CAS Medical Systems Inc. (CASM, Financial) filed Quarterly Report for the period ended 2010-09-30.
Cas Medical Systems Inc. has a market cap of $40.2 million; its shares were traded at around $3.1 with and P/S ratio of 1.1.
Operating expenses for the three months ended September 30, 2010 increased $534,000 or 19% to $3,359,000 from $2,825,000 for the three months ended September 30, 2009. During the third quarter of 2009, $712,000 of the amounts received from the settlement of the Analogic arbitration reduced previously reported legal and other expenses. Excluding the legal expense settlement, current year operating expenses would have been $171,000 or 5% below the adjusted amount of $3,537,000 for the prior year due to personnel reductions initiated during several periods in 2009. Operating expenses for the nine months ended September 30, 2010 were $9,166,000 and decreased $1,252,000 or 12% from the $10,418,000 reported for the first nine months of 2010 primarily as a result of reductions in personnel effected during 2009 partially offset by increased legal expenses pertaining to the Somanetics litigation.
Research and development (“R&D”) expenses decreased $208,000 or 30% to $481,000 or 6% of revenues for the three months ended September 30, 2010 compared to $689,000 or 8% of revenues for the three months ended September 30, 2009. R&D expenses for the first nine months of 2010 decreased $480,000 or 25% to $1,413,000 from $1,893,000 reported for the first nine months of the prior year. For both periods reported, decreases in expenses pertained to salaries and related fringe benefits resulting from the 2009 personnel reductions, R&D project related materials, and depreciation and amortization and were partially offset by reductions in reimbursements from the National Institutes of Health (“NIH”) pertaining to the Company s Near-Infrared Spectroscopy (“NIRS”) technology compared to the same period of the prior year. For the three months and nine months ended September 30, 2010, NIH reimbursements totaled $125,000 and $372,000, respectively, compared to $187,000 and $601,000 for the three and nine-month periods ended September 30, 2009. As of September 30, 2010, a maximum of approximately $600,000 remains available under the $2.8 million multi-year NIH award received during 2007.
S,G&A expenses for the first nine months of 2010 totaled $7,753,000, a decrease of $772,000, or approximately 9%, from the $8,525,000 reported for the first nine months of 2009. G&A expenses increased approximately $907,000 primarily as a result of legal expenses associated with the Somanetics litigation. Marketing expenses decreased approximately $311,000 primarily as a result of prior year personnel reductions. Sales expenses decreased approximately $1,368,000 driven by reductions in non-Fore-Sight related personnel during 2009.
Cash provided by operations for the nine months ended September 30, 2010 was $2,917,000 compared to cash provided by operations of $519,000 for the first nine months of the prior year. Reductions in inventories of $1,344,000, increases in accounts payable and accrued expenses of $1,098,000 and tax refunds of $816,000 were primarily responsible for the increase and were partially offset by increases in deferred income taxes and accounts receivable. Cash provided by operations of $519,000 for the nine months ended September 30, 2009 resulted primarily from reductions in inventory of $1,379,000 and other receivables which were partially offset by increases in deferred income taxes and accounts receivable.
Cash used in financing activities for the nine months ended September 30, 2010 was $667,000 compared to cash used in financing activities of $320,000 for the first nine months of the prior year. During the nine months ended September 30, 2010, the Company repaid $1,970,000 against the line-of-credit and repaid $486,000 of its long-term debt. During June 2010, the Company consummated a non-brokered private placement of 1,375,000 shares of its common stock for net proceeds of $1,887,000. Deferred financing costs of $123,000 were associated with the Company s bank debt refinancing completed during March 2010.
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Cas Medical Systems Inc. has a market cap of $40.2 million; its shares were traded at around $3.1 with and P/S ratio of 1.1.
Highlight of Business Operations:
For the three months ended September 30, 2010, the Company reported a net loss of $508,000 or ($0.04) per basic and diluted common share compared to net income of $197,000 or $0.02 per basic and diluted common share reported for the three months ended September 30, 2009. During the third quarter ended September 30, 2009, the Company recorded a recovery of legal expenses and reimbursements for asset write-downs totaling $712,000 related to an arbitration settlement with the Analogic Corporation. Excluding the benefit from the Analogic settlement, pre-tax income for the third quarter of 2009 of $315,000 would have been a pre-tax loss of $397,000.Operating expenses for the three months ended September 30, 2010 increased $534,000 or 19% to $3,359,000 from $2,825,000 for the three months ended September 30, 2009. During the third quarter of 2009, $712,000 of the amounts received from the settlement of the Analogic arbitration reduced previously reported legal and other expenses. Excluding the legal expense settlement, current year operating expenses would have been $171,000 or 5% below the adjusted amount of $3,537,000 for the prior year due to personnel reductions initiated during several periods in 2009. Operating expenses for the nine months ended September 30, 2010 were $9,166,000 and decreased $1,252,000 or 12% from the $10,418,000 reported for the first nine months of 2010 primarily as a result of reductions in personnel effected during 2009 partially offset by increased legal expenses pertaining to the Somanetics litigation.
Research and development (“R&D”) expenses decreased $208,000 or 30% to $481,000 or 6% of revenues for the three months ended September 30, 2010 compared to $689,000 or 8% of revenues for the three months ended September 30, 2009. R&D expenses for the first nine months of 2010 decreased $480,000 or 25% to $1,413,000 from $1,893,000 reported for the first nine months of the prior year. For both periods reported, decreases in expenses pertained to salaries and related fringe benefits resulting from the 2009 personnel reductions, R&D project related materials, and depreciation and amortization and were partially offset by reductions in reimbursements from the National Institutes of Health (“NIH”) pertaining to the Company s Near-Infrared Spectroscopy (“NIRS”) technology compared to the same period of the prior year. For the three months and nine months ended September 30, 2010, NIH reimbursements totaled $125,000 and $372,000, respectively, compared to $187,000 and $601,000 for the three and nine-month periods ended September 30, 2009. As of September 30, 2010, a maximum of approximately $600,000 remains available under the $2.8 million multi-year NIH award received during 2007.
S,G&A expenses for the first nine months of 2010 totaled $7,753,000, a decrease of $772,000, or approximately 9%, from the $8,525,000 reported for the first nine months of 2009. G&A expenses increased approximately $907,000 primarily as a result of legal expenses associated with the Somanetics litigation. Marketing expenses decreased approximately $311,000 primarily as a result of prior year personnel reductions. Sales expenses decreased approximately $1,368,000 driven by reductions in non-Fore-Sight related personnel during 2009.
Cash provided by operations for the nine months ended September 30, 2010 was $2,917,000 compared to cash provided by operations of $519,000 for the first nine months of the prior year. Reductions in inventories of $1,344,000, increases in accounts payable and accrued expenses of $1,098,000 and tax refunds of $816,000 were primarily responsible for the increase and were partially offset by increases in deferred income taxes and accounts receivable. Cash provided by operations of $519,000 for the nine months ended September 30, 2009 resulted primarily from reductions in inventory of $1,379,000 and other receivables which were partially offset by increases in deferred income taxes and accounts receivable.
Cash used in financing activities for the nine months ended September 30, 2010 was $667,000 compared to cash used in financing activities of $320,000 for the first nine months of the prior year. During the nine months ended September 30, 2010, the Company repaid $1,970,000 against the line-of-credit and repaid $486,000 of its long-term debt. During June 2010, the Company consummated a non-brokered private placement of 1,375,000 shares of its common stock for net proceeds of $1,887,000. Deferred financing costs of $123,000 were associated with the Company s bank debt refinancing completed during March 2010.
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