Inverness Medical Technology Announces First Quarter Results

Strong Diabetes Revenue Fuels Q1 Results



Apr 26, 2001, 01:00 ET from Inverness Medical Technology, Inc.

    WALTHAM, Mass., April 26 /PRNewswire/ -- Inverness Medical Technology,
 Inc. (Amex:   IMA) today announced its results for the quarter ending March 31,
 2001.
     For the first quarter of 2001, Inverness reported a profit of $3.3
 million, or $0.10 per diluted share, excluding non-recurring charges, compared
 to net income of $1.2 million, or $0.04 per diluted share, in the first
 quarter of 2000. Giving full effect to one-time, non-recurring charges related
 to the acquisitions of Integ Incorporated and LXN Corporation, the Company had
 a net loss for the quarter ended March 31, 2001 of $52.8 million, or $1.74 per
 diluted share.
     The Company realized record net revenues of $51.3 million in the first
 quarter of 2001, a 36% increase over the $37.7 million of net revenues
 reported in the first quarter of 2000.  This was principally a result of
 shipments of blood glucose monitoring system kits and electrochemical strips
 reaching all-time highs.  During the quarter ended March 31, 2001, the Company
 did not generate revenues from its recent acquisitions because Integ
 Incorporated is a development stage company and LXN Corporation was acquired
 at the end of the quarter.
     Commenting on the Company's performance, Ron Zwanziger, Chairman and CEO
 of Inverness Medical Technology, stated: "Our enthusiasm for our first quarter
 progress stems not just from a numbers perspective, but from an operational
 standpoint as well.  In the quarter, we achieved significant production
 increases and generated a record level of orders for our blood glucose
 monitoring systems and electrochemical strips.  The primary driver of our
 record shipments in the first quarter was the market acceptance of our
 recently introduced second-generation blood glucose monitoring system.  We are
 continuing to add key personnel and the advanced equipment necessary to
 support our ongoing growth."
     The Company will host a conference call beginning at 10:00 a.m. (Eastern
 Time) today, April 26th, to discuss these results and anticipated future
 performance.
     The conference call can be accessed by dialing 973-628-7055 (domestic and
 international - an access code is not required), or via a link on the
 Inverness website at www.invernessmedical.com and www.streetfusion.com. A
 replay of the call will be available by dialing 973-341-3080 (domestic and
 international) with an access code of 2539080. The replay will be available
 until 12:00 midnight Eastern on April 29, 2001. An on demand webcast of the
 call will be available at the Inverness website two hours after the end of the
 call and will be accessible through 5:00pm Eastern Time on May 3, 2001.
 
     For more information about Inverness Medical Technology, Inc. please visit
 our website at www.invernessmedical.com.  Press releases are also available
 via fax by calling toll-free (888) 872-8679.
 
     Inverness Medical Technology develops, manufactures, and markets
 innovative products focused primarily on diabetes self-management.  The
 Company's proprietary glucose monitoring systems are marketed worldwide by
 LifeScan, a Johnson & Johnson company.  Inverness also markets diabetes
 products as well as a line of women's health products to consumers through its
 own established retail distribution networks including Wal-Mart, CVS and
 Walgreens.  Inverness Medical Technology's manufacturing facilities are
 located in Inverness, Scotland; Galway, Ireland; Yavne, Israel; San Diego,
 California, and its European sales office is located in Munich, Germany.  The
 Company's headquarters are located in Waltham, Massachusetts.
 
     This news release contains forward-looking statements that predict or
 indicate future events or trends that do not relate to historical matters.
 There are a number of important factors that could cause actual events to
 differ materially from those indicated by such forward-looking statements.
 These factors include, but are not limited to, the following:
 
     -- a change in our relationship with LifeScan, whom we depend upon to
        distribute certain of our existing products;
     -- manufacturing problems or delays, and the risk that we may be unable to
        expand our production capacity to meet projected demand;
     -- the risk of product defects and failure to meet strict regulatory
        requirements both in the United States and Europe;
     -- uncertainty that newly introduced products will gain market acceptance,
        including the ONE TOUCH(R) Ultra electrochemical blood glucose
        monitoring system that is marketed, sold and distributed by LifeScan;
        and
     -- intense competition, which could reduce our market share or limit our
        ability to increase market share.
 
