<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a5318271ex991.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
Exhibit 99.1
ZOLL Medical Corporation Announces First Quarter Results
CHELMSFORD, Mass.--(BUSINESS WIRE)--Jan. 25, 2007--ZOLL Medical
Corporation (NASDAQ: ZOLL), a manufacturer of resuscitation devices
and software solutions, today announced revenues for the first quarter
of fiscal 2007 of $64,641,000, an increase of 17% compared to revenues
in the first quarter of last year. Net income for the quarter was
$2,352,000, compared to $1,132,000 in the prior year. Diluted earnings
per share were $0.23, compared to $0.12 in the prior year. Backlog was
approximately $9.8 million at the end of the first quarter.
First quarter sales to the North American market were $48.2
million, an increase of 14% compared to $42.2 million for the prior
year period. Sales to the North American hospital market increased 8%
to $17.3 million compared to $16.1 million for the same period last
year. Sales to the North American pre-hospital market increased 20% to
$25.6 million, as compared to $21.4 million in the prior year. North
American pre-hospital results include the results of ZOLL Lifecor,
whose assets were acquired in April 2006. International revenues
increased by 23% to $16.4 million, compared to $13.3 million last
year. Total AutoPulse(R) sales in all markets increased 83% to $2.7
million for the current quarter, compared to $1.5 million in the prior
year.
Richard A. Packer, President and Chief Executive Officer of ZOLL,
commented, "We are very happy with our success this past quarter. Once
again we were able to perform ahead of our expectations, which gives
us a head start to achieving the objectives we have established for
2007."
Commenting further, Mr. Packer stated, "We were pleased with the
strength of our North American Pre-hospital and International
businesses. Both the E Series(R) and the AutoPulse continue to gain
traction in these markets. Our sales teams are getting better at
presenting the full ZOLL resuscitation product portfolio. We believe
this broader, differentiated product offering is helping us gain new
accounts. With the recent addition of Real CPR Help(TM) technology to
the E Series, we will amplify our message that there is more to
resuscitation than just the shock."
"We also note the improved performance of our North American
hospital business," Mr. Packer added. "Revenues increased, in spite of
a decrease in military business, on the strength of improved order
flow from the core hospital market. The initial reception to the newly
launched R Series(TM) has been favorable, with customers responding
well to the "Simple, Smart, and Ready" positioning and features. We
were able to generate a modest number of orders this quarter, and we
look forward to increasing momentum as we begin to ship initial units
this quarter."
With respect to the AutoPulse, Mr. Packer observed, "The AutoPulse
continues to improve in order growth each quarter compared to its
comparable prior year period. Shipment growth was outstanding this
quarter as we were able to ship much of the backlog we ended with from
the prior quarter. Also, we have finally cleared the last regulatory
hurdle in Japan for the AutoPulse. We have made our initial shipment
to our distribution partner, Nihon Kohden, and we look for great
success with the product in Japan. Overall, excitement and acceptance
around the AutoPulse continues to build."
Mr. Packer concluded, "Our first-quarter results exceeded our
expectations and we believe we are on track for a strong 2007. With
our number one competitor ceasing shipments for a period of time, we
expect a positive effect on our business. We are currently trying to
assess this situation, and estimate how long they might be out of the
market. The longer this situation continues, the greater the potential
for ZOLL. As of right now, we expect to spend more in the short term
to ramp up our activities, and expect this to benefit us in the latter
part of the year. Until we know more, we are thinking that we are on
track to achieve results at the top end of the range of objectives we
previously outlined for FY2007, with the potential to do better should
this situation last for much of the year."
ZOLL will host a conference call on Thursday, January 25, 2007 at
10:30 a.m. EST to discuss its first 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(TM) and
Real CPR Help(TM) 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 Annual Report on Form 10-K filed with the SEC on December
15, 2006. 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.
(C)2007 ZOLL Medical Corporation. All rights reserved. 269 Mill
Road, Chelmsford, MA 01824-4105. Real CPR Help, See-Thru CPR, and R
Series are trademarks of ZOLL Medical Corporation. AutoPulse, E
Series, Lifecor and ZOLL are registered trademarks of ZOLL Medical
Corporation. All trademarks are property of their respective owners.
(Financial Results to Follow)
ZOLL MEDICAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December October
31, 1,
2006 2006
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 45,053 $ 42,831
Short-term investments 21,726 20,548
Accounts receivable, net 60,566 59,078
Inventory 41,722 37,119
Prepaid expenses and other current assets 9,485 9,010
--------- ---------
Total current assets 178,552 168,586
Property and equipment, net 27,204 26,655
Other assets, net 55,839 56,245
--------- ---------
$261,595 $251,486
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 15,554 $ 13,745
Accrued expenses and other liabilities 38,208 42,095
--------- ---------
Total current liabilities 53,762 55,840
Total stockholders' equity 207,833 195,646
--------- ---------
$261,595 $251,486
========= =========
ZOLL MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended
December January
31, 1,
2006 2006
--------- ---------
Net sales $64,641 $55,460
Cost of goods sold 28,371 24,481
--------- ---------
Gross profit 36,270 30,979
Expenses:
Selling and marketing 21,061 19,349
General and administrative 6,176 4,948
Research and development 6,383 5,300
--------- ---------
Total expenses 33,620 29,597
Income from operations 2,650 1,382
Other income 661 283
--------- ---------
Income before taxes 3,311 1,665
Taxes 959 533
--------- ---------
Net income $ 2,352 $ 1,132
========= =========
Earnings per share:
Basic $ 0.24 $ 0.12
========= =========
Diluted $ 0.23 $ 0.12
========= =========
Weighted average common shares:
Basic 9,888 9,622
Diluted 10,119 9,694
CONTACT: Investor Contact:
ZOLL Medical Corporation
A. Ernest Whiton, +1 978-421-9655
Chief Financial Officer
or
Media Contact:
ZOLL Medical Corporation
Robert Minicucci, +1 978-421-9832
Corporate Communications Manager
rminicucci@zoll.com
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