Invivo Corporation Reports Third Quarter Results; Backlog Increases By Approximately $1,000,000; Results Reflect One-Time Charge for Sale Of G.C. Industries

Apr 20, 2001, 01:00 ET from Invivo Corporation

    PLEASANTON, Calif., April 20 /PRNewswire Interactive News Release/ --
 Invivo Corporation (Nasdaq: SAFE), announced today revenues increased 4.3% to
 $13,801,000 for the third quarter ended March 31, 2001 as compared to revenues
 of $13,232,000 for the third quarter ended March 31, 2000. Net income for the
 third quarter of fiscal 2001 was $485,000 compared to net income of
 $1,163,000 for the third quarter of fiscal 2000. Diluted net income per common
 share was $.11 for the third quarter of fiscal 2001 compared to $.26 for the
 third quarter of fiscal 2000. Results for the third quarter ended
 March 31, 2001 reflect a loss of $601,000 on the sale of the wholly owned
 subsidiary, G.C. Industries, a gain on the settlement of a lawsuit included as
 other income, net and the write-off of a note receivable from the previous
 sale of a product line included in selling, general and administrative
 expenses. For the nine months ended March 31, 2001, net income was
 $2,210,000 on revenues of $39,508,000 as compared to net income of
 $3,532,000 on revenues of $39,124,000 for the nine months ended
 March 31, 2000. Net income for the three and nine month periods ended
 March 31, 2000 included as other income, net a gain from the sale of
 securities.
     Invivo Research, the Company's medical device subsidiary, reported third
 quarter revenues of $9,153,000, approximately 10% higher than the prior year's
 third quarter of $8,350,000 and approximately 8% over the previous second
 quarter revenues of $8,446,000. "We are very pleased with these results
 considering that the vital sign monitoring market continues to experience a
 significant slowdown," stated James B. Hawkins, President and CEO of Invivo
 Corporation.
     "In the third quarter ended March 31, 2001, we continued to have strong
 activity in our MRI vital sign monitoring products. Also in the quarter,
 Invivo Corporation's backlog increased by approximately $1 million primarily
 due to the performance of our medical subsidiary," Hawkins added.
     Safety and industrial revenues totaled $4,648,000 in the third quarter
 ended March 31, 2001, down from $4,882,000 in the third quarter of last year.
 "We continued to experience a slowdown in some of our safety and industrial
 markets," Hawkins stated.
     "Looking forward to our upcoming fourth quarter, we anticipate revenues at
 Invivo Research to be $9.7 million and total revenues for Invivo Corporation
 to be $14.3 million," said Hawkins.
     This press release contains forward-looking statements regarding our
 future operations and expectation of future events, including projection of
 future revenue for our business segments and for our Company as a whole. These
 statements can be identified by terminology such as "anticipates," "believes,"
 "continue," "could," "estimates," "expects," "intends," "may," "plans,"
 "predicts," "should," or "will" or other terminology relating to future
 events. These statements involve certain risks and uncertainties. Factors that
 may cause actual results to differ from expected results include, but are not
 limited to, the uncertain growth prospects for new markets, the Company's
 dependence on a concentrated line of products, the effects of competitive
 products and pricing, economic and political conditions that may impact
 customers' ability to fund purchases of our products and services,
 fluctuations in international exchange rates, product liability and product
 recall risks and other business factors. For information regarding these risks
 and other related risks, see the "Risk Factors" section of the Company's most
 recent Form 10-Q on file with the SEC.
     In conjunction with Invivo Corporation's second quarter earnings release,
 the Company's conference call will be broadcast live over the Internet on
 Friday, April 20, 2001 at 11:00 a.m. Eastern at
 http://www.videonewswire.com/INVIVO/042001 .
 
     Invivo Corporation's Invivo Research subsidiary designs, manufactures and
 markets monitoring systems that measure and display vital signs of patients in
 medical settings. The Company also manufactures and markets a line of products
 for industrial instrumentation and safety applications.
 
     INVIVO CORPORATION
     CONSOLIDATED STATEMENTS OF INCOME
     (000'S OMITTED, EXCEPT FOR PER SHARE AND SHARE DATA)
 
                              Three Months Ended          Nine Months Ended
                                   March 31,                  March 31,
                               2001         2000         2001          2000
 
     Sales                  $13,801        13,232       39,508        39,124
     Cost of goods sold       7,089         6,854       20,242        20,111
 
       Gross Profit           6,712         6,378       19,266        19,013
 
     Operating Expenses:
      Selling, general
       and administrative     5,008         4,274       13,586        12,049
      Research and
       experimental             884           801        2,376         2,213
       Total operating
        expenses              5,892         5,075       15,962        14,262
 
       Income from
        operations              820         1,303        3,304         4,751
 
     Other income (expense):
      Interest income           110            77          324           283
      Interest expense         (28)          (35)         (92)          (99)
      Loss on sale of
       G.C. Industries        (601)            --        (601)            --
      Other, net                439           416          439           417
 
       Income before
        income taxes            740         1,761        3,374         5,352
 
     Income tax expense         255           598        1,164         1,820
 
       Net income              $485         1,163        2,210         3,532
 
     Basic net income per
      common share            $0.11          0.27         0.50          0.82
 
     Weighted average of
      common shares
      outstanding
      (basic)             4,410,438     4,362,999    4,394,965     4,317,588
 
     Diluted net income
      per common share        $0.11          0.26         0.49          0.78
     Weighted average of
      common shares
      outstanding
      (diluted)           4,463,154     4,497,405    4,475,657     4,506,697
 
