SOURCE: Hypertension Diagnostics

Hypertension Diagnostics

November 12, 2010 13:14 ET

Hypertension Diagnostics Announces First Quarter Fiscal Year 2011 Results

ST. PAUL, MN--(Marketwire - November 12, 2010) - 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
Statements of Operations
                                                      Three Months Ended
                                                         September 30
                                                       2010        2009
                                                    ----------  ----------
  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.


Contact Information

  • Contact:
    Mark N. Schwartz
    (651) 687-9999