Reporting 128% Revenue Growth and Operating Profit of $1.3 Million for the Quarter
PLAINVIEW, NY–(Marketwired – Nov 12, 2015) – Vasomedical, Inc. (“Vasomedical”) (OTC PINK: VASO) today reported its operating results for the three months ended September 30, 2015.
“We are very excited to report a 128% year-over-year revenue growth at Vasomedical for the third quarter of 2015, during which our total revenue grew to $17.4 million from $7.6 million a year ago. The majority of the growth was from the acquisition of NetWolves, which we completed at the end of May 2015. Our existing operations also saw significant year-over-year growth of 13.8% and 7.2% for the three- and nine-month periods ended September 30, 2015, respectively,” stated Jun Ma, President and CEO of Vasomedical, Inc. “As a result, we recorded an operating profit of $1.3 million for the third quarter of 2015, a positive change of $1.5 million from an operating loss of $149 thousand for the same quarter of 2014. The operating results for the first nine months of the year were even more encouraging, as we reported an operating profit of $1.3 million, a remarkable turnaround from last year’s $1.4 million operating loss. Based on our performance year to date, we expect to be profitable again for the year 2015.”
“The NetWolves acquisition successfully diversified our business and reduced our dependence on any single source of revenue. We also expect to see much improved profitability down the road as we continue to recognize the benefits of our cost reduction initiatives implemented earlier this year,” added Dr. Ma.
Three Months Ended September 30, 2015 Financial Results
For the three months ended September 30, 2015, revenue increased $9.8 million, or 128% year-over-year, to $17.4 million compared to $7.6 million for the same period of 2014. The increase was principally due to $8.7 million in revenue from our recently acquired NetWolves operations. Sales Representation segment revenue increased $1.2 million, or, 18% to $7.6 million for the third quarter, due primarily to increased commission rates and increased equipment deliveries during the quarter, while revenue from the Equipment segment declined $217 thousand or 18% to $1.0 million, due primarily to a lower revenues from the EECP®business.
Gross profit for the third quarter of 2015 increased 83% to $9.9 million, compared with $5.4 million for the third quarter of 2014. The increase is primarily due to $3.5 million of gross profit in the IT segment as a result of the NetWolves acquisition and an increase of $1.3 million in our Sales Representation segment, arising from higher commission rates in this segment, partially offset by lower gross profit in the Equipment segment.
Selling, general and administrative (SG&A) expenses for the third quarter of 2015 was $8.4 million or 48% of revenues, compared with $5.3 million, or 70% of revenues for the same period last year. The increase in SG&A expenditures is primarily due to the inclusion of the NetWolves operations for the quarter, partially offset by lower costs in our Equipment and Sales Representation segments.
Net income for the three months ended September 30, 2015 was $1.2 million, a significant improvement compared to the net loss of $0.1 million for the same period in 2014. This improvement is principally due to an increase in gross profit as discussed above.
At September 30, 2015 the Company had net cash and cash equivalents of $1.9 million compared to $9.1 million at December 31, 2014. The decrease is principally due to the cash used for the NetWolves acquisition in May 2015.
Conference Call Information
The Company will host a conference call at 2:00 p.m. ET on November 12, 2015 featuring remarks by Jun Ma, Ph.D., President and CEO, Peter Castle, Chief Operating Officer, and Michael Beecher, Chief Financial Officer of Vasomedical. To join the conference call, please dial 1-877-407-8033 from the U.S. or 1-201-689-8033, internationally. 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. 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 at www.vasomedical.com approximately two hours after completion of the live conference call. To access the dial-in replay of the call, which will be available until November 20, 2015, please dial 1-877-660-6853 or 1-201-612-7415 and use the code 13624444.
About Vasomedical
Vasomedical, Inc. is a diversified medical technology company with several distinctive but related specialties: design, manufacture and sale of proprietary medical devices; professional sales services for diagnostic imaging products; and managed IT systems and services, including healthcare software solutions and network connectivity services.
Vasomedical operates through four wholly owned subsidiaries. Vaso Diagnostics, Inc. d.b.a. VasoHealthcare (www.vasohealthcare.com), provides professional sales services and is the operating subsidiary for the exclusive sales representation of GE Healthcare diagnostic imaging products in certain market segments in the USA. Vaso Technology, Inc. provides network and IT services through two business units: VasoHealthcare IT Corp., a national value added reseller of GE Healthcare IT’s Radiology PACS (Picture Archiving and Communication System) software solutions and related services, including implementation, management and support, and NetWolves Network Services LLC (www.netwolves.com), a managed network services provider with an extensive, proprietary service platform to a broad base of customers. Vasomedical Solutions, Inc. (www.vasosolutions.com), manages and coordinates the design, manufacture and sales of EECP® Therapy Systems and other medical equipment operations. Vasomedical Global Corp. (www.vasoglobal.com), operates the Company’s China-based subsidiaries, including Biox Instruments Co. Ltd. and Life Enhancement Technology Limited. It is also the minority shareholder of VSK Medical Limited, a marketing and sales company for ECP products in the international market.Additional information is available on the Company’s website at www.vasomedical.com.
