BOTHELL, Wash., Oct. 13 Cardiac ScienceCorporation (Nasdaq: CSCX) announced today that it has initiated a worldwidevoluntary field corrective action of certain automated external defibrillators(AEDs) manufactured between August 2006 and March 2007. Some AEDs manufacturedin this time frame may have a component whose performance doesn't match thefactory software settings. Under a particular set of conditions, the softwareplaces the AED into a "Service Required" mode.
To remedy this and complete the corrective action, Cardiac Science isproviding a user-installable software update to affected customers anddistributors.
"This voluntary field action is an opportunity for Cardiac Science todemonstrate that we stand behind every one of our products," said John Hinson,chief executive officer.
Cardiac Science has begun notifying distributors and customers withaffected devices and is shipping software updates to each. The instructionsand additional information regarding the affected units are also available athttp://www.cardiacscience.com/AEDUpdate. Customers can also call1.877.502.2673 or e-mail [email protected]
Until the updates arrive, customers should keep their AEDs in service.This issue is typically identified in daily self-test, however, there is aremote possibility of occurrence while attempting to provide defibrillation.The Company has received two complaints related to this issue during use.
The company expects to take a pre-tax charge of between $0.8 million and$1.0 million in the third quarter of 2008 relating to the estimated costsassociated with this voluntary action. This action will not affect thecompany's AED manufacturing, shipping schedules, or service support to currentor new customers.
"While this unanticipated charge will obviously have an impact on thirdquarter earnings, we presently expect that we will still finish the full yearwithin the range of our earlier guidance, though we are now more comfortablewith the lower end of that range," said Mike Matysik, chief financial officer.Cardiac Science expects to announce its third quarter 2008 results in lateOctober and will provide an update on guidance for the balance of the year atthat time.
About Cardiac Science
Cardiac Science develops, manufactures, and markets a family of advanceddiagnostic and therapeutic cardiology devices and systems, including automatedexternal defibrillators (AEDs), electrocardiograph devices (ECGs), cardiacstress systems and treadmills, Holter monitoring systems, hospitaldefibrillators, cardiac rehabilitation telemetry systems, and cardiology datamanagement systems (informatics) that connect with hospital information (HIS),electronic medical record (EMR), and other information systems. The Companysells a variety of related products and consumables, and provides a portfolioof training, maintenance, and support services. Cardiac Science, the successorto the cardiac businesses that established the trusted Burdick(R),HeartCentrix(R), Powerheart(R), and Quinton(R) brands, is headquartered inBothell, Washington. With customers in more than 100 countries worldwide, thecompany has operations in North America, Europe, and Asia. For information,call 425.402.2000 or visit http://www.cardiacscience.com.
This press release contains forward-looking statements including, but notlimited to, those that refer to full-year guidance for Cardiac ScienceCorporation's future revenue and profits. These statements and theirunderlying assumptions involve a number of risks and uncertainties and are notguarantees of future performance. These are forward-looking statements forpurposes of the safe harbor provisions under the Private Securities LitigationReform Act of 1995. The words "believe," "expect," "intend," anticipate,"variations of such words, and similar expressions identify forward-lookingstatements, but their absence does not mean that the statement is not forwardlooking. Actual results may vary significantly from the results expressed orimplied in such statements. Factors that could cause or contribute to suchvarying results and other risks that are more fully described in the AnnualReport on Form 10-K filed by Cardiac Science Corporation for the year endedDecember 31, 2007. Cardiac Science Corporation undertakes no duty orobligation to update the information provided herein.For more information, Company Contact: Investor Contact: Media Contact: Mike Matysik Doug Sherk Christopher Gale Cardiac Science Jenifer Kirtland EVC Group, Inc. Corporation EVC Group, Inc. (201) 646-5431 Sr. Vice President (415) 896-6820 (203) 570-4681 and CFO [email protected]
SOURCE Cardiac Science Corporation