product lines to Agilent
 Technologies, Inc.  The company anticipates SG&A expenses to remain at
 approximately this level in future quarters.
     "While both our product lines incorporate leading edge technologies for
 emerging growth markets, the market for intermittent testing products is
 further along in its development, resulting in less sensitivity to external
 influences and economic conditions," said David T. Giddings, Diametrics'
 Chairman, CEO and President. "Also, new access devices are just now coming to
 the market for the continuous monitoring products that will enhance their ease
 of use and facilitate more rapid market penetration going forward."
     "We are pleased with the success we have had in developing new products
 and in establishing Diametrics' business.  In the near term, we anticipate our
 financial results will be affected by uncertainties regarding the initial
 impact of new product introductions on sales of existing hardware product
 lines, capital spending in the healthcare sector, the economy in general, and
 the transition of the IRMA and Trendcare distribution channel as a result of
 the pending sale of Agilent's healthcare business to Royale Philips
 Electronics.  We believe these are short-term issues, which should be resolved
 over the next few quarters," said Giddings.
     Diametrics will conduct a live webcast today, Wednesday, April 25, at
 10:00 a.m. Eastern Time at http://www.vcall.com. The company plans to discuss
 details of its first quarter results and outlook at that time. To listen to
 the live call, please go to vcall.com approximately thirty minutes before the
 conference call is scheduled to begin. You will need to register as well as
 download and install any necessary audio software. A replay of the call will
 be available for 30 days.
     Agilent Technologies, Inc. is the exclusive global distributor of
 Diametrics Medical's leading critical care products, the IRMA(R) SL Blood
 Analysis System, and the Trendcare(R) Continuous Blood Gas Monitoring System,
 including Paratrend(R) and Neotrend(TM). CODMAN, a Johnson & Johnson company,
 is the exclusive worldwide distributor of Diametrics' Neurotrend(TM) Cerebral
 Tissue Monitoring System. Neurotrend, continuously monitors oxygen, carbon
 dioxide, acidity and temperature in brain tissue or fluids, providing critical
 information to guide clinicians and surgeons in treating patients with severe
 head trauma or those requiring surgical intervention in the brain.
     Diametrics Medical, Inc. is a leader in critical care technology.  The
 company is dedicated to creating solutions that improve the quality of
 healthcare delivery through products and services that provide immediate,
 accurate and cost-effective time critical blood and tissue diagnostics.
 Additional information is available at the company's Web site,
 http//www.diametrics.com.
 
     Statements regarding the company's expectations about new and existing
 products, future financial performance and other forward-looking statements
 are subject to various risks and uncertainties, including, without limitation,
 demand and acceptance of new and existing products, technology advances and
 product obsolescence, competitive factors, and the availability of capital to
 finance growth. These and other risks are discussed in greater detail in the
 company's filings with the Securities and Exchange Commission.
 
     Tables follow:
 
                            DIAMETRICS MEDICAL, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (UNAUDITED)
 
                                                       Three Months Ended
                                                            March 31
                                                       2001            2000
 
     Net sales                                      $5,715,894     $5,670,894
 
     Cost of sales                                   4,401,153      4,269,957
 
       Gross profit                                  1,314,741      1,400,937
 
     Operating expenses:
       Research and development                      1,160,702      1,109,369
       Selling, general and administrative           1,245,932      1,471,498
 
       Total operating expenses                      2,406,634      2,580,867
 
     Operating loss                                 (1,091,893)    (1,179,930)
 
     Other income (expense), net                       (36,007)        36,521
 
     Net loss                                      $(1,127,900)   $(1,143,409)
 
     Basic and diluted net loss per common
      share                                             $(0.04)        $(0.04)
 
     Weighted average number of
     common shares outstanding                      26,722,744     26,008,225
 
                            DIAMETRICS MEDICAL, INC.
                     CONSOLIDATED CONDENSED BALANCE SHEETS
                                  (UNAUDITED)
 
                                            March 31,              December 31,
                                              2001                     2000
     ASSETS
      Current assets:
       Cash and cash equivalents           $1,606,713               $2,431,704
       Marketable securities                5,000,711                6,281,761
       Receivables                          5,733,763                6,682,129
       Inventories                          4,861,535                4,280,234
       Prepaid expenses and other current
        assets                                196,319                  397,406
 
        Total current assets               17,399,041               20,073,234
 
      Property and equipment, net           7,032,061                7,336,283
 
      Other assets                            283,648                  401,240
 
                                          $24,714,750              $27,810,757
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
      Current liabilities:
       Accounts payable and accrued
        expenses                           $2,958,279               $4,313,396
       Other current liabilities              719,891                1,426,140
 
      Total current liabilities             3,678,170                5,739,536
 
      Long-term liabilities, excluding
       current portion                      8,126,246                7,886,330
 
      Shareholders' equity                 12,910,334               14,184,891
 
                                          $24,714,750              $27,810,757
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X04757033
 
 SOURCE  Diametrics Medical, Inc.