Vasomedical to Market and Sell EECP Therapy, BIOX ECG Holter and Ambulatory Blood Pressure Monitoring Products in Brazil
According to the latest World Health Organization (WHO) data, cardiovascular diseases accounted for 31 percent of total deaths in Brazil in 2013 and are the leading cause of death in the country. With a large, aging population, Brazil represents a significant market for Vasomedical’s products for the diagnosis and treatment of heart diseases. While medical device imports still hold a relatively small share of the market, the annual growth percentage rate has been averaged in double digits lately.
“This untapped territory will enable us to pursue opportunities that we expect will generate additional revenue for the Company in the long term. As a result of the approvals, we will be able to organize direct and indirect sales channels and work with the local healthcare community to create awareness and acceptance of our products in both the private and public healthcare sectors in Brazil. We believe this regulatory success will jumpstart our business as we penetrate the South American market,” concluded Dr. Ma.
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.
Investor Contacts:
Michael Beecher/Amanda Jiang
516-508-5840
Larry Liebman/Deanna Goldstein
516-508-5831
SOURCE: Vasomedical, Inc.
Link to iR Direct: http://irdirect.net/pr/release/id/779294
WESTBURY, NY–(Marketwired – Aug 13, 2014) – Vasomedical, Inc. (“Vasomedical”) (OTCBB: VASO) today reported its operating results for the three months ended June 30, 2014.
“We are pleased to report that during the second quarter of 2014 revenue from our Sales Representation Segment increased 4.6% to $6.7 million compared to the same period in 2013. While we experienced a decline in revenue from our Equipment Segment, the effect of the increased revenue in the Sales Representation Segment resulted in a 2.2% increase in gross profit to $5.5 million in the quarter. In addition, our selling, general and administrative costs decreased 4.4% to $5.5 million compared to $5.7 million for the second quarter of 2013. The net result was a decrease in our net loss to less than $0.2 million for the second quarter of 2014, compared to a loss of over $0.5 million for the same period in 2013. Based on current forecasts, the Company expects to be profitable for the year ended December 31, 2014,” stated Jun Ma, President and CEO of Vasomedical.
“We were also excited to announce the signing of a multi-year Value Added Reseller Agreement (“VAR Agreement”) with GEHC to become a national value added reseller of GE Healthcare IT’s Radiology PACS (Picture Archiving and Communication System) software solutions and to provide related services, including implementation, management and support. We anticipate that this new business will result in a significant increase in revenue and profitability over time,” added Dr. Ma.
Three Months Ended June 30, 2014 Financial Results
For the three months ended June 30, 2014, revenue was relatively flat at $7.9 million compared to $7.9 million for the same period of 2013. Sales Representation segment revenue increased $293 thousand or 4.6% to $6.7 million while revenue from the Equipment Segment declined $325 thousand or 21.6% to $1.2 million. The decrease in equipment segment revenue is primarily due to a lower EECP® revenues as a result of lower volumes and a decrease in revenue from our China operations. As we have stated previously, EECP sales are expected to remain soft unless the acceptance level for its currently indicated use and reimbursement policies change positively. Accordingly, we have engaged in a plan effective July 1, 2014, significantly reducing our EECP expenses, while at the same time remaining poised for future growth in the event of positive changes in the EECP business environment. The uncertain timing for expanded reimbursement or clearance for new clinical indications for EECP therapy to occur was ultimately the reason behind the Company’s diversification strategy, which included entering the GEHC sales representation agreement for certain diagnostic imaging products and the recently signed GEHC IT VAR Agreement, as well as expanding the Company’s product portfolio through acquisitions and partnerships.
Gross profit for the second quarter of 2014 increased 2.2% to $5.5 million, compared with $5.4 million for the first quarter of 2013. This increase is primarily a result of the higher commission revenues from the Sales Representation segment, arising from higher commission rates for orders booked in 2013, partially offset by lower equipment shipments in the Equipment segment.
