[ACCESSWIRE]
Revenue Grew 135% Year-over-Year; Adjusted EBITDA Improved to $0.71 Million
PLAINVIEW, NY / ACCESSWIRE / May 13, 2016 / Vasomedical, Inc. ("Vasomedical") (OTC PK: VASO) today reported its operating results for the three months ended March 31, 2016.
"We are excited to report that during the first quarter 2016, the Company recorded $17.5 million of revenue, a 135% increase compared to the same quarter a year ago, mainly as a result of including $9.2 million from the NetWolves operations we acquired at the end of May 2015. Adjusted EBITDA was $0.71 million compared to a negative adjusted EBITDA of $0.02 million in the first quarter 2015, representing an improvement of $0.73 million," commented Dr. Jun Ma, President and Chief Executive Officer of Vasomedical, Inc. "While we usually incur a loss for the beginning part of the fiscal year due to the seasonality of our business, our net loss for the first quarter was reduced again this year, to only $0.10 million. Given this momentum, we expect to continue profitability on an annual basis in 2016."
"We also booked $0.49 million of revenue from our healthcare IT VAR operations in the first quarter of 2016, compared to no revenue in the first quarter of 2015. We have built a substantial backlog in our IT VAR operations and anticipate significant revenue growth from this business for the full year," concluded Dr. Ma.
Three Months Ended March 31, 2016 Financial Results
For the three months ended March 31, 2016, revenue increased by 135% to $17.5 million from $7.5 million for the same period of 2015. This is mainly attributable to $9.7 million of revenue from our IT segment, $9.2 million of which was from the NetWolves subsidiary the Company acquired in May 2015, and an increase of $456 thousand, or 7%, in our professional sales services segment.
Gross profit for the first quarter of 2016 increased 80% to $10.0 million, compared with $5.6 million for the first quarter of 2015. The increase was principally due to the increase of $4.0 million in the IT segment, including $3.9 million from our NetWolves operations, and an increase of $568 thousand in our professional sales services segment.
Selling, general and administrative (SG&A) expenses for the first quarter of 2016 increased to $9.7 million from $5.7 million for the first quarter last year. The increase is primarily due to including the NetWolves operations in the quarter.
Operating income for the first quarter 2016 was $159 thousand, compared to an operating loss of $286 thousand for the same period in 2015. The improvement in operating income was due to the increase in gross profit and lower SG&A expenses relative to revenue. SG&A expenses were 55% of revenues for the quarter ended March 31, 2016, compared to 77% of revenues for the same period in 2015. Net loss for the three months ended March 31, 2016 was $104 thousand, compared with a net loss of $252 thousand for the three months ended March 31, 2015.
Net cash generated from operating activities in the first quarter of 2016 was $1.9 million. As of March 31, 2016, the Company had cash and cash equivalents of approximately $4.7 million, compared to cash and cash equivalents of $2.2 million at December 31, 2015. We anticipate continued positive cash flows from operations for the remainder of the year.
Conference Call Information
The Company will host a conference call on Friday, May 13, 2016 at 10:00 a.m. ET featuring remarks by Jun Ma, Ph.D., President and CEO, Peter Castle, Chief Operating Officer, and Michael Beecher, Chief Financial Officer of Vasomedical. To join the conference call, please dial 1-877-407-8033 from the U.S. or 1-201-689-8033 internationally. 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, http://www.vasomedical.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 http://www.vasomedical.com/. To access the dial-in replay of the call, which will be available until June 13, 2016, please dial 1-877-660-6853 or 1-201-612-7415. All dial-in participants must use the following code to access the call: 13637214.
About Vasomedical
Vasomedical, Inc. is a diversified medical technology company with several distinctive but related specialties: professional sales services for diagnostic imaging products; managed IT systems and services, including healthcare software solutions and network connectivity services; and design, manufacture and sale of proprietary medical devices.
Vasomedical operates through four wholly owned subsidiaries. Vaso Diagnostics, Inc. d.b.a. VasoHealthcare (www.vasohealthcare.com), provides professional sales services and is the operating subsidiary for the exclusive sales representation of GE Healthcare diagnostic imaging products in certain market segments in the USA. Vaso Technology, Inc. provides network and IT services through two business units: VasoHealthcare IT Corp., a national value added reseller of GE Healthcare IT's Radiology PACS (Picture Archiving and Communication System) software solutions and related services, including implementation, management and support, and NetWolves Network Services LLC (www.netwolves.com), a managed network services provider with an extensive, proprietary service platform to a broad base of customers. Vasomedical Solutions, Inc. (www.vasosolutions.com), manages and coordinates the design, manufacture and sales of EECP® Therapy Systems and other medical equipment operations. Vasomedical Global Corp. (www.vasoglobal.com), operates the Company's China-based subsidiaries, including Biox Instruments Co. Ltd. and Life Enhancement Technology Limited. It is also the minority shareholder of VSK Medical Limited, a marketing and sales company for ECP products in the international market. Additional information is available on the Company's website at www.vasomedical.com.
Summarized Financial Information
Except for historical information contained in this report, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this report, 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 IT and healthcare; continuation of the GEHC agreements; the impact of competitive technology 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; 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:
Michael J. Beecher / Amanda Jiang
Investor Relations
Phone: 516-508-5840
Email: [email protected] / [email protected]
SOURCE: Vasomedical, Inc.
