Plainview, NY, November 14, 2017 – Vaso Corporation (OTC PK: VASO) (formerly Vasomedical, Inc.) today reported its operating results for the three months ended September 30, 2017.
“We are pleased to report that the Company achieved continued revenue growth to $18.0 million for the third quarter of 2017, thanks to the double digit year-over-year growth rate in our IT segment, a majority of which was in the healthcare IT VAR business we started three years ago. We experienced a revenue decline in the professional sales service segment due to lower equipment delivery volume by our partner, but deferred revenue in the segment increased significantly as our team of sales professionals continue to perform,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso. “Therefore, we anticipate an improvement in the fourth quarter and the next year.”
“Maintaining overall revenue growth despite fluctuations in a particular area of our business or in a particular geographic region shows the importance of a diversified business mix, which places the Company in a strong and robust footing to ensure stability and future development. We also are continuing the path of working to align our business structure with technologies of higher growth,” concluded Dr. Ma.
Three Months Ended September 30, 2017 Financial Results
For the three months ended September 30, 2017, revenue increased 3% to $18.0 million from $17.5 million for the same period of 2016. The increase, when compared to the same period in 2016, was a result of a $1.1 million, or 12%, growth in our IT segment revenue, offset by a decrease of $0.3 million, or 4%, of revenue in our professional sales services segment, lower equipment deliveries by GEHC compared to the third quarter 2016. The increase in our IT segment revenue is attributable to increases in revenue in both our NetWolves and our healthcare IT operations. Revenue in the equipment segment decreased $0.4 million for the quarter when compared to the same quarter a year ago, due to a decrease in EECP® deliveries.
Gross profit for the third quarter of 2017 decreased 1% to $10.0 million, compared with $10.2 million for the third quarter of 2016. The decrease was principally due to the decrease in revenue in the professional sales service segment and the decrease in equipment segment revenue, offset by a 9% increase in gross profit in the IT segment as a result of the increased revenue in that segment. Total gross profit margin was 56% of revenue for the three months ended September 30, 2017, and 58% for the same period in 2016.
Selling, general and administrative (SG&A) expenses for the third quarter of 2017 increased to $10.4 million from $9.5 million for the third quarter last year. The increase is primarily due to an increase in personnel and marketing costs in the professional sales service segment, and an increase in staff in the IT segment.
The Company had an operating loss of $619 thousand for the third quarter 2017, compared to operating income of $502 thousand for the same period in 2016. The decrease was principally due to the lower revenue in the professional sales service segment and the increase in SG&A costs as discussed above. Net loss for the three months ended September 30, 2017 was $816 thousand, compared with net income of $328 thousand for the three months ended September 30, 2016.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and non-cash stock-based compensation) was $152 thousand for the three months ended September 30, 2017, compared to $1.4 million for the same period a year ago.
Net cash generated from operating activities in the first nine months of 2017 was $865 thousand. As of September 30, 2017, the Company had cash and cash equivalents of approximately $5.5 million, compared to cash and cash equivalents of $7.1 million at December 31, 2016. We anticipate continued positive cash flow from operations for the remainder of the year.
About Vaso Corporation
Vaso Corporation is a diversified medical technology company with three distinctive but related specialties: professional sales services for diagnostic imaging products; managed IT systems and services, including healthcare software solutions and network connectivity services; and the design, manufacture and sale of proprietary medical devices.
The Company operates through three 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 healthcare 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, Inc. (www.vasomedical.com), manages and coordinates the design, manufacture, sales and services of proprietary medical devices including EECP® Therapy Systems, Biox® series ambulatory monitoring systems and ARCS® series analysis and reporting software. The Company also owns overseas operations including China-based Biox Instruments Co. Ltd. and Life Enhancement Technology Limited, and is 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.vasocorporation.com.
