Home Diagnostics, Inc. (Nasdaq:HDIX), a leading manufacturer and
marketer of diabetes testing supplies, today announced financial
results for the first quarter ended March 31, 2009.
Total revenue for the first quarter was $24.6 million, a
decrease of 2.1% from $25.1 million in the first quarter of 2008.
Retail channel sales were up 25.2%, driven by the continued
nationwide rollout of the TRUEresult and TRUE2go blood glucose
monitoring systems and the rollout of TRUEtrack at Walmart. Mail
service channel sales increased 21.8%, driven by continued success
of the private label, no-coding blood glucose monitoring system
recently launched with Liberty Medical. Distribution channel sales
decreased 19.0% as a result of reductions in inventory days supply
by some of the Company�s wholesale distribution customers.
International sales decreased 32.0%, driven primarily by reduced
sales to a distributor in Latin America.
Gross profit for the first quarter of 2009 was $11.6 million,
compared to $14.6 million in the first quarter of 2008. As a
percentage of sales, gross margin decreased to 47.1% compared to
58.1% in the prior year period. As the Company previously guided,
gross margin was negatively impacted by the continued investment in
the roll out of the new no-code products in the retail and mail
service channels. Gross margin was also impacted by lower pricing
in the mail service and distribution channels.
Selling, general and administrative expenses were $12.1 million
for the first quarter of 2009, compared with $11.9 million in the
first quarter of 2008. First quarter 2009 selling, general and
administrative included $0.4 million of severance and other
expenses related to the Company�s CEO transition.
Research and development expenses were $1.9 million for the
first quarter of 2009, compared with $2.4 million in the first
quarter of 2008. The decrease in research and development is
primarily due to lower new product development costs following the
launch of the TRUE2go and TRUEresult systems.
Operating loss for the first quarter of 2009 was $2.4 million,
compared to operating income of $0.4 million for the first quarter
of 2008.
For the three-month period ended March 31, 2009, the Company
reported a net loss of $1.7 million, or a loss of $0.10 per diluted
share, based on weighted average shares outstanding of 17.3
million. Net income for the three-month period ended March 31, 2008
was $0.7 million, or $0.04 per diluted share, based on 19.0 million
weighted average shares outstanding.
In March 2009, the Company received 510(k) clearance from the
U.S. Food and Drug Administration (FDA) for TRUEbalance, the
Company�s new low cost, no-coding meter. TRUEbalance broadens the
Company�s no-code product portfolio to meet the specific needs of
certain segments of the market. In addition, the TRUEbalance blood
glucose monitoring system allows the Company to further leverage
its established manufacturing infrastructure. The Company
anticipates launching TRUEbalance in the second quarter of
2009.
As outlined previously, the Company continues to be in
discussions with the FDA regarding the risk of inaccurate blood
glucose readings in GDH-PQQ systems for certain groups of patients
who are undergoing maltose based therapies. In late March, the
Company provided the FDA with a plan to further mitigate this risk
with its TRUEtest strips, which utilize this enzyme. The Company
has scheduled a meeting in May to discuss its plan with the
FDA.
Joseph Capper, President and Chief Executive Officer of Home
Diagnostics said, �Our first quarter results are slightly better
than our guidance. While we are not satisfied with our current
results, we are weathering the economic downturn substantially
better than several of the larger branded companies in the
industry, who reported double digit revenue declines in the first
quarter. We view this as an indicator of the strength of our value
offering, especially given the challenging economic environment,
which we believe is driving patients to lower cost alternatives.
Home Diagnostics is the clear leader in the value segment of the
blood glucose monitoring market, positioning us well to expand our
market share. We are encouraged by the rapid patient adoption of
our new no-coding meters and our capacity expansion is well
underway to meet this growing demand.�
2009 Financial
Guidance
For the full year 2009, the Company anticipates total revenue to
be in the range of $130 million to $133 million, representing
annual growth of 5% to 8%. The Company anticipates 2009 diluted
earnings per share to be in the range of $0.36 to $0.40. The
Company anticipates the majority of its 2009 revenue and earnings
to be weighted towards the second half of the year due to typical
business cycles and the ramp up of new product launches.
Conference Call
Home Diagnostics will hold a conference call on Thursday, May 7,
2009 at 8:30 a.m. ET to discuss the results. The dial-in numbers
are 1-877-407-0789 for domestic callers and 1-201-689-8562 for
international. A live Web cast of the conference call will be
available online from the investor relations page of the Company�s
corporate Web site at www.homediagnostics.com.
After the live Web cast, the call will remain available on Home
Diagnostics� Web site, www.homediagnostics.com, through June 7,
2009. In addition, a telephonic replay of the call will be
available until May 14, 2009. The replay dial-in numbers are
1-877-660-6853 for domestic callers and 1-201-612-7415 for
international callers. Please use account number 3055 and
conference ID number 321001.
About Home Diagnostics, Inc.
Based in Fort Lauderdale, Florida, Home Diagnostics, Inc.
(NASDAQ: HDIX) is a leading developer, manufacturer and marketer of
diabetes management solutions. Home Diagnostics, Inc. offers a
portfolio of high-quality blood glucose monitoring systems that
spans the spectrum of features and benefits to help every person
with diabetes better monitor and manage their disease. The Home
Diagnostics, Inc. product line includes TRUE2go�, TRUEresult�,
TRUEbalance�, TRUEtrack�, Sidekick�, TRUEread� and Prestige Smart
System� blood glucose monitoring systems. The products are
available in more than 45,000 pharmacies throughout the U.S. Home
Diagnostics is the exclusive co-brand supplier of blood glucose
monitoring supplies for leading pharmacies including CVS, Rite Aid
and Walgreens as well as national distributors such as
AmerisourceBergen, Cardinal Health, McKesson and Invacare. Home
Diagnostics, Inc. was named one of Forbes magazine�s �200 Best
Small Companies� in 2008. For more information please visit
www.homediagnostics.com.