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SOURCE Invivo Corporation
    PLEASANTON, Calif., April 20 /PRNewswire Interactive News Release/ --
 Invivo Corporation (Nasdaq: SAFE), announced today revenues increased 4.3% to
 $13,801,000 for the third quarter ended March 31, 2001 as compared to revenues
 of $13,232,000 for the third quarter ended March 31, 2000. Net income for the
 third quarter of fiscal 2001 was $485,000 compared to net income of
 $1,163,000 for the third quarter of fiscal 2000. Diluted net income per common
 share was $.11 for the third quarter of fiscal 2001 compared to $.26 for the
 third quarter of fiscal 2000. Results for the third quarter ended
 March 31, 2001 reflect a loss of $601,000 on the sale of the wholly owned
 subsidiary, G.C. Industries, a gain on the settlement of a lawsuit included as
 other income, net and the write-off of a note receivable from the previous
 sale of a product line included in selling, general and administrative
 expenses. For the nine months ended March 31, 2001, net income was
 $2,210,000 on revenues of $39,508,000 as compared to net income of
 $3,532,000 on revenues of $39,124,000 for the nine months ended
 March 31, 2000. Net income for the three and nine month periods ended
 March 31, 2000 included as other income, net a gain from the sale of
 securities.
     Invivo Research, the Company's medical device subsidiary, reported third
 quarter revenues of $9,153,000, approximately 10% higher than the prior year's
 third quarter of $8,350,000 and approximately 8% over the previous second
 quarter revenues of $8,446,000. "We are very pleased with these results
 considering that the vital sign monitoring market continues to experience a
 significant slowdown," stated James B. Hawkins, President and CEO of Invivo
 Corporation.
     "In the third quarter ended March 31, 2001, we continued to have strong
 activity in our MRI vital sign monitoring products. Also in the quarter,
 Invivo Corporation's backlog increased by approximately $1 million primarily
 due to the performance of our medical subsidiary," Hawkins added.
     Safety and industrial revenues totaled $4,648,000 in the third quarter
 ended March 31, 2001, down from $4,882,000 in the third quarter of last year.
 "We continued to experience a slowdown in some of our safety and industrial
 markets," Hawkins stated.
     "Looking forward to our upcoming fourth quarter, we anticipate revenues at
 Invivo Research to be $9.7 million and total revenues for Invivo Corporation
 to be $14.3 million," said Hawkins.
     This press release contains forward-looking statements regarding our
 future operations and expectation of future events, including projection of
 future revenue for our business segments and for our Company as a whole. These
 statements can be identified by terminology such as "anticipates," "believes,"
 "continue," "could," "estimates," "expects," "intends," "may," "plans,"
 "predicts," "should," or "will" or other terminology relating to future
 events. These statements involve certain risks and uncertainties. Factors that
 may cause actual results to differ from expected results include, but are not
 limited to, the uncertain growth prospects for new markets, the Company's
 dependence on a concentrated line of products, the effects of competitive
 products and pricing, economic and political conditions that may impact
 customers' ability to fund purchases of our products and services,
 fluctuations in international exchange rates, product liability and product
 recall risks and other business factors. For information regarding these risks
 and other related risks, see the "Risk Factors" section of the Company's most
 recent Form 10-Q on file with the SEC.
     In conjunction with Invivo Corporation's second quarter earnings release,
 the Company's conference call will be broadcast live over the Internet on
 Friday, April 20, 2001 at 11:00 a.m. Eastern at
 http://www.videonewswire.com/INVIVO/042001 .
 
     Invivo Corporation's Invivo Research subsidiary designs, manufactures and
 markets monitoring systems that measure and display vital signs of patients in
 medical settings. The Company also manufactures and markets a line of products
 for industrial instrumentation and safety applications.
 
     INVIVO CORPORATION
     CONSOLIDATED STATEMENTS OF INCOME
     (000'S OMITTED, EXCEPT FOR PER SHARE AND SHARE DATA)
 
                              Three Months Ended          Nine Months Ended
                                   March 31,                  March 31,
                               2001         2000         2001          2000
 
     Sales                  $13,801        13,232       39,508        39,124
     Cost of goods sold       7,089         6,854       20,242        20,111
 
       Gross Profit           6,712         6,378       19,266        19,013
 
     Operating Expenses:
      Selling, general
       and administrative     5,008         4,274       13,586        12,049
      Research and
       experimental             884           801        2,376         2,213
       Total operating
        expenses              5,892         5,075       15,962        14,262
 
       Income from
        operations              820         1,303        3,304         4,751
 
     Other income (expense):
      Interest income           110            77          324           283
      Interest expense         (28)          (35)         (92)          (99)
      Loss on sale of
       G.C. Industries        (601)            --        (601)            --
      Other, net                439           416          439           417
 
       Income before
        income taxes            740         1,761        3,374         5,352
 
     Income tax expense         255           598        1,164         1,820
 
       Net income              $485         1,163        2,210         3,532
 
     Basic net income per
      common share            $0.11          0.27         0.50          0.82
 
     Weighted average of
      common shares
      outstanding
      (basic)             4,410,438     4,362,999    4,394,965     4,317,588
 
     Diluted net income
      per common share        $0.11          0.26         0.49          0.78
     Weighted average of
      common shares
      outstanding
      (diluted)           4,463,154     4,497,405    4,475,657     4,506,697
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X47135783
 
 SOURCE  Invivo Corporation