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CardioComm Solutions Inc. Announces Record Q2 Financial Report Revenues Rise to $854,601 (up 387%)
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VICTORIA, B.C., August 25, 2004 – CardioComm Solutions Inc. (TSX-V:CCG) (the "Company", "CardioComm"), is pleased to report its financial results for the second quarter ended June 30, 2004. Please refer to the Company’s financial statements and management’s discussion & analysis filed electronically at www.sedar.com.
“I am delighted to report that in the last three consecutive quarters, the Company has recorded its highest quarterly revenue amounts in its history. We expect this trend to continue into the future. During the first six months of 2004, we almost surpassed the revenue numbers for all of 2003 and, importantly, we continue to do so profitably,” stated Stephen Martin, CardioComm’s CEO .
Revenues for the second quarter of 2004 were $854,601 compared to $175,551 for the second quarter of 2003. This represents a $679,050 (387%) increase in revenue over the same period 2003. CardioComm recorded a net profit of $24,826 for the second quarter 2004 as compared to a net loss of $430,084 in the same period last year.
Cost of sales as a percentage of revenue in Q2 2004 was 10% compared to 15% in Q2 2003. This decrease can be attributed to the higher concentration of revenue derived from distributor sales, and custom solutions revenue which resulted in substantially reduced install and training costs.
General and Administrative expenditures were $270,096 in the first quarter of 2004 as compared to $237,443 in the same period last year. The expenses increased by $32,653 (14%) due to significant non-cash accounting adjustments for the expensing of stock compensation as well as the accretion of the convertible notes that were issued in the second quarter of 2003. Together, these two non-cash adjustments amounted to $27,262 in Q2 2004 compared to only $865 of accretion expense in the same period last year.
During the second quarter, Sales and Marketing expenditures were $260,356 as compared to $182,885 in the same period last year. The expenses increased by $77,471 (42%) for the second quarter of 2004 compared to the same period last year. The increase is due to the higher cost of goods sold expense of $83,469 in Q2 2004, associated with the large increase in revenue compared to $28,927 cost of goods sold expense in Q2 2003.
Lastly, Product Development expenses were $283,871 during the period as compared to $170,202 for the same period last year. This expense increased by $113,669 (67%). This rise is directly attributable to an increase in the number of product development staff now employed by the Company.
About CardioComm Solutions Inc: CardioComm's patented and proprietary technology is used in products for the recording, viewing, analyzing and storing of electrocardiograms (ECGs), for diagnosis and management of cardiac patients. The Company’s products are sold worldwide through a combination of its external distribution network and its North American based sales team. CardioComm has achieved its technical goals of improved access and communication through the development of a real-time ECG viewer. CardioComm is the first company to provide a real-time means of viewing ECGs over a network (LAN, WAN or Internet). This tool enables ECGs to be viewed and controlled live, by physicians, over a global virtual healthcare network. This technology is marketed as Global ECG Management System (GEMS™) and GlobalCardio™. CardioComm's software products have been cleared for sale in the United States by the U.S. Food and Drug Administration. The Company has earned the latest ISO 13485 certification.
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On behalf of the Board of Directors of CardioComm Solutions Inc.:
“Stephen Martin”
Stephen R. Martin, President & CEO
For investor information, please contact: Stephen Martin |
