COMPUMED, INC. ANNOUNCES FISCAL 2004 YEAR-END FINANCIAL RESULTS;
LOSSES DECREASE 27% AS MANAGEMENT SECURES MAJOR LICENSING/DISTRIBUTION AGREEMENTS AND INCREASES DOMINANCE IN KEY MARKETS
Los Angeles– January 3, 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 2004, which ended September 30.
Total revenues for fiscal year 2004 were $1,856,000, compared to $1,811,000 in fiscal 2003. Net loss was $275,000 or $0.01 per share, compared to a loss of $375,000 or $0.02 per share for the prior fiscal year. The Company's cash and marketable securities balance was $227,000 on September 30, 2004.
Revenues from CompuMed's electrocardiogram (ECG) core products, supplies and services increased one percent to $1,609,000 from $1,601,000. ECG equipment sales decreased during fiscal 2004 to $85,000 versus $129,000, due to the healthcare industry's continued shift towards equipment leasing in lieu of outright purchase. Revenues from CompuMed's OsteoGram® osteoporosis diagnostics increased nearly 90 percent to $152,000 from $81,000 as a result of a boost in international sales.
During fiscal 2004, CompuMed began the implementation phase of its strategy to integrate the OsteoGram® product into workstations from several digital (i.e., filmless) x-ray platforms. The OsteoGram is a low-cost software solution for screening and diagnosing osteoporosis, a global disease affecting more than 200 million people.
Management believes that future 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 DICOM (Digital Communications and Imaging in Medicine) standards-based version of the OsteoGram is the first CompuMed product in this emerging arena. The Company’s development team devoted significant effort in fiscal 2004 to become skilled at integrating the OsteoGram software application into several digital imaging platforms.
"We continued to reduce losses as we shifted our OsteoGram strategy towards the digital x-ray field," said CEO Jerry McLaughlin. "We expect to see the first sales from our recent licensing and distribution partnerships in early 2005."
CompuMed recently announced OsteoGram licensing and distribution agreements with Swissray International and SourceOne Healthcare Technologies, both leaders in their respective segments of the high growth digital imaging field. In addition, Fuji Medical Systems exhibited a fully integrated OsteoGram product at the recent Annual Meeting of the Radiology Society of North America (RSNA) in Chicago. The OsteoGram was shown in conjunction with Fujifilm Medical’s (Div. Fuji Photo ADR; NASDAQ: FUJIY) ClearView-CSm* CR digital mammography image reader and SmartCR® filmless x-ray system.
"The preliminary feedback from RSNA is encouraging, and we are leased to hear that clinicians are excited about adding osteoporosis testing to digital mammography platforms," McLaughlin added. "Imagine the convenience of enabling women to have their bone density tested at the same time and on the same equipment as their routine mammogram."
Also during fiscal 2004, management directed its ECG marketing efforts towards expanding CompuMed’s dominance in the correctional facility marketplace. The Company won or renewed multi-year statewide contracts with correctional departments in California, New York, Nevada and several other states. The Company's CardioGram team recently chose Schiller AG as its supplier of ECG equipment, and expects to ship a substantial order for new ECG terminals to the New York State Department of Correctional Services in early fiscal 2005.
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 or call (310) 258-5000.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are other than statements of historical facts. 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 defined in this document. All such forward-looking statements whether written or oral, and whether made by or on behalf of the Company are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
Contact: Erik Deutsch of Tellem Worldwide, +1-310-479-6111, ext. 15, edeutsch@tellem.com
*The ClearView -CSm awaits FDA approval and is not commercially available in the U.S.