CAS Medical Systems Reports Second Quarter 2012 Financial Results

FORE-SIGHT Oximetry Sensor Revenues Increase 57% in U.S.

Conference Call Begins at 10:00 a.m. ET Today

Branford, Conn. - August 8, 2012 - CAS Medical Systems, Inc. (NASDAQ: CASM) today reported financial results for the three and six months ended June 30, 2012. The net loss applicable to common stockholders for the second quarter of 2012 was $1.9 million or ($0.15) per share, compared with a net loss applicable to common stockholders of $1.4 million or ($0.11) per share for the second quarter of 2011. Highlights of the second quarter and recent weeks include:

  • Worldwide FORE-SIGHT Tissue Oximetry sensor revenues increased 45% over the second quarter of 2011 led by a 57% increase in domestic sensor revenues.
  • The installed base of FORE-SIGHT units reached 638 as of June 30, 2012, up 33% over the prior year with 46 units added during the second quarter.
  • Gross profit margins improved 5% over the second quarter of last year to 42% due, in part, to increasing FORE-SIGHT sensor sales and lower warranty costs.
  • CASMED secured a $3.5 million term loan from East West Bank on July 31, 2012, boosting its current cash balance to approximately $12.1 million. The agreement also included a revolving line of credit up to $2.5 million.

Management Commentary

"With quarterly FORE-SIGHT disposable sensor revenues up 45% overall and 57% in the U.S., we see continued evidence that the careful execution of our growth strategies, including our upgrades to our U.S. sales force, is yielding positive results," said Thomas M. Patton, President and Chief Executive Officer of CASMED. "We remain on track to achieve our goal of increasing our installed base of FORE-SIGHT monitors to 750 by the end of the year."

"Sales of our traditional monitoring products were lower in the second quarter compared with the prior year", Mr. Patton continued. "However, we believe that with the improvements we have made to the distribution channel for vital signs monitors, combined with steady OEM non-invasive blood pressure revenues, traditional monitoring revenues should improve over second quarter lows."

Financial Results

For the second quarter of 2012, CASMED reported net sales of $5.2 million, a decline of $0.5 million or 9% from the second quarter of 2011. Worldwide FORE-SIGHT Oximetry revenues were $1.9 million, up 9% over the prior year, including FORE-SIGHT disposable sensor revenues which were $1.7 million, up 45% over the prior year led by a 57% increase in domestic sensor revenues. The Companys worldwide installed base of FORE-SIGHT monitors was 638 as of June 30, 2012, an increase of 46 monitors for the second quarter. Traditional monitoring revenues totaled $3.3 million for the second quarter of 2012, compared with $3.9 million for second quarter of 2011, principally due to a decline in vital signs monitor sales to the U.S. government.

The net loss applicable to common stockholders for the second quarter of 2012 was $1.9 million or ($0.15) per share, compared with a net loss applicable to common stockholders for the second quarter of 2011 of $1.4 million or ($0.11) per share.

For the six months ended June 30, 2012, CASMED reported net sales of $10.6 million, compared with $11.4 million for the six months ended June 30, 2011. The net loss applicable to common stockholders for the first half of 2012 was $4.1 million or ($0.31) per share, compared with a loss applicable to common shareholders for the first half of 2011 of $2.6 million or ($0.20) per share.

The Company had cash, cash equivalents and short-term investments of $9.1 million as of June 30, 2012, compared with $13.9 million as of December 31, 2011. Subsequent to the end of the quarter, CASMED added $3.5 million to its cash balances from a term loan with East West Bank completed on July 31, 2012 and had a cash balance of approximately $12.1 million as of that date.

Conference Call Information

CASMED will host a conference call for investors and analysts today beginning at 10:00 a.m. ET to discuss second quarter 2012 results and answer questions. Representing CASMED on the call will be Thomas Patton, President and CEO, and Jeffery Baird, CFO.

To participate in the call please dial (866) 239-5859 (domestic) or (702) 495-1913 (international). A live audio webcast of the conference call will also be available on the Company's website at www.casmed.com.

A telephone replay will be available by dialing (855) 859-2056 (domestic) or (404) 537-3406 (International) from 1:00 p.m. ET August 8th through 11:59 p.m. ET August 14th. Please use access code 15849376. An archive of the webcast will be available on the Companys website for 30 days.

About CASMED® - Monitoring What's Vital
CAS Medical Systems, Inc. is a leading developer and manufacturer of medical devices for non-invasive patient monitoring.  The Company's FORE-SIGHT Absolute Cerebral Oximeter is the only cerebral oximeter available with FDA clearance for non-invasive, continuous measurement of absolute cerebral tissue oxygen saturation for all patients, regardless of age or weight.  This information helps avert brain damage or death during surgery and in critical care situations by allowing clinicians to identify patients with dangerously low levels of cerebral oxygen and intervene to reverse the condition.

The Company's product lines include the high-acuity monitoring capabilities of the FORE-SIGHT Cerebral Oximeter, the bedside patient monitoring line of vital signs monitoring products, proprietary non-invasive blood pressure measurement technology, and supplies and service including blood pressure cuffs and products for neonatal intensive care.  CASMED products are designed to meet the needs of a full spectrum of patient populations worldwide, ranging from adults to pediatrics and neonates.

For further information regarding CAS Medical Systems, Inc., visit the Company's website at www.casmed.com.

Company Contacts
CAS Medical Systems, Inc.
Susan Carron
Director of Corporate Communications
203-488-6056
ir@casmed.com

Statements included in this press release, which are not historical in nature, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements relating to the future financial performance of the Company are subject to many factors including, but not limited to, the customer acceptance of the products in the market, the introduction of competitive products and product development, the result of on-going litigation, working capital and availability of capital, commercialization and technological difficulties, the impact of actions and events involving key customers, vendors, lenders and competitors and other risks detailed in the Company's Form 10-K for the year ended December 31, 2009 and other subsequent Securities and Exchange Commission filings.

Such statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. When used in this press release the terms "anticipate", "believe", "estimate", "expect", "may", "objective", "plan", "possible", "potential", "project", "will" and similar expressions identify forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof, and we do not undertake any obligation to update any forward-looking statements, whether as a result of future events, new information or otherwise.

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