Vaso Corporation (VASO)

[ProfitScout]

Vasomedical Reports First Quarter Fiscal 2006 Financial Results

Conference Call to Be Held Friday, October 14, 2005, at 10:00 AM, ET

WESTBURY, N.Y.--(BUSINESS WIRE)--Oct. 13, 2005--Vasomedical, Inc. (Nasdaq SC: VASO), a leader in the noninvasive treatment and management of cardiovascular diseases, today announced financial results for the three months ended August 31, 2005.

For the first quarter of fiscal 2006, Vasomedical recorded total revenues of $3.5 million, compared with total revenues of $4.8 for the first quarter of fiscal 2005. The Company reported a net loss of $0.9 million for the three months ended August 31, 2005, which was approximately equal to the net loss of $0.9 million in the year-ago quarter. For the quarter ended August 31, 2005, the Company recorded a $0.8 million preferred stock dividend reflecting beneficial conversion features related to the sale of convertible preferred stock on July 19, 2005. The total net loss attributable to common stockholders was $1.7 million for the quarter ended August 31, 2005, compared with a net loss attributable to common stockholders of $0.9 million for the quarter ended August 31, 2004. The net loss per common share was $0.03 per share for the first quarter of fiscal 2006, compared with $0.02 per share for the first quarter of fiscal 2005.

Thomas Glover, president and chief executive officer of Vasomedical, commented, "Although total revenue reflects a decline from the previous year's first quarter, we are encouraged that revenue of $3.5 million was fairly consistent with the previous three quarters despite a smaller sales force following the reorganization in May and the normally slower activity in the summer months. We believe the market will remain soft over the near term as many customers are delaying their purchases pending the Centers for Medicare and Medicaid Services (CMS) reimbursement coverage decision. Operating expenses, which are 26% lower than last year's first quarter are in line with our restructuring plan. Our overall strategy continues to be to attain our revenue goals through focused efforts in sales and marketing while maintaining tight expense control. At the same time, we are progressing toward our objective of expanding reimbursement coverage for EECP® therapy to include congestive heart failure patients as well as additional angina patients. We continue to communicate with CMS regarding their review of our recent application and with the lead investigators of the PEECH clinical trial regarding publication of results of this pivotal clinical study in a major peer-reviewed journal, which is a prerequisite for final CMS decision."

As of August 31, 2005, the Company had cash, cash equivalents and certificates of deposit balances of $3.5 million compared with $2.7 million as of May 31, 2005 and working capital as of August 31, 2005 of $5.3 million as compared with $3.9 million as of May 31, 2005.

Conference Call

The Company will host a conference call to discuss these financial results tomorrow beginning at 10:00 a.m. Eastern Time. To participate in the live call by telephone, please dial [phone] from the U.S., or for international callers, please dial [phone]. A telephone replay will be available until 11:59 p.m. Eastern Time on October 16, 2005 by dialing [phone] from the U.S. or [phone] for international callers and entering pass code 1358470.

Those interested in listening to the conference call live via the Internet may do so by visiting the Company's web site at www.vasomedical.com, under the investor relations tab. To listen to the live call, please go to the web site 15 minutes prior to its start to register, download, and install the necessary audio software. The webcast will be archived for 30 days.

About EECP®Therapy

EECP external counterpulsation therapy is typically given in 35 one-hour sessions over seven weeks. Patients recline on a contoured treatment table and their calves, lower thighs and upper thighs are wrapped in a pneumatic cuff set. The system, which is synchronized to the individual patient's cardiac cycle, inflates the cuffs with air to create external pressure when the heart is resting and deflates the cuffs just before the next heartbeat. The system's action, which pulses counter to the heart's beating, increases blood flow to the heart muscle and other organs and decreases the heart's workload, creating a greater oxygen supply for the heart muscle while lowering its need for oxygen.

About Vasomedical

Vasomedical, Inc. is primarily engaged in designing, manufacturing, marketing and supporting EECP external counterpulsation systems based on the Company's unique proprietary technology. EECP therapy is a noninvasive, outpatient therapy for the treatment of diseases of the cardiovascular system currently indicated for use in cases of stable or unstable angina, congestive heart failure, acute myocardial infarction and cardiogenic shock. The therapy serves to increase circulation in areas of the heart with less than adequate blood supply and may restore systemic vascular function. The Company provides hospitals, clinics and private practices with EECP equipment, treatment guidance and a staff training and equipment maintenance program designed to provide optimal patient outcomes. Additional information is available on the Company's website at www.vasomedical.com. EECP is a registered trademark for Vasomedical's enhanced external counterpulsation systems.

Contact:
Vasomedical, Inc.
Thomas W. Fry, 516-997-4600
[e-mail]
OR
Lippert/Heilshorn & Associates, Inc.
Kim Sutton Golodetz, 212-838-3777
[e-mail]
OR
Bruce Voss, 310-691-7100
[e-mail]


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Source: Vasomedical, Inc.