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Vasomedical Announces Strong Revenue Growth for the Three Months Ended March 31, 2012

WESTBURY, N.Y.–(BUSINESS WIRE)–Vasomedical, Inc. (“Vasomedical”) (OTC: VASO.PK), a diversified medical technology company specializing in the design, manufacture and sale of medical devices and in the domestic sale of diagnostic imaging products, today reported its operating results for the three months ended March 31, 2012.

The Company recorded revenue of $6.04 million for the three month period ended March 31, 2012, compared to revenue of $4.85 million for same period in 2011, an increase of 25%. The increase is primarily due to an increase of $925,000 in EECP® and other medical equipment sales, or 175%, of which $578,000 was contributed by our recent acquisitions in China. Commission revenue at our wholly-owned subsidiary Vaso Diagnostics, Inc., d/b/a VasoHealthcare, also grew by $317,000, or 8%, for the three month period ended March 31, 2012. We continue to record substantial amounts of deferred revenues, which will be recognized once the underlying equipment or service is accepted or performed. As of March 31, 2012, total deferred revenues were approximately $14.78 million, a decrease of $0.45 million from December 31, 2011. At March 31, 2012, the Company had cash and cash equivalents of approximately $13.3 million.

Net loss for the three months ended March 31, 2012 was $1.34 million, compared to a net loss of $0.47 million for the same period in 2011. The increase in net loss was due to higher selling, general and administrative costs associated mainly with additional sales and marketing investments at our Vaso Diagnostics subsidiary, the addition of the China operations, and increased corporate expenses. Loss attributable to common stockholders was $1.34 million or $0.01 per common share for the three months ended March 31, 2012, compared to a net loss of $0.59 million or $0.01 per common share for the three months ended March 31, 2011.

“We are excited about the revenue growth in both segments but especially with the growth in our equipment segment,” commented Dr. Jun Ma, President and Chief Executive Officer of the Company. “We anticipate that our equipment segment will continue to grow and contribute significantly to our future success,” Dr. Ma continued. “We will continue to seek other opportunities to expand our equipment segment to further diversify our business and to enhance shareholder value.”

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 manages and coordinates the design, manufacture and sales of EECP® therapy systems, its core product, as well as other medical equipment operations; Vasomedical Global operates the Company’s China-based subsidiaries; and Vaso Diagnostics, d/b/a VasoHealthcare, is the operating subsidiary for the sales representation of GE Healthcare diagnostic imaging products. Additional information is available on the Company’s website at

Summarized Financial Information



  March 31, 2012   March 31, 2011
Revenue from operations   $ 6,043,000   $ 4,845,000
Gross profit   $ 4,181,000   $ 3,256,000
Operating loss   $ (1,301,000)   $ (481,000)
Other income (expense), net   $ (18,000)   $ 14,000
Loss before income taxes   $ (1,319,000)   $ (467,000)
Income tax (expense) benefit   $ (25,000)   $ 2,000
Net loss   $ (1,344,000)   $ (465,000)
Preferred stock dividends   $   $ (128,000)
Net loss attributable to common stockholders   $ (1,344,000)   $ (593,000)
Basic and diluted loss per share   $ 0.01   $ 0.01




March 31, 2012


December 31, 2011

Total Current Assets   $ 25,223,000   $ 28,500,000
Total Assets   $ 30,618,000   $ 34,306,000
Total Current Liabilities   $ 16,679,000   $ 17,146,000
Total Stockholders Equity   $ 10,396,000   $ 11,276,000


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.


Vasomedical, Inc.
Investor Relations:
Dr. Jun Ma, President and CEO, 516-997-4600
Michael J. Beecher, CFO, 516-997-4600

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