CardioNet, Inc. (NASDAQ:BEAT), a leading wireless medical technology company with a current focus on the diagnosis and monitoring of cardiac arrhythmias, today reported results for the second quarter ended June 30, 2011.
Second Quarter 2011 Highlights
- Generated positive EBITDA for the second consecutive quarter
- Achieved positive cash flow for the quarter
- Completed Biotel integration and generated positive EBITDA contribution
- $45 million in cash and investments as of June 30, 2011, with no outstanding debt
- Secured 15 new payor contracts during the quarter
President and CEO Commentary
Joseph Capper, President and Chief Executive Officer of CardioNet, commented: “Our second quarter results demonstrate continued progress toward our goals of improving operational efficiency and positioning the Company for long-term success. We generated our second consecutive quarter of positive EBITDA, added 15 new payor contracts and completed the integration of Biotel. While we had an increase in the aggregate number of patients monitored in the quarter across MCOT TM, event and Holter services, we saw a modest shift in our product mix from MCOT TM to event and Holter monitoring. This shift was driven by our active efforts to no longer service patients without appropriate insurance coverage for MCOT TM as well as overall challenges in the healthcare environment due to lower patient census and ongoing reimbursement pressures. Our efforts have resulted in improved profitability through higher event and Holter revenue and lower cost of sales.“The results of operations from our Biotel subsidiary have exceeded our expectations to date and contributed to our initiative to diversify. Furthermore, with $45 million in cash and no debt, we are poised to make additional acquisitions that would complement our platform and diversify our revenue base. We have substantially accelerated our business development activity over the last quarter and are currently evaluating several potential opportunities.