VitalCom Inc. Reports First Quarter Results; Revenues Increase 68% Over the Same Period 2000

Apr 25, 2001, 01:00 ET from VitalCom Inc.

    TUSTIN, Calif., April 25 /PRNewswire/ -- VitalCom Inc. (Nasdaq:   VCOM)
 today announced its results for the first quarter ended March 31, 2001.
     VitalCom's revenues for the first quarter ended March 31, 2001 were
 $5,201,338 compared to $3,102,884 in the first quarter of 2000, an increase of
 68%.  The net loss in the quarter prior to charges associated with the
 proposed merger with Data Critical was $(891,586), or $(.11) per basic and
 diluted share, compared to a net loss of $(2,576,444) in the first quarter of
 2000, or $(.32) per basic and diluted share, a decrease of 189%.  The net
 loss in the quarter after the one time merger charges was $(1,166,088), or
 $(.14) per basic and diluted share.
     Frank T. Sample, VitalCom President and CEO stated, "We are pleased with
 our continued quarter over quarter revenue performance.  We believe the
 ability to deliver our protected advanced wireless infrastructure uniquely
 positions VitalCom to exploit the growing requirements hospitals have to
 gather, process, and distribute patient vital sign information."  Sample added
 "In addition, we are enthusiastic about our pending merger with Data Critical
 Corporation, which is scheduled (subject to typical conditions) to close
 during the second quarter.  We believe the combination will bring greater
 technological, financial and business resources to the combined company."
 
     VitalCom Inc., headquartered in Tustin, California, is a leading developer
 and manufacturer of some of the country's largest open and wireless patient
 information networks.  The company's PatientNet(TM) system creates an
 enterprise-wide wireless infrastructure that distributes patient information
 from its own and other manufacturers' monitoring and bedside devices.  The
 patient information is centralized, then analyzed using sophisticated
 arrhythmia detection software.  PatientNet provides caregivers with time
 critical access to real-time patient information, including notification of
 critical patient events and is distributed via the Internet, a hospital-wide
 wireless LAN or Intranet.  A WAN is used to link multiple hospital facilities
 to information in the PatientNet system.  The product has been installed in
 more than 100 hospitals throughout the country including Barnes Jewish
 Hospital in St. Louis, MO, Montefiore Medical Center in New York City, NY,
 Saint Luke's - Shawnee Mission Health System in Kansas City, MO and the
 University of Alabama Medical Center in Birmingham, AL.  Currently, VitalCom's
 largest installation is a 296-channel system at Washington Hospital Center in
 Northwest Washington, D.C.  VitalCom's website is www.vitalcom.com.
 
     This news release contains forward-looking statements, including, but not
 limited to, VitalCom's statements with respect to: (i) VitalCom's prospects to
 exploit certain markets; (ii) VitalCom's prospective merger with Data Critical
 Corporation; and (iii) the capabilities of VitalCom's products.  Actual
 results could vary materially from the forward-looking statements contained
 herein due to many factors, including market and customer acceptance of
 VitalCom's products and programs, governmental actions, general economic
 conditions, changing market conditions, the reaction of hospitals to changes
 made by the FCC, and other risk factors detailed in VitalCom's Form 10-K for
 the year ended Dec. 31, 2000 and other documents filed with the Securities and
 Exchange Commission.  VitalCom does not undertake an obligation to update the
 information contained herein, which speaks only as of this date.  VitalCom and
 PatientNet are registered trademarks of VitalCom Inc.
 
 
                                   VITALCOM INC.
                              STATEMENTS OF OPERATIONS
 
 
                                                 Three Months Ended
                                                     March 31,
                                          2001       %         2000       %
                                            Unaudited            Unaudited
     Revenues:                         $5,201,338  100.0%   $3,102,884  100.0%
 
     Cost of sales                      2,498,283   48.0%    1,838,126   59.2%
 
     Gross profit                       2,703,055   52.0%    1,264,758   40.8%
 
     Operating expenses
       Sales and marketing              1,493,839   28.7%    1,611,526   51.9%
       Research and development         1,539,774   29.6%    1,808,503   58.3%
       General and administration         877,822   16.9%      578,487   18.6%
           Total operating expenses     3,911,435   75.2%    3,998,516  128.9%
 
     Operating loss                    (1,208,380) (23.2%)  (2,733,758) (88.1%)
 
     Other income, net                     51,292    1.0%      166,314    5.4%
 
     Loss before provision for income
      taxes                            (1,157,088) (22.2%)  (2,567,444) (82.7%)
 
