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Vasomedical Announces Financial Results for the Third Quarter of 2012

Tuesday, November 20, 2012 9:00 AM

Reports 17.6% Increase in Revenue for the First Nine Months of 2012

WESTBURY, N.Y., Nov. 20, 2012 /PRNewswire/ -- Vasomedical, Inc. ("Vasomedical") (OTCQB: VASO) today reported its operating results for the three- and nine-month periods ended September 30, 2012.

"We reported another strong quarter of sales for our equipment segment in the third quarter.  However, changes to certain sales commission milestones for 2012 compared to 2011 have resulted in a third quarter year-over-year revenue comparison that is non-reflective of our actual performance.  As such, we believe that the comparison of our revenue for the nine-month periods ended September 30, 2012 and 2011 offers a more accurate representation of our sales growth.  For the nine months ended September 30, 2012, the Company reported a 17.6% increase in total revenue, compared to the same period last year," commented Dr. Jun Ma, President and Chief Executive Officer of Vasomedical, Inc.  "We will continue to pursue additional opportunities to expand our equipment segment and explore avenues to grow our sales representation business."

For the three months ended September 30, 2012, revenue decreased 12.4% to $5.72 million, compared to $6.53 million for the three months ended September 30, 2011, primarily due to a decrease in commission revenues from the Sales Representation segment, resulting from a retroactive commission rate increase that was effected in the second quarter of 2012 as opposed to the third quarter in 2011.  The Company had a net loss for the three months ended September 30, 2012 of $2.52 million, compared to a net income of $0.64 million for the same period in 2011.  Net loss attributable to common stockholders for the three months ended September 30, 2012 was $2.52 million or $0.02 per common share, compared to a net loss of $1.12 million or $0.01 per common share for the three months ended September 30, 2011. 

The Company reported an increase in revenue of 17.6% to $19.46 million for the nine months ended September 30, 2012, compared to revenue of $16.55 million for the same period in 2011.  The increase in revenue is the result of improved performance in all areas of the Company's business, including sales of EECP® Therapy systems and its operations in China, as well as increased commission revenue from VasoHealthcare.  For the nine months ended September 30, 2012, the Company reported a net loss of $3.81 million compared to a net loss of $1.36 million for the same period in 2011.  The losses were principally due to an increase of costs related to an extension of the sales representation agreement with GE Healthcare, as well as increased sales and marketing costs for the Equipment segment.  The costs for the Equipment segment now includes SG&A costs of the recently acquired Chinese entities and one-time costs incurred for incentive compensation for certain key employees. For the nine months ended September 30, 2012, the Company had a net loss attributable to common stockholders of $3.81 million or $0.02 per common share, compared to a net loss applicable to common stockholders of $2.82 million or $0.02 per common share for the nine months ended September 30, 2011. 

The Company continues to record a substantial amount of deferred revenues, which will be recognized once the underlying equipment or service is accepted by the customer or performed by the Company.  As of September 30, 2012, total deferred revenues were approximately $14.99 million, and the Company reported cash and cash equivalents of approximately $9.69 million.

About Vasomedical
Vasomedical, Inc. is a diversified medical technology company specializing in the manufacture and sale of medical devices and in the domestic sale of diagnostic imaging products.  The Company's main proprietary products are EECP® Therapy systems, the gold standard of ECP treatment. The Company operates through three wholly owned subsidiaries: VasoSolutions, Vasomedical Global and VasoHealthcare. VasoSolutions manages and coordinates the design, manufacture and sales of EECP® Therapy systems, and other medical equipment operations; Vasomedical Global operates the Company's China-based subsidiaries; and VasoHealthcare is the operating subsidiary for the exclusive sales representation of GE Healthcare diagnostic imaging products in certain markets. Additional information is available on the Company's website at www.vasomedical.com.


Summarized Financial Information




September 30, 2012

September 30, 2011

September 30, 2012

September 30, 2011

(In thousands except per share amounts)


$                        5,722

$                       6,530

$                       19,462

$                      16,549

Gross profit

$                        4,063

$                       4,719

$                       13,774

$                      11,462

Operating (loss) income

$                      (2,659)

$                            26

$                       (3,885)

$                      (1,417)

Other income (expense), net

$                             97

$                            43

$                            151

$                             63

(Loss) income before taxes

$                      (2,562)

$                             69

$                       (3,734)

$                      (1,354)

Income tax benefit (expense)

$                             44

$                             (5)

$                            (72)

$                             (4)

Net (loss) income 

$                      (2,518)

$                             64

$                       (3,806)

$                      (1,358)

Preferred stock dividends

$                                -

$                      (1,180)

$                                 -

$                      (1,459)

Net (loss) income applicable to common stockholders

$                      (2,518)

$                      (1,116)

$                       (3,806)

$                      (2,817)


September 30, 2012

December 31, 2011

(In thousands)

Total current assets

$                     23,856

$                     28,500

Total assets

$                     29,509

$                     34,335

Total current liabilities

$                     16,125

$                     17,175

Total stockholders' equity

$                       8,361

$                     11,276

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 "anticipates", "believes", "could", "estimates", "expects", "may", "plans", "potential" and "intends" 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 effect of the dramatic changes taking place in the healthcare environment; the impact of competitive procedures and products and their pricing; medical insurance reimbursement policies; unexpected manufacturing or supplier problems; unforeseen difficulties and delays in the conduct of clinical trials and other product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; uncertainties about the acceptance of a novel therapeutic modality by the medical community; continuation of the GEHC agreement; and the risk factors reported from time to time in the Company's SEC reports.  The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.

Investor Contacts:
Todd Fromer / Garth Russell
KCSA Strategic Communications
Phone: 212-896-1215 / 212-896-1250
Email: tfromer@kcsa.com / grussell@kcsa.com

Media Contacts:
Lewis Goldberg / Samantha Wolf
KCSA Strategic Communications
Phone: 212-896-1216 / 212-896-1220
Email: lgoldberg@kcsa.com / swolf@kcsa.com

SOURCE Vasomedical, Inc.

(Source: PR Newswire )
(Source: Quotemedia)


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