PLAINVIEW, NY / ACCESSWIRE / October 29, 2021 / Vaso Corporation (“Vaso”) (OTCMKTS:VASO) today announces the amendment of the sales representation agreement between its subsidiary, Vaso Diagnostics, Inc. d/b/a VasoHealthcare, and GE Healthcare (“GEHC”), the healthcare business unit of General Electric Company (NYSE:GE), originally signed on May 19, 2010.
The amendment extends the term of the original agreement, which began on July 1, 2010 and was previously extended in 2012, 2015 and 2017, through December 31, 2026, subject to earlier termination under certain circumstances, making it a contract of five years from the end of this year. Under the agreement, VasoHealthcare is the exclusive representative for the sale of select GE Healthcare diagnostic imaging products and certain related services to specific healthcare provision customer accounts in the 48 contiguous states of the United States and the District of Columbia.
“We are pleased to build upon the relationship we have with the Vaso Healthcare team. They are a valued Diagnostic Imaging partner for GE Healthcare in the US,” said Catherine Estrampes, President & CEO, GE Healthcare US and Canada. “We look forward to continuing to deliver on our collective priorities that ultimately improve lives in the moments that matter.”
“It’s an exciting development and an important milestone in our relationship with GE Healthcare, whose exceptional equipment and outstanding service are a major reason for our success as well,” commented Ms. Jane Moen, president of VasoHealthcare and a director of Vaso Corporation. “Over the past 11 years since the cooperation started, we have built a highly effective professional sales organization and assembled an exceptional leadership team, and we have developed a proprietary management platform ready for the future. I am thankful for dedication of my colleagues and the great partnership with GE Healthcare, and I look forward to continued success in the coming years.”
“This extension is once again a testament to the success of our long-standing partnership with GE Healthcare, to which we are fully committed,” stated Dr. Jun Ma, president and CEO and a director of Vaso Corporation.
Summarized Financial Information
About Vaso
Vaso Corporation is a diversified medical technology company with several distinctive but related specialties: managed IT systems and services, including healthcare software solutions and network connectivity services; professional sales services for diagnostic imaging products; and design, manufacture and sale of proprietary medical devices.
The Company operates through three wholly owned subsidiaries:
Except for historical information contained in this release, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this report, words such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “may”, “optimistic”, “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, including the impact of the current COVID-19 pandemic; the effect of the dramatic changes taking place in IT and healthcare; continuation of the GEHC agreement; the impact of competitive technology and products and their pricing; medical insurance reimbursement policies; unexpected manufacturing or supplier problems; unforeseen difficulties and delays in product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; 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 Contact:
Michael J. Beecher
Investor Relations
Phone: 516-508-5840
Email: mbeecher@vasocorporation.com
PLAINVIEW, NY / May 15, 2019 / Vaso Corporation (“Vaso”) (OTC PINK: VASO) today reported its operating results for the three months ended March 31, 2019.
“For the first quarter of 2019, the Company recorded a year-over-year revenue decrease of $2.0 million, mainly due to a lower equipment delivery volume by our partner, leading to a shortfall of $1.8 million in recognized revenue in our professional sales service segment alone. Under applicable accounting rules we recognize commission revenues upon delivery of the underlying equipment to customers. While we continued to experience slow equipment delivery in this segment, we anticipate an improvement in deliveries in the remainder of 2019,” stated Dr. Jun Ma, President and CEO of the Company.
“Meanwhile, we initiated a substantial cost reduction program at the end of 2018, which has already resulted in a decrease of $1.2 million in SG&A costs in the first quarter of 2019 when compared to the first quarter of 2018. Additional steps are being taken to align expense with revenue and to improve performance margin; therefore we believe that these cost reduction measures and an improved revenue for the balance of the year can return the Company to profitability by year end,” concluded Dr. Ma.
Financial Results for Three Months Ended March 31, 2019
For the three months ended March 31, 2019, revenue decreased by 11% to $15.5 million from $17.5 million for the same period of 2018, primarily resulting from a decrease of $1.8 million in our professional sales service segment revenue, substantially due to lower equipment deliveries. Quarterly revenue in our IT and equipment segments also decreased year-over-year, by $86,000 and $131,000, respectively. Order bookings in the professional sales service segment in the first quarter of 2019 were very strong and we expect that deliveries of the underlying equipment will improve over the remainder of 2019.
