Vasomedical Recorded 33% Year-over-year Growth in Revenue for the Third Quarter of 2013
14:05 14.11.13
PR Newswire WESTBURY, N.Y., Nov. 14, 2013 WESTBURY, N.Y., Nov. 14, 2013 /PRNewswire/ -- Vasomedical, Inc. ("Vasomedical") (OTC BB: VASO) today reported its operating results for the three months ended September 30, 2013. "We are pleased to report that during the third quarter of 2013 the Company recorded significant growth in both the Equipment segment and the Sales Representation segment. Total equipment sales were particularly impressive, with an increase of 97% compared to the same period last year, as we experienced a spike in sales of our EECP® equipment in certain international markets as well as the steady sales growth from our Biox subsidiary," stated Dr. Jun Ma, President and Chief Executive Officer of Vasomedical, Inc. "The excellent performance and continued growth of Biox not only benefits the Company financially, it also provides us with a successful track record in China, paving the way for us to pursue additional acquisition and partnership opportunities there."
"We continue to see strong results from our sales representation segment. Given the overall strength of our team, we believe our independent sales channel model can be successfully expanded or replicated with other OEMs in different markets," concluded Dr. Ma. Three Months Ended September 30, 2013 Financial Results For the three months ended September 30, 2013, revenue increased 33% to $7.6 million from $5.7 million for the same period of 2012. This is attributable to a 97% increase in our equipment sales revenue to $1.4 million, as a result of a higher EECP® sales volume and continued growth from our Biox subsidiary in China. Our Sales Representation business also had significant improvement, with commission revenue increasing 26% to $5.9 million compared to $4.7 million in the third quarter 2012.
Gross profit for the third quarter of 2013 increased 28% to $5.2 million, compared to a gross profit of $4.1 million for the third quarter of 2012. This increase is primarily a result of higher commission revenues in our Sales Representation segment arising from higher equipment delivery by GE Healthcare (GEHC) and an increase of equipment shipments from our Equipment segment. Selling, general and administrative (SG&A) expenses for the third quarter of 2013 were $5.5 million or 72% of revenues, compared to $6.6 million, or 115% of revenues for the same period last year. The decrease in SG&A expenditures in the third quarter of 2013 resulted primarily from the completion in the second quarter of 2013 of certain non-recurring costs attributable to the renewal of the GEHC contract. Net loss for the three months ended September 30, 2013 was $464,000, or $0.00 per basic and diluted common share, a substantial improvement compared to the net loss of $2.5 million, or $0.02 per basic and diluted common share, for the three months ended September 30, 2012.
Net cash decreased by $2.3 million to $9.1 million at September 30, 2013 compared to net cash of $11.4 million at December 31, 2012. The decrease is principally due to the repurchase of our common shares and payment of certain accrued liabilities. Under the Company's share repurchase program initiated in April 2013, Vasomedical has acquired through November 8, 2013, approximately 9.3 million shares of its common stock.
Conference Call Information The Company will host a conference call today at 1:00 p.m. ET featuring remarks by Jun Ma, Ph.D., President and CEO of Vasomedical, and Michael Beecher, Chief Financial Officer of Vasomedical. To dial into the conference call, please dial 1-866-393-1344 from the U.S. or 1-631-291-4669, internationally. All dial-in participants must use the following code to access the call: 94523097. Please call at least five minutes before the scheduled start time. The conference call will also be available via webcast and can be accessed through the Investor Relations section of Vasomedical's website, www.vasomedical.com, and www.kcsa.com. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the live broadcast. A replay of the conference call will be available approximately two hours after completion of the live conference call at www.vasomedical.com or www.kcsa.com. To access the dial-in replay of the call, which will be available until December 16, 2013, please dial 1-855-859-2056 or 1-404-537-3406. All dial-in participants must use the following code to access the call: 94523097.
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