Card Guard growth slows in Q3

U.S. sales have dwindled, but sales to the Far East are rising
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Third-quarter results from telemedicine systems maker Card Guard Scientific Survival (SWX:CARDG) show climbing financials but slower growth than evinced in the past.

Third-quarter revenues climbed 122% from the corresponding quarter of 2000 to $30.2 million. Against Q2, revenues climbed a more moderate 5%.

Gross profit in Q3 for Card Guard, which employs 487 workers, totaled $20 million, constituting 66% of revenues. This is a considerable improvement from a gross profit of 56% in the same quarter last year, and 60% of sales in the second quarter.

The company netted $6.6 million, up almost sixfold from the $1.2 million earned in the same quarter last year. From the second quarter net profit grew by 38% .

Analysis of revenues per region shows company sales in the U.S. are declining, to $12.9 million in the third quarter as opposed to $13.8 million in the second. U.S. sales had peaked in Q4 2000 at $20 million.

Sales in the Far East, on the other hand, rose from $14.6 million in Q2 2001 to $16.2 million in Q3. Sales to the Orient now constitute 53% of Card Guard sales overall.

Earnings before interest, taxes, depreciation and amortization climbed to $9.17 million compared with $6.9 million in the second quarter and $2.1 million in the same quarter last year.

Card Guard, a global medical-technology company specializing in advanced medical-monitoring systems ranging from risk chronic patients up to consumers of standard health products, has subsidiaries in the United States, Europe, Brazil, Canada and Japan.

In late October the company finished moving its headquarters from Rehovot to Schauffhausen, Switzerland. It said that ordinary shares of Israel-listed Card Guard Ltd would be exchanged for registered shares of Card Guard AG at a ratio of 1:1, and that it changed its listing from the SWX New Market to the SWX Main Board, effective October 29.