Vasomedical, Inc. Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2016; Provides Operating Cash Flow Guidance for 2016
August 18, 2016 at 05:47 am
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Vasomedical Inc. reported earnings results for the second quarter and six months ended June 30, 2016. For the three months ended June 30, 2016, revenue increased by 68% to $18.2 million from $10.8 million for the same period of 2015. This is primarily attributable to an increase of $7.3 million of revenue in the company's IT segment, $6.5 million of which was from the NetWolves subsidiary the company acquired in the end of May 2015, and an increase of $841,000, or 1781%, in its healthcare IT VAR business. Additionally, equipment segment revenue increased 23% to $1.2 million. Operating income for the second quarter 2016 was $264,000, compared to $206,000 for the same period in 2015, representing an increase of 28%. 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 53% of revenues for the quarter ended June 30, 2016, compared to 64% of revenues for the same period in 2015. Net income for the three months ended June 30, 2016 was $213,000, compared with net income of $191,000 for the three months ended June 30, 2015, an increase of 12%. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and non-cash stock-based compensation) rose to $0.9 million for the three months ended June 30, 2016, compared to $0.8 million for the same period a year ago, representing an increase of 18%. Net cash generated from operating activities in the first half of 2016 was $3.7 million.
Adjusted EBITDA was $1.6 million for the six-month period ended June 30, 2016, respectively, compared to $751,000 and $729,000 for the same period last year, representing a growth of 119% year-over-year. The company recorded improvement in net income for the first half of 2016.
The company anticipates continued positive cash flows from operations for the remainder of the year 2016.
Vaso Corporation is principally engaged in operating the healthcare equipment and information technology industries. The Company's segments include IT, Professional sales service, and Equipment. The IT segment operates through a wholly owned subsidiary, VasoTechnology, Inc., which primarily focuses on healthcare information technology (IT) and managed network technology services. Its Professional sales service segment operates through a wholly owned subsidiary, Vaso Diagnostics, Inc. doing business as VasoHealthcare, primarily focuses on the sale of healthcare capital equipment for GE HealthCare (GEHC) into the health provider middle market. Its Equipment segment primarily focuses on the design, manufacture, sale and service of proprietary medical devices and software, operating through the Company's subsidiary, VasoMedical, Inc., which in turn operates through Vasomedical Solutions, Inc. for domestic business and Vasomedical Global Corp. for international business, respectively.
VASO CORPORATION 
