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CompuMed, Inc. Announces First Quarter Fiscal 2007 Financial Results

Posted on: Wednesday, 14 February 2007, 15:01 CST

CompuMed, Inc. (OTCBB:CMPD) -- a medical informatics company leading the development of advanced imaging technology for cost effective analysis and monitoring -- today announced financial results for the first quarter fiscal 2007, which ended December 31.

Total revenues for the first quarter were $539,000, compared to $651,000 in fiscal 2006. The 17% decrease was due primarily to one-time sales orders in fiscal 2006. Net loss for the first quarter was $220,000, or $0.01 per share, compared to a loss of $41,000, or $0.00 per share, for the prior fiscal year. Of this loss, $54,000 was due to non-cash expenses related mainly to expensing of stock-based compensation under the Statement of Financial Accounting Standard (SFAS) 123R rule. The balance of increased expenses related to increased staffing for the OsteoGram division, and retaining a consultant to advise the company on implementation of its recently announced strategic plan to consider acquisitions connected to a "roll-up concept." The Company's cash and marketable securities balance was $432,000 on December 31, 2006, compared to $578,000 on September 30, 2006, due to investment in the company's new strategic growth plan.

Revenues from CompuMed's core electrocardiogram (ECG) products, supplies and service were $435,000, a decrease of 12% from $494,000. ECG equipment sales decreased by 72% to $17,000, from $61,000 in fiscal 2006, due to the effect of a one-time sale of ECG terminals to the Tennessee Department of Corrections in fiscal 2006. Revenues from CompuMed's OsteoGram® osteoporosis diagnostics were $104,000, compared to $157,000. This 34% decrease was due to an initial contractual order in fiscal 2006 from one of CompuMed's OEM partners.

Commenting on the results, CEO Jerry McLaughlin said, "Our decrease in revenue during the first quarter was due primarily to the uniqueness of developments that occurred last year, including major one time sales of ECG equipment, and the signing of new OsteoGram OEM partners to our distribution network. After successfully integrating the OsteoGram into those digital x-ray systems, we are just now beginning to see growing sales momentum. While this first quarter shows a decrease in revenues, we expect to exhibit growth as the year progresses and our partners deliver on their licensing agreements."

McLaughlin added, "We continue to invest significantly into multiple opportunities presented by our OsteoGram division. These increased expenditures are part of a carefully crafted strategy to deliver more top line revenue through a combination of organic growth and select, small acquisitions. We expect this growth to become evident as the year progresses. We will continue to invest in CompuMed's goal of becoming a leading provider of remote image analysis in cardiology and radiology. Our intentions are to pursue this pathway and allocate the resources necessary to successfully implement this strategy before the end of fiscal 2007."

About CompuMed:

Founded in 1973, CompuMed, Inc. (OTCBB:CMPD) is leading the development of advanced imaging and medical informatics solutions that provide cost effective analysis and monitoring. CompuMed focuses on cardiovascular and musculoskeletal diseases, as well as other diseases associated with aging populations. Its unique expertise in telemonitoring, imaging and analysis facilitates the development of new solutions and services designed to improve healthcare provider workflow and patient care, while reducing costs. CompuMed's core products, the OsteoGram® and CardioGram(TM) systems, are cleared by the FDA and reimbursable by Medicare. The OsteoGram is an accurate and precise technology for osteoporosis testing. The underlying OsteoGram technology has significant cost advantages over other technologies and will be applied to a suite of value-added applications, such as following the progression of arthritic disease and diagnosing vertebral fractures and scoliosis. The CardioGram system is one of the first telecommunication networks designed to remotely interpret electrocardiograms, and is used by private practice, as well as government and corporate healthcare providers nationwide. The CardioGram delivers online electrocardiogram interpretations within two minutes of receipt, and has the additional capability to automatically provide an over-read (i.e., follow- up review) by a cardiologist. CompuMed is headquartered in Los Angeles. Visit CompuMed at www.compumed.net.

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the Company's plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not statements of historical fact. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, ability to raise capital, the availability of appropriate acquisition candidates and/or business partnerships, economic conditions, the impact of competition and pricing, capacity and supply constraints or difficulties, government regulation and other risks identified in the Company's filings with the Securities and Exchange Commission. All such forward-looking statements are expressly qualified by these cautionary statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof, except as required by law.

CompuMed, Inc. Selected Financial Data $ Thousands (except per share data) For the Three Months Ended December 31 2006 2005 Total Revenues $ 539 $ 651 Net Loss from Operation (239) (66) Net Loss (220) (41) Net Loss per Share (0.01) (0.00) Weighted average number of common shares outstanding 24,197,790 23,095,602

December 31, 2006 Cash, cash equivalents and Marketable Securities $ 432 Accounts Receivable 319 Total Current Assets 802 Total Assets 1,163 Total Current Liabilities 290 Total Stockholders' Equity 725

Source: Business Wire

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