CompuMed, Inc. Announces Fiscal 2021 Third Quarter Results
LOS ANGELES, Aug. 16, 2021 /PRNewswire/ -- CompuMed, Inc. (OTCPK: CMPD) ("CompuMed" or the "Company") is pleased to announce strong fiscal 2021 third quarter results.
FISCAL 2021 THIRD QUARTER HIGHLIGHTS:
- Revenue in the quarter was $1.76 million, an increase of 8.2% sequentially and 55.1% year-over-year.
- Operating income during the quarter reached $250,000, an increase of 56.8% sequentially and 150.2% year-over-year.
- We enjoyed a great third quarter, and expect overall full year revenue growth to approximate 20%.
- At quarter end CompuMed enjoyed a cash + accounts receivable position of $3.06 million, 7.2% higher than the second quarter and 21.2% higher than one year ago.
Over the past several years, Management of CompuMed has believed that the share price would eventually fairly reflect the fundamental business performance of the Company. Throughout this time, many shareholders have requested that rather than publish a shareholder letter as part of CompuMed's normal quarterly filing with OTC Markets, that the Company issue a press release as many publicly-traded companies do. Although this is less common among OTC Pink sheet companies such as CompuMed, we will initiate this practice starting this quarter. In part, with the hope that investors would place on the CompuMed common share a more appropriate value.
As regular readers of our filings know, CompuMed has approximately 40.52 million shares outstanding, together with unissued stock of 1.525 million and stock options deeply in the money in the amount of 6 million. This approximates 48.045 million shares outstanding. At this writing CMPD shares trade at $0.198 per share for a market capitalization of $9.5 million. If you adjust for the cash and liquidity position seen on the below balance sheet of in excess of $3 million, the market capitalization of CompuMed net of cash is currently $6.5 million. From the statement of operations shown below this indicates that currently CMPD shares trade at 8.3x trailing earnings. We do not believe this is an appropriate share price reflecting the value of CompuMed's growth.
We believe it is likely that one factor contributing to the low share price is the fact that many brokerage firms today restrict their clients from buying shares in companies whose shares trade at less than $5. Many potential investors in CompuMed are in effect 'left-out' of the market for our shares. Our shareholders should know that CompuMed's leadership is working hard to find solutions to this problem, and we take very seriously our role in delivering value to you as owners of our Company. We most fervently believe that the best way to add value to the owners of CompuMed is our continued focus on the growth in sales, earnings, and cash flow. Nonetheless, we must also explore ways for the CompuMed shareholder to see these benefits reflected in the very method in which each of you determine your own return; the share price.
Below, please see the CompuMed financial statements for the Fiscal Third Quarter ended June 30, 2021. Please note that more detailed information is provided along with financial statement footnotes in the CompuMed filings with the OTC Markets. Below is the link to the CompuMed Investor Relations section of the Company's website which will direct you to the OTC Market filings:
https://compumedinc.com/contacts/investor-relations/
Please see the CompuMed balance sheet for the quarter ended June 30, 2021:
CONDENSED BALANCE SHEETS | |||||||||
COMPUMED, INC. | |||||||||
June 30, | September 30, | ||||||||
2021 | 2020 | ||||||||
ASSETS | |||||||||
CURRENT ASSETS | |||||||||
Cash and cash equivalents | 2,008,090 | 1,890,439 | |||||||
Accounts receivable, net of allowance of $65,780 (June 2021) and $54,564 (September 2020) | 1,047,873 | 791,611 | |||||||
Inventory | 114,196 | 36,526 | |||||||
Prepaid expenses and other current assets | 132,421 | 108,868 | |||||||
TOTAL CURRENT ASSETS | 3,302,580 | 2,827,444 | |||||||
PROPERTY AND EQUIPMENT, Net | 1,427,520 | 1,267,085 | |||||||
