VASCULAR TECHNOLOGIES INCORPORATED & ULTROID TECHNOLOGIES INCORPORATED 1ST QUARTER RESULTS UP 285% VS. PRIOR YEAR
Ultroid Technologies, Inc., the fastest growing medical device Company in the US, and its parent company, Vascular Technologies Inc., that owns Ultroid and also operates Ultroid Wellness Center clinics, announced today its results for the first quarter en
(EMAILWIRE.COM, May 07, 2009 ) (EMAILWIRE.COM, May 07, 2009) Miami, FL - FIRST QUARTER CONSOLIDATED FINANCIAL RESULTS
First quarter volume growth was up 574% to 6,345 Ultroid single use probe kits for the pain-free elimination of varicose veins and Hemorrhoids (HD). Volume was driven by increased utilization amongst current practitioners and distribution expansion to new medical professionals in the US. Volume growth was evenly split across all types of practices including Internal Medicine, Obstetrics and Gynecology, General and Colorectal Surgery, and Family Practice. Revenue increased 285%, resulting from implementation of a new low cost lease model whereby revenue is primarily realized from single use probe sales for each HD treatment, versus the previous sales model where medical device sales were a larger proportion of the mix.
First quarter gross margin was up 140 basis points to 93% vs first quarter 2008, primarily driven by an overall 40% reduction in costs. General and administrative expenses were reduced by 29% as a result of relocation to a new lower-cost headquarters and by employing zero-based budgeting which significantly reduced all non-value-added back office costs. Emplacing a new incentive-based compensation system contributed to a 49% reduction in payroll costs, and implementing a new outsourced global production and logistics solution reduced cost of goods sold by more than 40%.
As a result of these activities, Ultroid became profitable for the first time in its history shifting from a loss of 2 cents per share in the first quarter of 2008, to a gain of 3 cents per share in Q1 of 2009.
Brent Willis, Chairman and Chief Executive of Vascular and Ultroid Technologies commented, “We are on the right track to continue the growth and global expansion of Ultroid. International demand has been robust, and I feel we are just getting started. We are extremely fortunate to have the leading technology, and only pain-free outpatient treatment in a fast growing and large segment of the medical industry. We expect to take full advantage of the trends to quickly build Ultroid into the global standard of care for the treatment of HD (Hemorrhoidal Disease), and to later expand to cosmetic applications with varicose veins and spider veins.
Business Highlights, Progress on Strategic Priorities
In North America, US major medical distributor relationships are gaining traction. Henry Schein continues to expand Ultroid across their network of professionals and telesales operators, and PSS and McKesson have had recent successes with the new Ultroid lease program. Internally, the Company has implemented new sales models and processes, new daily performance tracking systems, and has increased sales force personnel by over 50% vs prior year. The Company expects to continue to place new resources in both regional and headquarters account management roles for the foreseeable future.
International sales are now beginning to materialize and new distribution agreements were finalized in the quarter for expansion in India, Korea, Japan, Vietnam, Russia, Nigeria, South Africa, the Ivory Coast, Egypt, Saudi Arabia, and Dubai. The Company participated in launch kick-offs, doctor training, and trade shows and presented at major medical conferences in many of these markets and is completing the early phases of launch in each of these markets.
In the Marketing and Communication, the company continued to roll out its Continuing Medical Education (CME) program in major metro US markets. The company was recently nominated as the only authorized Company to administer CME in the area of HD. Ultroid also gained the results of a new retrospective study on the performance and efficacy of the Ultroid Medical Device that was performed by the Coshar Foundation. Ultroid will be incorporating these results in its communication materials going forward. The results of the study were extremely encouraging with 100% of doctors satisfied with the device and 100% of patients satisfied, an outcome rarely seen in the medical industry. Doctors reported their primary benefits as ease of use, effectiveness, and the fact that patients can resume normal lifestyles without interruption of day to day activities. 97 % of Doctors reported that Ultroid was their 1st choice in the treatment of Hemorrhoidal Disease (HD).
Our network of medical professionals continued to expand this quarter. The company appointed a Medical Director, Dr. Allison Karolak. Dr. Karolak is a board certified Family Practice Physician that brings a unique perspective and skill set to our firm. Her depth of expertise and knowledge of the medical field significantly enhances the Company’s credibility and brings great support for our network of medical professionals across the globe.
In the area of supply chain and logistics, Ultroid’s transition of production and distribution to Molding Services of Illinois (MSI) has gone seamlessly. In addition to the logistics transition, the Company has been working closely with MSI on the production of the new Ultroid Medical Device, U2. The U2 device is a major step forward for the Company with a start of the art medical device; more ergonomic, major aesthetic improvements, and significantly improved functionality and ease use than the current Ultroid Device.
Financially the Company made important investments during the quarter, all from operating cash flows from the business. In addition to funding the design of the new U2 device, the Company invested in further intellectual property protection, new research and studies, new US Distributor relationships and conferences, new internal sales people, and new international distribution relationships, conferences and country registrations.
Outlook
Ultroid Technologies, Inc. now has exponential top-line growth and is effectively doubling every quarter. In the first quarter of 2009, the Company vaulted to profitability. With good execution on a number of key priorities; expanding US distribution partnerships, publication of further studies validating Ultroid’s efficacy, expanding its network of nurse trainers across the US, and production of the new U2 device, the Company is well positioned for further growth. When coupled with the impact of fulfilling the international contracts already in place, Ultroid’s outlook for the remainder of 2009 is highly encouraging.
