MINNEAPOLIS, Nov. 14 Biotel Inc.(OTC Bulletin Board: BTEL) announced strong sales and earnings for its firstquarter ended September 30, 2007. The Company had net earnings of $170,000, or$0.06 per diluted share, on revenues of $2,751,000. This compares to a netloss of $11,000, or $0.00 per diluted share, on revenues of $2,424,000 for thefirst quarter of last year.
"We had a strong first quarter beginning our fiscal year with year overyear growth in product and service revenues and improved margins," BiotelPresident and CEO Steve Springrose said. "Compared to the first quarter offiscal 2007, we had increased sales of our Braemar cardiac event recorders,Holter devices, liposuction and other medical devices. Revenues from ourAgility 24/7cardiac monitoring services for clinical research continued togrow rapidly. Biotel continues to serve as a development partner to medicalcorporations seeking new devices and clinical research services, in keepingwith our long-term strategy."
In the first quarter, Biotel held operating expenses flat from a year ago,even with a 10.3% increase in Research and Development. "We continued to putemphasis on R&D to expand our proprietary technology across our productspectrum," Springrose commented. "Most importantly, we received FDA 510(k)clearance in October to market our Braemar ER900 Wireless Event Recorder. Thisis a cardiac looping recorder and cellular transmitter, the first in a seriesof Braemar wireless products that will transmit cardiac information throughcellular networks without patient interaction. We believe this will give us aleadership position in a new era of cardiac monitoring technology."Highlights for the first quarter are as follows: -- 13.5% revenue growth, year over year -- Gross margin of 45.6%, up from 40.7% a year ago -- Operating expenses reduced to 36.1% of revenues from 40.8% last year -- Operating margin of 9.5% versus a loss a year ago -- Net margin of 6.2% versus a loss a year ago -- Strong balance sheet with no long-term debt -- Stockholders' equity of $4,115,000, up 4.6% year over year
SOURCE Biotel Inc.