Vasomedical, Inc. Reports Record Third Quarter And Nine-Month Results
Business Wire - April 14, 1998 13:00
%VASOMEDICAL VASO %NEW-YORK %MEDICINE %BIOTECHNOLOGY %PHARMACEUTICAL %EARNINGS %BANKING V%BW
P%BW
Jump to first matched term
WESTBURY, N.Y--(BUSINESS WIRE)--April 14, 1998--Vasomedical, Inc. (NASDAQ:VASO; www.vasomedical.com)
announced today its unaudited financial results for the third quarter ended February 28, 1998 and reported nine-month revenues
that surpass any prior full-year revenues.
Revenues from the sale and lease of EECP(R) systems for the quarter ended February 28, 1998 were $1,678,000 versus
$373,000 for the prior-year period, an increase of 350%. For the nine months ended February 28, 1998, revenues were a
record $3,855,000 compared to $1,643,000 for the prior-year period, an increase of 135%. The company's revenues have
increased in each of the last five quarters 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 third quarter were $803,000(a), or $.02 per share, compared to $1,275,000,
or $.03 per share, for the prior-year period. Net losses from operations for the nine months ended February 28, 1998 were
$2,808,000(a), or $.06 per share, versus $3,097,000, or $.07 per share, in 1997. Nine-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 and third
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. In addition, third quarter results were affected by the two-fold expansion of the
company's direct sales force in January 1998.
Management is pleased with the direction in which the company is moving, as reflected in increasing revenues and declining
losses.
Anthony Viscusi, President and CEO of Vasomedical, stated that "we are very pleased with the growing adoption of EECP(R)
therapy by hospitals and cardiology practices. This is reflected in the steadily increasing number of EECP(R) systems placed
and patients treated. Several treatment centers have long waiting lists of patients, which bodes well for the future placement of
additional EECP(R) systems. The number and frequency of reimbursements, which is being provided by more than forty
third-party payers, and the positive results of our groundbreaking randomized, controlled, and double-blinded clinical study
have contributed greatly to these favorable trends."
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 Feb. 28, 1998 May 31, 1997
Cash and investments $2,048,517 $1,753,004
Current assets 3,903,512 2,848,760
Total assets 5,053,888 4,175,021
Current liabilities 1,104,171 867,429
Long-term liabilities 578,000 286,630
Stockholders' equity 3,471,717 3,020,962
Statements of Operations
Nine months ended Three months ended
Feb. 28, Feb. 28,
1998 1997 1998 1997
Revenues $3,855,311 $1,643,062 $1,678,163 $372,734
Costs and expenses
Cost of sales and
services 1,063,367 728,871 423,647 243,891
Selling, general and
administrative 4,175,189 3,293,141 1,668,656 1,056,823
Research and
development 1,279,966 618,142 331,101 296,746
Depreciation and
amortization 275,179 239,918 92,863 84,502
Interest and
financing costs 1,546 3,750 470 1,843
Interest and other
income - net (132,385) (143,392) (35,780) (36,067)
---------- ---------- ---------- ----------
6,662,862 4,740,430 2,480,957 1,647,738
NET LOSS (2,807,551) (3,097,368) (802,794) (1,275,004)
Deemed dividend on
preferred stock (857,000) - - -
Preferred stock
dividend
requirement (69,659) - (16,720) -
NET LOSS APPLICABLE
TO COMMON STOCK $(3,734,210) $(3,097,368) $(819,514) $(1,275,004)
Net loss per common
share (basic and
diluted) $(.08) $(.07) $(.02) $(.03)
Weighted average common
shares outstanding 47,689,862 46,542,928 48,235,284 46,747,312
(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 $17,000 and $70,000 in dividend requirements for the three and nine months ended Feb. 28,
1998, 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.) |
