Company Achieves $15.3 Million in Quarterly Revenues with Gross Margins of 57.6%. Full Year Revenues Come in at $45.7 Million. Sonosite Launches SonoHeart ELITE System for Cardiology and Opens Direct Operation in Spain
BOTHELL, WA, February 14, 2002 - Sonosite, Inc. (Nasdaq: SONO) today released financial results for the fourth quarter and year ended December 31, 2001. For the quarter Sonosite reported product revenues of $15.3 million, up 29 percent sequentially and 129 percent over Q4 2000. Gross margins increased for the fourth consecutive quarter to 57.6 percent, an improvement of 22.9 percentage points over Q4 2000. For the year, the Company achieved $45.7 million in revenues, up 43 percent over the prior year, and gross margins of 52.2 percent, up 10.4 percentage points over the prior year.
Sonosite reported a quarterly net loss of $2.4 million, or $0.21 per share, compared to a net loss of $8.2 million, or $0.86 per share for Q4 2000. The quarterly net loss included legal fees of $618 thousand associated with the defense of our intellectual property rights and losses of $425 thousand on our investment in China. For the year, Sonosite reported a net loss of $16.4 million, or $1.59 per share.
This loss compares to a loss of $19.0 million, or $2.01 per share, for the prior year. Excluding the above mentioned expenses, the net loss per share would have been $0.12 per share for the quarter and $1.49 per share for the year. "The fourth quarter was a continuation of strong progress for Sonosite throughout 2001. Revenues were up sequentially across all of our geographic markets," said Kevin M. Goodwin, president and CEO of Sonosite.
"Moving forward, we plan to build on the momentum of 2001 by growing our core markets, introducing new products, and building sales and marketing momentum in key geographic markets." The Company also announced today the opening of a direct operation in Barcelona, Spain. Mr. Pascual Garcia, who will manage the new office, has more than 12 years of experience in the ultrasound industry. Formerly, he was a regional manager for Acuson in Spain.
This office is the fourth direct operation that Sonosite has established in Western Europe in the past year. Earlier this month, Sonosite also announced its newest product for cardiology, the SonoHeart ELITE hand-carried ultrasound system. Since the product's introduction, the Company has received several order commitments. Designed exclusively for the cardiovascular market, the SonoHeart ELITE system is the first all-digital, full-featured system weighing just 5.7 pounds with continuous wave Doppler for quantification of blood flow and Extended Resolution Harmonics for enhanced 2 D imaging. For the first time, physicians can perform a full echo exam with a truly portable, affordable system without sacrificing image quality.
Other highlights include:
- Sonosite shipped its 5,000th hand-carried ultrasound system in December. Sonosite's first product, the Sonosite 180 system, began shipping in September 1999.
- Sonosite Germany and Sonosite France direct offices were established, providing direct sales and support to two of the world's largest medical equipment markets.
- Broadlane, a leader in healthcare supply chain management services, signed a two-year purchasing agreement that provides Broadlane customers with access to Sonosite products. Broadlane customers include Kaiser Permanente, Tenet Healthcare Corporation, Universal Health Services, Community Health Systems and others.
- National Health Service (NHS) in the United Kingdom signed a two-year agreement with Sonosite to provide NHS customers with Sonosite products. NHS is responsible for the purchase and supply management of over 85 percent of all medical equipment sales in the U.K.
- The SonoHeart system was the subject of studies presented at the Annual Scientific Sessions of the American Heart Association. Researchers concluded that the SonoHeart system is effective in improving detection of significant asymptomatic disease.
- The Japanese Ministry of Health, Labor and Welfare granted clearance to market and distribute the Sonosite 180PLUS system in Japan.
Today, Sonosite's management team will host a conference call at 1:30 p.m. PST to discuss fourth quarter and year end results. To listen to the call live, dial 913-981-5517 or toll-free 800-289-0468. The call also will be broadcast live via the "Investors" section of Sonosite's website (www.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.