April 28, 2006

INVESTOR CONTACT:

A. Ernest Whiton
Chief Financial Officer
ZOLL Medical Corporation
+1 (978) 421-9655

MEDIA CONTACT:

Diane Egan
ZOLL Medical Corporation
+1 (978) 421-9637
degan@zoll.com

 


FOR IMMEDIATE RELEASE                   

 

ZOLL Medical Corporation Announces Second Quarter Results

Chelmsford, Mass. April 28, 2006 – ZOLL Medical Corporation (NASDAQ: ZOLL), a manufacturer of resuscitation devices and software solutions, today announced revenues of $56,833,000 for the second quarter of fiscal 2006, an increase of 8% compared to revenues of $52,491,000 in the second quarter of last year.  Net income for the quarter was $2,082,000, compared to $159,000 in the prior-year quarter.  Diluted earnings per share were $0.21 compared to $0.02 in the prior-year quarter.  Ending backlog was approximately $8 million.

Second quarter sales to the North American market increased 11% to $44.2 million, compared to $39.8 million for the comparable prior-year quarter.  Sales to the North American hospital market increased 7% to $18.2 million, compared to $17.0 million in the second quarter of last year.  Sales to the North American pre-hospital market increased 19% to $21.1 million, compared to $17.8 million in the same period last year.  International sales remained at the same level as the prior-year quarter at approximately $12.6 million. AED sales to all markets increased 8% to $9.1 million, compared to $8.4 million in the prior-year quarter. Total AutoPulse® shipments were $2.4 million in the quarter, compared to $1.6 million in the second quarter of the prior year.

Richard A. Packer, President and Chief Executive Officer of ZOLL, commented, “During the second quarter we experienced another successful quarter, with modest sales growth, lower operating expenses, and earnings that exceeded expectations.  We are executing the plan we established at the beginning of the year, and believe that second quarter results reflect our effort.”

“North American hospital and pre-hospital sales improved over the prior-year period on the strength of new products,” Mr. Packer observed. “AED Pro®, E Series™ and AutoPulse sales all showed good growth as the market acceptance of these products accelerated. In the International market, while there were a number of strong performances, we did not achieve the sales growth we expected in this quarter. However, we see stronger performance in the second half of the year, again driven by an acceleration of the acceptance of our new products.”

Mr. Packer added, “Overall AED revenue growth continued this quarter, although at a more modest rate than recent quarters. AED sales in the International market were particularly strong, while in North America we experienced weakness in some areas, particularly those affected by government funding and grants.”

 

Highlighting progress with the AutoPulse, Mr. Packer noted, “Shipments in the second quarter were the highest to date, reflecting significant growth in both the North American and International markets. In North America, we are seeing significant increased activity in numerous regions around the country, as highlighted in recent announcements of strong customer acceptance in states such as Florida and Missouri. Internationally, we experienced significant growth in AutoPulse sales through both direct and distributor channels as we have built significant interest and customer funding is starting to become available. We believe we are gaining momentum with the AutoPulse and remain convinced that this product will be a significant driver of ZOLL’s growth for the foreseeable future.”

Mr. Packer concluded, “Overall, the second quarter was another strong step forward. We believe we have made good progress and are on track for the year. We are pleased with our progress as we enter the latter half of the fiscal year and our outlook remains unchanged.”

ZOLL will host a conference call on Friday, April 28, 2006 at 10:30 a.m. EST to discuss its second quarter financial results. This conference call will be accessible on the Company’s home page at www.zoll.com . Recorded replays of the financial results 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, 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, 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 revenues related to AutoPulse sales,  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 Quarterly Report on Form 10-Q filed with the SEC on February 12, 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.

Copyright © 2006 ZOLL Medical Corporation.  All rights reserved.  269 Mill Road, Chelmsford, MA 01824-4105. E Series is a trademark of ZOLL Medical Corporation. AED Pro, AutoPulse, and ZOLL are registered trademarks of ZOLL Medical Corporation.   

 

(Financial Results to Follow)


  

ZOLL MEDICAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

   April 2,

 2006

October 2,

 2005

ASSETS

 

 

Current assets:

 

 

     Cash and cash equivalents

     $     35,432

     $    36,270

     Short-term investments

23,455

14,553

     Accounts receivable, net

45,576

47,733

     Inventory

36,280

38,637

     Prepaid expenses and other current assets

         8,227

         8,055

Total current assets

        148,970

        145,248

Property and equipment, net

          25,053

          23,492

Other assets, net

        51,698

        50,796

 

 

 $   225,721

 $   219,536

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

Current liabilities:

 

 

     Accounts payable

     $     10,119

     $     9,020

     Accrued expenses and other liabilities

       31,063

       29,088

Total current liabilities

41,182

38,108

Total stockholders’ equity

     184,539

     181,428

 

$   225,721

$   219,536

 

 

  ZOLL MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share)

 

 

Three Months Ended

             Six Months Ended

 

April 2,

2006

   April 3,

 2005

April 2,

2006

   April 3,

 2005

Net sales

$      56,833

$      52,491

$      112,293

$      103,120

Cost of goods sold

25,190

22,820

       49,671

       45,020

Gross profit

31,643

29,671

62,622

58,100

Expenses:

 

 

 

 

     Selling and marketing

18,502

18,980

37,851

38,647

     General and administrative

4,654

4,624

9,602

8,897

     Research and development

5,712

5,820

11,012      

11,648      

     Total expenses

28,868

29,424

58,465     

59,192     

Income (loss) from operations

2,775

247

4,157

(1,092)

Other income (expense)

430

(12)

713

332

Income (loss) before taxes

3,205

235

4,870

(760)

Taxes (benefit)

1,123

76

1,656

(353)      

Net income (loss)

$        2,082

$        159

$        3,214

$        (407)

Earnings (loss) per share:

 

 

 

 

Basic

 $          0.22

   $          0.02

   $          0.33

   $       (0.04)

Diluted

 $          0.21

 $          0.02

 $          0.33

 $       (0.04)

Weighted average common shares:

 

 

 

 

Basic

9,625

9,574

9,624

9,428

Diluted

9,702

9,651

9,698

9,428