Summarized Financial Information
| FOR THE THREE MONTHS ENDED | FOR THE NINE MONTHS ENDED | |||
| STATEMENTS OF OPERATIONS | September 30, 2017 | September 30, 2016 | September 30, 2017 | September 30, 2016 |
| (In thousands) | ||||
| Revenue | $18,041 | $17,544 | $52,268 | $53,300 |
| Gross profit | 10,028 | 10,150 | 28,896 | 30,275 |
| Operating (loss) income | (619) | 502 | (3,169) | 925 |
| Other (expense) income, net | (103) | (71) | (451) | (334) |
| (Loss) income before taxes | (722) | 431 | (3,620) | 591 |
| Income tax expense | (94) | (103) | (314) | (154) |
| Net (loss) income | $(816) | $328 | $(3,934) | $437 |
| Interest expense (income), net | 163 | 166 | 494 | 478 |
| Income tax expense | 94 | 103 | 314 | 154 |
| Depreciation and amortization | 611 | 549 | 1,781 | 1,608 |
| Non-cash stock-based compensation | 100 | 275 | 417 | 342 |
| Adjusted EBITDA* | $152 | $1,421 | $(928) | $3,019 |
| *Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization and non-cash stock-based compensation | ||||
| BALANCE SHEETS | September 30, 2017 | December 31, 2016 | ||
| (In thousands) | ||||
| Total current assets | $23,180 | $25,083 | ||
| Total assets | $54,714 | $57,381 | ||
| Total current liabilities | $29,136 | $25,650 | ||
| Total stockholders’ equity | $9,507 | $12,911 | ||
Except for historical information contained in this report, 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”, “feel”, “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 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.
Vaso Corporation
137 Commercial Street
Plainview, New York 11803
Tel: (516) 997-4600 Fax: (516) 997-2299
Investor Contacts:
Michael J. Beecher
Investor Relations
Phone: 516-508-5837
Email: ir@vasocorporation.com; mbeecher@vasocorporation.com
Vaso Corporation
Commercial Street
Plainview, New York 11803
Tel: (516) 997-4600 Fax: (516) 997-2299
SOURCE: Vaso Corporation
Link to Yahoo Finance: https://finance.yahoo.com/news/vaso-corporation-announces-third-quarter-140000071.html
PLAINVIEW, N.Y. August 14, 2017 – Vaso Corporation (“Vaso”) (OTCMKTS: VASO) today reported its operating results for the three months ended June 30, 2017.
“In the second quarter of 2017 we recorded a total revenue of $17.9 million, of which our IT, professional sales service and equipment segments contributed 60%, 34% and 6%, respectively. Revenue decreased by $0.3 million as compared to the same period in the prior year, principally due to a decrease in revenue in the professional sales service segment as a result of a lower equipment deliveries in the quarter by our partner. Given that our order bookings in this segment remain very strong, as reflected in the significant increase in the deferred commission revenue by $3 million, or 18%, from a year ago, we anticipate higher equipment deliveries, thus higher revenues, in this segment in the future quarters,” stated Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “Revenue in our IT segment increased 7% but the real growth in our healthcare IT VAR business is still yet to manifest in the financial statements, as order backlog in the VAR operations was almost double from a year ago, which will turn into revenue once the underlying products and services are delivered.”
“Therefore, we expect to deliver another profitable year in 2017 and maintain a strong financial position as we continue to generate positive cash flow from operating activities,” concluded Dr. Ma.
Financial Results for Three Months Ended June 30, 2017
For the three months ended June 30, 2017, revenue decreased 2% to $17.9 million from $18.2 million for the same period of 2016, due to the decrease of $0.9 million in commission revenue in our professional sales service segment as a result of lower equipment deliveries by our partner, as well as lower equipment sales in our equipment segment, partially offset by an increase of $0.7 million, or 7%, in revenue in our IT segment.
Gross profit for the second quarter of 2017 decreased 3% to $9.8 million, compared with a gross profit of $10.1 million for the second quarter of 2016. This decrease is primarily the result of the decrease in revenue in the professional sales service segment resulting in a decrease in segment gross profit of $0.6 million as well as a decrease in gross profit in the equipment segment, partially offset by an increase of $0.4 million in gross profit in the IT segment.
Selling, general and administrative (SG&A) expenses for the second quarter of 2017 increased 5% to $10.2 million compared to $9.7 million for the second quarter of 2016. The increase is primarily attributable to an increase in personnel costs in the professional sales service and IT segments.
Research and development costs increased 148% to $260 thousand in the second quarter of 2017 compared to the same quarter of 2016, due to an increase in software and product development costs.
Net loss for the three months ended June 30, 2017 was $1.0 million, compared with a net income of $0.2 million for the three months ended June 30, 2016.
Net cash provided by operating activities was $1.4 million and $3.7 million for the six months ended June 30, 2017 and 2016, respectively. Net cash at June 30, 2017 was $6.5 million, compared to $7.1 million at December 31, 2016.
Deferred revenue remains substantial, at approximately $20.7 million as of June 30, 2017, up by $1.3 million from $19.4 million as of December 31, 2016, 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 $10.2 million as of June 30, 2017 from $12.9 million as of December 31, 2016.