     You should also read the risk factors that are discussed in the Company's
 periodic reports to the Securities and Exchange Commission, including the risk
 factors that were disclosed in our Form 10-K which was filed on April 2, 2001.
 You should be aware that the risk factors contained in that Form 10-K may not
 be exhaustive.  Therefore, we recommend that you read the information in that
 Form 10-K together with other reports and documents that we file with the
 Securities and Exchange Commission form time to time, including our Forms 10-
 K, 10-Q and 8-K and Proxy Statements, which may supplement, modify, supersede
 or update those risk factors.
 
 
                   INVERNESS MEDICAL TECHNOLOGY AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                       $000s
 
                                                   Three Months Ended March 31,
                                                      2001               2000
 
     Net revenues                                    $51,254           $37,697
     Cost of sales                                    34,784            21,901
     Gross profit                                     16,470            15,796
 
     Operating expenses:
     Research and development                          4,442             3,168
     Selling, general and administrative               9,136             9,121
     Total operating expenses                         13,578            12,289
 
     Operating income                                  2,892             3,507
     Interest and other income (expense),
      net                                                487            (2,137)
     Provision for income taxes                          (57)             (135)
          Net income excluding non-
           recurring charges                           3,322             1,235
     Non-recurring expenses*                         (56,123)              -
          Net (loss) income                         $(52,801)           $1,235
     Basic net income per common share,
      excluding non-recurring charges                  $0.11             $0.05
     Diluted net income per common share,
      excluding non-recurring charges                  $0.10             $0.04
     Basic net (loss) income per common
      share                                           $(1.74)            $0.05
     Diluted net (loss) income per common
      share                                           $(1.74)            $0.04
     Weighted average shares-basic                    30,309            19,603
     Weighted average shares-diluted**                34,564            25,457
 
     *  the non-recurring charges are for in-process research and development
     related to the acquisitions of Integ Incorporated and LXN Corporation
 
     ** diluted shares are not used in calculation of diluted loss per share
     because inclusion would be antidilutive
 
 
                   INVERNESS MEDICAL TECHNOLOGY AND SUBSIDIARIES
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                       $000s
 
                                                  March 31,        December 31,
                                                     2001              2000
     ASSETS
     CURRENT ASSETS:
     Cash and cash equivalents                      $45,146           $82,272
     Accounts receivable, net                        27,248            30,968
     Inventories                                     17,574            14,968
     Prepaid expenses and other current
      assets                                          3,600               857
     Total current assets                            93,568           129,065
 
     PROPERTY, PLANT AND EQUIPMENT, NET              17,821            13,795
     GOODWILL, TRADEMARKS AND OTHER
      INTANGIBLE ASSETS, NET                        111,641            69,330
     DEFERRED FINANCING COSTS AND OTHER
      ASSETS, NET                                     1,133             1,113
     Total assets                                  $224,163          $213,303
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     CURRENT LIABILITIES:
     Current portion of notes payable               $13,231           $35,346
     Other current liabilities                       39,308            38,121
     Total current liabilities                       52,539            73,467
 
     LONG-TERM LIABILITIES:
     Notes payable, net of current portion           12,116            13,720
     Other long-term liabilities                      1,818               357
     Total long-term liabilities                     13,934            14,077
 
     REDEEMABLE PREFERRED STOCK                       4,422             4,375
     TOTAL STOCKHOLDERS' EQUITY                     153,268           121,384
     Total liabilities and stockholders'
      equity                                       $224,163          $213,303
 
