DIANON Systems, Inc. Announces Earnings Increase

-53% EPS Growth and 63% Net Income Growth on 21% Revenue Growth-



Apr 18, 2001, 01:00 ET from DIANON Systems, Inc.

    STRATFORD, Conn., April 18 /PRNewswire Interactive News Release/ --
 DIANON Systems, Inc. (Nasdaq:   DIAN), a leading national provider of cancer and
 genomic diagnostic services, today reported first quarter revenues of
 $26.8 million, a 21 percent increase from the $22.1 million reported in the
 first quarter of 2000.  This 21% sales increase was almost entirely driven by
 same-store growth, with 1% coming from our Denver acquisition.  Net income for
 the quarter rose 63 percent to $2.1 million from the $1.3 million reported in
 the first quarter of 2000.  Diluted EPS was $0.26, a 53 percent increase from
 the $0.17 reported for the first quarter of 2000.
     "We are off to a very strong start in 2001 as expected," said Kevin
 Johnson, DIANON's president and CEO.  "We again posted significant gains in
 all financial metrics, and are particularly pleased with our continued ability
 to show substantial EPS and EBITDA expansion on 20 percent plus sales growth."
     "In addition to the strong revenue and EPS growth, EBITDA grew 46 percent
 over the first quarter of 2000," said David Schreiber, DIANON's CFO.  "We were
 most pleased with EPS growth of 53 percent given the fact that our fully
 diluted share count increased to 8.0 million in the quarter from 7.6 million
 at the end of the first quarter 2000.  Additionally, continued strong positive
 cash flow as evidenced by a DSO of 77 days, allowed us to completely repay the
 final $2.5 million in debt we had outstanding."
     Mr. Johnson continued, "The fundamentals in our business remain strong.
 We have an excellent management team committed to delivering industry-leading
 performance in the field of cancer diagnostics and genetic testing.  We are
 enthusiastic about the opportunities being created in genomics diagnostics,
 and using our market position to bring evolving technologies to the specialty
 physician community.
     "Our new product introductions over the past two years, such as the
 Hepatitis Program, Urinary Stone Program, and Microbiology Culture Services,
 have shown promising growth in addition to the substantial gains in our
 pathology and genetic services.  These product offerings should serve both to
 fortify our customer base as well as to create selling opportunities with a
 broad test menu tailored specifically to each of the specialty customer
 segments we target.
     "We continue to expand our managed care penetration and were particularly
 pleased to announce an expanded relationship with Aetna US Healthcare.
 Beginning April 1, 2001, we initiated service to Aetna U.S. Healthcare's
 HMO-based plans in Ohio, while continuing as a participating provider for
 laboratory testing services for all other Aetna U.S. Healthcare's products in
 Ohio.
     "Our recent launch of Response Genetics' Danenberg Tumor Profile, which
 predicts therapeutic response based upon a colorectal cancer patient's tumor
 genetic profile, is being well received by oncologists throughout the country.
 We believe this tumor profile is the first of many genomic diagnostic
 technologies that will be developed in the treatment of cancer patients and
 that DIANON will bring to market."
 
     DIANON Systems, Inc. provides a full line of anatomic and molecular
 pathology testing services and the CarePath(TM) Health Information Service,
 which provides personalized, diagnosis-specific information to physicians and
 to their patients at critical moments in the health care process.
 
     The forward-looking statements in this news release relating to
 management's expectations and beliefs are based on preliminary information and
 management assumptions.  Such forward-looking statements are subject to a wide
 range of risks and uncertainties that could cause results to differ in
 material respects, including those relating to revenue and earnings
 expectations, acquisitions, reimbursement rates and coverage, state and
 national regulatory compliance, the Company's maintenance of above-average
 quality of its services and products and competitive pressures.  Further
 information regarding factors that could affect the Company's results is
 included in the Company's filings with the Securities and Exchange Commission.
 