Summarized Financial Information
| FOR THE THREE MONTHS ENDED | FOR THE NINE MONTHS ENDED | |||||||||||||||
| STATEMENTS OF OPERATIONS | September 30, 2015 | September 30, 2014 | September 30, 2015 | September 30, 2014 | ||||||||||||
| (In thousands) | ||||||||||||||||
| Revenue | $ | 17,401 | $ | 7,643 | $ | 35,698 | $ | 22,599 | ||||||||
| Gross profit | 9,850 | 5,375 | 22,746 | 16,023 | ||||||||||||
| Operating income (loss) | 1,337 | (149) | 1,257 | (1,443) | ||||||||||||
| Other (expense) income, net | (69) | 52 | (40) | 150 | ||||||||||||
| Income (loss) before taxes | 1,268 | (97) | 1,217 | (1,293) | ||||||||||||
| Income tax benefit (expense) | (38) | (26) | (51) | (50) | ||||||||||||
| Net income (loss) | $ | 1,230 | $ | (123) | $ | 1,166 | $ | (1,343) | ||||||||
| BALANCE SHEETS | September 30, 2015 | December 31, 2014 | ||||
| (In thousands) | ||||||
| Total current assets | $ | 15,923 | $ | 28,994 | ||
| Total assets | $ | 47,384 | $ | 40,991 | ||
| Total current liabilities | $ | 24,158 | $ | 19,779 | ||
| Total stockholders’ equity | $ | 9,104 | $ | 7,751 | ||
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 agreements; 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:
Michael J. Beecher/Amanda Jiang
Investor Relations
Phone: 516-508-5805
Email: mbeecher@vasomedical.com / ajiang@vasomedical.com
Link to iR Direct: http://irdirect.net/pr/release/id/1601427
Management to Hold Investor Conference Call on November 12, 2015 at 2:00 p.m. ET
PLAINVIEW, NY / ACCESSWIRE / November 5, 2015 / Vasomedical, Inc. (PINKSHEETS: VASO) announced today that it will release its financial results for the three months ended September 30, 2015 on Thursday, November 12, 2015, before market open.
The Company will host a conference call on Thursday, November 12, 2015 at 2:00 p.m. ET featuring remarks by Jun Ma, Ph.D., President and CEO of Vasomedical, Peter Castle, Chief Operating Officer, and Michael Beecher, Chief Financial Officer of Vasomedical. To join the conference call, please dial 1-877-407-8033 from the U.S. or 1-201-689-8033, internationally. 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, http://www.vasomedical.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 at http://www.vasomedical.com/approximately two hours after completion of the live conference call. To access the replay of the call, which will be available until February 12, 2016, please dial 1-877-660-6853 or 1-201-612-7415, use the code 13624444.
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 and healthcare software solutions as well as in the provision of managed network services. The Company conducts its business through four wholly owned subsidiaries as follows. Vaso Diagnostics, Inc. d.b.a. VasoHealthcare provides professional sales services and is the operating subsidiary for the exclusive sales representation of GE Healthcare diagnostic imaging products in certain market segments. Vaso Technology, Inc. provides network and IT services through two business units: VasoHealthcare IT Corp., a national value added reseller of GE Healthcare IT’s Radiology PACS (Picture Archiving and Communication System) software solutions and related services, including implementation, management and support, and NetWolves Network Services LLC, a managed network services provider with an extensive, proprietary service platform to a broad base of customers. Vasomedical Solutions, Inc. manages and coordinates the design, manufacture and sales of EECP(R) Therapy systems and other medical equipment operations. Vasomedical Global Corp. operates the Company’s China-based subsidiaries. Additional information is available on the Company’s website at www.vasomedical.com.
Investor Contacts:
Michael Beecher / Amanda Jiang
Investor Relations
516-508-5805
mbeecher@vasomedical.com / ajiang@vasomedical.com
SOURCE: Vasomedical, Inc.
Link to iR Direct: http://irdirect.net/pr/release/id/1587766
WESTBURY, NY / ACCESSWIRE / September 25, 2015 / Vasomedical, Inc. (“Vasomedical”) (VASO) today announced the relocation of its corporate office, effective Monday, September 28, 2015, to 137 Commercial Street, Plainview, NY 11803. In addition to the headquarters, this facility at Plainview, Long Island will also house the operations of Vasomedical Solutions, Inc. and the New York offices of NetWolves Network Services, both of which are wholly owned subsidiaries of Vasomedical, Inc.
