Gross Margins Rise for Fifth Consecutive Quarter; SonoHeart ELITE System off to a Strong Start
BOTHELL, WA, April 22, 2002 - Sonosite, Inc. (Nasdaq: SONO) today released financial results for the first quarter ended March 31, 2002. For the quarter, Sonosite reported revenue of $12.8 million compared to $8.2 million for the first quarter of 2001, an increase of 57 percent. Sonosite reported a net loss of $3.7 million, or $0.32 per share, for the quarter compared to a net loss of $6.7 million, or $0.70 per share, for the first quarter of 2001, a reduction of 45 percent. Gross margins increased for the fifth consecutive quarter to 58.0 percent compared to 40.4 percent in the first quarter of 2001. As of March 31, 2002, cash and cash equivalents totaled $33.7 million and working capital totaled $45.4 million.
"I am pleased to report another strong step for Sonosite," said Kevin M. Goodwin, president and CEO. "Most notably in the quarter, our marketing, engineering and operations groups introduced and shipped the SonoHeart ELITE system on schedule, marking our ninth product move since we first introduced our technology two and a half years ago. We are pleased with the initial response to the SonoHeart ELITE system.
" Sonosite launched the SonoHeart ELITE hand-carried ultrasound system for cardiovascular imaging at the 51st Annual Scientific Sessions of the American College of Cardiology in Atlanta in March 2002. Sonosite's third product innovation in cardiology, the SonoHeart ELITE system offers continuous wave (CW) Doppler for quantification of blood flow in the heart, and Extended Resolution Harmonics for enhanced two-dimensional images. Since the launch, the Company has received several order commitments and began shipping the SonoHeart ELITE platform to customers during March 2002. "We use state-of-the-art cart-based systems," said Judy Mangion, MD, Director of Echocardiography, Northshore University Hospital, Manhasset, New York. "I was very impressed with the image quality of the SonoHeart ELITE. It is comparable to larger, traditional ultrasound equipment. It is amazing that CW Doppler, Harmonics and color power Doppler imaging of this quality are available in such a small device."
Other Highlights from the Quarter Included:
- The federal government awarded Sonosite with a renewable contract to provide the Sonosite 180PLUS and SonoHeart ELITE systems to both hospital facilities and deployable operations within the federal government healthcare system.
- The Sonosite 180 system was shown to be effective in detecting neck artery blockages, in a study presented at the American Stroke Association's 27th International Stroke Conference. "This technology could potentially revolutionize vascular screening by enabling physicians to accurately identify patients having increased risk for stroke," concluded a study investigator.
- Blake W. Little was promoted to vice president of engineering. With Sonosite since its spin-off from ATL Ultrasound in April 1998, Mr. Little oversees engineering for the Company.
Today, Sonosite's management team will host a conference call at 1:30 p.m. (PDT) to discuss first quarter results. The call will be broadcast live via the "Investors" section of Sonosite's corporate website: http://ir.sonosite.com/.
Sonosite, Inc. (www.sonosite.com) is the innovator and world leader in hand-carried ultrasound, with an installed base of more than 20,000 systems. The Company, headquartered near Seattle, Washington is represented by eight subsidiaries and a global distribution netwok in over 75 countries. Sonosite's small, lightweight systems are expanding the use of ultrasound across the clinical spectrum by cost-effectively bringing high performance ultrasound to the point of patient care. The Company employs approximately 450 people worldwide.