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.
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