Schick Technologies Announces Fiscal 2004 Third Quarter Results LONG ISLAND CITY, N.Y., Feb. 11 /PRNewswire-FirstCall/ -- Highlights of the Quarter: * Net income increased 73% * Revenue increased 38% * Balance Sheet shows $15.6 million in cash and no debt Schick Technologies, Inc. (OTC:SCHK) (BULLETIN BOARD: SCHK) today reported its financial results for the third quarter of fiscal year 2004, ended December 31, 2003. Revenues for the quarter were $12.1 million, an increase of $3.3 million, or 38%, compared to $8.8 million for the same period last year. Net income for the quarter was $4.9 million, an increase of 73% as compared with the Company's net income of $2.8 million for the same period last year. On a per- share basis, net income for the quarter was $0.47 per basic and $0.29 per diluted share as compared with net income of $0.28 per basic and $0.19 per diluted share for the same period last year. Revenues for the nine months ended December 31, 2003 were $29.3 million, an increase of $6.8 million, or 30%, compared to $22.5 million in the same period last year. Net income for the nine months was $9.1 million, an increase of 77% as compared with the Company's net income of $5.1 million for the same period last year. On aper-share basis, net income for the nine months was $0.88 per basic and $0.54 per diluted share as compared with net income of $0.51 per basic and $0.35 per diluted share for the same period last year. At December 31, 2003, the Company had $15.6 million in cash, cash equivalents and short-term investments and $19.4 million in working capital, as compared to $7.8 million in cash, cash equivalents and short-term investments and $9.2 million in working capital at March 31, 2003. "We are extremely pleased with the Company's strong top and bottom line results this quarter. Revenues were driven by strong digital radiology sales both in the U.S. and worldwide, with international sales increasing 63% over last year," said David Schick, Chief Executive Officer. "Our strong margins continued to improve, reflecting in part the operating efficiency which we have achieved in our business, with gross margins reaching 74.7% and operating margins reaching 40% for the quarter." Jeffrey Slovin, President and Chief Operating Officer, remarked: "This quarter was very rewarding to all of us at Schick. Our revenues continued to grow rapidly, both domestically and abroad, gross margins continued to be exceptional, and net income was the highest ever achieved by the Company. Our balance sheet is strong and the Company is well poised to meet the demands and opportunities of this growing and dynamic market." Schick Technologies, Inc. Conference Call Information: Schick Technologies, Inc. will hold its quarterlyconference call on Wednesday, February 11, 2004 at 4:30 p.m. EST. To access the call, please dial 800-901-5217, passcode #47173629 (domestic), or 617-786-4511 (international). This conference call will be broadcast live on the Internet at http://www.schicktech.com/. If you are unable to participate, an audio digital replay of the call will be available from February 11, 2004, at 6:30 p.m. EST until Midnight EST on February 18, 2004 by dialing 1-888-286-8010 (domestic) or 617- 801-6888 (international) using confirmation code #94549829. A web archive will be available for 30 days at http://www.corporate-/ ir.net/ireye/ir_site.zhtml?ticker=SCHK.OB&script=1020&item_id=ew, 847240 , 1,88793,335637,383159,1&layout=-6. This earnings release, and any other financial and statistical information disclosed by the Company during the conference call will be available in the "Investors" section of Registrant's web site at http://www.schicktech.com/. Schick Technologies, Inc., an ISO 9001 certified company, designs, develops, and manufactures innovative digital radiographic imaging systems and devices for the dental and medical markets. The Company's products, which are based on proprietary digital imaging technologies, create instant high- resolution radiographs and offer significant advantages over conventional x- ray devices. The Company's beliefs as to its operating efficiency, that the market for digital radiographic imaging systems is growing and dynamic, that the Company is well poised to meet the demands and opportunities of this market, and other information in this announcement which is not historical, constitute forward- looking statements as defined in the Private Securities Litigation Reform Act of 1995. The matters discussed in this newsrelease are subject to various factors which could cause actual events and results to differ materially from such statements. Such factors include uncertainties as to the future sales volume of Schick Technologies' products, the pending SEC civil action and U.S. Attorney investigation, the possibility of changing economic, market and competitive conditions, dependence on products, technological developments, competition, market uncertainties, dependence on distributors, ability to manage growth, fluctuation in results, seasonality and other risks and uncertainties including those detailed in the Company's filings with the Securities and Exchange Commission. Schick Technologies, Inc. and Subsidiary Consolidated Statements of Operations (unaudited) (In thousands, except share and per share amounts) Three months ended Nine months ended December 31, December 31, 2003 2002 2003 2002 Revenue, net $12,124 $8,816 $29,301 $22,470 Cost of sales 3,063 2,503 8,316 7,160 Excess and obsolete inventory - 150 - 259 Total cost of sales 3,063 2,653 8,316 7,419 Gross profit 9,061 6,163 20,985 15,051 Operating expenses: Selling and marketing 1,655 1,482 4,505 4,257 General and administrative 1,725 1,179 4,921 3,549 Research and development 827 663 2,508 1,909 Total operating costs 4,207 3,324 11,934 9,715 Income from operations 4,854 2,839 9,051 5,336 Other income (expense) Interest income 39 12 88 39 Interest expense (9) (75) (180) (241) Other income 4 84 141 100 Total other income (expense) 34 21 49 (102) Income before income taxes 4,888 2,860 9,100 5,234 Provision for income taxes 34 55 - 85 Net income $ 4,854 $ 2,805 $ 9,100 $ 5,149 Basic earnings per share $ 0.47 $ 0.28 $ 0.88 $ 0.51 Diluted earnings per share $ 0.29 $ 0.19 $ 0.54 $ 0.35 Weighted average common shares (basic) 10,407,356 10,154,059 10,334,431 10,146,069 Weighted average common shares (diluted) 16,879,982 14,957,659 16,776,152 14,885,888 Consolidated Balance Sheets (In thousands, except share amounts) December 31, March 31, 2003 (unaudited) Assets Current assets Cash and cash equivalents $ 15,541 $ 7,100 Short-term investments 9 712 Accounts receivable, net of allowance for doubtful accounts of $138 and $42, respectively 5,161 3,032 Inventories 3,382 3,039 Income taxes receivable 5 10 Prepayments and other current assets 533 421 Deferred income taxes 2,861 2,590 Total current assets 27,492 16,904 Equipment, net 1,621 2,151 Goodwill, net 266 266 Deferred income taxes 3,139 2,940 Other assets 259 349 Total assets $ 32,777 $ 22,610 Liabilities and Stockholders' Equity Current liabilities Current maturity of long term debt $- $1,503 Accounts payable and accrued expenses 1,832 1,468 Accrued salaries and commissions 1,628 1,080 Income taxes payable 106 4 Deposits from customers 33 31 Warranty obligations 185 56 Deferred revenue 4,348 3,605 Total current liabilities 8,132 7,747 Commitments and contingencies - - Stockholders' equity Preferred stock ($0.01 par value; 2,500,000 shares authorized; none issued and outstanding) - - Common stock ($0.01 par value; 50,000,000 shares authorized: 10,441,980 and 10,206,425 shares issued and outstanding, respectively) 104 102 Additional paid-in capital 43,298 42,618 Accumulated deficit (18,757) (27,857) Total stockholders' equity 24,645 14,863 Total liabilities and stockholders' equity $ 32,777 $ 22,610 DATASOURCE: Schick Technologies, Inc. CONTACT: Investor Relations of Schick Technologies, +1-718-937-5765; or Cameron Associates, +1-212-245-8800, for Schick Technologies Web site: http://www.schicktech.com/

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