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 four wholly owned subsidiaries. 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. 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 in the USA. Vasomedical Solutions, Inc., manages and coordinates the design, manufacture and sales of EECP® Therapy Systems and other medical equipment operations. Vasomedical Global Corp operates the Company’s overseas assets including China-based subsidiaries (Biox Instruments Co. Ltd. and Life Enhancement Technology Limited) as well as the minority interest in 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.vasocorporation.com.
Summarized Financial Information
| STATEMENTS OF OPERATIONS | June 30, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 |
| (In thousands) | ||||
| Revenue | $17,853 | $18,214 | $34,227 | $35,756 |
| Gross profit | 9,798 | 10,113 | 18,868 | 20,125 |
| Operating (loss) income | (709) | 264 | (2,550) | 423 |
| Other (expense) income, net | (167) | (102) | (348) | (263) |
| (Loss) income before taxes | (876) | 162 | (2,898) | 160 |
| Income tax (expense) benefit | (111) | 51 | (220) | (51) |
| Net (loss) income | $(987) | $213 | $(3,118) | $109 |
| Income tax expense (benefit) | 111 | (51) | 220 | 51 |
| Interest expense (income), net | 166 | 154 | 331 | 311 |
| Depreciation and amortization | 588 | 536 | 1,170 | 1,059 |
| Non-cash stock-based compensation | 98 | 34 | 317 | 67 |
| Adjusted EBITDA* | $(24) | $886 | $(1,080) | $1,597 |
| *Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization and non-cash stock-based compensation | ||||
| BALANCE SHEETS | June 30, 2017 | December 31, 2016 | ||
| (In thousands) | ||||
| Total current assets | $21,667 | $25,083 | ||
| Total assets | $53,349 | $57,381 | ||
| Total current liabilities | $26,720 | $25,650 | ||
| Total stockholders’ equity | $10,199 | $12,911 | ||
Except for historical information contained in this report, 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”, “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.
Vaso Corporation
137 Commercial Street
Plainview, New York 11803
Tel: (516) 997-4600 Fax: (516) 997-2299
Investor Contacts:
Michael J. Beecher
Investor Relations
Phone: 516-508-5840
Email: ir@vasocorporation.com; mbeecher@vasocorporation.com
Vaso Corporation
Commercial Street
Plainview, New York 11803
Tel: (516) 997-4600 Fax: (516) 997-2299
SOURCE: Vaso Corporation
Link to Yahoo Finance:https://finance.yahoo.com/news/vaso-corporation-announces-financial-results-130000168.html
VasoHealthcareIT Wins Terasaki Medical Innovation Award
Innovative Cloud Imaging Solutions Speeds Up Donor Match Turnaround Times
(Nashville, TN – May 23, 2017) VasoHealthcareIT (VHCIT), a wholly owned subsidiary of Vaso Corporation (VASO) (OTCMKTS: VASO), today proudly announces the winning of the prestigious Terasaki Medical Innovation Award by the National Kidney Registry (NKR).
In its mission to increase the speed and quality of the donor process, the National Kidney Registry (NKR) partnered with VasoHealthcareIT (VHCIT) to develop and deploy a comprehensive and innovative solution for NKR’s need to safely, securely and expediently transmit and view images across multiple transplant centers. The National Kidney Registry uses the power of technology and large pools of donors and recipients to find better matches through “paired exchange.” Once potential matches are made, time is of the essence, and imaging must be sent between the donor and transplant centers to validate the match; however, existing methods of transferring images via CD can take up to 10 days, adding time to the overall process and sometimes resulting in unexpected late-stage offer rejections. The solution offered by VHCIT is predicted to save NKR over 1,400 hours of coordinator time per year, lower canceled match rates, reduce surgeon time and ultimately save patient lives.
At nearly 80 transplant centers across 28 states, medical professionals can now instantly review computed tomography (CT) scans of kidney donors to quickly evaluate the characteristics and phenotype of the living donor kidney being offered. With VHCIT’s solution, donor centers can seamlessly upload patient CT studies into a secure imaging archive through the Cloud. This process allows surgeons and their team of clinicians to have timely access and visibility to each donor study via the use of GE Healthcare’s Centricity™ Zero Footprint Viewer accessible from any location and time zone, permitting faster evaluation times. Patients receive transplants quicker and can reach recovery faster. Joe Sinacore, NKR’s Director of Education and Development, states, “If a recipient’s donor has any imaging abnormalities, it could be well over a month before they can find another match. This new solution helps to avoid any imaging surprises that could delay critical care.”
