This is an extremely good report. This is one hell of company.
Vasomedical Reports Record 2000 Fourth Quarter and Year End Results
WESTBURY, N.Y., Jul 20, 2000 (BUSINESS WIRE) --
2000 Revenues Up 127%
Revenues Improve $7.6 Million - Net Earnings Improve $5.5 Million
Vasomedical, Inc. (Nasdaq SmallCap: VASO chart, msgs), a leader in devices and therapies for the noninvasive treatment of cardiovascular diseases, today announced record financial results for the fourth quarter and year ended May 31, 2000, reporting a year-to-year improvement of $7.6 million in revenues and a $5.5 million improvement in net earnings.
Revenues for the year ended May 31, 2000 increased 127% to $13.7 million from $6.0 million in 1999. Net income for 2000 was $1.6 million, or $0.03 per share (basic and diluted), compared to a net loss of $3.9 million or $0.08 per share (basic and diluted), last year. Fourth quarter and year-end 2000 results include a deferred tax benefit of $400,000. These results were further impacted by the establishment of an accounts receivable reserve and recruiting expenses related to the expansion of the Company's direct sales force and management team.
Revenues for the fourth quarter of 2000 increased 27.4% to $4.5 million from $3.5 million in the same period last year. Net income for the fourth quarter of 2000 was $1,023,000, or $0.02 per share (basic and diluted), compared to a net income of $538,000 or $0.01 per share (basic and diluted), in the same period last year. The fourth quarter of 2000 was the Company's fifth consecutive profitable quarter.
The increase in revenues and improved financial performance in both periods were due to sharply increased sales of the Enhanced External Counterpulsation (EECP(R)) system, a non-invasive cardiovascular therapy. Economies of scale were realized as fixed costs were absorbed by the increase in revenue. Research and development costs increased by 100% compared to last year and by 47% quarter over quarter, reflecting the Company's continued investment in product and clinical development, especially for the establishment of an FDA-approved claim for use in congestive heart failure.
During the year, $2.8 million was raised through exercise of warrants and options. The Company is in a strong financial position to carry out its growth plans, reporting $3.1 million in cash, $7.4 million in working capital, no debt and no remaining convertible preferred stock outstanding. The Company's current cash position continues to improve.
Mike Deignan, CEO of Vasomedical commented, "We are very pleased with these results and the Company's continuing progress. The commencement of Medicare reimbursement in July 1999, along with the expansion of our direct sales force during the second half of the year, have been major contributing factors to our improving financial performance. In addition, we believe that our awareness-building program for EECP as a disease management tool is continuing to produce positive results. During the past fiscal year, EECP has been presented, and enthusiastically received, at a number of medical conferences, and we continue to get very positive feedback from the professional medical community and patients alike."
Mr. Deignan concluded, "Going forward, we plan to step up our efforts to bring the EECP message directly to patients and doctors as well as seek additional FDA clearances for other types of cardiovascular disease, thereby broadening our patient base while simultaneously building on the momentum we have started. We remain very optimistic that EECP will continue to meet with increasing acceptance and confident that we have positioned the Company for future growth in 2001 and the years ahead."
Vasomedical, Inc. 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 Beth Israel Medical Center - New York City, Christ Hospital and Medical Center, Columbia-JFK Medical Center, Kaiser Permanente of Denver, the Mayo Clinic, the Miami Heart Institute and the Ochsner Foundation Hospital, as well as medical centers affiliated with Columbia University, the University of Pittsburgh, the University of California at San Diego, the University of California at San Francisco, University of Florida at Gainesville, State University of New York at Stony Brook and the University of Virginia. The Company provides hospitals, clinics and private practices with EECP(R) equipment, treatment guidance and a staff training and maintenance program designed to provide optimal patient outcomes. Additional information is available on the Company's website at www.vasomedical.com.
Except for historical information contained in this 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. |