Gross profit for the first quarter of 2019 decreased 18% to $7.9 million, compared with a gross profit of $9.6 million for the first quarter of 2018. This decrease is primarily the result of the decrease in revenue as discussed above, compounded by a lower gross profit margin in the quarter compared to a year ago.
Selling, general and administrative (SG&A) expenses for the first quarter of 2019 decreased 10% to $10.3 million compared to $11.5 million for the same quarter of 2018. The decrease is primarily attributable to decreases in personnel and other costs in the professional sales service and IT segments, resulting from the cost reduction program the Company initiated in the fourth quarter 2018. We anticipate these costs reduction initiatives will result in significant cost savings for the full year 2019.
Research and development costs increased 7% to $200 thousand in the first quarter of 2019 compared to the first quarter of 2018, due to an increase in software development costs in the IT segment.
Net loss for the three months ended March 31, 2019 was $2.8 million, compared to a net loss of $2.1 million for the first quarter of 2018. The increase in the loss is principally due to the decrease in revenue in the professional sales service segment. We expect an improvement in profitability for the remainder of 2019, as we anticipate an increase in equipment deliveries in the professional sales service segment and improved operating results as an effect of our cost reduction initiatives.
Net cash used in operating activities was $0.7 million in the first quarter of 2019 compared to net cash used in operations of $0.5 million for the three months ended March 31, 2018. Cash and cash equivalents at March 31, 2019 was $2.1 million, compared to $2.7 million at December 31, 2018.
Total deferred revenue remains substantial, at approximately $17.9 million as of March 31, 2019, which will be recognized in the future when the underlying equipment or services are delivered and accepted at the customer site. Our shareholders’ equity decreased to $2.9 million as of March 31, 2019 from $5.6 million as of December 31, 2018.
We have incurred net losses from operations for the years ended December 31, 2018 and 2017, and we maintain lines of credit from a lending institution and these lines of credit will require further extensions after their current June 28, 2019 maturity date. Our ability to continue operating as a going concern is dependent upon achieving profitability, extending the maturity date of our existing lines of credit, or through additional debt or equity financing.
About Vaso
Vaso Corporation is a diversified medical technology company with several distinctive but related specialties: managed IT systems and services, including healthcare software solutions and network connectivity services; professional sales services for diagnostic imaging products; and design, manufacture and sale of proprietary medical devices.
The Company operates through three wholly owned subsidiaries:
Summarized Financial Information
Except for historical information contained in this release, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this report, words such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “may”, “optimistic”, “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 IT and healthcare; continuation of the GEHC agreements; the impact of competitive technology 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; 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.
PLAINVIEW, NY / April 15, 2019 / Vaso Corporation (“Vaso”) (OTC PINK: VASO) today reported its operating results for the three months and year ended December 31, 2018.
“The Company’s total revenue continued to increase, to $74.0 million, for the fiscal year 2018, thanks to the growth in our IT segment and proprietary medical equipment segment, at 3.9% and 12.7%, respectively,” stated Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “The IT segment we started in 2014 contributed $44.2 million in 2018 revenue, accounting for 60% of our total revenue.”
“On the other hand, 2018 was a challenging year for our professional sales service segment as order bookings for diagnostic imaging equipment and delivery volume of the equipment were lower than in the prior year, partially due to the rising uncertainty in the healthcare provision marketplace, especially in the middle market we cover, relating to activities in practice ownership changes as well as impending regulatory or policy changes. We continue to monitor developments in the marketplace as well as legislation changes in the government, and have taken steps to align business expenses with growth potential in both the professional sales service segment and the IT segment to improve the operating results,” concluded Dr. Ma.
Financial Results for Three Months Ended December 31, 2018
For the three months ended December 31, 2018, revenue decreased 6.2% to $19.2 million from $20.5 million for the same period of 2017, due primarily to the decrease of $1.6 million, or 19.6%, in revenue in our professional sales service segment as the result of lower equipment delivery by our partner as well as lower blended commission rates, while our equipment segment revenue increased 33.3% to $1.5 million from $1.1 million for the fourth quarter of 2017. Revenue in our IT segment was relatively flat compared to the same quarter last year.
