Vasomedical Reports Second Quarter Results
Business Wire - January 15, 1998 12:30
WESTBURY, N.Y.--(BW HealthWire)--Jan. 15, 1998--
EECP(R) Revenues Show Steady Growth
Vasomedical Inc. (NASDAQ: VASO; www.vasomedical.com) announced today
its unaudited financial results for the second quarter and six months
ended Nov. 30, 1997. Revenues from the sale and lease of EECP(R)
systems for the three months ended Nov. 30, 1997 were $1,135,000
versus $96,000 for the comparable prior period. For the six-month
period ended Nov. 30, 1997, revenues were $2,177,000 compared to
$1,270,000 for the prior period. The company's revenues have increased
in each of the last four quarters, already exceeding total fiscal 1997
revenues, as a result of the steady growth in the number of EECP(R)
units purchased or leased by treatment centers. The company's net
losses from operations for the second quarter were $1,007,000
(a) ($.02 per share) compared to $1,350,000 ($.03 per share) for the
prior period. Net losses from operations for the six months ended
Nov. 30, 1997 were $2,005,000(a) ($.04 per share) versus $1,822,000
($.04 per share) in 1996. Six-month results were affected by heavy R&D
spending in the first quarter, especially related to the completed
multicenter study of EECP(R), while second quarter results were
impacted by increases in marketing expenses related to programs for
the dissemination of the multicenter study's results and for
promotional materials. Anthony Viscusi, president and CEO of
Vasomedical, stated that "the announcement of the results of the
company's multicenter clinical study at the American Heart Association
meeting in November 1997 represents a new beginning for Vasomedical,
as demonstrated by the increasing number of hospitals and cardiology
practices interested in becoming providers of EECP(R) therapy. In
response to these favorable developments, the company has doubled its
direct sales force and expanded its manufacturer representatives
network." Vasomedical is a medical technology company devoted to the
development, manufacture and commercialization of innovative and
cost-effective cardiovascular products and processes.
The following is a comparative summary of unaudited financial
results of Vasomedical Inc.:
Balance sheet highlights November 30, 1997 May 31, 1997
Cash and investments $3,270,905 $1,753,004
Current assets 4,625,675 2,848,760
Total assets 5,812,824 4,175,021
Current liabilities 1,260,913 867,429
Long-term liabilities 343,000 286,630
Stockholders' equity 4,208,911 3,020,962
Statements of Operations
Six months ended
November 30
1997 1996
Revenues 2,177,148 1,270,328
Costs and expenses
Cost of sales and services 639,720 484,980
Selling, general and
administrative 2,506,533 2,236,318
Research and development 948,865 321,396
Depreciation and amortization 182,316 155,416
Interest and financing costs 1,076 1,907
Interest and other income - net (96,605) (107,325)
4,181,905 3,092,692
NET LOSS (2,004,757) (1,822,364)
Deemed dividend on
preferred stock (857,000) -
Preferred stock
dividend requirement (52,939) -
NET LOSS APPLICABLE TO
COMMON STOCK $(2,914,696) $(1,822,364)
Net loss per common share $(.06) $(.04)
Weighted average common
shares outstanding 47,417,151 46,440,736
Statements of Operations
Three months ended
November 30
1997 1996
Revenues 1,135,392 96,000
Costs and expenses
Cost of sales and services 264,880 212,906
Selling, general and
administrative 1,485,494 1,029,281
Research and development 350,141 171,862
Depreciation and amortization 91,549 79,003
Interest and financing costs 52 460
Interest and other income - net (49,715) (47,562)
2,142,401 1,445,950
NET LOSS (1,007,009) (1,349,950)
Deemed dividend on
preferred stock - -
Preferred stock
dividend requirement (25,405) -
NET LOSS APPLICABLE TO
COMMON STOCK $(1,032,414) $(1,349,950)
Net loss per common share $(.02) $(.03)
Weighted average common
shares outstanding 47,811,782 46,630,996
(a) Excludes the fiscal 1998 recognition of an $857,000 deemed
dividend on preferred stock which represented the discount resulting
from the allocation of proceeds to the beneficial conversion feature
and the fair value of the underlying warrants (reported in the first
quarter), and $25,000 and $53,000 in dividend requirements for the
three and six months ended Nov., 30, 1997, respectively, in
connection with the company's June 1997 financing.
(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).
CONTACT: Vasomedical Inc.
Natalie Karp, 516/997-4600 ext. 776 |