 
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                http://tbutton.prnewswire.com/prn/11690X42468471
 
 

SOURCE Inverness Medical Technology, Inc.
    WALTHAM, Mass., April 26 /PRNewswire/ -- Inverness Medical Technology,
 Inc. (Amex:   IMA) today announced its results for the quarter ending March 31,
 2001.
     For the first quarter of 2001, Inverness reported a profit of $3.3
 million, or $0.10 per diluted share, excluding non-recurring charges, compared
 to net income of $1.2 million, or $0.04 per diluted share, in the first
 quarter of 2000. Giving full effect to one-time, non-recurring charges related
 to the acquisitions of Integ Incorporated and LXN Corporation, the Company had
 a net loss for the quarter ended March 31, 2001 of $52.8 million, or $1.74 per
 diluted share.
     The Company realized record net revenues of $51.3 million in the first
 quarter of 2001, a 36% increase over the $37.7 million of net revenues
 reported in the first quarter of 2000.  This was principally a result of
 shipments of blood glucose monitoring system kits and electrochemical strips
 reaching all-time highs.  During the quarter ended March 31, 2001, the Company
 did not generate revenues from its recent acquisitions because Integ
 Incorporated is a development stage company and LXN Corporation was acquired
 at the end of the quarter.
     Commenting on the Company's performance, Ron Zwanziger, Chairman and CEO
 of Inverness Medical Technology, stated: "Our enthusiasm for our first quarter
 progress stems not just from a numbers perspective, but from an operational
 standpoint as well.  In the quarter, we achieved significant production
 increases and generated a record level of orders for our blood glucose
 monitoring systems and electrochemical strips.  The primary driver of our
 record shipments in the first quarter was the market acceptance of our
 recently introduced second-generation blood glucose monitoring system.  We are
 continuing to add key personnel and the advanced equipment necessary to
 support our ongoing growth."
     The Company will host a conference call beginning at 10:00 a.m. (Eastern
 Time) today, April 26th, to discuss these results and anticipated future
 performance.
     The conference call can be accessed by dialing 973-628-7055 (domestic and
 international - an access code is not required), or via a link on the
 Inverness website at www.invernessmedical.com and www.streetfusion.com. A
 replay of the call will be available by dialing 973-341-3080 (domestic and
 international) with an access code of 2539080. The replay will be available
 until 12:00 midnight Eastern on April 29, 2001. An on demand webcast of the
 call will be available at the Inverness website two hours after the end of the
 call and will be accessible through 5:00pm Eastern Time on May 3, 2001.
 
     For more information about Inverness Medical Technology, Inc. please visit
 our website at www.invernessmedical.com.  Press releases are also available
 via fax by calling toll-free (888) 872-8679.
 
     Inverness Medical Technology develops, manufactures, and markets
 innovative products focused primarily on diabetes self-management.  The
 Company's proprietary glucose monitoring systems are marketed worldwide by
 LifeScan, a Johnson & Johnson company.  Inverness also markets diabetes
 products as well as a line of women's health products to consumers through its
 own established retail distribution networks including Wal-Mart, CVS and
 Walgreens.  Inverness Medical Technology's manufacturing facilities are
 located in Inverness, Scotland; Galway, Ireland; Yavne, Israel; San Diego,
 California, and its European sales office is located in Munich, Germany.  The
 Company's headquarters are located in Waltham, Massachusetts.
 
     This news release contains forward-looking statements that predict or
 indicate future events or trends that do not relate to historical matters.
 There are a number of important factors that could cause actual events to
 differ materially from those indicated by such forward-looking statements.
 These factors include, but are not limited to, the following:
 
     -- a change in our relationship with LifeScan, whom we depend upon to
        distribute certain of our existing products;
     -- manufacturing problems or delays, and the risk that we may be unable to
        expand our production capacity to meet projected demand;
     -- the risk of product defects and failure to meet strict regulatory
        requirements both in the United States and Europe;
     -- uncertainty that newly introduced products will gain market acceptance,
        including the ONE TOUCH(R) Ultra electrochemical blood glucose
        monitoring system that is marketed, sold and distributed by LifeScan;
        and
     -- intense competition, which could reduce our market share or limit our
        ability to increase market share.
 
