Worldwide Revenues Increase 55 Percent, Gross Margins Rise for Seventh Consecutive Quarter to 59.5 Percent
BOTHELL, WA, October 23, 2002 - Sonosite, Inc. (Nasdaq: SONO), the leader and creator of hand-carried ultrasound, today released financial results for the third quarter ended September 30, 2002. For the quarter, Sonosite reported revenues of $18.5 million vs. $11.9 million for the third quarter of 2001, an increase of 55 percent. For the nine months, revenues were $47.9 million, an increase of 58 percent, compared to $30.4 million in the first nine months of 2001.
Sonosite reported a net loss of $2.4 million, or $0.17 per share, for the quarter compared to a net loss of $2.3 million, or $0.21 per share, for the comparable quarter in the prior year. Gross margins increased for the seventh consecutive quarter to 59.5 percent, compared to 56.6 percent in the third quarter of 2001. For the nine months, the net loss totaled $8.6 million, or $0.68 per share, vs. $14.0 million, or $1.41 per share, for the period a year earlier. As of September 30, 2002, cash, cash equivalents and investment securities totaled $69.3 million.
Worldwide, Sonosite's revenues increased in each of its major geographic markets. Compared to the same quarter in 2001, revenues rose 75 percent in the U.S., 64 percent in Europe and 10 percent in the JPLAC region (Japan, Asia, Latin America, Australia and Canada).
"Our results for the third quarter were right on target," said Kevin M. Goodwin, Sonosite president and CEO. "This progress puts us in position to pursue our first quarterly profit in the fourth quarter. Physician response to our newly launched iLook product line has been extremely positive, and it is still early yet. We are optimistic about the future of this product line."
Quarterly Highlights Include:
Sales of Sonosite's flagship products, the Sonosite 180PLUS and SonoHeart ELITE systems, were strong - Since launching its first product just over 36 months ago, Sonosite has now shipped nearly 8,500 systems.
Factory volumes increased, leading to continued manufacturing efficiencies - Production volumes increased in the third quarter driven by increased sales, the launch of iLook products, and preparation for the seasonally strong fourth quarter. European direct operations strengthened by addition of sales representatives. Deloitte & Touche's "FAST 50" Program named Sonosite one of Washington State's Rising Stars - The award is based on a company's revenue growth from 1999 through 2001. Sonosite's revenue more than quadrupled from $10.3 million in 1999 to $45.7 million in 2001.
Outlook
"We expect to continue our year-over-year quarterly growth rates of at least 50 percent, with revenue expectations for the fourth quarter of $25 million to $27 million," Goodwin said. "Margins are expected to approach 60 percent in the fourth quarter. Expenses in the fourth quarter are estimated at $15 million, and we expect earnings in the range of $0.01 to $0.05 per share. We anticipate full-year profitability in 2003."
BOTHELL, WA, October 23, 2002 - Sonosite, Inc. (Nasdaq: SONO), the leader and creator of hand-carried ultrasound, today released financial results for the third quarter ended September 30, 2002. For the quarter, Sonosite reported revenues of $18.5 million vs. $11.9 million for the third quarter of 2001, an increase of 55 percent. For the nine months, revenues were $47.9 million, an increase of 58 percent, compared to $30.4 million in the first nine months of 2001.
Sonosite reported a net loss of $2.4 million, or $0.17 per share, for the quarter compared to a net loss of $2.3 million, or $0.21 per share, for the comparable quarter in the prior year. Gross margins increased for the seventh consecutive quarter to 59.5 percent, compared to 56.6 percent in the third quarter of 2001. For the nine months, the net loss totaled $8.6 million, or $0.68 per share, vs. $14.0 million, or $1.41 per share, for the period a year earlier. As of September 30, 2002, cash, cash equivalents and investment securities totaled $69.3 million.
Worldwide, Sonosite's revenues increased in each of its major geographic markets. Compared to the same quarter in 2001, revenues rose 75 percent in the U.S., 64 percent in Europe and 10 percent in the JPLAC region (Japan, Asia, Latin America, Australia and Canada).
"Our results for the third quarter were right on target," said Kevin M. Goodwin, Sonosite president and CEO. "This progress puts us in position to pursue our first quarterly profit in the fourth quarter. Physician response to our newly launched iLook product line has been extremely positive, and it is still early yet. We are optimistic about the future of this product line."
Quarterly Highlights Include:
Sales of Sonosite's flagship products, the Sonosite 180PLUS and SonoHeart ELITE systems, were strong - Since launching its first product just over 36 months ago, Sonosite has now shipped nearly 8,500 systems.
Factory volumes increased, leading to continued manufacturing efficiencies - Production volumes increased in the third quarter driven by increased sales, the launch of iLook products, and preparation for the seasonally strong fourth quarter. European direct operations strengthened by addition of sales representatives. Deloitte & Touche's "FAST 50" Program named Sonosite one of Washington State's Rising Stars - The award is based on a company's revenue growth from 1999 through 2001. Sonosite's revenue more than quadrupled from $10.3 million in 1999 to $45.7 million in 2001.
Outlook
"We expect to continue our year-over-year quarterly growth rates of at least 50 percent, with revenue expectations for the fourth quarter of $25 million to $27 million," Goodwin said. "Margins are expected to approach 60 percent in the fourth quarter. Expenses in the fourth quarter are estimated at $15 million, and we expect earnings in the range of $0.01 to $0.05 per share. We anticipate full-year profitability in 2003."
About Sonosite
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.