The entire solution includes the GE Centricity Enterprise Archive 100 edition with Zero Footprint Viewer (ZFP), National Kidney Registry Web Portal, Ambra Health Cloud Image Routing solution, and Rackspace HIPAA compliant managed services computing facility.
“VasoHealthcareIT is honored to be the National Kidney Registry’s selected partner for the 2017 Terasaki Award and will continue to look for innovative solutions to better serve NKR facilities and patients,” Jackson Ross, General Manager of VasoHealthcareIT.
About VasoHealthcareIT
VasoHealthcareIT (VHCIT), a wholly owned subsidiary of Vaso Corporation (www.vasocorporation.com), is a Value-Added Reseller for GE Healthcare’s Radiology Picture Archiving and Communication System (PACS) and medical imaging archive solutions incorporating Zero Footprint Viewer (ZFP). The VHCIT portfolio includes comprehensive network solutions including bandwidth, infrastructure, and security offerings. VHCIT works with healthcare providers to improve the radiology business and patient satisfaction with advanced services for GE Healthcare and Centricity™ products.
About National Kidney Registry
The National Kidney Registry (www.kidneyregistry.org) is a nonprofit organization with the mission to save and improve the lives of people facing kidney failure by increasing the quality, speed, and the number of living donor transplants.
The “Terasaki Medical Innovation Award” honors the late Dr. Paul Terasaki, a pioneer in transplant medicine, who in 1964 developed the test that became the international standard for tissue typing. Dr. Terasaki’s many significant scientific breakthroughs saved and improved the lives of over 100,000 patients worldwide. He was a shining example of the incredibly positive impact that one man can have on the lives of many.
The Terasaki Medical Innovation Award is presented annually by the NKR, to medical professionals who, through their pioneering work, had a significant impact in advancing paired exchange transplantation and saving the lives of those facing kidney failure.
VasoHealthcareIT
1717B Church Street
Nashville, TN 37203
Contact: Heidi Holman
615.866.5505
heidi.holman@vhcit.com
Vaso Corporation
137 Commercial Street
Plainview, New York 11803
Tel: (516) 997-4600 Fax: (516) 997-2299
PLAINVIEW, N.Y. May 15, 2017 – Vaso Corporation (“Vaso”) (OTCMKTS: VASO) today reported its operating results for the three months ended March 31, 2017.
“Our revenue decreased by $1.2 million, or 7%, in the first quarter of 2017 when compared to the first quarter of the prior year, principally due to a decrease in revenue in the professional sales service segment as a result of a lower equipment delivery volume in the quarter by our partner. We expect this to improve during the remainder of this year as our order bookings in the past several quarters were very strong and deferred commission revenue went up $2.1 million or 13% from a year ago,” stated Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “Our information technology, or IT, segment remains the most significant contributor to the Company’s revenue, at 60% of total for the first quarter of 2017, and this is also the segment we anticipate most of the growth in the near future. Within the IT segment, a substantial backlog has been built in the healthcare IT VAR business, and it continues to grow.”
“Therefore, while we experienced a decrease in revenue and net income in the first quarter of 2017, we expect to see much improvement and continued profitability in 2017. Our financial position remains strong as we continue to generate positive cash flow from operating activities,” concluded Dr. Ma.
Financial Results for Three Months Ended March 31, 2017
For the three months ended March 31, 2017, revenue decreased 7% to $16.4 million from $17.5 million for the same period of 2016, due to the decrease of $1.0 million in commission revenue in our professional sales service segment as a result of lower volume of equipment deliveries, as well as lower volume of equipment sales in our equipment segment, partially offset by an increase in revenue in our IT segment.
Gross profit for the first quarter of 2017 decreased 9% to $9.1 million, compared with a gross profit of $10.0 million for the first quarter of 2016. This decrease is primarily the result of the decrease in revenue in the professional sales service segment resulting in a decrease in segment gross profit of $0.8 million and a decrease in gross profit in the equipment segment, partially offset by an increase in gross profit in the IT segment.
Selling, general and administrative (SG&A) expenses for the first quarter of 2017 increased 10% to $10.7 million compared to $9.7 million for the first quarter of 2016. The increase is primarily attributable to an increase in personnel costs and timing of meeting costs (in the first quarter of 2017 instead of the second quarter of 2016) in the professional sales service segment.
Research and development costs increased 50% to $221 thousand in the first quarter of 2017 compared to the first quarter of 2016, due to an increase in software development costs.
