ER News
Vasomedical Inc. Reports Year-End Results; Revenues Rise 150 Percent
Business Wire - August 04, 1998 07:46
WESTBURY, N.Y.--(BW HealthWire)--Aug. 4, 1998--Vasomedical Inc. (Nasdaq:VASO) Tuesday announced its audited financial results for the fiscal year ended May 31, 1998. The company, a leader in devices for the noninvasive treatment of coronary artery disease, reported record revenues from the sale and lease of its EECP(R) external counterpulsation systems of $5.2 million for the year, up nearly 150 percent from $2.1 million for fiscal 1997.
Revenues for the fourth quarter rose to $1.4 million, up by more than 200 percent from the year-earlier $454,000. The company's net loss for fiscal 1998 was $5.0 million, or 11 cents loss per share, which included a non-cash imputed dividend on preferred stock of $1.1 million, or 3 cents loss per share, compared with a year-earlier loss of $4.5 million, or 10 cents loss per share. For the fourth quarter, the company reported a lower net loss of $1.3 million, or 3 cents loss per share, which included non-cash imputed dividends of $275,000, or 1 cent loss per share, compared with a loss of $1.4 million, or 3 cents loss per share.
The company's revenues have increased as a result of the steady growth in the number of EECP(R) systems purchased or leased by treatment centers. Gross margins ended the year at over 70 percent, but the company invested heavily in R&D, product marketing and the expansion of the company's direct sales force which, together with the imputed dividends, accounted for most of the loss.
President and Chief Executive Officer Anthony Viscusi commented: "The cardiology profession has responded favorably to the positive results of the randomized, controlled and double-blinded multicenter study of EECP(R) that were announced at the recent annual scientific sessions of the American Heart Association and of the American College of Cardiology. This has had the effect of accelerating the use of noninvasive EECP(R) procedures for the treatment of coronary artery disease and the placement of EECP(R) systems in hospitals and cardiology practices.
"We have expended our sales force and have begun new marketing initiatives and stepped up customer support programs to further increase patient recruitment and insurance reimbursement. We have also initiated seeding programs in HMOs. In addition, the company has begun clinical studies of the EECP(R) procedure in the treatment of congestive heart failure, which represents a largely unsatisfied and potentially lucrative market for the company."
Treasurer Joseph Giacalone noted that the company's financial strength improved during the year. At May 31, 1998, the company's cash position was $4.4 million, its current ratio was 5.4:1, long-term liabilities were $451,000 and stockholders' equity was $5.8 million.
Vasomedical (www.vasomedical.com) 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 the operating results of Vasomedical Inc.:
VASOMEDICAL INC.
Statements of Operations
Year ended Three months ended
May 31, May 31,
1998 1997 1998 1997
Revenues $5,225,064 $2,096,562 $1,369,753 $ 453,500
Costs and expenses
Cost of sales and
services 1,543,849 1,020,047 480,482 291,176
Selling, general and
administrative 5,689,704 4,155,552 1,514,515 1,087,411
Research and
development 1,595,970 1,045,184 316,004 427,042
Depreciation and
amortization 363,101 333,482 87,922 93,564
Write-off of accounts
receivable --- 225,000 --- ---
Interest and financing
costs 4,057 8,511 2,511 4,761
Interest and other
income - net (169,422) (174,810) (37,037) (31,418)
9,027,259 6,612,966 2,364,397 1,872,536
NET LOSS (3,802,195) (4,516,404) (994,644) (1,419,036)
Deemed dividend
on preferred
stock (1,132,000) --- (275,000) ---
Preferred stock
dividend
requirement (96,717) --- (27,058) ---
NET LOSS APPLICABLE TO
COMMON STOCK $(5,030,912)$(4,516,404)$(1,296,702) $(1,419,036)
Net loss per common
share (basic and
diluted) $(0.11) $(0.10) $(0.03) $(0.03)
Weighted average common
shares Outstanding
(basic and
diluted) 47,873,711 46,297,142 48,430,821 46,771,903
(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: Allen & Caron Inc.
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