Selling, general and administrative (SG&A) expenses for the second quarter of 2014 was $5.5 million or 70% of revenues, compared with $5.7 million, or 73% of revenues for the same period last year. The decrease in SG&A expenditures in the second quarter of 2014 resulted primarily from the national sales meeting costs in the Sales Representation segment (as the meeting took place in the first quarter of 2014 but in the second quarter in 2013), partially offset by increased staffing costs associated with the recently introduced MobiCare™ product in the Equipment segment.
Net loss for the three months ended June 30, 2014 was $0.2 million, a 67% improvement compared to the net loss of $0.5 million for the three months ended June 30, 2013. The decrease in the loss is principally due to the increase in gross profit from our Sales Representation segment partially offset by a decrease in the gross profit in our Equipment segment.
At June 30, 2014 the Company had net cash and cash equivalents of $10.0 million and working capital of $5.5 million.
Conference Call Information
The Company will host a conference call today at 10:00 a.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 1-877-407-8033 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 November 13, 2014, please dial 1-877-660-6853 or 1-201-612-7415. All dial-in participants must use the following code to access the call: 13588072.
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.
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 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.
| FOR THE THREE MONTHS ENDED | FOR THE SIX MONTHS ENDED | |||||||||||||||
| STATEMENTS OF OPERATIONS | June 30, 2014 | June 30, 2013 | June 30, 2014 | June 30, 2013 | ||||||||||||
| (In thousands) | ||||||||||||||||
| Revenue | $ | 7,864 | $ | 7,896 | $ | 14,956 | $ | 15,189 | ||||||||
| Gross profit | 5,482 | 5,363 | 10,648 | 10,425 | ||||||||||||
| Operating income (loss) | (206) | (532) | (1,294) | (1,214) | ||||||||||||
| Other (expense) income, net | 44 | 44 | 98 | 82 | ||||||||||||
| Income (loss) before taxes | (162) | (488) | (1,196) | (1,132) | ||||||||||||
| Income tax benefit (expense) | (14) | (49) | (24) | (57) | ||||||||||||
| Net income (loss) | $ | (176) | $ | (537) | $ | (1,220) | $ | (1,189) | ||||||||
| BALANCE SHEETS | June 30, 2014 | December 31, 2013 | ||||||||||||||
| (In thousands) | ||||||||||||||||
| Total current assets | $ | 22,359 | $ | 25,931 | ||||||||||||
| Total assets | $ | 31,232 | $ | 33,517 | ||||||||||||
| Total current liabilities | $ | 16,851 | $ | 19,215 | ||||||||||||
| Total stockholders’ equity | $ | 5,332 | $ | 6,465 | ||||||||||||
Link to iR Direct: http://irdirect.net/pr/release/id/755250
WESTBURY, NY / AUGUST 6, 2014 / ACCESSWIRE / Vasomedical, Inc. (OTCBB: VASO) announced today that it will release its financial results for the three months ended June 30, 2014 on Wednesday, August 13, 2014, before markets open.
The Company will host a conference call on Wednesday, August 13th at 10:00 a.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 1-877-407-8033 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 approximately two hours after completion of the live conference call at http://www.vasomedical.com/. To access the dial-in replay of the call, which will be available until November 13, 2014, please dial 1-877-660-6853 or 1-201-612-7415. All dial-in participants must use the following code to access the call: 13588072.
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 http://www.vasomedical.com/.
Investor Contacts:
Michael Beecher / Amanda Jiang
Investor Relations
212-508-5840
mbeecher@vasomedical.com / ajiang@vasomedical.com
Link to Accesswire: https://www.accesswire.com/viewarticle.aspx?id=418560
WESTBURY, N.Y., July 16, 2014 /PRNewswire/ — Vasomedical, Inc. (“Vasomedical”) (“the Company”) (OTC BB: VASO) today announced the signing on June 27, 2014 of a Value Added Reseller Agreement (“VAR Agreement”) with GE Healthcare (“GEHC”), a division of General Electric Company (NYSE: GE), to become a national value added reseller for GE Healthcare IT’s Radiology PACS (Picture Archiving and Communication System) software solutions and related services, including implementation, management and support. This multiyear VAR Agreement focuses primarily on existing customer segments currently served by VasoHealthcare, a wholly owned subsidiary of Vasomedical, on behalf of GE Healthcare and is effective immediately.
