WESTBURY, N.Y., Aug. 13, 2013 /PRNewswire/ -- Vasomedical,
Inc. ("Vasomedical") (OTC BB: VASO) today reported its operating
results for the three months ended June 30,
2013.
"We are pleased by the continued growth reported for the second
quarter of 2013, mostly attributable to the increased activity in
our sales representation business in the U.S. and our operations in
China," stated Dr. Jun Ma, President and Chief Executive Officer of
Vasomedical, Inc. "We are encouraged by the success of our
diversification and growth strategy, and look forward to seeing our
efforts through to fruition in all aspects of our business."
"Looking ahead, we will continue to implement the Company's
growth strategy by expanding the sales teams for each of our
subsidiaries and looking to develop new services and product lines.
These investments have already had an early impact on our results
establishing a solid foundation from which to drive future growth.
While it is still early in the process, we believe these
investments will have a positive impact on a long-term basis."
"As previously announced, we initiated a share repurchase
program in April, which we believe provides a strong vote of
confidence to the investment community. As of July 30, 2013, we had acquired approximately 8
million shares of the Company's common stock. Our board of
directors recently increased the buyback program by $500,000, for a total of $2 million. This program is part of our
multi-pronged strategy to build shareholder value," concluded Dr.
Ma.
Three Months Ended June 30,
2013 Financial Results
For the three months ended June 30,
2013, revenue increased 3% to $7.9
million from $7.7 million for
the three months ended June 30, 2012.
This is primarily attributable to an increase in commission revenue
recognized from our Sales Representation business in the second
quarter of 2013, as a result of an increase in volume of equipment
delivered by GEHC.
Gross profit for the second quarter of 2013 was $5.4 million, compared to a gross profit of
$5.5 million for the second quarter
of 2012. The decrease is primarily due to a decrease in the
sales representation segment margin, offset by an increase in
equipment segment margin. The equipment segment gross margin
increased to 62.9% for the three months ended June 30, 2013 from 56.7% for the same period in
2012. The decrease in the margin in the sales representation
segment is due to the lower commission rate on GEHC orders received
in 2012 and delivered in 2013. We anticipate that these
margins will improve in the second half of 2013 as we expect to
achieve a higher commission rate on 2013 orders.
Selling, general and administrative (SG&A) expenses for the
second quarter of 2013 were $5.7
million compared to $5.3
million for the same period last year. The increase in
SG&A expenditures in the second quarter of 2013 resulted
primarily from increased costs associated with the expansion of the
Equipment segment sales team of approximately $200,000, as well as $140,000 higher costs in the Sales Representation
segment, of which $76,000 are
non-recurring costs associated with the extension of our GEHC
contract.
Net loss for the three months ended June
30, 2013 was $537,000, or
$0.00 per basic and diluted common
share, compared to net income of $54,000, or $0.00
per basic and diluted common share, for the three months ended
June 30, 2012.
Cash flow from operations for the six months ended June 30, 2013 was $336,000. We continue to maintain a strong
financial position with a cash balance of $11.6 million at June 30,
2013.
Conference Call Information
The Company will host a conference call tomorrow, Wednesday, August 14th at 11:00 a.m. ET. To dial into the conference call,
please dial 1-866-393-1344 from the U.S. or 1-631-291-4996
internationally. All dial-in participants must use the following
code to access the call: 26595138. Please call at least five
minutes before the scheduled start time. The conference call will
also be available via webcast and can be accessed through the
Investor Relations section of Vasomedical's website,
www.vasomedical.com, and www.kcsa.com. Please allow extra time
prior to the call to visit the site and download any necessary
software to listen to the live broadcast.
A replay of the conference call will be available approximately
two hours after completion of the live conference call at
www.vasomedical.com or www.kcsa.com. A dial-in replay of the
call will also be available until September
16, 2013; please dial 1-855-859-2056 or 1-404-537-3406. All
dial-in participants must use the following code to access the
call: 26595138.
About Vasomedical
Vasomedical, Inc. is a diversified
medical technology company specializing in the manufacture and sale
of medical devices and in the domestic sale of diagnostic imaging
products. The Company's main proprietary products are
EECP® Therapy systems, the gold standard of ECP
treatment. The Company operates through three wholly owned
subsidiaries: VasoSolutions, Vasomedical Global and VasoHealthcare.
VasoSolutions manages and coordinates the design, manufacture and
sales of EECP® Therapy systems, and other medical
equipment operations; Vasomedical Global operates the
Company's China-based subsidiaries; and VasoHealthcare is the
operating subsidiary for the exclusive sales representation of GE
Healthcare diagnostic imaging products in certain markets.
Additional information is available on the Company's website
at www.vasomedical.com.
Summarized Financial Information
|
FOR THE THREE
MONTHS ENDED
|
|
FOR THE SIX MONTHS
ENDED
|
STATEMENTS OF
OPERATIONS
|
June 30,
2013
|
June 30,
2012
|
|
June 30,
2013
|
June 30,
2012
|
|
(In
thousands)
|
|
|
|
|
|
|
Revenue
|
$
7,896
|
$
7,697
|
|
$
15,189
|
$
13,740
|
Gross
profit
|
5,363
|
5,530
|
|
10,425
|
9,711
|
Operating (loss)
income
|
(532)
|
75
|
|
(1,214)
|
(1,226)
|
Other income
(expense), net
|
44
|
71
|
|
82
|
54
|
(Loss) income before
taxes
|
(488)
|
146
|
|
(1,132)
|
(1,172)
|
Income tax
expense
|
49
|
92
|
|
57
|
116
|
Net (loss)
income
|
$
(537)
|
$
54
|
|
$
(1,189)
|
$
(1,288)
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE
SHEETS
|
June 30,
2013
|
December 31,
2012
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
$
23,197
|
$
25,716
|
|
|
|
Total
assets
|
$
29,231
|
$
32,381
|
|
|
|
Total current
liabilities
|
$
18,002
|
$
18,178
|
|
|
|
Total stockholders'
equity
|
$
7,912
|
$
9,010
|
|
|
|
|
|
|
|
|
|
Except for historical information contained in this release,
the matters discussed are forward-looking statements that involve
risks and uncertainties. When used in this release, words such as
"anticipates", "believes", "could", "estimates", "expects", "may",
"plans", "potential" and "intends" and similar expressions, as they
relate to the Company or its management, identify forward-looking
statements. Such forward-looking statements are based on the
beliefs of the Company's management, as well as assumptions made by
and information currently available to the Company's management.
Among the factors that could cause actual results to differ
materially are the following: the effect of business and economic
conditions; the effect of the dramatic changes taking place in the
healthcare environment; the impact of competitive procedures and
products and their pricing; medical insurance reimbursement
policies; unexpected manufacturing or supplier problems; unforeseen
difficulties and delays in the conduct of clinical trials and other
product development programs; the actions of regulatory authorities
and third-party payers in the United
States and overseas; uncertainties about the acceptance of a
novel therapeutic modality by the medical community; continuation
of the GEHC agreement; and the risk factors reported from time to
time in the Company's SEC reports. The Company undertakes no
obligation to update forward-looking statements as a result of
future events or developments.
Investor Contacts:
Todd
Fromer / Garth Russell
KCSA Strategic Communications
Phone: 212-896-1215 / 212-896-1250
Email: tfromer@kcsa.com / grussell@kcsa.com
SOURCE Vasomedical, Inc.