COMPUMED, INC. ANNOUNCES FISCAL 2005 YEAR-END FINANCIAL RESULTS;
REVENUES INCREASE 23% ON ECG EQUIPMENT SALES
Los Angeles– December 28, 2005 -- CompuMed, Inc. (CMPD.OB) -- a medical informatics company serving the healthcare community with diagnostic software solutions -- today announced year-end results for fiscal year 2005, which ended September 30.
Total revenues for fiscal 2005 increased 23% to $2,284,000, compared to $1,856,000 for fiscal 2004. Net loss was $336,000, or $0.02 per share, compared to a loss of $275,000, or $0.02 per share, for the prior fiscal year. This loss was due mainly to staff increases implemented to accelerate development of the Company's OsteoGram products. The Company's cash and marketable securities balance was $571,000 on September 30, 2005.
Revenues from CompuMed's core electrocardiogram (ECG) products, supplies and services increased 7% to $1,726,000, from $1,619,000. ECG equipment sales increased 418% during fiscal 2005 to $440,000, compared to $85,000 during the prior fiscal year. This increase was due to the one-time sale of nearly 100 ECG terminals to the New York State Department of Corrections. Revenues from CompuMed's OsteoGram® osteoporosis diagnostics decreased 22% to $118,000, compared to $152,000, as a result of slower than expected implementation by OEM partners.
Management believes that sales growth for the OsteoGram technology will be achieved via the development of applications for digital imaging equipment, which represents a high growth segment of the medical imaging field. The digital, or Digital Communications and Imaging in Medicine (DICOM), standards-based version of the OsteoGram is the first CompuMed product in this emerging arena. On November 28, 2005 CompuMed announced a licensing agreement with FUJIFILM Medical Systems USA, Inc. (Div. Fuji Photo Film Co., Ltd.) (Nasdaq: FUJIY) that enables Fuji to integrate CompuMed's proprietary OsteoGram(R) osteoporosis screening software with its market-leading computed radiography (CR) systems, as well as future CR mammography systems*.
"During fiscal 2005, our research and development team devoted significant time to integrating the OsteoGram software application with several digital imaging platforms," said CEO Jerry McLaughlin. "We fully expect that revenue from these efforts will begin to flow in early fiscal 2006."
Also during fiscal 2005, management directed its ECG marketing efforts toward expanding CompuMed's long-held dominance in the correctional facility marketplace. The Company won or renewed multi-year statewide contracts with correctional departments in Wyoming, Maryland and Idaho. In addition, CompuMed installed more than 150 new Schiller ECG terminals at facilities operated by the New York and Florida Departments of Corrections.
About CompuMed:
Founded in 1973, CompuMed, Inc. (CMPD.OB) is a leading provider of computer-aided telemedicine and diagnostics technology. The Company's core products are the OsteoGram and CardioGram systems. The OsteoGram, which is cleared by the FDA for commercial use, is an accurate and precise technology for low-cost osteoporosis testing. The CardioGram system remotely interprets electrocardiograms and is used by private practice, government and corporate healthcare providers nationwide. CompuMed is headquartered in Los Angeles. Visit CompuMed at www.compumed.net.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the Company's plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not statements of historical fact. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, ability to raise capital, the availability of appropriate acquisition candidates and/or business partnerships, economic conditions, the impact of competition and pricing, capacity and supply constraints or difficulties, government regulation and other risks identified in the Company's filings with the Securities and Exchange Commission. All such forward-looking statements are expressly qualified by these cautionary statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof, except as required by law.
Contact: Erik Deutsch of Tellem Worldwide, +1-310-479-6111, ext. 15, edeutsch@tellem.com
* Fuji CR for Mammography (FCRm) requires FDA approval, is pending PMA review and is not yet commercially available in the U.S.