Hypertension Diagnostics, Inc. (OTCBB: HDII)
-- Quarterly Revenues Excluding START Sales Increase 27%
-- Encouraging Outlook
Hypertension Diagnostics, Inc. (OTCBB: HDII), today announced
financial results for the first quarter of fiscal year 2011 ("Q1
2011") ended September 30, 2010.
Revenue for Q1 2011 totaled $257,208 compared to $302,075 for
the first quarter of fiscal year 2010 ending September 30, 2009
("Q1 2010"), which represents a 14.8% decrease. During Q1 2010, the
Company recorded revenue of $98,745 related to the START study
funded by the National Institutes of Health (NIH) to determine
whether the measurement of arterial elasticity can assist in the
prevention of cardiovascular disease in HIV patients. Without the
START study, revenues for Q1 2010 were $203,330. There were no
START revenues after the fourth quarter of fiscal 2010 ended June
30, 2010. Excluding START, revenues for Q1 2011 of $257,208 were up
by 26.5% compared to revenues for Q1 2010 of $203,330.
The Company realized net income of $264,221 for Q1 2011 or $.01
per share, compared with net loss of $780,067 for Q1 2010, or
$(.02) per share. Included in the net income for Q1 2011 is a
$378,000 negative expense (or benefit) in the non-cash deferred
compensation expense. The large deferred stock compensation benefit
was a direct result of the decline in the Company's stock price
which decreased from $0.16 at the beginning of the quarter to $0.09
at the end of the quarter. A decrease in stock price creates a
negative expense (or benefit) in the non-cash deferred stock
compensation expense. The Company reported a cash balance on
September 30, 2010 of $889,425, a 16% decrease compared with a cash
balance of $1,053,648 on June 30, 2010.
"We continue to make progress in the underlying business," said
Mark Schwartz, Chairman and CEO. "We are aggressively expanding our
independent representative network and their success provides
encouragement that our market continues to grow," commented
Schwartz.
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® 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.
Hypertension Diagnostics, Inc.
Summary Financial Data
(Unaudited)
Statements of Operations
------------------------
Three Months Ended
September 30
----------------------
2010 2009
---------- ----------
Revenue:
Equipment sales $ 211,000 $ 254,235
Equipment rental 12,852 25,161
Service/contract income 33,356 22,679
---------- ----------
257,208 302,075
Cost of Sales:
Cost of Sales 37,854 50,622
Inventory Obsolescence Allowance - (17,838)
---------- ----------
Net Cost of Sales 37,854 32,784
---------- ----------
Gross Profit 219,354 269,291
Selling, general and administrative expenses (40,564) 1,050,841
---------- ----------
Operating Income (Loss) 259,918 (781,550)
Other Income:
Interest income 1,995 -
Miscellaneous income 2,308 1,483
---------- ----------
Total Other Income 4,303 1,483
---------- ----------
Net Income (Loss) before taxes 264,221 (780,067)
========== ==========
Deferred compensation expense (378,000) 763,875
Non-GAAP Pro-forma net income (loss) $ (113,779) $ (16,192)
(excluding deferred compensation expense)
Net Income (Loss) per Common Share:
Basic $ 0.01 $ (0.02)
Diluted $ 0.01 $ (0.02)
Weighted Average Common Shares Outstanding:
Basic 41,995,526 40,973,711
Diluted 50,619,552 40,973,711
Balance Sheet Data
------------------
September 30, June 30,
2010 2010
------------ ------------
Cash and cash equivalents $ 889,425 $ 1,053,648
Total current assets 1,379,686 1,538,712
Total assets 1,387,237 1,546,580
Total current liabilities 211,160 306,599
Accumulated deficit (28,160,145) (28,424,366)
Total shareholders' equity (deficit) 177,653 (146,818)
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
Contact: Mark N. Schwartz CEO (651) 687-9999
Hypertension Diagnositc (CE) (USOTC:HDII)
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