Company Reports Per-Share Profit of $0.06 for Fourth Quarter 2002; 2002 Worldwide Revenues Total $73.0 Million, Revenue Growth of 64% vs. Fourth Quarter 2001 and 60% Year Over Year
BOTHELL, WA, February 13, 2003 - Sonosite, Inc. (Nasdaq: SONO), the creator of the hand-carried ultrasound market, today released financial results for the fourth quarter and full year ended December 31, 2002. For the quarter, Sonosite reported revenues of $25.1 million compared to $15.3 million for the fourth quarter of 2001. For 2002, Sonosite reported revenues of $73.0 million compared to $45.7 million in 2001.
Sonosite reported a net profit of $869,000, or $0.06 per share, for the quarter compared to a net loss of $2.4 million, or $0.21 per share, for the comparable quarter in the prior year. Gross margins increased for the eighth consecutive quarter to 60.3 percent, compared to 57.6 percent in the fourth quarter of 2001. For the year, the net loss decreased to $7.7 million, or $0.59 per share, compared to a net loss of $16.4 million, or $1.59 per share, for 2001. As of December 31, 2002, cash, cash equivalents and investment securities totaled $65.8 million.
"We are pleased with achieving profitability in the fourth quarter, and we are also proud of our continued progress in the marketplace," said Kevin M. Goodwin, president and CEO. "In 2002, we strengthened our leadership position in hand-carried ultrasound as we continued product innovation, increased productivity, built direct sales operations in Europe, developed new markets and enhanced our financial position."
Worldwide, Sonosite's quarterly revenues increased in each of its major geographic markets. Compared to the same quarter in 2001, revenues rose 80 percent in the U.S., 120 percent in Europe and 7 percent in the JPLAC region (Japan, Asia Pacific, Latin America, Australia and Canada). For the year, revenues rose 79 percent in the U.S., 63 percent in Europe and 22 percent in JPLAC.
"Our 2002 growth was driven by several factors," Goodwin added. "Customer adoption of the Sonosite 180PLUS system continued to grow, resulting in a trend toward multiple-system sales. We continued to control operational costs by increasing efficiencies in manufacturing while ensuring high product reliability. We continued investing in the U.S. and Europe by expanding the number of reps, providing advanced training, as well as adding a clinical applications team. As a result, in the U.S. our revenue per rep increased 34 percent over the prior year. In Europe, our direct operations in Germany, France and Spain completed their first quarter at full headcount, with revenues up 140 percent sequentially. All of these factors helped us grow revenues, increase margins and produce improved results."
Other Highlights Include:
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 913-981-5518 or toll-free 800-289-0485. The call also will be broadcast live via the "Investors" section of Sonosite's website (www.sonosite.com).
Outlook
"In 2003, we expect progress from our infrastructure to reach greater commercial productivity, which we believe will help us reach sustained profitability," Goodwin said. "Increasing productivity is critical. Best practices of our people will continue to be transferred throughout the Company, with an ongoing investment in training and education. Most importantly, we plan to further develop our marketing capabilities, significantly improving our approach in key markets like Japan."
"For the first quarter, we expect a loss of $0.20 to $0.30 per share on revenue of $16 million to $18 million, reflecting seasonally slow hospital equipment sales in the U.S and a transition taking place within Olympus, our partner in Japan. Olympus is doubling its sales force and changing their use of dealers just as we did successfully in the U.S. and Europe. Although we expect this transition to result in a drop in revenue from Japan in the first half of 2003, in the long term we anticipate achieving higher growth and profits," Goodwin continued. "Margins are expected to be approximately 61 percent. For the year, our goal, given current economic and political conditions, is revenue in the range of $90 million to $110 million. If we fall within the middle of this range, we would expect to be profitable with earnings of $0.30 per share to $0.40 per share."
BOTHELL, WA, February 13, 2003 - Sonosite, Inc. (Nasdaq: SONO), the creator of the hand-carried ultrasound market, today released financial results for the fourth quarter and full year ended December 31, 2002. For the quarter, Sonosite reported revenues of $25.1 million compared to $15.3 million for the fourth quarter of 2001. For 2002, Sonosite reported revenues of $73.0 million compared to $45.7 million in 2001.