     Provision for income taxes             9,000    0.2%        9,000    0.3%
 
     Net loss                         $(1,166,088) (22.4%) $(2,576,444) (83.0%)
 
 
     Net loss per basic common share       $(0.14)              $(0.32)
 
     Weighted average basic common
      shares                            8,180,800            7,934,416
 
 
                                   VITALCOM INC.
                                  BALANCE SHEETS
 
 
                                                  March 31,       December 31,
                                                    2001              2000
                                                  Unaudited          Audited
                             ASSETS
     Current assets
         Cash and cash equivalents               $1,004,888        $3,657,100
         Restricted cash                          2,500,000         2,500,000
         Short-term investments                           0                 0
         Accounts receivable, net                 5,451,261         3,828,821
         Inventories, net                         1,667,101         1,644,181
         Prepaid expenses                           157,158           134,396
            Total current assets                 10,780,408        11,764,498
 
 
         Property, plant and equipment,
          gross                                   4,274,008         4,244,524
         Less accumulated amortization and
          depreciation                           (2,685,694)       (2,536,061)
            Property, plant & equipment,
             net                                  1,588,314         1,708,463
 
     Other assets                                    63,476            75,872
     Goodwill, net                                  382,350           390,485
                                                $12,814,547       $13,939,318
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
     Current liabilities:
         Accounts payable                        $1,515,866        $1,609,559
         Accrued payroll and related costs          669,519           999,488
         Accrued warranty costs                     528,316           532,898
         Accrued liabilities                        700,136           573,395
            Total current liabilities             3,413,837         3,715,340
 
 
     Stockholders' equity (deficit):
         Common stock, including paid-in
          capital, $.0001 par value;
          25,000,000 shares authorized;
          8,462,453 shares issued and
          8,098,903 shares outstanding
          at December 31, 2000; 8,462,453
          shares issued and 8,266,419 shares
          outstanding at March 31, 2001          38,160,751        38,160,751
         Note receivable for common stock
          sales                                     (30,590)          (30,590)
         Treasury stock                            (397,334)         (740,154)
         Accumulated deficit                    (28,332,117)      (27,166,029)
            Net stockholders' equity
             (deficit)                            9,400,710        10,223,978
                                                $12,814,547       $13,939,318
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X44412432
 
 

SOURCE VitalCom Inc.
    TUSTIN, Calif., April 25 /PRNewswire/ -- VitalCom Inc. (Nasdaq:   VCOM)
 today announced its results for the first quarter ended March 31, 2001.
     VitalCom's revenues for the first quarter ended March 31, 2001 were
 $5,201,338 compared to $3,102,884 in the first quarter of 2000, an increase of
 68%.  The net loss in the quarter prior to charges associated with the
 proposed merger with Data Critical was $(891,586), or $(.11) per basic and
 diluted share, compared to a net loss of $(2,576,444) in the first quarter of
 2000, or $(.32) per basic and diluted share, a decrease of 189%.  The net
 loss in the quarter after the one time merger charges was $(1,166,088), or
 $(.14) per basic and diluted share.
     Frank T. Sample, VitalCom President and CEO stated, "We are pleased with
 our continued quarter over quarter revenue performance.  We believe the
 ability to deliver our protected advanced wireless infrastructure uniquely
 positions VitalCom to exploit the growing requirements hospitals have to
 gather, process, and distribute patient vital sign information."  Sample added
 "In addition, we are enthusiastic about our pending merger with Data Critical
 Corporation, which is scheduled (subject to typical conditions) to close
 during the second quarter.  We believe the combination will bring greater
 technological, financial and business resources to the combined company."
 
     VitalCom Inc., headquartered in Tustin, California, is a leading developer
 and manufacturer of some of the country's largest open and wireless patient
 information networks.  The company's PatientNet(TM) system creates an
 enterprise-wide wireless infrastructure that distributes patient information
 from its own and other manufacturers' monitoring and bedside devices.  The
 patient information is centralized, then analyzed using sophisticated
 arrhythmia detection software.  PatientNet provides caregivers with time
 critical access to real-time patient information, including notification of
 critical patient events and is distributed via the Internet, a hospital-wide
 wireless LAN or Intranet.  A WAN is used to link multiple hospital facilities
 to information in the PatientNet system.  The product has been installed in
 more than 100 hospitals throughout the country including Barnes Jewish
 Hospital in St. Louis, MO, Montefiore Medical Center in New York City, NY,
 Saint Luke's - Shawnee Mission Health System in Kansas City, MO and the
 University of Alabama Medical Center in Birmingham, AL.  Currently, VitalCom's
 largest installation is a 296-channel system at Washington Hospital Center in
 Northwest Washington, D.C.  VitalCom's website is www.vitalcom.com.
 
