ST. PAUL, MN--(Marketwire - February 11, 2011) - Hypertension Diagnostics, Inc. (
OTCBB:
HDII),
today announced financial results for the second quarter of fiscal year
2011 ("Q2 2011") ended December 31, 2010.
Revenue for Q2 2011 was $457,986 compared to $458,325 for the second
quarter of fiscal year 2010 ended December 31, 2009 ("Q2 2010"). During Q2
2010, the Company recorded revenue of $106,340 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 Q2 2010 were $351,985. There were no START revenues after the fourth
quarter of fiscal 2010 ended June 30, 2010. Excluding START, revenues for
Q2 2011 of $457,986 were up by 32% compared to revenues for Q2 2010 of
$351,985.
The Company realized a net loss of $181,397 for Q2 2011 or $.00 per share,
compared with a net loss of $233,129 for Q2 2010, or $(.01) per share.
Included in the net loss for Q2 2011 is a non-cash deferred compensation
expense of $116,250. The deferred stock compensation expense was a direct
result of the increase in Company's stock price which increased from $0.09
at the beginning of the quarter to $0.095 as the end of the quarter which
caused the overall accrual to increase by $64,125 and the Company recorded
$52,125 of additional deferred compensation to its CEO during the quarter.
The Company reported a cash balance on December 31, 2010 of $924,060, a
3.9% increase compared with a cash balance of $889,425 on September 30,
2010.
For the six month period which ended December 31, 2010, total revenue was
$715,194, compared to $760,400 for the six month period which ended
December 31, 2009, a 5.9% decrease. Without the START study revenues of
$205,085 for the six months ended December 31, 2009, revenue was $555,315.
Compared to $715,194 for the six months ended December 31, 2010, there was
a 29% increase in revenue.
The Company realized net income of $82,824 or $0.00 per share, including a
non-cash deferred compensation benefit of $261,750 for the six month period
ended December 31, 2010, compared to a net loss of $1,013,196 or $(.02) per
share, which included a non-cash deferred compensation charge of $1,123,500
for the six month period ended December 31, 2009.
"We continue to make progress in growing our business," said Mark Schwartz,
Chairman and CEO. "We continue to expand our network of independent
distributors and their success provides evidence of our ability to
capitalize on the market opportunity to help physicians better identify and
manage cardiovascular disease," 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 Six Months Ended
December 31 December 31
------------------------ ------------------------
2010 2009 2010 2009
----------- ----------- ----------- -----------
Revenue:
Equipment sales $ 395,900 $ 405,590 $ 606,900 $ 659,825
Equipment rental 10,719 20,082 23,571 45,243
Service/contract
income 51,367 32,653 84,723 55,332
----------- ----------- ----------- -----------
457,986 458,325 715,194 760,400
Cost of Sales:
Cost of Sales 83,621 80,822 121,475 131,444
Inventory
Obsolescence
Allowance 9,551 (37,628) 9,551 (55,466)
----------- ----------- ----------- -----------
Net Cost of Sales 93,172 43,194 131,026 75,978
----------- ----------- ----------- -----------
Gross Profit 364,814 415,131 584,168 684,422
Selling, general and
administrative
expenses 550,576 650,666 510,012 1,701,507
----------- ----------- ----------- -----------
Operating Income (Loss) (185,762) (235,535) 74,156 (1,017,085)
Other Income:
Interest income 3,866 2,406 5,861 3,889
Miscellaneous income 499 0 2,807 0
----------- ----------- ----------- -----------
Total Other Income 4,365 2,406 8,668 3,889
----------- ----------- ----------- -----------
Net Income (Loss)
before taxes ($ 181,397)($ 233,129) $ 82,824 ($ 1,013,196)
=========== =========== =========== ===========
Deferred compensation
expense 116,250 359,625 (261,750) 1,123,500
Non-GAAP Pro-forma net
income (loss)
(excluding deferred
compensation expense) ($ 65,147) $ 126,496 ($ 178,926) $ 110,304
Net Income (Loss) per
Common Share:
Basic $ (0.00) $ (0.01) $ 0.00 $ (0.02)
Diluted $ (0.00) $ (0.01) $ 0.00 $ (0.02)
Weighted Average Common
Shares Outstanding:
Basic 42,234,715 41,217,897 42,115,120 41,095,804
Diluted 42,234,715 41,217,897 49,627,168 41,095,804
Balance Sheet Data
December 31, June 30,
2010 2010
----------- -----------
Cash and cash equivalents $ 924,060 $ 1,053,648
Total current assets 1,377,209 1,538,712
Total assets 1,385,542 1,546,580
Total current liabilities 251,645 306,599
Accumulated Deficit (28,341,542) (28,424,366)
Total shareholders' equity (deficit) 27,626 (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 Information: Contact:
Mark N. Schwartz
CEO
(651) 687-9999