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Vaso Corporation Announces Financial Results for Third Quarter 2018

PLAINVIEW, NY / ACCESSWIRE / November 14, 2018 / Vaso Corporation (OTC PINK: VASO) (formerly Vasomedical, Inc.) today reported its operating results for the three months ended September 30, 2018.

“Total revenues for the three and nine months of 2018 were $18.8 million and $54.7 million, respectively, representing growth rate at 4% and 5% when compared to the same periods of last year,” commented Dr. Jun Ma, President and Chief Executive Officer of Vaso. “While all three of our business units contributed to the revenue growth, VasoHealthcare, the professional sales service business unit, enjoyed a 9% year-over-year revenue increase during the third quarter as a result of higher equipment delivery volume by our partner, turning deferred revenue into recognized revenue.”

“We also recorded improved quarterly and year-to-date operating results in 2018 as compared to 2017, and we anticipate the trend of growth in top- and bottom-line performances to continue for the remainder of the year and into the next year as deferred revenue and order backlog continue to convert to revenue when underlying equipment and services are delivered to customers. We are excited about the future of the Company, as we believe our diversified operations and strong book of businesses could withstand market uncertainties and business fluctuations,” concluded Dr. Ma.

Financial Results for the Three Months Ended September 30, 2018

For the three months ended September 30, 2018, revenue increased 4% to $18.8 million from $18.0 million for the same period of 2017. The year-over-year increase was the result of a $0.5 million, or 9%, growth in our professional sales service segment revenue, due to higher equipment deliveries by GE Healthcare (“GEHC”) compared to the third quarter 2017. Revenue in our IT segment increased $0.2 million, or 2%, attributable to an increase in revenue in our NetWolves operation of network services business. Revenue in the equipment segment increased $23 thousand for the quarter from the same quarter a year ago, due to an increase in EECP® business.

Gross profit for the third quarter of 2018 increased 4% to $10.5 million, compared with $10.0 million for the third quarter of 2017. The increase was principally due to the increase in revenue in the professional sales service segment and in the equipment segment, offset by a slightly lower gross profit margin in the IT segment as a result of the lower product margin sales mix in that segment. Total gross profit margin was 56% of revenue for each of the three-month periods ended September 30, 2018 and 2017.

Selling, general and administrative (SG&A) expenses for the third quarter of 2018 increased to $10.5 million from $10.4 million for the third quarter of the prior year. The increase is primarily due to an increase in personnel costs in the IT segment, offset by lower costs in the professional sales service segment and the equipment segment.

The Company had an operating loss of $241 thousand for the third quarter 2018, a reduction of 61% when compared to an operating loss of $619 thousand for the same period in 2017. The $378 thousand improvement was principally due to the higher revenue in the professional sales service segment. Net loss for the three months ended September 30, 2018 was $377 thousand, compared with net loss of $816 thousand for the three months ended in the same period in 2017, an improvement of $439 thousand or 54%.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and non-cash stock-based compensation) was $476 thousand for the three months ended September 30, 2018, compared to $152 thousand for the same period a year ago.

Net cash used in operating activities in the first nine months of 2018 was $1.5 million. As of September 30, 2018, the Company had cash and cash equivalents of approximately $3.0 million, compared to cash and cash equivalents of $5.2 million at December 31, 2017. We anticipate an improvement in cash flow from operations for the remainder of this year.

About Vaso

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

The Company operates through three wholly owned subsidiaries:

  • 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 GEHC Digital and other 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. VasoHealthcareprovides 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 EECP® Therapy Systems and other medical equipment operations, as well as operates the Company’s overseas assets including China-based subsidiaries.

Additional information is available on the Company’s website at

Summarized Financial Information

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