Net loss for the three months ended March 31, 2017 was $2.1 million, compared with a net loss of $0.1 million for the three months ended March 31, 2016.
Net cash provided by operating activities was $0.7 million and $1.9 million for the three months ended March 31, 2017 and 2016, respectively. Net cash at March 31, 2017 was $6.7 million, compared to $7.1 million at December 31, 2016.
Deferred revenue remains substantial, at approximately $19.8 million as of March 31, 2017, 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 $11.0 million as of March 31, 2017 from $12.9 million as of December 31, 2016.
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 four wholly owned subsidiaries. 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. 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 in the USA. Vasomedical Solutions, Inc., manages and coordinates the design, manufacture and sales of EECP® Therapy Systems and other medical equipment operations. Vasomedical Global Corp operates the Company’s overseas assets including China-based subsidiaries (Biox Instruments Co. Ltd. and Life Enhancement Technology Limited) as well as the minority interest in 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.vasocorporation.com.
Summarized Financial Information
| FOR THE THREE MONTHS ENDED | ||
| STATEMENTS OF OPERATIONS | March 31, 2017 | March 31, 2016 |
| (In thousands) | ||
| (Unaudited) | ||
| Revenue | $16,374 | $17,542 |
| Gross profit | 9,070 | 10,012 |
| Operating income (loss) | (1,841) | 159 |
| Other income (expense), net | (181) | (161) |
| Loss before taxes | (2,022) | (2) |
| Income tax expense | (109) | (102) |
| Net loss | (2,131) | (104) |
| Income tax expense | 109 | 102 |
| Interest (income) expense, net | 165 | 155 |
| Depreciation and amortization | 582 | 523 |
| Non-cash stock-based compensation | 219 | 33 |
| Adjusted EBITDA* | $(1,056) | $709 |
| *Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization | ||
| and non-cash stock-based compensation. | ||
| BALANCE SHEETS | March 31, 2017 | December 31, 2016 |
| (In thousands) | ||
| (Unaudited) | ||
| Total current assets | $21,915 | $25,083 |
| Total assets | $53,989 | $57,381 |
| Total current liabilities | $25,918 | $25,650 |
| Total stockholders’ equity | $11,031 | $12,911 |
Except for historical information contained in this report, 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”, “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.
Vaso Corporation
137 Commercial Street
Plainview, New York 11803
Tel: (516) 997-4600 Fax: (516) 997-2299
Investor Contacts:
Michael J. Beecher
Investor Relations
Phone: 516-508-5840
Email: ir@vasocorporation.com; mbeecher@vasocorporation.com
Vaso Corporation
Commercial Street
Plainview, New York 11803
Tel: (516) 997-4600 Fax: (516) 997-2299
SOURCE: Vaso Corporation
Link to Yahoo Finance:https://finance.yahoo.com/news/vaso-corporation-announces-financial-results-130000356.html
PLAINVIEW, N.Y. March 30, 2016 – Vaso Corporation (“Vaso”) (OTCMKTS: VASO) today reported its operating results for the three months and year ended December 31, 2016.
“We are pleased to announce a record revenue of $72.6 million for the fiscal year 2016, a growth of 27% from 2015, which is significant because it was achieved in spite of a revenue decrease in the professional sales service business segment due to lower volume of equipment deliveries,” stated Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “Revenue contributions from our IT, professional sales service and proprietary equipment segments were respectively 54%, 39% and 7% in 2016, signifying a diversified and robust enterprise with less dependence on a single source of income.”
“Our IT segment continues to grow and has built a substantial backlog in 2016. The professional sales service segment also saw an increase in deferred revenue resulting from higher order bookings in 2016 than in the previous year. Performance in our proprietary equipment business improved in 2016 as well. Therefore, while we experienced a decrease in net income in 2016 as a result of continued investment in the IT segment and lower commission revenue in the professional sales service segment, we expect to see continued sales growth in 2017 with improved profitability. Our operations continue to generate healthy positive operating cash flow, $5.2 million in 2016 to be specific, further strengthening the Company’s financial position with cash balances of approximately $8 million as of March 24, 2017,” concluded Dr. Ma.
Financial Results for Three Months Ended December 31, 2016
For the three months ended December 31, 2016, revenue decreased 9.8% to $19.3 million from $21.4 million for the same period of 2015, due primarily to the decrease of $2.3 million in revenue in our professional sales service segment as a result of lower volume of equipment deliveries, partially offset by an increase in revenue in our IT segment principally from an increase in sales in the NetWolves business.
