Criticare Systems Reports First Quarter Results

Business Wire, Dec 13, 1999

MILWAUKEE--(BUSINESS WIRE)--Dec. 13, 1999--

CRITICARE SYSTEMS, INC. (NASDAQ-NMS:CXIM) reported first quarter revenues of $6,603,337 compared to $6,724,424 recorded in the same quarter in fiscal year 1999. Net profit was $1,880,476, consisting of $120,476 operating profit which compares to a loss of $419,823 for the same period last year, and $1,760,000 from a private placement sale of Immtech International, Inc. shares. The stock sale had been planned to address the settlement requirements of a previous lawsuit.

The introduction of the Company's new core product line, which consists of bedside, operating room, and central station monitors, took place at the MEDICA conference in Dusseldorf, Germany, the week of November 15, 1999. Shipments (and revenue contribution) of these products are expected to commence in quarter three of fiscal year 2000. Introduction in the U.S. is expected to take place during the same quarter. This is the first in a series of new products defined in the Company's business plan of February 1999 to create an entirely new Criticare catalog. The Company expects that subsequent product introductions during fiscal year 2000 will continue, as well as worldwide expansion of Criticare's sales efforts, increased OEM activity, and a major product line addition for our alternate site business.

Criticare Systems, Inc., designs, manufactures and markets cost-effective patient monitoring systems and noninvasive sensors for a wide range of hospitals and alternate health care environments throughout the world.

This press release contains forward-looking statements. Such statements refer to the Company's beliefs and expectations. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those described. Such uncertainties include, but are not limited to, the ability to negotiate new OEM contracts, the timely completion of new products, the risk of new and better technologies, as well as general conditions and competition in the Company's markets. Other risks are set forth in Criticare's reports and documents filed from time to time with the Securities and Exchange Commission.

                       CRITICARE SYSTEMS, INC.
                     CONSOLIDATED INCOME STATEMENT
                              (UNAUDITED)

                              THREE MONTHS ENDED SEPTEMBER 30,
                                  1999               1998

NET SALES                     $6,603,337         $6,724,424
COST OF GOODS SOLD             3,614,526          3,465,408
     GROSS PROFIT              2,988,811          3,259,016

TOTAL OPERATING EXPENSES       2,831,835          3,473,211

OPERATING PROFIT (LOSS)          156,976           (214,195)

NET INTEREST EXPENSE              36,500             55,628
GAIN ON SALE OF IMMTECH STOCK (1,760,000)                 0
EQUITY IN LOSS OF INVESTMENTS          0            150,000
     TOTAL NON-OPERATING
      EXPENSES                (1,723,500)           205,628

     INCOME (LOSS) BEFORE
      INCOME TAXES             1,880,476           (419,823)

INCOME TAX PROVISION                   0                  0
     NET (LOSS)               $1,880,476          ($419,823)

EARNINGS PER SHARE - BASIC         $0.22             ($0.05)
EARNINGS PER SHARE - DILUTED       $0.21             ($0.05)

AVERAGE SHARES OUTSTANDING
 - BASIC                       8,706,151          8,203,699
AVERAGE SHARES OUTSTANDING
 - DILUTED                     8,921,806          8,704,534