“The VAR Agreement with GE Healthcare IT is another significant step in our diversification strategy, as it immediately places the Company into the rapidly growing business of information technology and service provision. Healthcare information technology and healthcare connectivity are important game changers for the improvement of healthcare quality, increased efficiency and enhanced accuracy, all at reduced costs. They are among the very few industries that are enjoying double-digit annual growth rate,” commented Dr. Jun Ma, President and CEO of Vasomedical, Inc. “This new business opportunity will also provide our service business model with recurring revenue for the future,” he continued.
“It is a great honor to be selected by GE HCIT, one of the major healthcare IT solutions providers, as a national Radiology PACS value added reseller. Also, it is certainly a reflection of the success with our VasoHealthcare subsidiary, which has been an exclusive United States representative for various GEHC diagnostic imaging products in certain market segments for the last four years. We believe that our strong nationwide reach and deep customer relationships of Vasomedical in the healthcare market will provide us with a tremendous advantage as we enter into this high growth business,” Dr. Ma concluded.
“We’re excited to have entered into this comprehensive VAR agreement with Vasomedical,” said David Hale, VP & General Manager of GE Healthcare IT for the US. “The VAR channel is an important part of our growth strategy and Vasomedical is ideally positioned to help us grow in specific market segments with our Radiology PACs software solutions.”
Vasomedical has committed significant commercial resources, including capital, incremental sales management and leadership personnel, and will start the new business in multiple phases. The initial phase will be the marketing and sales of GE Healthcare IT Radiology PACS software solutions in specific segments and will be followed by implementation and service provisioning upon certification by GE HCIT.
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 three wholly owned subsidiaries: Vasomedical Solutions, Inc., Vasomedical Global Corp. and Vaso Diagnostics, Inc. d.b.a. VasoHealthcare. 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; and VasoHealthcare is the operating subsidiary for the exclusive sales representation of GE Healthcare diagnostic imaging products in certain market segments. 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:
Todd Fromer / Garth Russell
KCSA Strategic Communications
Phone: 212-896-1215 / 212-896-1250
Email: tfromer@kcsa.com / grussell@kcsa.com
Media Contacts:
Lewis Goldberg / Samantha Wolf
KCSA Strategic Communications
212-896-1216 / 212-896-1220
lgoldberg@kcsa.com / swolf@kcsa.com
Link to PR Newswire: http://www.prnewswire.com/news-releases/vasomedical-signs-agreement-with-ge-healthcare-it-to-become-national-value-added-reseller-for-radiology-pacs-software-solutions-267324261.html
WESTBURY, N.Y., May 14, 2014 /PRNewswire/ — Vasomedical, Inc. (“Vasomedical”) (OTC BB: VASO) today reported its operating results for the three months ended March 31, 2014.
“We are excited to report that during the quarter, the Company generated positive cash flow of $4.2 million from operating activities, mainly due to our VasoHealthcare subsidiary achieving the highest commission rate, which is applied retroactively for all orders booked in 2013,” stated Jun Ma, President and CEO of Vasomedical. “As our GEHC business continues to grow, we are taking advantage of the higher cash inflows and reinvesting in our business, while continuing our search for opportunities to complement and diversify our business.”
“While total revenues slightly declined by 3% to $7.1 million for the quarter, mainly due to a decrease in EECP equipment sales, we are optimistic that our international performance will improve once the recently announced cooperative agreement with PSK-Health Sci-Tech Development Co. Ltd., the leading manufacturer of ECP therapy systems in China, is implemented. This venture should help Vasomedical expand existing sales presence and tap into new geographical territories internationally, as well as substantially reduce sales and marketing costs. We are currently in the process of reorganizing our EECP business model, both domestically and internationally, in view of this cooperative agreement.”
