WESTBURY, N.Y., Nov. 14, 2013 /PRNewswire/ -- Vasomedical,
Inc. ("Vasomedical") (OTC BB: VASO) today reported its operating
results for the three months ended September
30, 2013.
"We are pleased to report that during the third quarter of 2013
the Company recorded significant growth in both the Equipment
segment and the Sales Representation segment. Total equipment
sales were particularly impressive, with an increase of 97%
compared to the same period last year, as we experienced a spike in
sales of our EECP® equipment in certain international
markets as well as the steady sales growth from our Biox
subsidiary," stated Dr. Jun Ma,
President and Chief Executive Officer of Vasomedical, Inc. "The
excellent performance and continued growth of Biox not only
benefits the Company financially, it also provides us with a
successful track record in China,
paving the way for us to pursue additional acquisition and
partnership opportunities there."
"We continue to see strong results from our sales representation
segment. Given the overall strength of our team, we believe
our independent sales channel model can be successfully expanded or
replicated with other OEMs in different markets," concluded Dr.
Ma.
Three Months Ended September 30,
2013 Financial Results
For the three months ended September 30,
2013, revenue increased 33% to $7.6
million from $5.7 million for
the same period of 2012. This is attributable to a 97% increase in
our equipment sales revenue to $1.4
million, as a result of a higher EECP® sales
volume and continued growth from our Biox subsidiary in
China. Our Sales Representation
business also had significant improvement, with commission revenue
increasing 26% to $5.9 million
compared to $4.7 million in the third
quarter 2012.
Gross profit for the third quarter of 2013 increased 28% to
$5.2 million, compared to a gross
profit of $4.1 million for the third
quarter of 2012. This increase is primarily a result of higher
commission revenues in our Sales Representation segment arising
from higher equipment delivery by GE Healthcare (GEHC) and an
increase of equipment shipments from our Equipment segment.
Selling, general and administrative (SG&A) expenses for the
third quarter of 2013 were $5.5
million or 72% of revenues, compared to $6.6 million, or 115% of revenues for the same
period last year. The decrease in SG&A expenditures in the
third quarter of 2013 resulted primarily from the completion in the
second quarter of 2013 of certain non-recurring costs attributable
to the renewal of the GEHC contract.
Net loss for the three months ended September 30, 2013 was $464,000, or $0.00
per basic and diluted common share, a substantial improvement
compared to the net loss of $2.5
million, or $0.02 per basic
and diluted common share, for the three months ended September 30, 2012.
Net cash decreased by $2.3 million
to $9.1 million at September 30, 2013 compared to net cash of
$11.4 million at December 31, 2012. The decrease is
principally due to the repurchase of our common shares and payment
of certain accrued liabilities. Under the Company's
share repurchase program initiated in April
2013, Vasomedical has acquired through November 8, 2013, approximately 9.3 million
shares of its common stock.
Conference Call Information
The Company will host a conference call today at 1:00 p.m. ET featuring remarks by Jun Ma, Ph.D., President and CEO of Vasomedical,
and Michael Beecher, Chief Financial
Officer of Vasomedical. To dial into the conference call, please
dial 1-866-393-1344 from the U.S. or 1-631-291-4669,
internationally. All dial-in participants must use the following
code to access the call: 94523097. 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. To access the dial-in
replay of the call, which will be available until December 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: 94523097.
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.
|
FOR THE THREE MONTHS
ENDED
|
|
FOR THE SIX MONTHS
ENDED
|
STATEMENTS OF
OPERATIONS
|
September 30,
2013
|
September 30,
2012
|
|
September 30,
2013
|
September 30,
2012
|
|
(In
thousands)
|
|
|
|
|
|
|
Revenue
|
$
7,606
|
$
5,722
|
|
$
22,795
|
$
19,462
|
Gross
profit
|
5,187
|
4,063
|
|
15,613
|
13,774
|
Operating
loss
|
(492)
|
(2,659)
|
|
(1,704)
|
(3,885)
|
Other (expense)
income, net
|
(63)
|
97
|
|
20
|
151
|
Loss before
taxes
|
(555)
|
(2,562)
|
|
(1,684)
|
(3,734)
|
Income tax benefit
(expense)
|
91
|
44
|
|
35
|
(72)
|
Net (loss)
income
|
$
(464)
|
$
(2,518)
|
|
$
(1,649)
|
$
(3,806)
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE
SHEETS
|
September 30,
2013
|
December 31,
2012
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
$
18,405
|
$
25,716
|
|
|
|
Total
assets
|
$
25,410
|
$
32,381
|
|
|
|
Total current
liabilities
|
$
13,965
|
$
18,178
|
|
|
|
Total stockholders'
equity
|
$
6,036
|
$
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.