EX-99.1 2 a5665516ex99_1.htm EXHIBIT 99.1

Exhibit 99.1

ZOLL Medical Corporation Announces Record Second Quarter Results

Quarterly Revenue Increases 40%; Quarterly EPS Increases 80%

CHELMSFORD, Mass.--(BUSINESS WIRE)--ZOLL Medical Corporation (NasdaqGS: ZOLL), a manufacturer of resuscitation devices and software solutions, today announced revenues for the second quarter of fiscal 2008 of $99,160,000, an increase of 40% compared to revenues in the second quarter of last year. Net income for the quarter was $5,654,000, compared to $3,172,000 in the prior year, an increase of 78%. Diluted earnings per share were $0.27, compared to $0.15 in the prior year. Backlog at the end of the second quarter was approximately $14 million.

Second quarter sales to the North American market increased 40% to $74.6 million, compared to $53.2 million for the comparable prior-year quarter. Sales to the North American hospital market increased 73% to $27.9 million, compared to $16.1 million in the second quarter of last year. Excluding US Military/Big Government sales, North American hospital sales increased 61%. US Military/Big Government sales were $3.7 million, compared to $1.0 million in the prior-year period. Sales to the North American pre-hospital market increased 28% to $41.0 million, compared to $31.9 million in the same period last year. International sales increased 39% to $24.6 million, compared to $17.7 million for the comparable prior-year quarter. Total AutoPulse shipments were $3.4 million in the quarter, compared to $3.3 million in the second quarter of the prior year.

As expected, gross margin was up sharply from the first quarter, and was in line with historical levels. Gross margin for Q2 was 54.1%, slightly higher than the 53.7% gross margin for the prior-year second quarter.

Richard A. Packer, President and Chief Executive Officer of ZOLL, commented, “Overall, Q2 represented another great quarter for ZOLL. We experienced growth in all major parts of our business. We continue to see momentum with the R Series™ product in the North American hospital market. The North American pre-hospital business also did very well with all elements, professional defibrillators, data management software, LifeVest®, AEDs and AutoPulse®, experiencing continued growth. Once again, our International business delivered another solid quarter of growth, with the strongest growth this quarter coming from our direct subsidiaries relative to our business partners/distributors.”


Mr. Packer concluded, “Based on our strength in the first half of fiscal 2008, we believe we will modestly outperform our FY2008 plan. We hope to achieve earnings per share of $1.10 for fiscal 2008, a 10% increase from our original guidance of $1.00 established at the beginning of the fiscal year.”

ZOLL will host a conference call on Wednesday, April 23, 2008 at 10:30 a.m. EDT to discuss its second quarter financial results. This conference call will be accessible on the Company’s home page at www.zoll.com. Recorded replays of this conference call will be available on the web page beginning later that day.

About ZOLL Medical Corporation

ZOLL Medical Corporation is committed to developing technologies that help advance the practice of resuscitation. With products for pacing, defibrillation, circulation (with ZOLL’s See-Thru CPR™ and Real CPR Help® technologies), ventilation, and fluid resuscitation, ZOLL provides a comprehensive set of technologies that help clinicians, EMS professionals, and lay rescuers resuscitate sudden cardiac arrest or trauma victims. ZOLL also designs and markets software that automates the documentation and management of both clinical and non-clinical information.

ZOLL markets and sells its products in more than 140 countries. The Company has direct operations, distributor networks, and business partners throughout the U.S., Canada, Latin America, Europe, the Middle East and Africa, Asia, and Australia. For more information, visit www.zoll.com or call +1 (978) 421-9655.

Certain statements contained in this press release, including statements regarding the anticipated development of the Company's business, our belief regarding business growth and future performance, and other statements contained herein regarding matters that are not historical facts, are “forward-looking” statements (as defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, those factors discussed in the section entitled “Risk Factors” in the Company's Quarterly Report on Form 10-Q filed with the SEC on February 5, 2008. You should not place undue reliance on the forward-looking statements in this press release, and the Company disavows any obligation to update or supplement those statements in the event of any changes in the facts, circumstances, or expectations that underlie those statements.

©2008 ZOLL Medical Corporation. All rights reserved. 269 Mill Road, Chelmsford, MA 01824-4105. R Series and See-Thru CPR are trademarks, and AutoPulse, LifeVest, Real CPR Help and ZOLL are registered trademarks, of ZOLL Medical Corporation. All trademarks are property of their respective owners.


ZOLL MEDICAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 
March 30,

2008

September 30,
2007

ASSETS
Current assets:
Cash and cash equivalents $ 26,995 $ 37,631
Short-term investments 18,205 19,767
Accounts receivable, net 81,021 78,086
Inventory 63,073 57,929
Prepaid expenses and other current assets   12,422   11,809
Total current assets 201,716 205,222
Property and equipment, net 35,009 32,504
Other assets, net   83,576   81,712

 

$ 320,301 $ 319,438
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 18,337 $ 21,860
Accrued expenses and other liabilities   55,457   61,792
Total current liabilities 73,794 83,652
Total stockholders’ equity   246,507   235,786
$ 320,301 $ 319,438

ZOLL MEDICAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

     
Three Months Ended Six Months Ended
March 30,

2008

April 1,

2007

March 30,

2008

April 1,

2007

Net sales $ 99,160 $ 70,839 $ 192,175 $ 137,434
Cost of goods sold   45,522   32,820   93,392   63,437
Gross profit 53,638 38,019 98,783 73,997
Expenses:
Selling and marketing 28,420 20,855 53,548 41,624
General and administrative 8,119 6,515 15,729 12,691
Research and development   8,549   6,633   16,381   13,016
Total expenses 45,088 34,003 85,658 67,331
Income from operations 8,550 4,016 13,125 6,666
Other income   285   902   678   1,563
Income before taxes 8,835 4,918 13,803 8,229
Tax expense   3,181   1,746   4,969   2,705
Net income $ 5,654 $ 3,172 $ 8,834 $ 5,524
Earnings per share:
Basic $ 0.27 $ 0.16 $ 0.43 $ 0.28
Diluted $ 0.27 $ 0.15 $ 0.42 $ 0.27
Weighted average common shares:
Basic 20,782 20,310 20,747 20,043
Diluted 21,208 20,919 21,142 20,551

CONTACT:
ZOLL Medical Corporation
A. Ernest Whiton, 978-421-9655
Chief Financial Officer