     You should also read the risk factors that are discussed in the Company's
 periodic reports to the Securities and Exchange Commission, including the risk
 factors that were disclosed in our Form 10-K which was filed on April 2, 2001.
 You should be aware that the risk factors contained in that Form 10-K may not
 be exhaustive.  Therefore, we recommend that you read the information in that
 Form 10-K together with other reports and documents that we file with the
 Securities and Exchange Commission form time to time, including our Forms 10-
 K, 10-Q and 8-K and Proxy Statements, which may supplement, modify, supersede
 or update those risk factors.
 
 
                   INVERNESS MEDICAL TECHNOLOGY AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                       $000s
 
                                                   Three Months Ended March 31,
                                                      2001               2000
 
     Net revenues                                    $51,254           $37,697
     Cost of sales                                    34,784            21,901
     Gross profit                                     16,470            15,796
 
     Operating expenses:
     Research and development                          4,442             3,168
     Selling, general and administrative               9,136             9,121
     Total operating expenses                         13,578            12,289
 
     Operating income                                  2,892             3,507
     Interest and other income (expense),
      net                                                487            (2,137)
     Provision for income taxes                          (57)             (135)
          Net income excluding non-
           recurring charges                           3,322             1,235
     Non-recurring expenses*                         (56,123)              -
          Net (loss) income                         $(52,801)           $1,235
     Basic net income per common share,
      excluding non-recurring charges                  $0.11             $0.05
     Diluted net income per common share,
      excluding non-recurring charges                  $0.10             $0.04
     Basic net (loss) income per common
      share                                           $(1.74)            $0.05
     Diluted net (loss) income per common
      share                                           $(1.74)            $0.04
     Weighted average shares-basic                    30,309            19,603
     Weighted average shares-diluted**                34,564            25,457
 
     *  the non-recurring charges are for in-process research and development
     related to the acquisitions of Integ Incorporated and LXN Corporation
 
     ** diluted shares are not used in calculation of diluted loss per share
     because inclusion would be antidilutive
 
 
                   INVERNESS MEDICAL TECHNOLOGY AND SUBSIDIARIES
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                       $000s
 
                                                  March 31,        December 31,
                                                     2001              2000
     ASSETS
     CURRENT ASSETS:
     Cash and cash equivalents                      $45,146           $82,272
     Accounts receivable, net                        27,248            30,968
     Inventories                                     17,574            14,968
     Prepaid expenses and other current
      assets                                          3,600               857
     Total current assets                            93,568           129,065
 
     PROPERTY, PLANT AND EQUIPMENT, NET              17,821            13,795
     GOODWILL, TRADEMARKS AND OTHER
      INTANGIBLE ASSETS, NET                        111,641            69,330
     DEFERRED FINANCING COSTS AND OTHER
      ASSETS, NET                                     1,133             1,113
     Total assets                                  $224,163          $213,303
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     CURRENT LIABILITIES:
     Current portion of notes payable               $13,231           $35,346
     Other current liabilities                       39,308            38,121
     Total current liabilities                       52,539            73,467
 
     LONG-TERM LIABILITIES:
     Notes payable, net of current portion           12,116            13,720
     Other long-term liabilities                      1,818               357
     Total long-term liabilities                     13,934            14,077
 
     REDEEMABLE PREFERRED STOCK                       4,422             4,375
     TOTAL STOCKHOLDERS' EQUITY                     153,268           121,384
     Total liabilities and stockholders'
      equity                                       $224,163          $213,303
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X42468471
 
 SOURCE  Inverness Medical Technology, Inc.