Vaso Corporation Announces Financial Results for Third Quarter 2024
Rhea-AI Summary
Vaso (OTCQX: VASO) reported Q3 2024 financial results with revenue of $20.8 million, up 7% from $19.4 million in Q3 2023, driven by growth in network services. However, the company recorded an operating loss of $1.4 million compared to operating income of $907,000 in Q3 2023. The company maintains a strong balance sheet with $26.8 million in cash and investments, and generated $3.6 million in operating cash flow during the first nine months. Deferred revenue increased by $1.4 million to $33.1 million. The net loss for Q3 2024 was $1.2 million, compared to net income of $1.2 million in Q3 2023, primarily due to business combination costs of $1.5 million.
Positive
- Revenue increased 7% YoY to $20.8 million
- Professional sales services segment revenue grew 3%
- IT segment revenue increased 12%
- Cash position strengthened to $26.8 million from $25.3 million at year-end 2023
- Deferred revenue increased by $1.4 million to $33.1 million
Negative
- Operating loss of $1.4 million vs. operating income of $907,000 in Q3 2023
- Net loss of $1.2 million vs. net income of $1.2 million in Q3 2023
- Equipment segment revenue decreased 23%
- Gross profit decreased 2% to $11.8 million
- Operating cash flow declined to $3.6 million from $6.9 million YoY
News Market Reaction
On the day this news was published, VASO declined 0.45%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
PLAINVIEW, N.Y., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Vaso Corporation (“Vaso”) (OTCQX: VASO), a leading medtech company with a diversified business portfolio in network and healthcare IT services, professional sales services, and proprietary medical products, today reported its operating results for the three months ended September 30, 2024.
“For the third quarter of 2024, the Company’s revenue was
“As the Company continues to generate positive operating cashflow, which was
“Our mission is to continue to grow our current business and revenue streams organically while working closely with our partners and customers across all our business segments. We are cautiously optimistic about the Company’s performance for the remainder of the year, as historically the fourth quarter has been the quarter with highest revenue and income of the year due to the cyclical nature of our business. As we approach yearend, we are focused on optimizing our strong business performance to seize new growth opportunities in 2025,” concluded Dr. Ma.
Financial Results for Three Months Ended September 30, 2024
Total revenue for the three months ended September 30, 2024 was
Gross profit for the three months ended September 30, 2024 decreased by
Selling, general and administrative (SG&A) expenses for the third quarter of 2024 increased by
Net loss for the three months ended September 30, 2024 was
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, and non-cash stock-based compensation) was negative
Net cash provided by operating activities in the first nine months of 2024 was
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 | FOR THE NINE MONTHS ENDED | |||||||||||
| STATEMENTS OF OPERATIONS | September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||
| (In thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Revenue | $ | 20,769 | $ | 19,449 | $ | 59,732 | $ | 59,107 | ||||
| Gross profit | 11,756 | 12,043 | 34,824 | 36,540 | ||||||||
| Operating income (loss) | (1,393 | ) | 907 | (1,866 | ) | 3,225 | ||||||
| Other income (expense), net | 242 | 307 | 821 | 534 | ||||||||
| Income (loss) before taxes | (1,151 | ) | 1,214 | (1,045 | ) | 3,759 | ||||||
| Income tax expense | (30 | ) | (16 | ) | (154 | ) | (35 | ) | ||||
| Net income (loss) | $ | (1,181 | ) | $ | 1,198 | $ | (1,199 | ) | $ | 3,724 | ||
| Income tax expense | 30 | 16 | 154 | 35 | ||||||||
| Interest expense (income), net | (284 | ) | (264 | ) | (884 | ) | (555 | ) | ||||
| Depreciation and amortization | 219 | 225 | 630 | 762 | ||||||||
| Non-cash stock-based compensation | 8 | 10 | 26 | 38 | ||||||||
| Adjusted EBITDA* | $ | (1,208 | ) | $ | 1,185 | $ | (1,273 | ) | $ | 4,004 | ||
| *Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization and non-cash stock-based compensation | ||||||||||||
| BALANCE SHEETS | September 30, 2024 | December 31, 2023 | ||||||||||
| (In thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Total current assets | $ | 42,990 | $ | 45,099 | ||||||||
| Total assets | $ | 73,943 | $ | 75,757 | ||||||||
| Total current liabilities | $ | 30,168 | $ | 30,040 | ||||||||
| Total stockholders' equity | $ | 25,658 | $ | 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: 516-508-5840
Email: mbeecher@vasocorporation.com
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