Healthcare Technologies Ltd. Reports Financial Results for 1994 and Fourth Quarter

Strategic Insights -

Healthcare Technologies Ltd., a leading developer and manufacturer of medical diagnostic kits, has reported its financial results for the year and fourth quarter ended December 31, 1994. The company's revenues for the year grew by 32% to U.S. $7.8 million, with net income reaching $94,000, or $0.01 per share. Despite the increase in revenues, the net income declined due to higher expenses and depreciation related to the company's relocation to Ashdod and investment expenses for the development of its new HIV test.

Key Takeaways:

  • Revenues for the year ended December 31, 1994, increased by 32% to U.S. $7.8 million from U.S. $5.9 million for the corresponding year.
  • Net income for the year ended December 31, 1994, was $94,000, or $0.01 per share, compared with net income of $596,000, or $0.06 per share, for the year ended December 31, 1993.
  • Operating profit before amortization for the year ended December 31, 1994, was U.S. $80,000 compared with operating profit for the prior year of U.S. $346,000.
  • The company signed new product marketing and distribution agreements, including a manufacturing and distribution agreement with a private US corporation for a rapid diagnostic test for HIV.
  • Healthcare Technologies launched four new products in December 1994, including a pregnancy testing kit, a hepatitis B test, a chlamydia test, and a rapid sero-chlamydia antibody detection kit.
  • The company received $5.3 million in February 1994 through the exercise of 2.6 million of the Company's Class A warrants, which will assist in furthering their research and development program and marketing existing product lines.
  • Dr. Yakir, President of Healthcare Technologies Ltd., stated that the company will continue to grow revenues and increase operating income through the signing of new marketing and distribution agreements and building its internal research and development program.

Statistics:

  • Revenue growth: 32%
  • Net income: $94,000
  • Operating profit before amortization: U.S. $80,000
  • Number of new products launched: 4
  • Number of new distribution agreements signed: 3
  • Funds received from Class A warrants: $5.3 million
  • Date of Exercise of Class A warrants: February 1994

Sources:

  • "HEALTHCARE TECHNOLOGIES LTD. Reports Financial Results for Year and Fourth Quarter Ended December 31, 1994," BUSINESS WIRE, March 29, 1995.
  • "Healthcare Technologies Ltd. Announces Financial Results for 1994 and Fourth Quarter," Investor Relations, Lippert/Heilshorn, 1995.