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CardioComm Solutions Inc. Announces Q3 Financial Report Revenues Rise 195%
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VICTORIA, B.C., November 24, 2004 – CardioComm Solutions Inc. (TSX-V:CCG) (the "Company", "CardioComm"), is pleased to report its financial results for the third quarter ended September 30, 2004. Please refer to the Company’s financial statements and management’s discussion & analysis filed electronically at www.sedar.com.
Revenues for the third quarter of 2004 were $629,040 compared to $213,510 for the third quarter of 2003. This represents a $415,530 (195%) increase in revenue over the same period 2003. CardioComm narrowed its losses for the quarter recording a net loss of $143,627 for the third quarter 2004 as compared to a net loss of $325,148 in the same period last year.
Cost of sales as a percentage of revenue in Q3 2004 was 6% compared to 18% in Q3 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 $306,379 in the third quarter of 2004 as compared to $187,818 in the same period last year. The expenses increased by $118,561 (63%) 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 third quarter of 2003. Together, these two non-cash adjustments amounted to $45,003 in Q3 2004 compared to only $5,653 of accretion expense in the same period last year. In addition, the Company made significant enhancements to its regulatory and quality systems.
During the third quarter, Sales and Marketing expenditures were $178,392 as compared to $175,172 in the same period last year. The expenses marginally increased by $3,220 (2%) for the third quarter of 2004 compared to the same period last year.
Lastly, Product Development expenses were $281,903 during the period as compared to $176,901 for the same period last year. This expense increased by $105,002 (59%). 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 |