     This news release contains forward-looking statements, including, but not
 limited to, VitalCom's statements with respect to: (i) VitalCom's prospects to
 exploit certain markets; (ii) VitalCom's prospective merger with Data Critical
 Corporation; and (iii) the capabilities of VitalCom's products.  Actual
 results could vary materially from the forward-looking statements contained
 herein due to many factors, including market and customer acceptance of
 VitalCom's products and programs, governmental actions, general economic
 conditions, changing market conditions, the reaction of hospitals to changes
 made by the FCC, and other risk factors detailed in VitalCom's Form 10-K for
 the year ended Dec. 31, 2000 and other documents filed with the Securities and
 Exchange Commission.  VitalCom does not undertake an obligation to update the
 information contained herein, which speaks only as of this date.  VitalCom and
 PatientNet are registered trademarks of VitalCom Inc.
 
 
                                   VITALCOM INC.
                              STATEMENTS OF OPERATIONS
 
 
                                                 Three Months Ended
                                                     March 31,
                                          2001       %         2000       %
                                            Unaudited            Unaudited
     Revenues:                         $5,201,338  100.0%   $3,102,884  100.0%
 
     Cost of sales                      2,498,283   48.0%    1,838,126   59.2%
 
     Gross profit                       2,703,055   52.0%    1,264,758   40.8%
 
     Operating expenses
       Sales and marketing              1,493,839   28.7%    1,611,526   51.9%
       Research and development         1,539,774   29.6%    1,808,503   58.3%
       General and administration         877,822   16.9%      578,487   18.6%
           Total operating expenses     3,911,435   75.2%    3,998,516  128.9%
 
     Operating loss                    (1,208,380) (23.2%)  (2,733,758) (88.1%)
 
     Other income, net                     51,292    1.0%      166,314    5.4%
 
     Loss before provision for income
      taxes                            (1,157,088) (22.2%)  (2,567,444) (82.7%)
 
     Provision for income taxes             9,000    0.2%        9,000    0.3%
 
     Net loss                         $(1,166,088) (22.4%) $(2,576,444) (83.0%)
 
 
     Net loss per basic common share       $(0.14)              $(0.32)
 
     Weighted average basic common
      shares                            8,180,800            7,934,416
 
 
                                   VITALCOM INC.
                                  BALANCE SHEETS
 
 
                                                  March 31,       December 31,
                                                    2001              2000
                                                  Unaudited          Audited
                             ASSETS
     Current assets
         Cash and cash equivalents               $1,004,888        $3,657,100
         Restricted cash                          2,500,000         2,500,000
         Short-term investments                           0                 0
         Accounts receivable, net                 5,451,261         3,828,821
         Inventories, net                         1,667,101         1,644,181
         Prepaid expenses                           157,158           134,396
            Total current assets                 10,780,408        11,764,498
 
 
         Property, plant and equipment,
          gross                                   4,274,008         4,244,524
         Less accumulated amortization and
          depreciation                           (2,685,694)       (2,536,061)
            Property, plant & equipment,
             net                                  1,588,314         1,708,463
 
     Other assets                                    63,476            75,872
     Goodwill, net                                  382,350           390,485
                                                $12,814,547       $13,939,318
 
 
     LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
     Current liabilities:
         Accounts payable                        $1,515,866        $1,609,559
         Accrued payroll and related costs          669,519           999,488
         Accrued warranty costs                     528,316           532,898
         Accrued liabilities                        700,136           573,395
            Total current liabilities             3,413,837         3,715,340
 
 
     Stockholders' equity (deficit):
         Common stock, including paid-in
          capital, $.0001 par value;
          25,000,000 shares authorized;
          8,462,453 shares issued and
          8,098,903 shares outstanding
          at December 31, 2000; 8,462,453
          shares issued and 8,266,419 shares
          outstanding at March 31, 2001          38,160,751        38,160,751
         Note receivable for common stock
          sales                                     (30,590)          (30,590)
         Treasury stock                            (397,334)         (740,154)
         Accumulated deficit                    (28,332,117)      (27,166,029)
            Net stockholders' equity
             (deficit)                            9,400,710        10,223,978
                                                $12,814,547       $13,939,318
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X44412432
 
 SOURCE  VitalCom Inc.