Vasomedical, Inc. (OTCMKTS:VASO) reported its financial results for 4Q and year ended December 31, 2014. The revenue in 4Q surged 23% to $12.4 million from $10.1 million in 4Q2013. The 30% rise in commission revenue from sales representation division that came from a jump in deliveries of GEHC equipment boosted quarterly revenue. However, the higher commission rates were offset by a decline in Equipment segment revenues. The gross profit for 4Q surged 33% to $9.2 million from $6.9 million for 4Q2013.
For FY2014, Vasomedical revenue surged 6% to $35.0 million from $32.9 million for FY2013. The commission revenue in Sales Representation division surged 14% to $30.2 million for FY2014. The higher revenue was supported by higher installations of underlying devices by GEHC in 2014. The company also benefitted from higher commission rates for the equipments set up in 2014. The revenue from equipment segment declined 25% to $4.7 million, due to a decline in sales in Biox subsidiary in China and drop in volume from EECP sales. The gross profit for FY2014 came at $25.2 million against $22.5 million in FY2013.
The SG&A expenses for 4Q jumped 3% to $6.5 million against $6.3 million for 4Q2013. The jump is attributable to expenses incurred in the initiation of Vasomedical’s new IT segment. The expenses were offset by a decline in expenses in Equipment segment resulting from cost reduction measures. SG&A expenses constituted 52% of revenue in 4Q2014 compared to 62% of revenue for 4Q2013. The net income in 4Q was$2.5 million, up 390% compared with a net income of $0.5 million for 4Q2013.
The management view
Dr. Jun Ma, Chief Executive Officer of Vasomedical, Inc. (OTCMKTS:VASO), said that with a 6.3% YOY growth in annual revenue in FY2014, the management is pleased to state Vasomedical has returned to profitability. The company posted a net profit of $1.13 million for FY2014.
In last trading session, Vasomedical stock surged 8.76% to close at $0.185.