 
                              DIANON SYSTEMS, INC.
                            CONDENSED BALANCE SHEETS
                   AS OF MARCH 31, 2001 AND DECEMBER 31, 2000
                                (000's omitted)
 
                                                    March 31,   December 31,
                                                         2001           2000
                                                  (unaudited)      (audited)
 
     Cash                                             $11,778        $12,515
     Accounts Receivable, Net                          22,974         21,413
     Inventory                                          1,422          1,417
     Property and Equipment, Net                        5,363          5,613
     Other Assets                                      19,513         20,795
        Total Assets                                  $61,050        $61,753
 
     Current Liabilities                               $6,340         $6,777
     Long - Term Liabilities                              194          2,717
     Stockholders' Equity                              54,516         52,259
        Total Liabilities and
        Stockholders' Equity                          $61,050        $61,753
 
 
                                DIANON SYSTEMS, INC.
                            STATEMENT OF OPERATIONS
                         FOR THE PERIOD ENDED MARCH 31
                                (000's omitted)
                                   Unaudited
 
     Three Months Ended
     March 31,
                                                         2001           2000
 
     Net Revenues                                     $26,803        $22,079
     Cost of Sales                                     14,995         12,747
        Gross Profit                                   11,808          9,332
     Selling, General & Administrative Expenses         7,870          6,884
     Amortization of Intangible Assets                    255            203
     Research & Development Expenses                      352            172
        Income from Operations                          3,331          2,073
     Interest Income, Net                                 114             44
        Income Before Provision for Income Taxes        3,445          2,117
     Provision for Income Taxes                         1,395            857
        Net Income                                     $2,050         $1,260
     Earnings Per Share:
        Basic                                           $0.28          $0.18
        Diluted                                         $0.26          $0.17
 
     Weighted Average Shares Outstanding:
        Basic                                       7,387,647      7,040,376
        Diluted                                     8,006,625      7,597,009
 
     Supplemental Financial Information:
        EBITDA                                         $4,391         $3,016
        EBITDA Percentage                               16.4%          13.7%
 
     Contacts:
     DIANON Systems, Inc.                Noonan/Russo Communications, Inc.
     Kevin C. Johnson                    (212) 696-4455
     President and CEO                   David Walsey (investors), ext. 230
     (203) 381-4905                      news@noonanrusso.com
 
     David R. Schreiber
     Chief Financial Officer
     (203) 381-4055
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X71821741
 
 

SOURCE DIANON Systems, Inc.
    STRATFORD, Conn., April 18 /PRNewswire Interactive News Release/ --
 DIANON Systems, Inc. (Nasdaq:   DIAN), a leading national provider of cancer and
 genomic diagnostic services, today reported first quarter revenues of
 $26.8 million, a 21 percent increase from the $22.1 million reported in the
 first quarter of 2000.  This 21% sales increase was almost entirely driven by
 same-store growth, with 1% coming from our Denver acquisition.  Net income for
 the quarter rose 63 percent to $2.1 million from the $1.3 million reported in
 the first quarter of 2000.  Diluted EPS was $0.26, a 53 percent increase from
 the $0.17 reported for the first quarter of 2000.
     "We are off to a very strong start in 2001 as expected," said Kevin
 Johnson, DIANON's president and CEO.  "We again posted significant gains in
 all financial metrics, and are particularly pleased with our continued ability
 to show substantial EPS and EBITDA expansion on 20 percent plus sales growth."
     "In addition to the strong revenue and EPS growth, EBITDA grew 46 percent
 over the first quarter of 2000," said David Schreiber, DIANON's CFO.  "We were
 most pleased with EPS growth of 53 percent given the fact that our fully
 diluted share count increased to 8.0 million in the quarter from 7.6 million
 at the end of the first quarter 2000.  Additionally, continued strong positive
 cash flow as evidenced by a DSO of 77 days, allowed us to completely repay the
 final $2.5 million in debt we had outstanding."
     Mr. Johnson continued, "The fundamentals in our business remain strong.
 We have an excellent management team committed to delivering industry-leading
 performance in the field of cancer diagnostics and genetic testing.  We are
 enthusiastic about the opportunities being created in genomics diagnostics,
 and using our market position to bring evolving technologies to the specialty
 physician community.
     "Our new product introductions over the past two years, such as the
 Hepatitis Program, Urinary Stone Program, and Microbiology Culture Services,
 have shown promising growth in addition to the substantial gains in our
 pathology and genetic services.  These product offerings should serve both to
 fortify our customer base as well as to create selling opportunities with a
 broad test menu tailored specifically to each of the specialty customer
 segments we target.
     "We continue to expand our managed care penetration and were particularly
 pleased to announce an expanded relationship with Aetna US Healthcare.
 Beginning April 1, 2001, we initiated service to Aetna U.S. Healthcare's
 HMO-based plans in Ohio, while continuing as a participating provider for
 laboratory testing services for all other Aetna U.S. Healthcare's products in
 Ohio.
     "Our recent launch of Response Genetics' Danenberg Tumor Profile, which
 predicts therapeutic response based upon a colorectal cancer patient's tumor
 genetic profile, is being well received by oncologists throughout the country.
 We believe this tumor profile is the first of many genomic diagnostic
 technologies that will be developed in the treatment of cancer patients and
 that DIANON will bring to market."
 
