Vaso Corporation Announces Financial Results for Second Quarter 2023

Company reports continued growth in revenue and record profitability

PLAINVIEW, NY / ACCESSWIRE / August 14, 2023 / Vaso Corporation ("Vaso") (OTCQB:VASO) today reported its operating results for the three months ended June 30, 2023.

"For the quarter ended June 30, 2023, the Company recorded a total revenue of $20.4 million, representing a 5% growth from the same period last year, thanks to the great performance from all three of our business units," commented Dr. Jun Ma, President and Chief Executive Officer of Vaso Corporation. "Gross profit for the quarter increased by 13% year-over-year, to $12.8 million, as a result of increased revenue and higher gross margin. Quarterly net income was also up significantly, to $2.1 million from prior year's $1.5 million, making the quarter the most profitable second quarter in the history of the Company."

"The Company continued to generate positive cashflow from operating activities, in the amount of $8.0 million during the second quarter of 2023. Furthermore, our balance sheet remains strong, with $26.1 million in cash, cash equivalents and short-term investments as of June 30, 2023, up from $15.9 million a year before, and total deferred revenue reached another historical high of $33.6 million at the end of second quarter," Dr. Ma continued.

"We are very pleased with the operating results for the second quarter of the year, especially when the growth was from areas where we have spent resources to develop: our healthcare IT business in VasoTechnology, our new ultrasound sales program for GEHC in VasoHealthcare, and our ARCS^® cloud-based software-as-a-service (SaaS) subscription program in VasoMedical. We continue to concentrate our efforts to maintain continued growth and profitability," concluded Dr. Ma.

Financial Results for Three Months Ended June 30, 2023
For the three months ended June 30, 2023, total revenue increased 5% to $20.4 million from $19.5 million for the same period of 2022. Revenue in our IT segment increased by $416 thousand or 4% when compared to the second quarter of 2022, mostly because of growth in the healthcare IT business. Revenue in the professional sales service segment increased by $400 thousand or 5% when compared to the second quarter of 2022, due primarily to the new GEHC ultrasound sales program beginning in the second quarter of 2023. Revenue in the equipment segment increased by $119 thousand or 19% when compared to the same quarter of last year, due to higher sales of ARCS® cloud software subscription in the US and higher equipment deliveries in our China operations.

Gross profit for the second quarter of 2023 was $12.8 million, compared to $11.3 million for the same quarter of 2022, representing an increase of 13% year over year. This increase was primarily the result of the increase in revenue and higher gross margin for the period.

Selling, general and administrative (SG&A) expenses for the second quarter of 2023 increased 11% to $10.6 million, when compared to the second quarter of 2022. The increase is primarily attributable to additional headcount for the new GEHC ultrasound sales program and higher travel and personnel costs in the professional sales service segment and higher personnel costs in the China operations, partially offset by a decrease in expenses in the IT segment.

Net income for the three months ended June 30, 2023 was $2.1 million, compared to net income of $1.5 million in the second quarter 2022, representing an increase of $577 thousand, or 39%.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization and non-cash stock-based compensation) was $2.2 million for the three months ended June 30, 2023, compared to $2.3 million for the same period a year ago.

Net cash provided by operating activities in the first six months of 2023 was $6.0 million, compared to cash provided by operations of $9.7 million for the same period in 2022. As of June 30, 2023 and December 31, 2022, the Company had cash, cash equivalents and short-term investments of approximately $26.1 million and $20.3 million, respectively.

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.

		FOR THE THREE MONTHS ENDED								FOR THE SIX MONTHS ENDED
STATEMENTS OF OPERATIONS		June 30, 2023				June 30, 2022				June 30, 2023			June 30, 2022
		(In thousands)
		(Unaudited)
Revenue		$	20,437			$	19,502			$	39,658			$	36,512
Gross profit			12,787				11,336				24,497				21,105
Operating income			1,908				1,562				2,318				1,207
Other (expense) income, net			173				(49	)			227				(26	)
Income before taxes			2,081				1,513				2,545				1,181
Income tax expense			(9	)			(18	)			(19	)			(30	)
Net income		$	2,072			$	1,495			$	2,526			$	1,151
Income tax expense			9				18				19				30
Interest expense (income), net			(181	)			5				(292	)			24
Depreciation and amortization			264				805				537				1,258
Non-cash stock-based compensation			15				6				28				13
Adjusted EBITDA*		$	2,179			$	2,329			$	2,818			$	2,476
*Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization and non-cash stock-based compensation
BALANCE SHEETS		June 30, 2023			December 31, 2022
Total current assets		$	42,974			$	42,000
Total assets		$	73,576			$	72,655
Total current liabilities		$	29,076			$	31,708
Total stockholders' equity		$	25,233			$	22,875

Summarized Financial Information
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

# # #

SOURCE: Vaso Corporation

View source version on accesswire.com:
https://www.accesswire.com/773713/Vaso-Corporation-Announces-Financial-Results-for-Second-Quarter-2023