This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

CardioNet, Inc. Reports Second Quarter 2012 Financial Results

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, 2012.

Second Quarter 2012 and Recent Highlights
  • Signed definitive merger agreement to acquire all outstanding shares of cardioCORE Lab, Inc., a leading research services business
  • Received IDTF designation and billing number for San Francisco monitoring center
  • Generated positive adjusted EBITDA of $1.7 million in the second quarter 2012
  • Experienced increased patient volume year over year and sequentially
  • Realized benefit from cost reductions in the quarter; on track to realize $7.5 million of annualized cost reductions
  • $34.1 million in cash and investments as of June 30, 2012
  • Reached an agreement to settle outstanding patent infringement litigation

President and CEO Commentary

Joseph Capper, President and Chief Executive Officer of CardioNet, commented: “During the second quarter, we made tremendous progress toward meeting our strategic goal of revenue diversification while delivering solid earnings. On Monday, we announced that we entered into a definitive merger agreement to acquire cardioCORE Lab, Inc. (“Cardiocore”), a research services business, for $23.5 million. This transaction enables us to extend the use of our technology into an adjacent market and, with the FDA’s increased focus on cardiac safety in drug development, we are excited by the growth potential. In addition, as we continue to face a challenging healthcare market where patient census is down and reimbursement pressures remain, this acquisition provides revenue diversification which is not dependent on third party insurance reimbursement. We expect Cardiocore to be accretive to our second half earnings and to be cash flow positive for 2012.

“Looking to earnings, we saw an improvement in our second quarter operating results with increased overall patient volume and positive adjusted EBITDA, as well as a decrease in our overall cost structure stemming from the $7.5 million of annualized cost reductions implemented at the end of 2011. Our revenue was impacted by a shift in our product mix to event and Holter monitoring with the full quarter impact of ECG Scanning. However, revenue included the reimbursement benefit from monitoring patients out of our west coast monitoring facility for which we recently received our IDTF designation. With this approval in hand, we are now able to bill all of the claims that were outstanding at quarter end. We expect to receive the majority of the cash by the end of the third quarter.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs