COMPUMED, INC. ANNOUNCES SECOND QUARTER FISCAL 2007 FINANCIAL RESULTS COMPANY ACCELERATES STRATEGIC PLAN TOWARDS A RECURRING REVENUE MODEL
Los Angeles– May 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 second quarter of fiscal 2007, which ended March 31.
Total revenues for the second quarter were $574,000, compared to $545,000 during the second quarter of fiscal 2006. The 5% increase was due to augmented ECG transmission revenues from new customers in the correctional market. Net loss for the second quarter was $107,000, or $0.00 per share, compared to a loss of $101,000, or $0.00 per share for the prior fiscal year. Of this loss, $90,000 was due to non-cash expenses related mainly to expensing of stock-based compensation under the Statement of Financial Accounting Standard (SFAS) 123R rule. The balance of additional expenses was related to increased staffing to accelerate product development and execute the Company's strategic plan.
Commenting on the results, CEO Jerry McLaughlin said, "Fiscal 2007 is a watershed year for our OsteoGram(R) and ECG businesses as we invest in new domestic and international initiatives to transition towards a recurring revenue model. We now have the capital to execute our strategic plan focused on becoming a leading provider of remote image analysis in cardiology and radiology. We plan to leverage our relationship with the private equity fund that is backing CompuMed's growth effort, and we will soon announce new relationships and products intended to further advance our goals. Our intention is to move beyond one-time licensing fees for the OsteoGram by launching a version employing a web-based server operating on a per-use revenue model."
The Company's cash and marketable securities balance was $2,281,000 on March 31, 2007, compared to $578,000 on September 30, 2006, due to a strategic investment from a private equity fund.
Revenues from CompuMed's core electrocardiogram (ECG) products, supplies and service were $497,000, an increase of 6% from $469,000. Revenues from OsteoGram(R) osteoporosis diagnostics increased 1% to $77,000 from $76,000.
McLaughlin added, "We are pleased that our ECG business continues to grow at a predictable rate as we consolidate testing in the correctional market. Our goal in this arena is to maintain growth and add functionality in the form of new tests that add incremental revenue to our existing platform."
Total revenues for the six months ended March 31, 2007 decreased 7% to $1,113,000 compared to $1,196,000 for the same period in fiscal 2006. Net loss for the six month period increased to $327,000, or $0.01 per share, compared to a loss of $142,000 for the same period during the prior fiscal year due to increased General and Administrative costs and the expensing of employee stock options.
About CompuMed:
Founded in 1973, CompuMed, Inc. (CMPD.OB) is leading the development of advanced imaging and medical informatics solutions that provide cost effective analysis and monitoring. CompuMed focuses on cardiovascular and musculoskeletal diseases, as well as other diseases associated with aging populations. Its unique expertise in telemonitoring, imaging and analysis facilitates the development of new solutions and services designed to improve healthcare provider workflow and patient care, while reducing costs. CompuMed's core products, the OsteoGram(R) and CardioGram(TM) systems, are cleared by the FDA and reimbursable by Medicare. The OsteoGram is an accurate and precise technology for osteoporosis testing. The underlying OsteoGram technology has significant cost advantages over other technologies and will be applied to a suite of value-added applications, such as following the progression of arthritic disease and diagnosing vertebral fractures and scoliosis. 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 two minutes of receipt, and has the additional capability to automatically provide an over-read (i.e., follow- up review) by a cardiologist. 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