The relocation takes places upon the expiration of the lease of the Company’s Westbury, NY facility, which has housed the Company’s headquarters and main operations for the last twenty years. The consolidated use of the new facility, together with the reduced need for space as the Company’s EECP(R) systems manufacturing has been transferred to its subsidiary located in China, results in improved operational efficiency and significant cost savings.
All communications to Vasomedical, Inc. as well as to Vasomedical Solutions and NetWolves Network Services New York offices should be addressed to 137 Commercial Street, Suite 200, Plainview, NY 11803, USA.
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 and healthcare software solutions as well as in the provision of managed network services. The Company conducts its business through four wholly owned subsidiaries as follows. Vaso Diagnostics, Inc. d.b.a. VasoHealthcare provides professional sales services and is the operating subsidiary for the exclusive sales representation of GE Healthcare diagnostic imaging products in certain market segments. Vaso Technology, Inc. provides network and IT services through two business units: VasoHealthcare IT Corp., a national value added reseller of GE Healthcare IT’s Radiology PACS (Picture Archiving and Communication System) software solutions and related services, including implementation, management and support, and NetWolves Network Services LLC, a managed network services provider with an extensive, proprietary service platform to a broad base of customers. Vasomedical Solutions, Inc. manages and coordinates the design, manufacture and sales of EECP(R) Therapy systems and other medical equipment operations. Vasomedical Global Corp. operates the Company’s China-based subsidiaries. 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 agreements; 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:
Michael J. Beecher / Amanda Jiang
Investor Relations
Phone: 516-508-5840
Email: mbeecher@vasomedical.com / ajiang@vasomedical.com
SOURCE: Vasomedical, Inc.
Link to Yahoo Finance: http://finance.yahoo.com/news/vasomedical-announces-relocation-corporate-office-130000716.html
WESTBURY, NY–(Marketwired – Aug 13, 2015) – Vasomedical, Inc. (“Vasomedical”) ( OTCBB : VASO ) today reported its operating results for the three months ended June 30, 2015.
“We are pleased to report continued growth at Vasomedical in the second quarter of 2015, during which our total revenue grew to $10.9 million, a $3.0 million increase from the same quarter a year ago. The growth was primarily due to the inclusion of one month of operations of NetWolves, which we acquired at the end of May 2015. Our existing operations also saw a year-over-year growth of 2.1% and 3.5% during the 3-month and 6-month periods ended June 30, 2015, respectively,” stated Jun Ma, President and CEO of Vasomedical, Inc. “As a result, we recorded a net income of $191 thousand for the second quarter of 2015, compared to a net loss of $176 thousand for the same period in 2014. We are confident that, based on our current expectations, we are on track to be profitable for the year 2015.”
“We are very excited about the newly acquired NetWolves, as, again, the second quarter financial results reflected only one month of activity from its operations. However, the impact of NetWolves operations to our revenue and profitability is beyond just the consolidation of its current operations. We believe the synergies it brings to our healthcare IT unit are more significant: while the integration enhances our healthcare IT value added resale business, we will also see more growth opportunities for NetWolves managed network services among healthcare customers,” added Dr. Ma.
Three Months Ended June 30, 2015 Financial Results
For the three months ended June 30, 2015, revenue increased $3.0 million, or 38% year-over-year, to $10.9 million compared to $7.9 million for the same period of 2014. The increase was principally due to $2.8 million in revenue from our recently acquired NetWolves operations. Sales Representation segment revenue increased $352 thousand or 5% to $7.0 million, due primarily to increased commission rates, while revenue from the Equipment Segment declined $184 thousand or 16% to $1.0 million, due primarily to lower EECP® revenues.
Gross profit for the second quarter of 2015 increased 34% to $7.3 million, compared with $5.5 million for the second quarter of 2014. The increase is primarily due to $1.2 million of gross profit in the IT segment as a result of the NetWolves acquisition and an increase of $0.7 million in our Sales Representation segment, arising from higher commission rates in this segment, partially offset by lower gross profit in the Equipment segment.
Selling, general and administrative (SG&A) expenses for the second quarter of 2015 was $7.0 million or 64% of revenues, compared with $5.5 million, or 70% of revenues for the same period last year. The increase in SG&A expenditures resulted primarily from the acquisition of NetWolves, partially offset by lower costs in our Equipment and Sales Representation segments.
Net income for the three months ended June 30, 2015 was $0.2 million, a significant improvement compared to the net loss of $0.2 million for the three months ended June 30, 2014. This improvement is principally due to an increase in gross profit and a decrease in SG&A costs in the Sales Representation segment and lower costs in the Equipment segment.
At June 30, 2015 the Company had net cash and cash equivalents of $2.9 million compared to $9.1 million at December 31, 2014. The decrease is principally due to the cash used for the NetWolves acquisition. We expect our cash position to improve during the remainder of 2015.
