WESTBURY, N.Y.--()--Vasomedical, Inc. (“Vasomedical”) (OTCQB: VASO), a diversified medical technology company specializing in the design, manufacture and sale of medical devices and in the domestic sale of diagnostic imaging products, today reported its operating results for the three and six months ended June 30, 2012.
“We will continue to pursue additional opportunities to expand our equipment segment and explore methods to grow our sales representation business”
The Company reported an increase in revenue of $2.52 million, or 48.7%, to $7.70 million for the three months ended June 30, 2012, compared to revenue of $5.18 million for the same period in 2011. For the six months ended June 30, 2012, revenue was $13.74 million compared to $10.02 million for the six months ended June 30, 2011, an increase of 37.1%. The increase is the result of improved performance in all areas of our business, namely, sales of our EECP® Therapy systems and sales from our China operations, as well as increased commission revenue for Vaso Diagnostics, Inc. We continue to record substantial amounts of deferred revenues, which will be recognized once the underlying equipment or service is accepted or performed. As of June 30, 2012, total deferred revenues were approximately $15.20 million, and the Company had cash and cash equivalents of approximately $11.78 million.
Net income for the three months ended June 30, 2012 was $54,000, compared to a net loss of $0.96 million for the same period in 2011. For the six months ended June 30, 2012 we had a net loss of $1.29 million compared to a net loss of $1.42 million for the same period in 2011. The improvement to profitability and the reduction in the loss reported for the three and six months ended June 30, 2012, respectively, compared to the same periods in 2011, was due to the increase in revenues for both our equipment operations and our sales representation business, offset by higher selling, general and administrative costs associated mainly with additional sales and marketing investments at our Vaso Diagnostics subsidiary, the addition of the China operations, and increased corporate expenses. Income attributable to common stockholders for the three months ended June 30, 2012 was $54,000 or $0.00 per common share, compared to a net loss of $1.11 million or $0.01 per common share for the three months ended June 30, 2011. For the six months ended June 30, 2012 we had a net loss attributable to common stockholders of $1.29 million or $0.01 per common share compared to a net loss applicable to common stockholders of $1.70 million or $0.01 per common share for the six months ended June 30, 2011.
“We are pleased that we are able to report a net income for the quarter ended June 30, 2012 and anticipate that we will continue to improve results in the second half of this year. Our equipment segment is beginning to show significant growth and we expect that this also will continue,” commented Dr. Jun Ma, President and Chief Executive Officer of the Company. “We will continue to pursue additional opportunities to expand our equipment segment and explore methods to grow our sales representation business,” Dr. Ma added.
Vasomedical, Inc. is a diversified medical technology company specializing in the manufacture and sale of medical devices and in the domestic sale of diagnostic imaging products. The Company operates through three wholly-owned subsidiaries. Vasomedical Solutions manages and coordinates the design, manufacture and sales of EECP® Therapy systems, its core product, as well as other medical equipment operations; Vasomedical Global operates the Company’s China-based subsidiaries; and Vaso Diagnostics, d/b/a VasoHealthcare, is the operating subsidiary for the sales representation of GE Healthcare diagnostic imaging products. Additional information is available on the Company's website at www.vasomedical.com.
Summarized Financial Information
FOR THE THREE MONTHS ENDED
|FOR THE SIX MONTHS ENDED|
STATEMENTS OF OPERATIONS
|June 30, 2012||June 30, 2011||June 30, 2012||June 30, 2011|
(In thousands except per share amounts)
|Operating income (loss)||$||75||$||(960||)||$||(1,226||)||$||(1,442||)|
|Other income (expense), net||$||71||$||6||$||54||$||20|
|Income (loss) before taxes||$||146||$||(954||)||$||(1,172||)||$||(1,422||)|
|Income tax expense||$||92||$||2||$||116||$||-|
|Net income (loss)||$||54||$||(956||)||$||(1,288||)||$||(1,422||)|
|Preferred stock dividends||$||-||$||151||$||-||$||279|
|Net income (loss) applicable to common stockholders||$||54||$||(1,107||)||$||(1,288||)||$||(1,701||)|
|June 30, 2012||December 31, 2011|
|Total current assets||$||26,422||$||28,500|
|Total current liabilities||$||16,801||$||17,146|
|Total stockholders' equity||$||10,624||$||11,276|
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.