HDII.. $0.06 Earnings..
Hypertension Diagnostics Announces Fiscal Year 2010 Results
Market Wire - Sep 28 at 11:12
Company Symbols: NASDAQ-OTCBB:HDII
ST. PAUL, MN -- (MARKET WIRE) -- 09/28/10 -- Hypertension Diagnostics, Inc. (OTCBB: HDII)
-- Comparable Yearly Revenue Increases by 175%
-- Comparable Quarterly Revenue Expands by 202%
-- Sequential Quarterly Revenue Grows by 294%
-- Total Unit Sales Increase by 225%
-- Cash Generated from Operations for Year is $279,080
Hypertension Diagnostics, Inc. (OTCBB: HDII) today announced audited financial results for the fiscal year ended June 30, 2010 (FY 2010).
Revenue for FY 2010 totaled $1,383,669 compared to $503,175 in the fiscal year ended June 30, 2009 (FY 2009), which represents a 175% increase. The Company incurred a net loss of $989,759 for FY 2010 or $(.02) per share, compared with a net loss of $248,440 for FY 2009, or $(.01) per share.
"The fourth quarter, and in particular the month of June, was a remarkable period for the Company with the highest number of units sold in any month in the Company's history," said Mark Schwartz, Chairman and CEO. "Most importantly, the Company generated cash from operations of $279,080 and therefore was profitable on a non-GAAP basis."
Included in the net loss for FY 2010 are total non-cash charges (mainly deferred stock compensation, depreciation, stock options) of $1,204,391. Included in the net loss for FY 2009 are total non-cash benefits of $125,102. The charge for FY 2010 is a result of an increase in the Company's stock price, which increased the non-cash deferred compensation. The benefit for FY 2009 is a result of a decrease in the Company's stock price, which caused the non-cash deferred compensation expense to become a non-cash benefit. The Company reported a cash balance on June 30, 2010 of $1,053,648.
Fourth quarter revenue of $497,007, for fiscal year 2010 (Q4 2010) compared to $164,691 for the fourth quarter of fiscal year 2009, represented a 202% increase. Revenue for Q4 2010 increased by 294% compared with $126,261 for the third quarter of fiscal year 2010.
The number of units sold by the Company during FY 2010 increased 225% compared with sales during FY 2009. Of those units sold, 15 were from the previously reported START study funded by the National Institutes of Health (NIH) to determine whether the measurement of elasticity can assist in the prevention of cardiovascular disease in HIV patients. Without the START study sales, unit volume increased by 150%.
In June, the Company changed its estimated inventory obsolescence allowance to more accurately reflect the shift from a rental to a sales model and better reflect the gross profit on equipment sales, resulting in an adjustment to inventory and to cost of sales of $150,614. This caused the Company to report a negative cost of sales or an increase in income for FY 2010.
About Hypertension Diagnostics, Inc.
Hypertension Diagnostics, Inc. ("HDI") manufactures and markets medical devices for early detection and management of cardiovascular disease in the U.S. and in 37 countries. Its main product, the CVProfilor&4; DO- 2020 CardioVascular Profiling System, has been approved by the Food and Drug Administration (FDA), and is being marketed to primary care physicians in the U.S. HDI's CardioVascular Profiling Systems non-invasively measure both large and small artery elasticity. Small artery elasticity has been shown to be predictive of cardiovascular disease. Several large pharmaceutical manufacturers have used HDI's CardioVascular Profiling Systems in their multi-site clinical research trials. There are over 300 published, peer-reviewed scientific articles and presentations on HDI's methodology, which provides evidence on the validity, accuracy and reproducibility of HDI's CardioVascular Profiling technology. The technology was developed at the University of Minnesota by a team led by world-renown cardiologist, Dr. Jay N. Cohn.
Safe Harbor Statement
Forward-looking statements in this press release are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company wishes to caution readers not to place undue reliance on any forward-looking statements and to recognize that the statements are not a prediction of actual future results. Actual results could differ materially from those presented and anticipated in the forward-looking statements due to the risks and uncertainties set forth in the Company's 2010 Annual Report on Form 10-K, and subsequent Quarterly Reports on Form 10-Q, all of which were filed with the U.S. Securities and Exchange Commission, as well as others not now anticipated.
CVProfilor is a registered trademark of Hypertension Diagnostics, Inc.
Hypertension Diagnostics, HDI/PulseWave, PulseWave and CVProfile are trademarks of Hypertension Diagnostics, Inc. All rights reserved.
Website: www.hdii.com
Hypertension Diagnostics, Inc.
Summary Financial Data
Statements of Operations
Three Months Ended Twelve Months Ended
------------------------ ------------------------
2010 2009 2010 2009
----------- ----------- ----------- -----------
Revenue:
Equipment sales $ 456,447 $ 125,850 $ 1,187,272 $ 332,687
Equipment rental 15,485 19,420 75,820 86,863
Warranty, parts &
supplies income 25,075 19,421 120,577 83,625
----------- ----------- ----------- -----------
497,007 164,691 1,383,669 503,175
Cost of Sales (119,499) 22,294 (19,935) 121,448
----------- ----------- ----------- -----------
Gross Profit 616,506 142,397 1,403,604 381,727
Selling, general and
administrative
expenses 256,354 303,639 2,402,773 643,311
----------- ----------- ----------- -----------
Operating Income /
(Loss) 360,152 (161,242) (999,169) (261,584)
Interest income 2,187 1,351 9,410 13,144
----------- ----------- ----------- -----------
Net Income /
(Loss) before
taxes $ 362,339 $ (159,891) $ (989,759) $ (248,440)
=========== =========== =========== ===========
Net Income / (Loss)
before taxes $ 362,339 $ (159,891) $ (989,759) $ (248,440)
Deferred compensation
expense (226,500) 84,000 1,095,750 (225,750)
----------- ----------- ----------- -----------
Non-GAAP Pro-forma net
income / (loss) $ 588,839 $ (75,891) $ 105,991 $ (22,690)
=========== =========== =========== ===========
(excluding deferred
compensation expense)
Basic and Diluted Net
Loss per Share $ (.00) $ (.00) $ (.03) $ (.01)
Weighted Average Shares
Outstanding 41,685,964 40,939,193 41,278,165 40,722,471
See accompanying notes.
Balance Sheet Data
June 30, 2010 June 30, 2009
-------------- --------------
Cash and cash equivalents $ 1,053,648 $ 697,918
Total current assets 1,538,712 1,022,528
Total Assets 1,546,580 1,032,787
Total current liabilities 1,622,849 340,384
Accumulated deficit (28,424,366) (27,434,607)
Total shareholder's equity /
(deficit) $ (146,818) $ 660,041
Contact:
Mark N. Schwartz
CEO
(651) 687-9999
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