WESTBURY, N.Y., May 15, 2013 /PRNewswire/ -- Vasomedical, Inc. ("Vasomedical") (OTC BB: VASO) today reported its operating results for the three months ended March 31, 2013.
"We are pleased to report that for the first quarter of 2013, we recorded total revenue of $7.3 million, an increase of 21% compared to the same period of 2012," commented Dr. Jun Ma, President and Chief Executive Officer of Vasomedical, Inc. "The increase in revenue is mainly attributable to a 48% increase in commission revenue recognized by our VasoHealthcare subsidiary during the quarter. We expect that the commission revenue from our sales representation business will continue to be a significant portion of our growth as we seek to expand our sales representation segment."
"During the first quarter of 2013, we experienced a decrease in revenue for our equipment segment that is mostly attributable to EECP® sales. This decline partially reflects certain customer delays associated with delivering EECP® equipment, which resulted in lower recorded revenue for the period. As such, we believe these quarterly results do not truly reflect the current market demand for our EECP® products or our performance. These types of fluctuations are why we focus on full-year results to determine the success of our sales and marketing efforts for EECP® equipment."
"We remain committed to expanding our sales and marketing programs for our proprietary equipment in both domestic and international markets, including the expansion of our domestic sales team, which is expected to help drive sales in the coming quarters," concluded Dr. Ma.
Three Months Ended March 31, 2013 Financial Results
For the three months ended March 31, 2013, revenue increased 21% to $7.3 million, compared to $6.0 million for the three months ended March 31, 2012. This is attributable to a 48% increase in commission revenue recognized in the first quarter of 2013 to $6.0 million, compared to $4.1 million for the same period in 2012. The increase in commission revenue is a result of higher volume of equipment delivered to customers during the first quarter of 2013 compared to the same period of 2012.
Gross profit for the first quarter of 2013 was $5.1 million, for a gross margin of 69.4%, compared to a gross profit of $4.2 million, for a gross margin of 69.2%, for the first quarter of 2012.
Selling, general and administrative (SG&A) expenses for the first quarter of 2013 were $5.6 million compared to $5.3 million for the same period last year. The increase in SG&A expense resulted primarily from costs in the Sales Representation segment of approximately $238,000 associated with the extension of the GEHC contract. This cost increase is a non-recurring charge that will be completed in the second quarter 2013.
Net loss for the three months ended March 31, 2013 was $0.7 million, or $0.00 per basic and diluted common share, compared to a net loss of $1.3 million, or $0.01 per basic and diluted common share, for the three months ended March 31, 2012.
In April 2013, the Company's Board of Directors authorized a share repurchase program of up to $1.5 million of the Company's common stock, representing approximately 5% of the total outstanding shares of Vasomedical common stock as of April 30, 2013. The repurchase program is being actively implemented in compliance with relevant SEC guidelines; 367,427 shares have been bought back through Friday, May 10, 2013.
Conference Call Information
The Company will host a conference call tomorrow, Thursday, May 16th at 10:00 a.m. ET. 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: 57513438. 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 June 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: 57513438.
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
STATEMENTS OF OPERATIONS
March 31, 2013
March 31, 2012
Other income (expense), net
Loss before taxes
Income tax expense
March 31, 2013
December 31, 2012
Cash and cash equivalents
Total current assets
Total current liabilities
Total stockholders' equity
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.
Todd Fromer / Garth Russell
KCSA Strategic Communications
Phone: 212-896-1215 / 212-896-1250
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SOURCE Vasomedical, Inc.