COMPUMED, INC. ANNOUNCES THIRD QUARTER FINANCIAL RESULTS
Los Angeles– Aug 15, 2007 -- CompuMed, Inc. (CMPD.OB) -- a medical informatics company leading the development of advanced imaging technology for cost effective analysis and monitoring -- today announced financial results for the third quarter of fiscal 2007, which ended June 30.
Total revenues for the third quarter were $590,000, compared to $478,000 during the third quarter of fiscal 2006. The 23.4% increase was due to an increase in ECG transmission revenues as well as an increase in the order volume for the OsteoGram product. Net loss for the third quarter of fiscal 2007 increased by 35.4% to $176,000 from $130,000 for the same period last year due primarily to the expensing of employee stock options under SFAS 123R.
ECG services revenue, which consists of ECG processing, equipment rental, over-reads and maintenance during the third quarter of fiscal 2007, increased 21.5% to $491,000 from $404,000 for the same period last year due to an increase in the number of facilities under contract.
OsteoGram revenue for the third quarter of fiscal 2007 increased by 305% to $81,000 from $20,000 for the same period in fiscal 2006, due to contractual commitment orders from one of CompuMed's OEM partners.
"We are encouraged by the revenue growth across both of our core businesses," said CompuMed Chief Executive Officer, Maurizio Vecchione. "We consider revenue growth our principal short term objective."
Mr. Vecchione added that, "We believe that there may be several opportunities to increase the Company's OsteoGram business, including favorable changes in Medicare reimbursements and emerging OEM applications that link mammography with bone density scanning." In addition, he noted, "We also believe that there may be growth opportunities for CompuMed's core ECG business to expand beyond traditional markets.
"Our relatively strong cash position should enable us to invest strategically in these growth initiatives, as well as explore ways to accelerate our growth through both internal initiatives and non-organic means such as acquisitions," he said.
On June 30, 2007, there was $2,105,000 in cash and marketable securities, as compared to a balance of $578,000 at September 30, 2006. The net increase of $1,527,000 is due to sales of the Preferred Stock to an institutional investor.
For more information about the financial report by the Company, please see the quarterly report on Form 10-QSB filed with the SEC.
About CompuMed:
CompuMed, Inc. (CMPD.OB) develops and markets products and services that use advanced imaging and medical informatics to provide analysis and remote monitoring in connection with cardiovascular and musculoskeletal diseases. CompuMed has specialized expertise and intellectual properties in telemonitoring imaging and analysis designed to improve healthcare provider workflow and patient care, while reducing costs. CompuMed's core products, the OsteoGram(R) and CardioGram(TM), are cleared by the FDA and reimbursable by Medicare. The OsteoGram is a non-invasive and simple diagnostic system that has been proven by many clinical studies to be an effective and accurate bone density measurement in connection with screening for osteoporosis and assessing hip fracture risk. The OsteoGram has significant cost advantages over other technologies in the marketplace. The CardioGram system is one of the first telecommunication networks designed to remotely interpret electrocardiograms and is used by private practice, as well as government and corporate healthcare providers nationwide. The CardioGram delivers online electrocardiogram interpretations within minutes of receipt and has the additional capability of automatically providing an over-read (i.e., follow-up review) by a cardiologist. CompuMed is headquartered in Los Angeles and distributes its products worldwide both directly and through OEM partners. Visit CompuMed at www.compumed.net.
This news release contains forward-looking statements. 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