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Vaso Corporation Announces Financial Results for Third Quarter 2023

Making it the sixth consecutive quarter of profitability

PLAINVIEW, NY / ACCESSWIRE / November 14, 2023 / Vaso Corporation (“Vaso”) (OTCQX:VASO) today reported its operating results for the three months ended September 30, 2023.

“For the third quarter of 2023, the Company’s revenue was $19.4 million, compared to the prior year’s third quarter revenue of $19.8 million. The slight decrease in revenue was mainly due to lower deliveries of underlying equipment during the quarter by our partner in the professional sales services segment. Net income for the quarter was $1.2 million, down from $2.3 million for the same quarter of 2022, as operating expenses increased due to investment in new programs and the impact of inflation,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. “While we experienced year-over-year declines in quarterly revenue and profit following significant growth in previous periods, year-to-date results for the nine-month period ended September 30, 2023 remain solid; specifically, revenue increased by $3.0 million to $59.1 million, and net income increased by $0.5 million to $3.7 million, when compared to the corresponding nine months of 2022.”

“As the Company continues to generate positive operating cashflow, which was $6.9 million during the first nine months of the year, our balance sheet continues to be strong, with $26.9 million in cash, cash equivalents and short-term investments at the end of the third quarter, an increase of $8.2 million from a year before. Total deferred revenue as of September 30, 2023 maintained at a high level of $33.2 million, which will be recognized as revenue in the future reporting periods when the underlying products or services are delivered,” Dr. Ma continued.

“We are cautiously optimistic about the Company’s performance for the remainder of the year, as historically the fourth quarter has been the quarter with highest revenue and income of the year due to the cyclical nature of our business.” concluded Dr. Ma.

Financial Results for Three Months Ended September 30, 2023

Total revenue for the three months ended September 30, 2023 was $19.4 million, representing a slight decrease of 2% from revenue of $19.8 million for the same period in the prior year. On a segment basis, revenue in the professional sales services segment decreased $0.4 million or 4% year-over-year, mainly as a result of lower volume of underlying equipment delivered by our partner, partially offset by a higher blended commission rate during the period on those deliveries; revenue in the IT segment increased $31,000 compared to the third quarter of 2022, while revenue in the equipment segment decreased $15,000 or 2% due to lower equipment deliveries in our China operations, partially offset by a revenue increase in our US operations.

Gross profit for the three months ended September 30, 2023 decreased by $0.4 million, or 3%, to $12.0 million, from $12.4 million for the third quarter of 2022. This decrease was mainly due to the decrease in revenue in the professional sales services segment.

Selling, general and administrative (SG&A) expenses for the third quarter of 2023 increased by 10% to $10.9 million when compared to the third quarter of 2022. The increase is primarily attributable to higher personnel costs in the professional sales services segment as compared to 2022, due to an expansion of services for our partner.

Net income for the three months ended September 30, 2023 was $1.2 million, compared to net income of $2.3 million for the three months ended September 30, 2022. The principal cause of the decrease in net income is the decrease in gross profit and the increase in SG&A expenses discussed above.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, adjusted for non-cash stock-based compensation) was $1.2 million for the quarter ended September 30, 2023, compared to $2.6 million for the third quarter of 2022. The decrease is the result of the decrease in net income.

Net cash provided by operating activities in the first nine months of 2023 was $6.9 million, compared to $12.7 million for the same period in 2022. As of September 30, 2023 and December 31, 2022, the Company had cash, cash equivalents and short term investments of approximately $26.9 million and $20.3 million, respectively, an increase of $6.6 million.

About Vaso

Vaso Corporation is a diversified medical technology company with several distinctive but related specialties: managed IT systems and services, including healthcare software solutions and network connectivity services; professional sales services for diagnostic imaging products; and design, manufacture and sale of proprietary medical devices.

The Company operates through three wholly owned subsidiaries:

  • VasoTechnology, Inc. provides network and IT services through two business units: VasoHealthcare IT Corp., a national value added reseller of Radiology Information System (“RIS”), Picture Archiving and Communication System (“PACS”), and other software solutions from various vendors as well as 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, Inc. manages and coordinates the design, manufacture and sales of proprietary medical equipment and software, as well as operates the Company’s overseas assets including China-based subsidiaries.

Summarized Financial Information

Except for historical information contained in this release, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this report, words such as “anticipates”, “believes”, “could”, “estimates”, “expects”, “may”, “optimistic”, “plans”, “potential” and “intends” and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions, including the impact of the current COVID-19 pandemic; the effect of the dramatic changes taking place in IT and healthcare; continuation of the GEHC agreement; the impact of competitive technology and products and their pricing; medical insurance reimbursement policies; unexpected manufacturing or supplier problems; unforeseen difficulties and delays in product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; and the risk factors reported from time to time in the Company’s SEC reports. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.

Investor Contact:

Michael J. Beecher
Investor Relations
Phone: 516-997-4600