VASO EARNINGS JUST OUT . . .
(BSNS WIRE) Vasomedical, Inc. Reports Second Quarter Results; Third cons
Vasomedical, Inc. Reports Second Quarter Results; Third consecutive quarter and
trailing twelve months of substantially improved results
Business and Health Editors
WESTBURY, N.Y.--(BUSINESS WIRE)--Jan. 14, 2000--Vasomedical, Inc.
(Nasdaq:VASO) announced today its unaudited financial results for the
second quarter ended November 30, 1999.
The Company, a leader in devices for the noninvasive treatment of
coronary artery disease, reported revenues from the sale and lease of
its EECP(R) enhanced external counterpulsation system of $3.0 million
for the second quarter, up more than 700% from $364,000 for the
comparable prior-year period.
The Company reported positive earnings of $54,000 for the three
months ended November 30, 1999, or $.00 earnings per share (basic and
diluted), compared to a loss of $1.7 million, or $.04 loss per share
(which included a non-cash imputed dividend on preferred stock of
$203,000) for the same three-month period last year.
The Company's revenues, earnings and earnings per share for the
first half of the current fiscal year were $6.0 million, $324,000 and
$.01, respectively, compared to revenues of $792,000, a net loss of
$3.9 million and a loss per share of $.08 for the first half of fiscal
1999. In the trailing twelve months, the Company reported revenues of
$11.2 million, earnings of $299,000 and earnings per share of $.01.
The increase in the Company's revenues was aided by the recent
decision of the Health Care Financing Administration (HCFA), the
federal agency that administers the Medicare program for more than 38
million Americans, to implement a national coverage policy for EECP
therapy.
Revenue growth for the second quarter of fiscal 2000 was,
however, hindered because local Medicare contractors established
inappropriate payment levels that did not take into account the full
value of the resources health care providers must deploy to deliver
EECP therapy.
Consequently, in November 1999, HCFA created a specific code for
external counterpulsation therapy and established a nationally
applicable allowable charge, effective on January 1, 2000. The Company
estimates the standard national charge to approximate $130 per session
of EECP therapy, which may be adjusted by certain geographic indices.
This would result in a standard charge of $4,550 for a full
course of therapy, which typically involves 35 one-hour outpatient
sessions. Additionally, in certain cases, EECP providers will be able
to bill Medicare separately for the evaluation and management of
patients.
Moreover, the assigned code will allow EECP providers to bill
Medicare electronically, substantially reducing the process for
receiving reimbursement. In light of the new payment instructions,
local Medicare contractors will no longer have the responsibility of
establishing reimbursement rates. Management expects this policy
revision to provide a strong foundation for accelerated growth in
fiscal 2000.
D. Michael Deignan, President and CEO, commented, "We are very
pleased to have achieved a third consecutive quarter of positive
earnings, combined with the strong year-to-year growth, as evidenced
by trailing twelve months earnings and revenues. As the newly
appointed President and CEO, I look forward to directing the continued
success of the Company."
At November 30, 1999, the Company's cash position was $1.5
million, its current ratio was 2.6:1, long-term liabilities were
$166,000 and stockholders' equity was $3.6 million.
The following is a comparative summary of the operating results
of Vasomedical, Inc.:
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Statements of Operations
Six months ended Three months ended
November 30, November 30,
1999 1998 1999 1998
Revenues $5,975,575 $792,100 $2,956,095 $364,000
Costs and
expenses
Cost of sales
and services 1,369,287 573,790 757,017 243,422
Selling, general
and
administrative 3,348,738 2,648,276 1,606,422 1,377,612
Research and
development 646,852 339,763 393,704 150,099
Depreciation
and amortization 250,708 201,709 129,101 108,626
Interest and
financing costs 3,562 7,337 1,550 2,128
Interest and
other income -
net (41,447) (84,065) (21,425) (31,851)
5,577,700 3,686,810 2,866,369 1,850,036
NET EARNINGS
(LOSS) 397,875 (2,894,710) 89,726 (1,486,036)
Deemed dividend
on preferred
stock - (864,000) - (203,000)
Preferred stock
dividend
requirement (74,243) (108,071) (35,780) (53,315)
EARNINGS (LOSS)
APPLICABLE TO
COMMON STOCK $323,632 $(3,866,781) $53,946 $(1,742,351)
Net earnings (loss)
per common share
(basic and diluted) $.01 $(.08) $.00 $(.04)
Weighted average
common shares
outstanding -
basic 50,971,701 48,730,338 51,092,875 48,800,910
Weighted average
common shares
outstanding -
diluted 55,848,051 48,730,338 55,488,074 48,800,910
*T
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.
--30--ac/ny*
CONTACT: Vasomedical Inc.
Joseph A. Giacalone, Chief Financial Officer
(516) 997-4600 Ext. 121 |