“In addition, we strengthened our product portfolio within BIOX with the introduction of MobiCare™ system, a patented wireless multi-parameter patient monitoring system, and expect our China operations to grow. Looking forward, we believe we are well positioned to achieve profitability and maintain positive cash flow, and continue to achieve superior performance from our sales representation business,” concluded Dr. Ma.
Three Months Ended March 31, 2014 Financial Results
For the three months ended March 31, 2014, revenue decreased by 3% to $7.1 million from $7.3 million for the same period of 2013. This is mainly attributable to a 45% decline in equipment sales due to decreased EECP® revenues, which was partially offset by the 4% growth in commission revenues to $6.2 million, from our Sales Representation segment. As we have stated previously, EECP sales are expected to remain soft unless acceptance level for its currently indicated use and reimbursement policies change positively. The uncertain timing for this to occur was ultimately the reason behind the Company’s diversification strategy, which included entering the GEHC representation agreement and acquiring its Chinese operating companies.
Gross profit for the first quarter of 2014 increased 2% to $5.2 million, compared with $5.1 million for the first quarter of 2013. This increase is primarily a result of the higher commission revenues from the Sales Representation segment, arising from higher commission rates for orders booked in 2013, partially offset by lower equipment shipments in the Equipment Segment.
Selling, general and administrative (SG&A) expenses for the first quarter of 2014 was $6.0 million or 85% of revenues, compared with $5.6 million, or 77% of revenues for the same period last year. This is mainly attributable to the annual sales team meeting in the Sales Representation segment during the quarter, which took place in the second quarter last year.
Net loss for the three months ended March 31, 2014 was $1.0 million, a 60% increased loss compared with a net loss of $652,000 for the three months ended March 31, 2013, as a result of an 8% increase in selling, general and administrative costs.
Net cash increased by $4.0 million to $12.0 million at March 31, 2014, compared with net cash of $8.0 million as of December 31, 2013. This increase in cash is mainly attributable to the significantly higher commission rate generated in the fourth quarter of 2013, resulting in significant cash inflows early in 2014. Based on current forecast, we anticipate cash flow from operating activities to be positive for 2014.
Deferred revenue remains substantial, at approximately $17.0 million as of March 31, 2014, to be recognized in the future when the underlying equipment is delivered and accepted at the customer site.
Conference Call Information
The Company will host a conference call today at 10:00 a.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: 42076306. 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 14, 2014, please dial 1-855-859-2056 or 1-404-537-3406. All dial-in participants must use the following code to access the call: 42076306.
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 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.
(Tables to follow)
Summarized Financial Information
|
FOR THE THREE MONTHS ENDED |
||||
|
STATEMENTS OF OPERATIONS |
March 31, 2014 |
March 31, 2013 |
||
|
(In thousands) |
||||
|
Revenue |
$ |
7,091 |
$ |
7,293 |
|
Gross profit |
$ |
5,164 |
$ |
5,062 |
|
Operating loss |
$ |
(1,090) |
$ |
(682) |
|
Other income (expense), net |
$ |
56 |
$ |
38 |
|
Loss before taxes |
$ |
(1,034) |
$ |
(644) |
|
Income tax expense |
$ |
(10) |
$ |
(8) |
|
Net loss |
$ |
(1,044) |
$ |
(652) |
|
BALANCE SHEETS |
March 31, 2014 |
December 31, 2013 |
||
|
(In thousands) |
||||
|
Cash and cash equivalents |
$ |
12,009 |
$ |
7,961 |
|
Total current assets |
$ |
22,140 |
$ |
25,931 |
|
Total assets |
$ |
29,923 |
$ |
33,517 |
|
Total current liabilities |
$ |
17,162 |
$ |
19,215 |
|
Total stockholders’ equity |
$ |
5,667 |
$ |
6,465 |
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.
Link to PR Newswire: http://www.prnewswire.com/news-releases/vasomedical-announces-first-quarter-2014-results-259203861.html
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