MINNEAPOLIS, Nov. 16 /PRNewswire-FirstCall/ -- Biotel Inc. announces revenues for the first quarter ended September 30, 2006 of $2,424,000 and a loss of $11,000 versus revenues and net income of $2,527,000 and $174,000, respectively, for the quarter ended September 30, 2005.
Biotel reported a small loss from operations following 14 successive quarters of profitability. Biotel President and CEO Steve Springrose said, “The first quarter loss was primarily related to two factors. Biotel has been investing in research and development of new Holter and event recorder products, with R&D expense up $150,000 versus a year ago. Biotel has planned increased investments in research and development in fiscal year 2007, but also believes the expenditure related to the two new products has peaked.”
Mr. Springrose continued, “Biotel also seized an opportunity in the first quarter ended September 30, 2006 by paying $80,000 to remove all future obligations of up to $150,000 related to the purchase of Agility. The $80,000 cash payment less a previous accrual of $9,000 for such obligations resulted in additional sales, general and administrative expenses of $71,000 for the first quarter just ended. With this payment, Biotel has completed all payment obligations related to the purchase of Agility.”
Biotel Inc. is comprised of three business units, all of which are wholly owned subsidiaries. Braemar, Inc. and Agility Centralized Research Services, Inc. sell medical devices, technology and research services to medical companies. Advanced Biosensor Inc. sells Holter diagnostic cardiology maintenance services, repairs and recorders to end users in hospitals and clinics.
3 months ended 3 months ended % September 30, 2006 September 30, 2005 Change Revenues $2,424,000 $2,527,000 -4.1% Net Income (Loss) ($11,000) $174,000 N/A Earnings (Loss) Per Share (-) $0.07 N/A
For further information, contact Steve Springrose at 612-605-5366 or info@biotelinc.com
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Biotel Inc.
CONTACT: Steve Springrose of Biotel, +1-612-605-5366 or info@biotelinc.com
