WESTBURY, N.Y.--(BUSINESS WIRE)--Vasomedical, Inc. (“Vasomedical”) (OTC: VASO.PK), a diversified medical technology company specializing in the manufacture and sale of medical devices and in the domestic sale of diagnostic imaging products, today announces its operating results for the seven months ended December 31, 2011. These results include the operation of its Chinese subsidiaries for the four months since their acquisition in September, 2011. The results for the seven month period are based on the change in 2011 of our fiscal year end from May 31 to December 31.
The Company recorded revenue of $23.49 million for the seven month period ended December 31, 2011, compared to revenue of $8.74 million for same period in 2010, an increase of 169%. The increase is primarily due to an increase in commission revenue at our wholly-owned subsidiary Vaso Diagnostics, Inc., d/b/a VasoHealthcare, as its agreement with GE Healthcare, which began mid-year 2010, was in full operation in 2011. 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 December 31, 2011, total deferred revenues were approximately $15.23 million, an increase of $3.31 million from May 31, 2011. As of March 29, 2012, the Company had cash, cash equivalents and short term investments of approximately $13.1 million.
Net income for the seven months ended December 31, 2011 was $5.11 million, compared to a net loss of $2.41 million for the same period in 2010. Income attributable to common stockholders was $3.89 million or $0.03 per common share for the seven months ended December 31, 2011, compared to a net loss of $2.60 million or ($0.02) per common share for the seven months ended December 31, 2010. The net income in 2011 and net loss in 2010 applicable to common stockholders were after reduction for preferred stock dividends of $1.22 million and $191,000 for the seven months ended December 31, 2011 and 2010, respectively. These dividends for preferred stock, all of which were converted to shares of common stock during the reporting period, are noncash items resulting principally from the value of the imbedded beneficial conversion feature in the preferred stock.
“I would like to thank each and every one of our highly professional employees, particularly our VasoHealthcare team, for their contribution to the great performance during such uncertain times in healthcare,” commented Dr. Jun Ma, President and Chief Executive Officer of the Company. “The continued profitability in this reporting period has placed Vasomedical in a stronger financial position, allowing the Company to further implement its growth strategies, globally and domestically,” Dr. Ma continued. “We believe a diversified medtech company is certainly better positioned to provide stability in the business of delivering quality healthcare products to the public, and at the same time provide consistent growth and return on investment for our shareholders.”
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 www.vasomedical.com.
Summarized Financial Information
| FOR THE SEVEN MONTHS ENDED | FOR THE YEAR ENDED | |||||||||||||||||||||||
| STATEMENTS OF OPERATIONS |
December 31, 2011 |
December 31, 2010 |
May 31, 2011 |
May 31, 2010 |
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| Revenue from operations | $ | 23,489,000 | $ | 8,741,000 | $ | 16,373,000 | $ | 4,206,000 | ||||||||||||||||
| Gross profit | $ | 16,756,000 | $ | 5,820,000 | $ | 10,912,000 | $ | 2,212,000 | ||||||||||||||||
| Operating income (loss) | $ | 5,189,000 | $ | (2,445,000 | ) | $ | (3,933,000 | ) | $ | (1,980,000 | ) | |||||||||||||
| Other income, net | $ | 199,000 | $ | 40,000 | $ | 49,000 | $ | 128,000 | ||||||||||||||||
| Income (loss) before income taxes | $ | 5,388,000 | $ | (2,405,000 | ) | $ | (3,884,000 | ) | $ | (1,852,000 | ) | |||||||||||||
| Income tax (expense) benefit | $ | (276,000 | ) | $ | (8,000 | ) | $ | (7,000 | ) | $ | 36,000 | |||||||||||||
| Net income (loss) | $ | 5,112,000 | $ | (2,413,000 | ) | $ | (3,891,000 | ) | $ | (1,816,000 | ) | |||||||||||||
| Preferred stock dividends | $ | (1,221,000 | ) | $ | (191,000 | ) | $ | (429,000 | ) | $ | - | |||||||||||||
| Net income attributable to non-controlling interest | $ | - | $ | - | $ | - | $ | 76,000 | ||||||||||||||||
| Net income (loss) attributable to common stockholders | $ | 3,891,000 | $ | (2,604,000 | ) | $ | (4,320,000 | ) | $ | (1,892,000 | ) | |||||||||||||
| Basic and diluted income (loss) per share | $ | 0.03 | $ | (0.02 | ) | $ | (0.04 | ) | $ | (0.02 | ) | |||||||||||||
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.
