ST. PAUL, MN--(Marketwire - November 12, 2010) - Hypertension Diagnostics, Inc. (OTCBB: HDII)
-- Quarterly Revenues Excluding START Sales Increase 27%
-- Encouraging Outlook
Hypertension Diagnostics, Inc. (OTCBB: HDII), today announced financial results for the first quarter of fiscal year 2011 (“Q1 2011") ended September 30, 2010.
Revenue for Q1 2011 totaled $257,208 compared to $302,075 for the first quarter of fiscal year 2010 ending September 30, 2009 (“Q1 2010"), which represents a 14.8% decrease. During Q1 2010, the Company recorded revenue of $98,745 related to the START study funded by the National Institutes of Health (NIH) to determine whether the measurement of arterial elasticity can assist in the prevention of cardiovascular disease in HIV patients. Without the START study, revenues for Q1 2010 were $203,330. There were no START revenues after the fourth quarter of fiscal 2010 ended June 30, 2010. Excluding START, revenues for Q1 2011 of $257,208 were up by 26.5% compared to revenues for Q1 2010 of $203,330.
The Company realized net income of $264,221 for Q1 2011 or $.01 per share, compared with net loss of $780,067 for Q1 2010, or $(.02) per share. Included in the net income for Q1 2011 is a $378,000 negative expense (or benefit) in the non-cash deferred compensation expense. The large deferred stock compensation benefit was a direct result of the decline in the Company’s stock price which decreased from $0.16 at the beginning of the quarter to $0.09 at the end of the quarter. A decrease in stock price creates a negative expense (or benefit) in the non-cash deferred stock compensation expense. The Company reported a cash balance on September 30, 2010 of $889,425, a 16% decrease compared with a cash balance of $1,053,648 on June 30, 2010.
“We continue to make progress in the underlying business,” said Mark Schwartz, Chairman and CEO. “We are aggressively expanding our independent representative network and their success provides encouragement that our market continues to grow,” commented Schwartz.
About Hypertension Diagnostics, Inc.
Hypertension Diagnostics, Inc. (“HDI”) manufactures and markets medical devices for early detection and management of cardiovascular disease in the U.S. and in 37 countries. Its main product, the CVProfilor® DO-2020 CardioVascular Profiling System, has been approved by the Food and Drug Administration (FDA), and is being marketed to primary care physicians in the U.S. HDI’s CardioVascular Profiling Systems non-invasively measure both large and small artery elasticity. Small artery elasticity has been shown to be predictive of cardiovascular disease. Several large pharmaceutical manufacturers have used HDI’s CardioVascular Profiling Systems in their multi-site clinical research trials. There are over 300 published, peer-reviewed scientific articles and presentations on HDI’s methodology, which provides evidence on the validity, accuracy and reproducibility of HDI’s CardioVascular Profiling technology. The technology was developed at the University of Minnesota by a team led by world-renown cardiologist, Dr. Jay N. Cohn.
Safe Harbor Statement
Forward-looking statements in this press release are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company wishes to caution readers not to place undue reliance on any forward-looking statements and to recognize that the statements are not a prediction of actual future results. Actual results could differ materially from those presented and anticipated in the forward-looking statements due to the risks and uncertainties set forth in the Company’s 2010 Annual Report on Form 10-K, and subsequent Quarterly Reports on Form 10-Q, all of which were filed with the U.S. Securities and Exchange Commission, as well as others not now anticipated.
Hypertension Diagnostics, Inc. Summary Financial Data (Unaudited) Statements of Operations ------------------------ Three Months Ended September 30 ---------------------- 2010 2009 ---------- ---------- Revenue: Equipment sales $ 211,000 $ 254,235 Equipment rental 12,852 25,161 Service/contract income 33,356 22,679 ---------- ---------- 257,208 302,075 Cost of Sales: Cost of Sales 37,854 50,622 Inventory Obsolescence Allowance - (17,838) ---------- ---------- Net Cost of Sales 37,854 32,784 ---------- ---------- Gross Profit 219,354 269,291 Selling, general and administrative expenses (40,564) 1,050,841 ---------- ---------- Operating Income (Loss) 259,918 (781,550) Other Income: Interest income 1,995 - Miscellaneous income 2,308 1,483 ---------- ---------- Total Other Income 4,303 1,483 ---------- ---------- Net Income (Loss) before taxes 264,221 (780,067) ========== ========== Deferred compensation expense (378,000) 763,875 Non-GAAP Pro-forma net income (loss) $ (113,779) $ (16,192) (excluding deferred compensation expense) Net Income (Loss) per Common Share: Basic $ 0.01 $ (0.02) Diluted $ 0.01 $ (0.02) Weighted Average Common Shares Outstanding: Basic 41,995,526 40,973,711 Diluted 50,619,552 40,973,711 Balance Sheet Data ------------------ September 30, June 30, 2010 2010 ------------ ------------ Cash and cash equivalents $ 889,425 $ 1,053,648 Total current assets 1,379,686 1,538,712 Total assets 1,387,237 1,546,580 Total current liabilities 211,160 306,599 Accumulated deficit (28,160,145) (28,424,366) Total shareholders’ equity (deficit) 177,653 (146,818)
CVProfilor is a registered trademark of Hypertension Diagnostics, Inc.
Hypertension Diagnostics, HDI/PulseWave, PulseWave and CVProfile are trademarks of Hypertension Diagnostics, Inc. All rights reserved.
Website: www.hdii.com
Contact:
Mark N. Schwartz
CEO
(651) 687-9999
