Vaso Corporation Announces Financial Results for Fourth Quarter and Full Year 2020

Vaso Corporation Announces Financial Results for Fourth Quarter and Full Year 2020

Story continues Financial Results for Three Months Ended December 31, 2020For the three months ended December 31, 2020, revenue decreased by 21.2% to $18.7 million from $23.7 million for the same period of 2019, due primarily to the decrease of $4.1 million, or 36.6%, in revenue in our professional sales service segment as the result of lower deliveries by our partner of underlying equipment during the quarter. Revenue in our IT segment decreased 3.4%, to $10.9 million in the fourth quarter 2020, compared to the same quarter of 2019, while our equipment segment revenue decreased 44.5% to $614 thousand from $1.1 million for the fourth quarter of 2019, due to the deconsolidation of EECP business as the result of the sale of equity in the EECP business early in the year, offset by an increase in sales in our Biox products. Gross profit for the fourth quarter of 2020 decreased by 22.5% to $11.1 million, compared with a gross profit of $14.3 million for the same quarter of 2019. This decrease was primarily the result of the decrease in revenue in the professional sales service and IT segments.

“As the country starts to get back to normalcy, we’ll continue to exercise our diligence in executing our strategy and look to further improve performance of all our business units,” concluded Dr. Ma. “The much-improved profitability was primarily the result of significant cost reductions. Selling, general and administrative costs went down by $4.0 million, or 9.7%, in 2020 when compared to 2019,” Dr. Ma continued. “In addition, the Company generated $5.9 million from operating activities in the year 2020 and its cash position remains strong.”

The following financial results for the three and twelve months ended December 31, 2019 have been revised for the correction of errors. “The Company was able to conclude a profitable year in 2020 as it experienced an unprecedented impact of the economic shutdown due to the pandemic,” commented Dr. Jun Ma, President and CEO of the Company. “Specifically, net income for fiscal year 2020 was $358 thousand, compared to a net loss of $382 thousand in the prior year, although revenue for the year decreased by $5.7 million to $69.9 million.”

Gross profit for the year ended December 31, 2020 decreased 9.1% to $38.6 million, from $42.4 million in 2019, as a result of the lower sales in our IT and professional sales service segments. SG&A expenses for the year ended December 31, 2020 decreased $4.0 million or 9.7% to $37.1 million, or 53.0% of revenue, compared with $41.0 million, or 54.3% of revenue, for the same period in 2019. The decrease resulted primarily from a decrease $3.1 million in personnel and travel costs in the professional sales service and IT segments, as well as a decrease in corporate expenses. Financial Results for Year Ended December 31, 2020 For the year ended December 31, 2020, revenue decreased by $5.7 million or 7.5% to $69.9 million when compared with $75.5 million for the year 2019. Revenue in our IT segment decreased 3.5% to $43.9 million for the year 2020, from 2019 revenue of $45.5 million, primarily due to a decrease of revenue in the healthcare IT business. Commission revenues in our professional sales service segment decreased by 12.8% to $22.9 million in the year 2020, compared to $26.2 million in 2019. The decrease was the result of lower equipment deliveries by our partner and lower blended commission rates for the equipment delivered during the year. Equipment segment revenue for the year 2020 decreased by 18.7% to $3.1 million, from $3.8 million in 2019, principally due to the sale of 51% of our EECP business early in the year, partially offset by an increase in sales in our China operations. Revenues in the IT and professional sales service segments were negatively impacted by the COVID-19 pandemic.

Net income for the three months ended December 31, 2020 was $1.2 million, compared with a net income of $2.7 million for the three months ended December 31, 2019. Selling, general and administrative (SG&A) expenses for the fourth quarter of 2020 decreased by 14.1% to $9.6 million, compared to $11.1 million for the fourth quarter of 2019. The decrease was primarily attributable to a decrease in personnel costs in the IT segment and other cost reductions. SG&A expenses were 51.2% and 47.0% of revenue in the fourth quarter of 2020 and 2019, respectively.

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