PLAINVIEW, N.Y., May 15, 2024 (GLOBE NEWSWIRE) -- Vaso Corporation ("Vaso") (OTCQX: VASO) today reported its operating results for the three months ended March 31, 2024.
"Total revenue for the first quarter of 2024 was $18.7 million, a decrease of $0.3 million or 1.6% when compared to the same quarter last year, mainly due to lower sales in the equipment segment. Quarterly gross profit was $10.9 million, a decrease of $0.6 million or 5.6% year-over-year, as a result of lower revenue and lower gross margin," stated Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. "We have also recorded a net loss of approximately $1.2 million for the quarter, as we usually incur losses historically in the early quarters of the year due to the cyclic nature of our businesses."
"Our operating cashflow in the first quarter improved by $0.8 million year-over-year despite higher operating expenses resulting from the effect of inflation, added headcount for a new program initiated in 2023, and spending for investment banking activities related to the previously announced proposed business combination. Our cash, cash equivalents and short-term investments totaled approximately $26.0 million as of May 3, 2024. As the Company's financial position remains very strong with good cash balance, high deferred revenue in the professional sales service segment and high backlog in the IT services business, management is looking forward to another great year in 2024," concluded Dr. Ma.
Financial Results for Three Months Ended March 31, 2024
For the three months ended March 31, 2024, revenue decreased by 1.6% to $18.7 million from $19.0 million for the same period of 2023, due primarily to decreases in the IT and equipment segments. Revenue in the professional sales services service segment was flat year-over-year. Revenue in our IT segment decreased by $121 thousand, or 1.2%, in the first quarter 2024 when compared to the same quarter of 2023, due to slightly lower revenue from managed services sales. Revenue in our equipment segment decreased by $179 thousand, or 28.1%, when compared to the first quarter of 2023, principally due to lower equipment deliveries in our China operations.
Gross profit for the first quarter of 2024 decreased by $0.6 million, or 5.6%, to $10.9 million, compared with a gross profit of $11.6 million for the same quarter of 2023, as a result of lower revenues and lower gross profit margin in our professional sales service and IT segments.
Selling, general and administrative (SG&A) expenses for the first quarter of 2024 increased by $1.1 million, or 9.4%, to $12.2 million, compared to the first quarter of 2023. The increase is primarily attributable to higher personnel costs in the professional sales service segment due to costs in the new ultrasound business and higher costs for the national sales meeting, and higher corporate costs due to higher investment banking services.
Operating loss for the three months ended March 31, 2024 was $1.5 million, compared to operating income of $262 thousand in the first quarter of 2023. The loss is due to the lower gross profit and the higher SG&A costs as discussed above.
Net loss for the three months ended March 31, 2024 was $1.2 million, compared to net income of $306 thousand in the first quarter of 2023.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and stock-based compensation) was negative $1.3 million in the first quarter of 2024 compared to a positive $491 thousand for the first quarter of 2023. The change is the result of the net loss.
Net cash used in operating activities was $1.1 million for the first quarter of 2024, an improvement compared to net cash used in operating activities of $1.9 million for the first quarter of 2023. As of May 3, 2024, the Company's net cash, cash equivalents and short-term investments totaled approximately $26.0 million.
About Vaso
Vaso Corporation is a diversified medical technology company with several distinctive but related specialties: managed IT systems and services, including healthcare software solutions and network connectivity services; professional sales services for medical equipment; and design, manufacture and sale of proprietary medical devices.
The Company operates through three wholly owned subsidiaries:
- VasoTechnology, Inc. provides network and IT services through two business units: NetWolves Network Services LLC, a managed network services provider with an extensive, proprietary service platform to a broad base of customers; and VasoHealthcare IT Corp., a national value added reseller of Radiology Information System ("RIS"), Picture Archiving and Communication System ("PACS"), and other software solutions from various vendors as well as related services, including implementation, management and support.
- Vaso Diagnostics, Inc. d.b.a. VasoHealthcare, provides professional sales services and is the operating subsidiary for the exclusive sales representation of GE HealthCare diagnostic imaging and ultrasound products in certain market segments in the USA.
- VasoMedical, Inc. manages and coordinates the design, manufacture and sales of proprietary medical equipment and software, as well as operates the Company's overseas assets including China-based subsidiaries.
Additional information is available on the Company's website at www.vasocorporation.com.
Summarized Financial Information
| FOR THE THREE MONTHS ENDED | ||||
| STATEMENTS OF OPERATIONS | March 31, 2024 | March 31, 2023 | ||
| (In thousands) | ||||
| (Unaudited) | ||||
| Revenue | $ | 18,738 | $ | 19,036 |
| Gross profit | 10,918 | 11,562 | ||
| Operating income (loss) | (1,468) | 262 | ||
| Other income (expense), net | 307 | 54 | ||
| Income (loss) before taxes | (1,161) | 316 | ||
| Income tax expense | (12) | (10) | ||
| Net income (loss) | (1,173) | 306 | ||
| Income tax expense | 12 | 10 | ||
| Interest (income) expense, net | (299) | (111) | ||
| Depreciation and amortization | 185 | 273 | ||
| Non-cash stock-based compensation | 9 | 13 | ||
| Adjusted EBITDA* | $ | (1,266) | $ | 491 |
| *Adjusted EBITDA is earnings (loss) before interest, taxes, depreciation and amortization and non-cash stock-based compensation | ||||
| BALANCE SHEETS | March 31, 2024 | December 31, 2023 | ||
| (In thousands) | ||||
| (Unaudited) | ||||
| Total current assets | $ 38,998 | $ 45,099 | ||
| Total assets | $ 69,444 | $ 75,757 | ||
| Total current liabilities | $ 27,275 | $ 30,040 | ||
| Total stockholders' equity | $ 25,578 | $ 26,843 | ||
Except for historical information contained in this release, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this report, words such as "anticipates", "believes", "could", "estimates", "expects", "may", "optimistic", "plans", "potential", "looking forward", and "intends" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company's management, as well as assumptions made by and information currently available to the Company's management. Among the factors that could cause actual results to differ materially are the following: the effect of business and economic conditions, including the possibility of a downturn in the US economy and the continued impact of the COVID-19 pandemic; the effect of the dramatic changes taking place in IT and healthcare; continuation of the GEHC agreement; the impact of competitive technology and products and their pricing; medical insurance reimbursement policies; manufacturing or supplier problems; unforeseen difficulties and delays in product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; and the risk factors reported from time to time in the Company's SEC reports. The Company undertakes no obligation to update forward-looking statements as a result of future events or developments.
Investor Contact:
Michael J. Beecher
Investor Relations
Phone: 516-997-4600
Email: mbeecher@vasocorporation.com