Conference Call Information
The Company will host a conference call at 11:00 a.m. ET on August 20, 2015 featuring remarks by Jun Ma, Ph.D., President and CEO, Peter Castle, Chief Operating Officer, and Michael Beecher, Chief Financial Officer of Vasomedical. To dial into the conference call, please dial 1-877-407-8033 from the U.S. or 1-201-689-8033, internationally. 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. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the live broadcast.
Link to Yahoo Finance: http://finance.yahoo.com/news/vasomedical-announces-second-quarter-2015-130000064.html
Further Diversifying Operations and Enhancing the Healthcare IT Segment
WESTBURY, NY / ACCESSWIRE / June 1, 2015 / Vasomedical, Inc. (“Vasomedical”) (OTCBB: VASO) today announced the acquisition of all assets of NetWolves, LLC and affiliates (collectively “NetWolves”) on May 29, 2015.
“The NetWolves acquisition is extremely important to the future success of Vasomedical, both strategically and operationally, as it immediately eliminates our prior need to build a comprehensive technology infrastructure for our recently launched healthcare IT business. At the same time, it further expands our business into network services especially for the customers in healthcare provision, where reliable, high-fidelity and secure network connectivity is in high demand,” stated Dr. Jun Ma, President and Chief Executive Officer of Vasomedical, Inc. “More significantly, it also provides us with the platform for huge potential growth in the rapidly expanding telemedicine and connected healthcare markets.”
“NetWolves, as a stand-alone private entity, has been a growing and profitable business for over six years. As it will be integrated into our healthcare IT business to provide implementation, training and support services to our healthcare IT value-added-resale operation, its technical expertise in IT infrastructure and network connectivity readily complements our market presence and customer relations in the healthcare industry. It also presents us with significant cross-selling and up-selling opportunities for its proprietary managed network services to our existing entrenched nationwide customer base in the diagnostic imaging business. We are very excited by the acquisition and are even more optimistic about the future of our new healthcare IT segment now that we have established a solid technical and customer foundation,” concluded Dr. Ma.
NetWolves, LLC, a Florida based limited liability company, and its affiliates have been engaged in managed network services with an extensive, proprietary service platform to a broad base of customers – predominantly domestically based, however supporting their needs globally as well – including many Fortune 500 corporations. Substantially all of its customers are under multi-year agreements which provide us with a recurring revenue model to complement our existing operations. Fiscal 2013 and 2014 revenues were approximately $28 million and $30 million, respectively, and adjusted operating income was approximately $1.2 million and $1.4 million, respectively. Vasomedical completed the acquisition of all NetWolves assets on May 29, 2015, including all proprietary technology and intellectual properties, service provider and customer contracts, licenses, etc., for $18 million in cash and the assumption of certain liabilities, virtually all of which are operations related.
“We are very excited to be part of the Vasomedical team,” commented Peter Castle, President and Chief Executive Officer of NetWolves, who is also a director of Vasomedical. “We believe the combined operations are a perfect fit and come at an opportune time for us to potentially be a major participant in the rapidly growing healthcare connectivity market. A number of financial institutions have already expressed interest in assisting us in the rapid expansion of business.”
Conference Call Information
The Company will host a conference call on June 10, 2015 at 10:00 a.m. ET to discuss first quarter 2015 financial results as well as the acquisition and integration of NetWolves, featuring remarks by Jun Ma, Ph.D., President and CEO of Vasomedical, Michael Beecher, Chief Financial Officer of Vasomedical and Peter Castle, President of NetWolves, who will continue to manage our new NetWolves subsidiary. To dial into the conference call, please dial 1-877-407-8033 from the U.S. or 1-201-689-8033, internationally. 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. 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. To access the dial-in replay of the call, which will be available until June 10, 2015, please dial 1-877-660-6853 or 1-201-612-7415. All dial-in participants must use the following code to access the call: 13611267.
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 operates through four wholly owned subsidiaries: Vasomedical Solutions, Inc., Vasomedical Global Corp., Vaso Diagnostics, Inc. d.b.a. VasoHealthcare, and VasoHealthcare IT Corp. Vasomedical Solutions 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; VasoHealthcare is the operating subsidiary for the exclusive sales representation of GE Healthcare diagnostic imaging products in certain market segments; and VasoHealthcare IT is a national value added reseller of GE Healthcare IT’s Radiology PACS (Picture Archiving and Communication System) software solutions and related services, including implementation, management and support.. 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.
Investor Contacts:
Michael J. Beecher/Amanda Jiang
Investor Relations
Phone: 516-508-5840
Email:
mbeecher@vasomedical.com / ajiang@vasomedical.com
SOURCE: Vasomedical, Inc.
Link to iR Direct: http://irdirect.net/pr/release/id/1326896
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