Sonosite reported a net profit of $869,000, or $0.06 per share, for the quarter compared to a net loss of $2.4 million, or $0.21 per share, for the comparable quarter in the prior year. Gross margins increased for the eighth consecutive quarter to 60.3 percent, compared to 57.6 percent in the fourth quarter of 2001. For the year, the net loss decreased to $7.7 million, or $0.59 per share, compared to a net loss of $16.4 million, or $1.59 per share, for 2001. As of December 31, 2002, cash, cash equivalents and investment securities totaled $65.8 million.
"We are pleased with achieving profitability in the fourth quarter, and we are also proud of our continued progress in the marketplace," said Kevin M. Goodwin, president and CEO. "In 2002, we strengthened our leadership position in hand-carried ultrasound as we continued product innovation, increased productivity, built direct sales operations in Europe, developed new markets and enhanced our financial position."
Worldwide, Sonosite's quarterly revenues increased in each of its major geographic markets. Compared to the same quarter in 2001, revenues rose 80 percent in the U.S., 120 percent in Europe and 7 percent in the JPLAC region (Japan, Asia Pacific, Latin America, Australia and Canada). For the year, revenues rose 79 percent in the U.S., 63 percent in Europe and 22 percent in JPLAC.
"Our 2002 growth was driven by several factors," Goodwin added. "Customer adoption of the Sonosite 180PLUS system continued to grow, resulting in a trend toward multiple-system sales. We continued to control operational costs by increasing efficiencies in manufacturing while ensuring high product reliability. We continued investing in the U.S. and Europe by expanding the number of reps, providing advanced training, as well as adding a clinical applications team. As a result, in the U.S. our revenue per rep increased 34 percent over the prior year. In Europe, our direct operations in Germany, France and Spain completed their first quarter at full headcount, with revenues up 140 percent sequentially. All of these factors helped us grow revenues, increase margins and produce improved results."
Other Highlights Include:
- Sonosite announced it had shipped its 10,000th system just 39 months after shipping its first product, the Sonosite 180 hand-carried ultrasound system. The milestone shipment was to Vanderbilt University Medical Center in Nashville, TN for use in the ICU. Vanderbilt now has five Sonosite systems used throughout its medical facility.
- Dan Walton has assumed the position of vice president and general manager, the Americas, with responsibility for sales and marketing activities in the United States, Canada, Mexico and South America. Walton had previously served as Sonosite's vice president, corporate business development since July 2000, with primary responsibility for development of corporate alliances. Prior to joining Sonosite, Walton held various senior management positions with ATL/Philips Medical Systems North America, Baxter Healthcare and MD Buyline.
- A Medical Imaging magazine survey of its readers rated Sonosite #2 in price/performance among 57 medical device companies. Sonosite scored in the top 12 of several other categories including Positioning for the Future, Ability to Capitalize on New Markets, Product Training, Service and Support, and was ranked #12 overall. The 179 survey respondents included professionals from throughout the radiology industry.
- Several high profile publications including The Wall Street Journal, The New York Times and Popular Science featured Sonosite and its innovative products as leading-edge tools that have the potential to change the practice of medicine, like the physical exam.
- The Company appointed Kathy Surace-Smith as vice-president and general counsel responsible for all corporate legal affairs.
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 913-981-5518 or toll-free 800-289-0485. The call also will be broadcast live via the "Investors" section of Sonosite's website (www.sonosite.com).
Outlook
"In 2003, we expect progress from our infrastructure to reach greater commercial productivity, which we believe will help us reach sustained profitability," Goodwin said. "Increasing productivity is critical. Best practices of our people will continue to be transferred throughout the Company, with an ongoing investment in training and education. Most importantly, we plan to further develop our marketing capabilities, significantly improving our approach in key markets like Japan."
"For the first quarter, we expect a loss of $0.20 to $0.30 per share on revenue of $16 million to $18 million, reflecting seasonally slow hospital equipment sales in the U.S and a transition taking place within Olympus, our partner in Japan. Olympus is doubling its sales force and changing their use of dealers just as we did successfully in the U.S. and Europe. Although we expect this transition to result in a drop in revenue from Japan in the first half of 2003, in the long term we anticipate achieving higher growth and profits," Goodwin continued. "Margins are expected to be approximately 61 percent. For the year, our goal, given current economic and political conditions, is revenue in the range of $90 million to $110 million. If we fall within the middle of this range, we would expect to be profitable with earnings of $0.30 per share to $0.40 per share."
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.