ST. PAUL, MN--(Marketwire - February 19, 2010) - Hypertension Diagnostics, Inc. (OTCBB: HDII)
(www.hdii.com), today announced financial results for the second quarter
(Q2) of fiscal year 2010 which ended December 31, 2009.
Revenue for Q2 2010 totaled $458,325 compared to $137,207 for Q2 2009 which
ended December 31, 2008, which represents a 234% increase. Q2 revenue from
the sale of the Company's research product used in the START sub-study on
Arterial Elasticity that is examining blood vessel function and
cardiovascular risk during HIV infection and funded by the National
Institutes of Health (NIH) was $106,340. As December 31, 2009, 13 of the
15 total START units have been shipped; therefore the Company does not
expect any material recurring revenue from START. Q2 revenue from
non-START sources was $351,985, a 157% increase from the prior year's
second quarter total revenue and a 73% increase from Q1 2010's non-START
revenue of $203,330. Total revenue for Q2 2010 increased 52% from total
revenue for Q1 2010 of $302,076.
"We are pleased by the magnitude of our second quarter sales growth," said
Mark Schwartz, Chairman and CEO. "For the first half of fiscal year 2010,
HDI has generated 150% of the revenue generated for the entire fiscal year
2009. We are on track to have one of our best years in recent memory,"
continued Schwartz.
Net loss for Q2 2010 was $233,129 or $(.01) per share, compared to a net
loss of $191,165 for Q2 2009, or $.00 per share. Included in the net loss
for Q2 2010 are total non-cash charges (deferred compensation,
depreciation, stock options expense) of $328,817. In Q2 2009, total
non-cash charges were $92,178. Excluding deferred compensation expense,
which is largely influenced by changes in the company's stock price, the
Company generated non-GAAP pro-forma net income of $126,495 for Q2.
The Company reported a cash balance on December 31, 2009 of $1,071,822.
For the six month period which ended December 31, 2009, total revenue was
$760,400, compared to $273,719 for the six month period which ended
December 31, 2008, a 178% increase. For the six month period which ended
December 31, 2009, the Company incurred a net loss of $1,013,196 or $(.02)
per share, including a non-cash charge of $1,171,007, compared with a net
loss of $69,560 or $.00 per share, including a non-cash benefit of
$111,855, for the six month period which ended December 31, 2008.
Excluding deferred compensation expense, the Company generated non-GAAP
pro-forma net income of $110,303 for six months which ended December 31,
2009.
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
2009 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 Six Months Ended
December 31 December 31
---------------------- -----------------------
2009 2008 2009 2008
---------- ---------- ----------- ----------
Revenue:
Equipment sales $ 405,590 $ 96,837 $ 659,825 $ 178,837
Equipment rental 20,082 24,119 45,243 49,816
Warranty, parts &
supplies income 32,653 16,251 55,332 45,066
---------- ---------- ----------- ----------
458,325 137,207 760,400 273,719
---------- ---------- ----------- ----------
Cost of Sales 43,194 35,639 75,978 71,786
---------- ---------- ----------- ----------
Gross Profit 415,131 101,568 684,422 201,933
Selling, general and
administrative expenses 650,666 296,096 1,701,507 281,340
========== ========== =========== ==========
---------- ---------- ----------- ----------
Operating Income (Loss) (235,535) (194,528) (1,017,085) (79,407)
---------- ---------- ----------- ----------
Interest income 2,406 3,363 3,889 9,847
---------- ---------- ----------- ----------
Net income (loss) before
income taxes (233,129) (191,165) (1,013,196) (69,560)
Income Taxes - - - -
---------- ---------- ----------- ----------
Net income (loss) $ (233,129) $ (191,165) $(1,013,196) $ (69,560)
========== ========== =========== ==========
Net income (loss) $ (233,129) $ (191,165) $(1,013,196) $ (69,560)
Deferred compensation
expense 359,625 66,938 1,123,500 (162,750)
Non-GAAP Pro-forma net
income (loss) (excluding
deferred compensation
expense) $ 126,495 $ (124,227) $ 110,303 $ (232,310)
Basic and Diluted Net Loss
per Share $ (0.01) $ 0.00 $ (0.02) $ 0.00
Weighted Average Shares
Outstanding Basic &
Diluted 41,217,897 40,795,820 41,095,804 40,579,411
Balance Sheet Data
December 31, June 30,
2009 2009
------------ ------------
Cash and cash equivalents $ 1,071,822 $ 697,918
Total current assets 1,364,855 1,022,528
Total assets 1,373,357 1,032,787
Total current liabilities 255,009 119,884
Accumulated deficit (28,447,803) (27,434,607)
Total shareholders' equity (307,405) 660,041
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