Gross profit for the fourth quarter of 2016 decreased 11.0% to $11.2 million, compared with a gross profit of $12.6 million for the fourth quarter of 2015. This decrease is primarily the result of the decrease in revenue in the professional sales service segment resulting in a decrease in segment gross profit of $1.9 million, partially offset by an increase in gross profit in both the IT and equipment segments.
Selling, general and administrative (SG&A) expenses for the fourth quarter of 2016 increased 5.8% to $10.4 million compared to $9.9 million for the fourth quarter of 2015. The increase is primarily attributable to an increase in personnel costs in the professional sales service segment. SG&A expenses were 54.1% of revenue in the fourth quarter of 2016 compared to 46.1% of revenue for the same quarter of 2015.
Net income for the three months ended December 31, 2016 was $0.4 million, compared with a net income of $2.7 million for the three months ended December 31, 2015.
Financial Results for Year Ended December 31, 2016
For the year ended December 31, 2016, revenue increased $15.5 million, or 27.2%, to $72.6 million, compared with $57.1 million for the year 2015. Revenue in our IT segment was $39.4 million for the year ended December 31, 2016, compared to revenue of $21.1 million in 2015, mainly as a result of including full-year revenue from NetWolves in 2016 versus only seven months revenue from NetWolves in 2015. Commission revenues in our professional sales service segment decreased by 9.7% to $28.5 million as a result of lower equipment deliveries compared to 2015. Equipment segment revenue for the year 2016 increased by 6.2% to $4.6 million, compared to $4.3 million in 2015, principally due to an increase in volume of EECP® equipment sales and an increase in sales at our Biox subsidiary.
Gross profit for the year ended December 31, 2016 increased 17.3% to $41.5 million, from $35.4 million in 2015. The increase was due primarily to the inclusion of twelve months of NetWolves operations in 2016 versus seven months in 2015, and to a higher gross profit in our equipment segment, partially offset by a decrease in gross profit in our professional sales service segment resulting from lower commission revenue in this segment as discussed above.
SG&A expenses for the year ended December31, 2016 increased 27.5% to $39.4 million, or 54.3% of revenue, compared with $30.9 million, or 54.2% of revenue, for the same period in 2015. The increase resulted primarily from including the NetWolves operation for twelve months in 2016 compared to seven months in 2015, and an increase in personnel costs in the professional sales service segment. SG&A costs in the equipment segment decreased, as did corporate costs.
For the year ended December 31, 2016, the Company had net income of $0.8 million, or $0.01 per common share, compared with a net income of $3.8 million, or $0.02 per common share, for the year ended December 31, 2015.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and share-based compensation) was $4.4 million for the year ended December 31, 2016 compared to $5.8 million for the year ended December 31, 2015. The decrease was primarily the result of lower net income in 2016, partially offset by higher depreciation and amortization of intangibles in 2016 compared to 2015.
Net cash provided by operating activities was $5.2 million and $6.5 million for the year ended December 31, 2016 and 2015, respectively. Net cash increased to $7.1 million at December 31, 2016, compared to $2.2 million at December 31, 2015. The increase in cash is the result of cash provided from operations and an increase in borrowings under our lines of credit. As of March 24, 2016, the Company’s net cash was approximately $8 million.
Deferred revenue remains substantial, at approximately $19.4 million as of December 31, 2016, which will be recognized in the future when the underlying equipment or services are delivered and accepted at the customer site. Our shareholders’ equity increased to $12.9 million as of December 31, 2016 from $11.7 million as of December 31, 2015.
Conference Call Information
The Company will host a conference call on Thursday, March 30, 2017 at 10:00 a.m. eastern time featuring presentations by Jun Ma, Ph.D., President and CEO, Peter Castle, Chief Operating Officer, and Michael Beecher, Chief Financial Officer of Vaso Corporation. 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 Vaso’s website, http://www.vasocorporation.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.vasocorporation.com/. To access the dial-in replay of the call, which will be available until April 30, 2017, please dial 1-877-481-4010 or international 1-919-882-2331. All dial-in participants must use the following code to access the call: 10295.
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 four wholly owned subsidiaries. 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. 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 in the USA. Vasomedical Solutions, Inc., manages and coordinates the design, manufacture and sales of EECP® Therapy Systems and other medical equipment operations. Vasomedical Global Corp operates the Company’s overseas assets including China-based subsidiaries (Biox Instruments Co. Ltd. and Life Enhancement Technology Limited) as well as the minority interest in 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.vasocorporation.com.
Summarized Financial Information
Except for historical information contained in this report, 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”, “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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