Gross profit for the fourth quarter of 2018 decreased 10.3% to $10.6 million, compared with a gross profit of $11.8 million for the same quarter of 2017. This decrease was primarily the result of the decrease in revenue in the professional sales service segment, partially offset by an increase in gross profit in the equipment segment. Gross profit in the IT segment was relatively flat year-over-year.
Selling, general and administrative (SG&A) expenses for the fourth quarter of 2018 decreased 6.2% to $11.5 million, compared to $12.3 million for the fourth quarter of 2017. The decrease is primarily attributable to a decrease in personnel costs in the professional sales service segment, partially offset by an increase in the IT segment. SG&A expenses were 59.8% of revenue in the fourth quarter of 2018 and 2017.
Net loss for the three months ended December 31, 2018 was $0.8 million, compared with a net loss of $0.6 million for the three months ended December 31, 2017.
Financial Results for Year Ended December 31, 2018
For the year ended December 31, 2018, revenue increased $1.2 million to $74.0 million, compared with $72.8 million for the year 2017. Revenue in our IT segment increased 3.9% to $44.2 million for fiscal 2018, compared to revenue of $42.6 million in 2017, primarily due to an increase of $1.4 million from managed network services and a small increase from the healthcare IT VAR operation. Commission revenues in our professional sales service segment decreased by 3.5% to $25.5 million as a result of lower equipment deliveries as well as lower blended commission rates compared to 2017. Equipment segment revenue for the year 2018 increased by 12.7% to $4.2 million, from $3.8 million in 2017, principally due to the increase in volume of equipment and software sales.
Gross profit for the year ended December 31, 2018 increased 1.0% to $41.1 million, from $40.7 million in 2017. The increase was due primarily to an increase of $0.8 million in our IT segment and $0.1 million in the equipment segment, resulting from the increase in revenue in these segments offset by a decrease of $0.5 million in our professional sales service segment as a result of the lower revenues in that segment.
SG&A expenses for the year ended December 31, 2018 increased less than 1% to $44.0 million, or 59.4% of revenue, compared with $43.6 million, or 59.9% of revenue, for the same period in 2017. The increase resulted primarily from an increase in personnel and other costs in the IT segment, offset by decreases in the professional sales service and equipment segments and lower corporate expenses.
For the year ended December 31, 2018, the Company had a net loss of $3.7 million, or $0.02 per common share, compared with a net loss of $4.5 million, or $0.03 per common share, for the year ended December 31, 2017.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and share-based compensation) was negative at $0.6 million for the year ended December 31, 2018 compared to negative Adjusted EBITDA of $0.8 million for the year ended December 31, 2017. The improvement was primarily the result of the lower net loss in 2018, compared to the net loss in 2017.
Net cash used in operating activities was $1.5 million, compared to net cash provided by operating activities of $1.6 million in 2017. The decrease is principally due to a decrease in deferred revenue in the professional sales service segment, partially offset by decreases in accounts receivable and deferred commission expense. Net cash decreased to $2.7 million at December 31, 2018, compared to $5.2 million at December 31, 2017. The decrease in cash is the net effect of negative cash from operating and investing activities, offset by an increase in net borrowings. As of March 31, 2019, the Company’s net cash was approximately $2.0 million.
Deferred revenue decreased to $18.1 million at December 31, 2018, compared to $23.1 million at December 31, 2017. The decrease is primarily the result of lower order bookings in the professional sales service segment. The deferred revenue will be recognized in the future when the underlying equipment or services are delivered and accepted at the customer site. Our shareholders’ equity decreased to $5.6 million as of December 31, 2018 from $9.2 million as of December 31, 2017.
We have incurred net losses from operations for the years ended December 31, 2018 and 2017, and we maintain lines of credit from a lending institution and these lines of credit will require further extensions after their current June 28, 2019 maturity date. Our ability to continue operating as a going concern is dependent upon achieving profitability, extending the maturity date of our existing lines of credit, or through additional debt or equity financing.
About Vaso
Vaso Corporation is a diversified medical technology company with several distinctive but related specialties: managed IT systems and services, including healthcare software solutions and network connectivity services;professional sales services for diagnostic imaging products; and design, manufacture and sale of proprietary medical devices.