     DIANON Systems, Inc. provides a full line of anatomic and molecular
 pathology testing services and the CarePath(TM) Health Information Service,
 which provides personalized, diagnosis-specific information to physicians and
 to their patients at critical moments in the health care process.
 
     The forward-looking statements in this news release relating to
 management's expectations and beliefs are based on preliminary information and
 management assumptions.  Such forward-looking statements are subject to a wide
 range of risks and uncertainties that could cause results to differ in
 material respects, including those relating to revenue and earnings
 expectations, acquisitions, reimbursement rates and coverage, state and
 national regulatory compliance, the Company's maintenance of above-average
 quality of its services and products and competitive pressures.  Further
 information regarding factors that could affect the Company's results is
 included in the Company's filings with the Securities and Exchange Commission.
 
 
                              DIANON SYSTEMS, INC.
                            CONDENSED BALANCE SHEETS
                   AS OF MARCH 31, 2001 AND DECEMBER 31, 2000
                                (000's omitted)
 
                                                    March 31,   December 31,
                                                         2001           2000
                                                  (unaudited)      (audited)
 
     Cash                                             $11,778        $12,515
     Accounts Receivable, Net                          22,974         21,413
     Inventory                                          1,422          1,417
     Property and Equipment, Net                        5,363          5,613
     Other Assets                                      19,513         20,795
        Total Assets                                  $61,050        $61,753
 
     Current Liabilities                               $6,340         $6,777
     Long - Term Liabilities                              194          2,717
     Stockholders' Equity                              54,516         52,259
        Total Liabilities and
        Stockholders' Equity                          $61,050        $61,753
 
 
                                DIANON SYSTEMS, INC.
                            STATEMENT OF OPERATIONS
                         FOR THE PERIOD ENDED MARCH 31
                                (000's omitted)
                                   Unaudited
 
     Three Months Ended
     March 31,
                                                         2001           2000
 
     Net Revenues                                     $26,803        $22,079
     Cost of Sales                                     14,995         12,747
        Gross Profit                                   11,808          9,332
     Selling, General & Administrative Expenses         7,870          6,884
     Amortization of Intangible Assets                    255            203
     Research & Development Expenses                      352            172
        Income from Operations                          3,331          2,073
     Interest Income, Net                                 114             44
        Income Before Provision for Income Taxes        3,445          2,117
     Provision for Income Taxes                         1,395            857
        Net Income                                     $2,050         $1,260
     Earnings Per Share:
        Basic                                           $0.28          $0.18
        Diluted                                         $0.26          $0.17
 
     Weighted Average Shares Outstanding:
        Basic                                       7,387,647      7,040,376
        Diluted                                     8,006,625      7,597,009
 
     Supplemental Financial Information:
        EBITDA                                         $4,391         $3,016
        EBITDA Percentage                               16.4%          13.7%
 
     Contacts:
     DIANON Systems, Inc.                Noonan/Russo Communications, Inc.
     Kevin C. Johnson                    (212) 696-4455
     President and CEO                   David Walsey (investors), ext. 230
     (203) 381-4905                      news@noonanrusso.com
 
     David R. Schreiber
     Chief Financial Officer
     (203) 381-4055
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X71821741
 
 SOURCE  DIANON Systems, Inc.