WESTBURY, N.Y.--(BUSINESS WIRE)--Vasomedical, Inc. (“Vasomedical”) (OTC:VASO.PK), a leader in the manufacture and sale of devices for the non-invasive treatment and management of cardiovascular diseases as well as a leader in the sale of diagnostic imaging products, today reported financial results for the fiscal year ended May 31, 2011. These results include the operations of the Company’s equipment segment as well as its sales representation segment, conducted through its wholly-owned subsidiary Vaso Diagnostics d/b/a VasoHealthcare which represents GE Healthcare (“GEHC”) for the sale of select diagnostic imaging products on an exclusive basis to specific market segments in the 48 contiguous states of the United States.
For the fiscal year 2011, which ended May 31, 2011, the Company's total revenues were $16.37 million, an increase of $12.17 million, or 289% as compared to revenues of $4.21 million for the last fiscal year. While the Company reported an operating loss of approximately $3.93 million for the year, compared to an operating loss of $1.98 million for the prior fiscal year, these losses were largely attributed to the revenue recognition rules applicable to the Company’s VasoHealthcare subsidiary, wherein a part of revenues were deferred. As of May 31, 2011, total deferred revenues for the Company were $11.92 million, including $10.81 million for the VasoHealthcare subsidiary, an increase of $10.89 million from $1.03 million for fiscal 2010. The substantial part of this deferred revenue should be recognized as revenue in fiscal 2012. Our strong performance in fiscal 2011 is further demonstrated by the significant cash flow generated in the fiscal year. Cash provided by operating activities was $4.14 million during fiscal year 2011, as compared to cash used in operating activities of $1.59 million during fiscal 2010. As of May 31, 2011, the Company had cash and cash equivalents of approximately $8.13 million.
“We are encouraged by our improved financial results, particularly our significant operating cash flow and increased revenues for the fiscal year,” commented Dr. Jun Ma, Chief Executive Officer and President of Vasomedical. “Our equipment segment revenues improved considerably over last year, with an increase of 25%; and our VasoHealthcare team delivered great performance that exceeded our expectation.” Dr. Ma continues, “With improved performance in all areas of business and our strong cash position, Vasomedical is now looking to further implement its growth strategy. This includes the initiative that we started with our consultants seeking to expand reimbursement for our proprietary EECP® therapy; seeking accretive acquisitions of compatible medical equipment products or partners, such as our recently announced agreement with Biox Instruments Co. Ltd.; and looking to expand our representation of GEHC products. The Company has also retained the services of a public relations firm to create greater visibility of our activities and programs as we implement our growth strategy.”
Vasomedical, Inc. is engaged in designing, manufacturing, marketing and supporting EECP® external counterpulsation systems based on the Company's proprietary technology. EECP® therapy is a non-invasive, outpatient therapy for the treatment of cardiovascular diseases and is currently indicated for use in cases of angina, cardiogenic shock, acute myocardial infarction and congestive heart failure. The Company provides hospitals, clinics and private practices with EECP® equipment, treatment guidance and a staff training and maintenance program designed to provide optimal patient outcomes. The Company also provides other noninvasive medical equipment including Holter monitors and ambulatory blood pressure monitors.
Vaso Diagnostics d/b/a VasoHealthcare, a wholly owned subsidiary of Vasomedical, Inc., is a professional sales representation organization offering vendors of medical devices an alternative third party sales channel. Through an agreement with GE Healthcare, it is currently engaged as an exclusive sales representative for certain GE Healthcare products. Additional information is available on the Company's website at www.vasomedical.com.
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.