COMPUMED, INC. ANNOUNCES SECOND QUARTER FISCAL 2006 FINANCIAL RESULTS
Los Angeles– May 15, 2006 -- CompuMed, Inc. (CMPD.OB) -- a medical informatics company serving the healthcare community with diagnostic software solutions -- today announced financial results for the second quarter of fiscal 2006, which ended March 31.
Total revenues for the second quarter increased 2% to $545,000, compared to $534,000 last year. The gain occured despite last year's one-time sale of electrocardiogram (ECG) equipment to the New York State Department of Corrections, in a transaction that totaled $246,000. Net loss for the second quarter increased to $101,000, or $0.00 per share, compared to a loss of $33,000 for the same period last year. The primary reason for the loss this year was an increase in costs related to hiring staff for the Company's Sales and Research & Development departments.
Revenues from OsteoGram sales and services for the second quarter of fiscal 2006 increased 533% to $76,000, from $12,000 for the same period last year. Revenues from core ECG services and products decreased 10% to $469,000, from $522,000, primarily due to the abovementioned one-time sale in fiscal 2005.
Total revenues for the six months ended March 31, 2006 decreased 1% to $1,196,000, compared to $1,211,000 for the same period in fiscal 2005. Net loss for the six month period increased 13% to $142,000, or $0.01 per share, compared to a loss of $126,000 for the same period during the prior fiscal year.
The Company's cash and marketable securities balance was $703,000 on March 31, 2006, a 23% increase from $571,000 on September 30, 2005. Stockholders' equity increased to $1,088,000 from $807,000.
"We are encouraged with the growth in OsteoGram revenue for the first six months of the fiscal year," said CEO Jerry McLaughlin. "OsteoGram shipments have increased significantly over last year as our partners placed orders. We have made a strategic decision to increase staffing expenses in the OsteoGram segment of our business. The potential for further growth represents an attractive opportunity for our business and our shareholders."
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: Susan Tellem, +1-310-479-6111, ext. 16, stellem@tellem.com