TOTAL OTHER ASSETS | 4,287 | 5,780 | |||||||
TOTAL ASSETS | 4,734,387 | 4,100,309 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
CURRENT LIABILITIES | |||||||||
Accounts payable | 438,157 | 190,089 | |||||||
Accrued Liabilities | 596,438 | 536,454 | |||||||
Current portion of capital lease obligations | 222,786 | 215,268 | |||||||
TOTAL CURRENT LIABILITIES | 1,257,381 | 941,811 | |||||||
Loans Payable | - | 114,450 | |||||||
Capital lease obligations | 596,509 | 764,978 | |||||||
TOTAL LIABILITIES | 1,853,890 | 1,821,239 | |||||||
STOCKHOLDERS' EQUITY | |||||||||
Preferred Stock, $0.10 par value - authorized 1,000,000 shares | |||||||||
Preferred Stock- Class D 2% convertible - issued and outstanding - 4,167 shares | - | 417 | |||||||
Common Stock, $0.01 par value - authorized 50,000,000 shares, issued and outstanding – 40,520,302 and 32,186,302 (June 2021 and September 2020) | 405,203 | 321,863 | |||||||
Additional paid-in capital | 37,493,413 | 37,561,622 | |||||||
Accumulated deficit | (35,018,119) | (35,604,832) | |||||||
TOTAL STOCKHOLDERS' EQUITY | 2,880,497 | 2,279,070 | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 4,734,387 | 4,100,309 | |||||||
See notes to financial statements filed with OTC Markets. |
Please see the CompuMed statement of operations for the quarter ended June 30, 2021:
Three Months Ended June 30, |
Nine Months Ended June 30, | ||||
2021 | 2020 | 2021 | 2020 | ||
Revenue From Operations | |||||
Total Revenue | 1,763,854 | 1,137,269 | 4,865,056 | 4,004,240 | |
Cost of Goods Sold | 740,180 | 441,080 | 2,035,671 | 1,754,735 | |
Gross Profit | 1,023,674 | 696,189 | 2,829,385 | 2,249,505 | |
Selling, General and Administrative Expenses | 685,863 | 535,818 | 2,060,202 | 1,799,207 | |
Depreciation and Amortization | 87,302 | 60,264 | 251,044 | 166,225 | |
OPERATING PROFIT/(LOSS) | 250,509 | 100,107 | 518,139 | 284,073 | |
Other Income | - | - | 114,450 | - | |
Taxes | - | - | 800 | 8,300 | |
Interest Expense | 14,081 | 13,136 | 45,077 | 33,127 | |
NET PROFIT/(LOSS) Adjusted for Non-recurring event | 236,428 | 86,971 | 586,712 | 242,646 | |
Weighted average number of common shares outstanding | 40,520,302 | 32,186,302 | 37,742,302 | 32,186,302 | |
About CompuMed, Inc.
CompuMed, Inc. (OTCPink: CMPD) Diagnostic Telemedicine services provide patients with the highest level of clinical care at reduced costs. Its telecardiology and teleradiology offerings provide real-time access to U.S. Board-Certified specialists through cloud-based technology and integrated medical devices to medical facilities anywhere in the world. The company has been in business over 26 years and services over 1,000 clinical settings. CompuMed is headquartered in Los Angeles, CA. Visit CompuMed at www.compumedinc.com.
Forward-Looking Statements
This press release contains forward-looking statements regarding future events and the future performance of CompuMed, Inc. that involve risks and uncertainties that could materially affect actual results, including statements regarding the Company's unaudited financial results. Factors that could cause actual results to vary from current expectations and forward-looking statements contained in this press release include, but are not limited to: (1) the global impact of the pandemic outbreak of coronavirus (COVID-19) and its impact on our operations and the operations of our suppliers and clients, staffing levels and labor costs; (2) the timing and volume of business activity from our clients, our ability to continue to provide those services, and our liquidity and cash position; (3) our ability to protect the Company's net operating losses and tax benefits; (4) volatility and changes in our stock price, corporate or other market conditions; (5) the loss of, or reduction of business from, substantial clients; (6) changes in government policy or economic conditions; (7) increased competition; and (8) other factors contained in the Company's filings posted on the OTC Markets website.
SOURCE CompuMed, Inc.
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