North American Scientific Reports RecordSecond-Quarter Revenues and Earnings; 122% Increase in...

CHATSWORTH, Calif.--(BUSINESS WIRE)--May 18, 1999--

North American Scientific Inc. (Nasdaq:NASI) Tuesday announced record sales and earnings for its second quarter ended April 30, 1999.

For the second quarter ended April 30, 1999, net sales increased 122 percent to $3.0 million,

Net income for the company was $717,000, or 10 cents per diluted share, for the quarter ended April 30, 1999, compared with net income of $279,000, or 4 cents per diluted share, for the comparable quarter of the previous year, a per share increase of 150 percent.

For the six-month period ended April 30, 1999, the company reported net sales of $5.4 million, up 150 percent from $2.2 million for the six months ended April 30, 1998. In the current six-month period, the company's gross profit increased 221 percent to $3.4 million compared with gross profit of $1.1 million for the same period of the prior year.

Net income increased $906,000, or 282 percent, to $1.2 million for the six months ended April 30, 1999, from $321,000 for the six months ended April 30, 1998.

Gross and operating margins for the quarter ended April 30, 1999, increased to 64 percent and 34 percent, respectively, from 57 percent and 21 percent for the same period in the prior year.

The increase in net sales and gross profit for the quarter ended April 30, 1999, was driven primarily by the increase in revenues generated from the company's I-125 brachytherapy product line.

"We are very pleased by the strong financial performance this quarter," stated L. Michael Cutrer, the company's president and chief executive officer. "Our record growth levels in the past few quarters have been driven by sales of our Iodine-125 brachytherapy seeds marketed under the IoGold(tm) name by Mentor Corporation (Nasdaq:MNTR).

"With the launch of our Palladium-103 seed product line (PdGold(tm)) last month and the strong demand for IoGold(tm), we expect this trend to continue. As the only current manufacturer of both Iodine and Palladium seeds, we believe that this provides us with a strategic advantage in the marketplace, which is strengthened by our ability to rapidly expand our automated production process to meet increased end-user demand."

Alan Edrick, North American Scientific's chief financial officer, added: "This quarter marks the sixth consecutive quarter of record revenues and the 16th consecutive profitable quarter for the company. Our I-125 brachytherapy line, characterized by favorable margins, continues to enhance our overall gross margins as sales volumes increase. Additionally, our strong balance sheet enables us to pursue further growth opportunities."

North American Scientific manufactures a broad line of products for medical therapeutic and diagnostic, environmental and research applications. For more information, visit the company's Web site at www.nasi.net.

Statements included in this release that are not historical facts may be considered forward-looking statements that are subject to a variety of risks and uncertainties. There are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by the company, including the stable supply of appropriate isotopes, whether produced by the company or purchased from third-party vendors; and risk factors included in the company's filings with the Securities and Exchange Commission. Any forward-looking statements contained in this news release speak only as of the date of this release, and the company undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future results or otherwise. -0-

                    NORTH AMERICAN SCIENTIFIC INC.
                   Consolidated Statements of Income

                         Three Months Ended        Six Months Ended
                             April 30,                 April 30,
                         1999         1998         1999         1998
                            (Unaudited)               (Unaudited)

Net sales           $ 3,007,000  $ 1,353,000  $ 5,434,000  $ 2,172,000
Cost of goods sold    1,095,000      587,000    2,004,000    1,103,000
  Gross profit        1,912,000      766,000    3,430,000    1,069,000
Selling, general
 and administrative
 expenses               765,000      453,000    1,463,000      811,000
Research and
 development            112,000       26,000      204,000       67,000
Income from
 operations           1,035,000      287,000    1,763,000      191,000
Interest and
 other income           129,000      143,000      251,000      309,000
Income before
 provision for
 income taxes         1,164,000      430,000    2,014,000      500,000
Provision for
 income taxes           447,000      151,000      787,000      179,000
Net income          $   717,000  $   279,000  $ 1,227,000  $   321,000

Earnings per share
 Basic              $       .11  $       .04  $       .18  $       .05
 Diluted            $       .10  $       .04  $       .17  $       .05

Weighted average
 number of common
 and common
 equivalent shares
 outstanding
 Basic                6,794,806    6,408,264    6,791,351    6,292,283
 Diluted              7,140,065    7,159,203    7,156,634    7,052,716