The Company operates through three wholly owned subsidiaries:
Additional information is available on the Company’s website at www.vasocorporation.com.
Summarized Financial Information
Except for historical information contained in this release, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this report, words such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “may”, “optimistic”, “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 IT and healthcare; continuation of the GEHC agreements; the impact of competitive technology 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; 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.
PLAINVIEW, NY / ACCESSWIRE / November 14, 2018 / Vaso Corporation (OTC PINK: VASO) (formerly Vasomedical, Inc.) today reported its operating results for the three months ended September 30, 2018.
“Total revenues for the three and nine months of 2018 were $18.8 million and $54.7 million, respectively, representing growth rate at 4% and 5% when compared to the same periods of last year,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso. “While all three of our business units contributed to the revenue growth, VasoHealthcare, the professional sales service business unit, enjoyed a 9% year-over-year revenue increase during the third quarter as a result of higher equipment delivery volume by our partner, turning deferred revenue into recognized revenue.”
“We also recorded improved quarterly and year-to-date operating results in 2018 as compared to 2017, and we anticipate the trend of growth in top- and bottom-line performances to continue for the remainder of the year and into the next year as deferred revenue and order backlog continue to convert to revenue when underlying equipment and services are delivered to customers. We are excited about the future of the Company, as we believe our diversified operations and strong book of businesses could withstand market uncertainties and business fluctuations,” concluded Dr. Ma.
Financial Results for the Three Months Ended September 30, 2018
For the three months ended September 30, 2018, revenue increased 4% to $18.8 million from $18.0 million for the same period of 2017. The year-over-year increase was the result of a $0.5 million, or 9%, growth in our professional sales service segment revenue, due to higher equipment deliveries by GE Healthcare (“GEHC”) compared to the third quarter 2017. Revenue in our IT segment increased $0.2 million, or 2%, attributable to an increase in revenue in our NetWolves operation of network services business. Revenue in the equipment segment increased $23 thousand for the quarter from the same quarter a year ago, due to an increase in EECP® business.
Gross profit for the third quarter of 2018 increased 4% to $10.5 million, compared with $10.0 million for the third quarter of 2017. The increase was principally due to the increase in revenue in the professional sales service segment and in the equipment segment, offset by a slightly lower gross profit margin in the IT segment as a result of the lower product margin sales mix in that segment. Total gross profit margin was 56% of revenue for each of the three-month periods ended September 30, 2018 and 2017.
Selling, general and administrative (SG&A) expenses for the third quarter of 2018 increased to $10.5 million from $10.4 million for the third quarter of the prior year. The increase is primarily due to an increase in personnel costs in the IT segment, offset by lower costs in the professional sales service segment and the equipment segment.
The Company had an operating loss of $241 thousand for the third quarter 2018, a reduction of 61% when compared to an operating loss of $619 thousand for the same period in 2017. The $378 thousand improvement was principally due to the higher revenue in the professional sales service segment. Net loss for the three months ended September 30, 2018 was $377 thousand, compared with net loss of $816 thousand for the three months ended in the same period in 2017, an improvement of $439 thousand or 54%.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and non-cash stock-based compensation) was $476 thousand for the three months ended September 30, 2018, compared to $152 thousand for the same period a year ago.
Net cash used in operating activities in the first nine months of 2018 was $1.5 million. As of September 30, 2018, the Company had cash and cash equivalents of approximately $3.0 million, compared to cash and cash equivalents of $5.2 million at December 31, 2017. We anticipate an improvement in cash flow from operations for the remainder of this year.
About Vaso
Vaso Corporation is a diversified medical technology company with several distinctive but related specialties: managed IT systems and services, including healthcare software solutions and network connectivity services; professional sales services for diagnostic imaging products; and design, manufacture and sale of proprietary medical devices.
The Company operates through three wholly owned subsidiaries:
Additional information is available on the Company’s website at www.vasocorporation.com.
Summarized Financial Information
Except for historical information contained in this release, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this report, words such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “may”, “optimistic”, “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 IT and healthcare; continuation of the GEHC agreements; the impact of competitive technology 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; 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.
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