Forward-Looking
Statements
All statements other than statements of historical facts
included in this release that address activities, events or
developments that we expect, believe or anticipate will or may
occur in the future are forward-looking statements.
These forward-looking statements are largely based on our
expectations and beliefs concerning future events, which reflect
estimates and assumptions made by the Company's management. These
estimates and assumptions reflect the Company's best judgment based
on currently known market conditions and other factors relating to
the Company's operations and business environment, all of which are
difficult to predict and many of which are beyond its control.
Although the Company believes its estimates and assumptions to
be reasonable, they are inherently uncertain and involve a number
of risks and uncertainties that are beyond the Company's control.
In addition, management's assumptions about future events may prove
to be inaccurate. Management cautions all readers that the
forward-looking statements contained in this release are not
guarantees of future performance, and the Company cannot assure any
reader that those statements will be realized or the
forward-looking events and circumstances will occur. Actual results
may differ materially from those anticipated or implied in the
forward-looking statements due to the factors listed in the "Risk
factors" and "Management's discussion and analysis of financial
condition and results of operations" sections contained in its
filings with the Securities and Exchange Commission. All
forward-looking statements speak only as of the date of this
release. The Company does not intend to publicly update or revise
any forward-looking statements as a result of new information,
future events or otherwise, except as required by law. These
cautionary statements qualify all forward-looking statements
attributable to the Company or persons acting on its behalf.
TRUE2go, TRUEresult, TRUEtest, TRUEtrack, Sidekick, TRUEread and
Prestige Smart System are trademarks of Home Diagnostics, Inc. All
other trademarks are property of their respective owners.
� � �
HOME DIAGNOSTICS, INC. AND SUBSIDIARIES Condensed
Consolidated Statements of Operations (Unaudited) �
Three Months
Ended March 31, 2008 �
% of Sales �
2009 �
% of Sales Net sales $ 25,120,280 100.0
% $ 24,601,628 100.0 %
Cost of sales � 10,531,933 � 41.9 % �
13,018,394 � 52.9 %
Gross profit � 14,588,347 � 58.1 % �
11,583,234 � 47.1 %
Operating expenses: Selling, general and
administrative (including stock-based compensation expense of
$233,001 and $306,589 for the three months ended March 31, 2008 and
2009, respectively) 11,870,718 47.3 % 12,108,847 49.2 % Research
and development � 2,356,848 � 9.4 % � 1,883,603 � 7.7 % Total
operating expenses � 14,227,566 � 56.6 % � 13,992,450 � 56.9 %
Income (loss) from operations � 360,781 � 1.4 % � (2,409,216
) -9.8 %
Other income (expense): Interest income, net
327,868 1.3 % 50,148 0.2 % Other income (expense), net � (526,581 )
-2.1 % � 119,805 � 0.5 % Total other income/(expense) � (198,713 )
-0.8 % � 169,953 � 0.7 %
Income (loss) before benefit for income
taxes 162,068 0.6 % (2,239,263 ) -9.1 % Benefit for income
taxes �
(559,298 ) -2.2 % �
(540,264 ) -2.2 %
Net income
(loss) $ 721,366 � 2.9 % $ (1,698,999 ) -6.9 % �
Earnings
per common share: Basic $ 0.04 � $ (0.10 ) Diluted $ 0.04 � $
(0.10 )
Weighted average shares used in computing earnings per
common share: Basic � 17,898,772 � � 17,326,013 � Diluted �
18,996,852 � � 17,326,013 � � � � � � � � �
Home Diagnostics,
Inc. Supplemental Information (Unaudited) �
December 31, March 31, 2008 2009
Selected Balance Sheet Data: Cash and cash equivalents $
30,366,785 $ 21,543,805 Working capital $ 44,005,456 $ 36,874,770
Total assets $ 141,339,701 $ 136,682,426 Total debt $ - $ - Total
stockholders' equity $ 112,065,961 $ 107,517,482 �
Three Months
Ended March 31, 2008 �
2009 Cash Flow Data: Cash Provided by
(Used In) Operating Activities $ 909,793 $ (1,222,445 ) Cash Used
in Investing Activities $ (1,726,361 ) $ (4,619,271 ) Cash Provided
by (Used in) Financing Activities $ 18,440 $ (2,725,208 ) � �
Revenue by Channel: Three Months Ended March 31,
2008 2009
Increase/(Decrease) � Retail $ 6,477,918 25.8 %
$ 8,113,560 33.0 % $ 1,635,642 25.2 % Distribution 11,323,297 45.1
% 9,175,597 37.3 % (2,147,700 ) -19.0 % Mail Service 4,336,755 17.3
% 5,283,736 21.5 % 946,981 21.8 % International � 2,982,310 � �
11.8 % � 2,028,735 8.2 % � (953,575 ) -32.0 % $ 25,120,280 � �
100.0 % $ 24,601,628 100.0 % $ (518,652 ) -2.1 % �
[HDIX-F]
Home Diagnostics (MM) (NASDAQ:HDIX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Home Diagnostics (MM) (NASDAQ:HDIX)
Historical Stock Chart
From Jul 2023 to Jul 2024