Vasomedical, Inc. Reports Preliminary Third Quarter Results; Nine months revenues exceed entire prior fiscal year by more than 50%
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VASO $9.88 $0.22
Quotes 20 min delay.
Friday March 10 2:04pm
Source: BusinessWire
WESTBURY, NY--(BUSINESS WIRE)--March 10, 2000--Vasomedical, Inc. (Nasdaq:VASO) announced today its preliminary unaudited financial results for the third quarter ended February 29, 2000. The Company, a leader in devices and therapies for the noninvasive treatment of coronary artery disease, reported revenues from the sale and lease of its EECP(R) enhanced external counterpulsation system of $3.2 million for the third quarter, up more than 87% from $1.7 million for the comparable prior-year period. The Company reported positive earnings of approximately $250,000 for the three months ended February 29, 2000, compared to a loss of $564,000 for the same three-month period last year. The Company's revenues, earnings and earnings per share for the nine months ended February 29, 2000 were approximately $9.2 million, $574,000 and $.01, respectively, compared to revenues of $2.5 million, a net loss of $4.4 million (which included a non-cash imputed dividend on preferred stock of $864,000) and a loss per share of $.09 for the comparable prior-year period.
The increase in the Company's revenues over the prior year was primarily attributable to the recent decision of the Health Care Financing Administration (HCFA), the federal agency that administers the Medicare program, to implement a national coverage and reimbursement policy for EECP therapy, as revised, effective January 1, 2000. Management expects this policy revision to provide a strong foundation for accelerated growth in 2000.
D. Michael Deignan, President and CEO, commented, "We are very pleased to have achieved a fourth consecutive quarter of positive earnings, combined with the strong year-to-year growth. Now that an effective Medicare reimbursement level has been established and evidence of payment is documented, we have begun the process of aggressively expanding our direct sales force and are initiating marketing programs that will create broad patient awareness of EECP therapy."
Vasomedical, Inc. (www.vasomedical.com) is primarily engaged in designing, manufacturing, marketing and supporting external counterpulsation systems based on the company's proprietary technology. EECP(R) is a registered trademark for Vasomedical's enhanced external counterpulsation system. This system is now in use at major medical centers, including the Mayo Clinic, the Ochsner Foundation Hospital and the Miami Heart Institute, as well as medical centers affiliated with Columbia University, the University of Pittsburgh, the University of California San Diego, the University of California San Francisco and the University of Virginia. The Company provides hospitals, clinics and private practices EECP equipment, treatment guidance and a staff training and maintenance program to ensure optimal patient outcomes.
Except for historical information contained in this news release, the matters discussed are forward looking statements that involve risks and uncertainties. When used in this release, words such as "anticipate", "believe", "estimate", "expect" and "intend" 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 impact of competitive products and pricing; capacity and supply constraints or difficulties; product development, commercialization or technological difficulties; the regulatory and trade environment; and the risk factors reported from time to time in the Company's SEC reports. The Company undertakes no obligation to revise any forward-looking statements as a result of future events or developments.
Contact: Joseph A. Giacalone, Chief Financial Officer
516/997-4600 Ext. 121 |