About Vascular and Ultroid Technologies, Inc.
Vascular Technologies, Inc. is one of the fastest growing medical device companies in the United States. Its principal product is the Ultroid® Medical System, a non-invasive, pain-free, and lower cost treatment than current procedures for the treatment of Hemorrhoid Disease (HD) with further applications for the treatment of other varicose and spider veins. In over 40,000 procedures Ultroid® has had over a 95% effective rate with no reported complications, and replaces ineffective over-the-counter creams and painful surgeries that can be accompanied by infection and prolonged recovery. The Ultroid® procedure can be performed by any physician, regardless of specialty, in their office, in usually less than 10 minutes. Patients are able to resume their normal daily activities immediately, versus the several month recovery often associated with current laser and other surgical treatments. Ultroid® is the only FDA-cleared Medical Device for the treatment of all grades of Hemorrhoids and accepted by most insurers and Medicare.
The Company's website is www.Ultroid.com. The brand names referenced in this press release are trademarks of Vascular Technologies, Inc. and Ultroid® Technologies, Inc. its affiliated companies, customers, or other third parties. The company manages web video enabled training clinics, Ultroid Wellness Centers and markets and manufactures the Ultroid® Medical Device.
Safe Harbor Statements
This press release may contain forward-looking statements reflecting management's current expectations regarding future results of operations, economic performance, financial condition and achievements of the Company. The forward-looking statements are based on the assumption that operating performance will continue to exponentially grow in line with recent trends and consistent with distribution expansion. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Forward-looking statements, specifically those concerning future performance are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Company's filings. The Company undertakes no obligation to publicly update or revise any forward-looking statements.
First quarter volume growth was up 574% to 6,345 Ultroid single use probe kits for the pain-free elimination of varicose veins and Hemorrhoids (HD). Volume was driven by increased utilization amongst current practitioners and distribution expansion to new medical professionals in the US. Volume growth was evenly split across all types of practices including Internal Medicine, Obstetrics and Gynecology, General and Colorectal Surgery, and Family Practice. Revenue increased 285%, resulting from implementation of a new low cost lease model whereby revenue is primarily realized from single use probe sales for each HD treatment, versus the previous sales model where medical device sales were a larger proportion of the mix.
First quarter gross margin was up 140 basis points to 93% vs first quarter 2008, primarily driven by an overall 40% reduction in costs. General and administrative expenses were reduced by 29% as a result of relocation to a new lower-cost headquarters and by employing zero-based budgeting which significantly reduced all non-value-added back office costs. Emplacing a new incentive-based compensation system contributed to a 49% reduction in payroll costs, and implementing a new outsourced global production and logistics solution reduced cost of goods sold by more than 40%.
As a result of these activities, Ultroid became profitable for the first time in its history shifting from a loss of 2 cents per share in the first quarter of 2008, to a gain of 3 cents per share in Q1 of 2009.
Brent Willis, Chairman and Chief Executive of Vascular and Ultroid Technologies commented, “We are on the right track to continue the growth and global expansion of Ultroid. International demand has been robust, and I feel we are just getting started. We are extremely fortunate to have the leading technology, and only pain-free outpatient treatment in a fast growing and large segment of the medical industry. We expect to take full advantage of the trends to quickly build Ultroid into the global standard of care for the treatment of HD (Hemorrhoidal Disease), and to later expand to cosmetic applications with varicose veins and spider veins.
Business Highlights, Progress on Strategic Priorities
In North America, US major medical distributor relationships are gaining traction. Henry Schein continues to expand Ultroid across their network of professionals and telesales operators, and PSS and McKesson have had recent successes with the new Ultroid lease program. Internally, the Company has implemented new sales models and processes, new daily performance tracking systems, and has increased sales force personnel by over 50% vs prior year. The Company expects to continue to place new resources in both regional and headquarters account management roles for the foreseeable future.
International sales are now beginning to materialize and new distribution agreements were finalized in the quarter for expansion in India, Korea, Japan, Vietnam, Russia, Nigeria, South Africa, the Ivory Coast, Egypt, Saudi Arabia, and Dubai. The Company participated in launch kick-offs, doctor training, and trade shows and presented at major medical conferences in many of these markets and is completing the early phases of launch in each of these markets.
In the Marketing and Communication, the company continued to roll out its Continuing Medical Education (CME) program in major metro US markets. The company was recently nominated as the only authorized Company to administer CME in the area of HD. Ultroid also gained the results of a new retrospective study on the performance and efficacy of the Ultroid Medical Device that was performed by the Coshar Foundation. Ultroid will be incorporating these results in its communication materials going forward. The results of the study were extremely encouraging with 100% of doctors satisfied with the device and 100% of patients satisfied, an outcome rarely seen in the medical industry. Doctors reported their primary benefits as ease of use, effectiveness, and the fact that patients can resume normal lifestyles without interruption of day to day activities. 97 % of Doctors reported that Ultroid was their 1st choice in the treatment of Hemorrhoidal Disease (HD).
Our network of medical professionals continued to expand this quarter. The company appointed a Medical Director, Dr. Allison Karolak. Dr. Karolak is a board certified Family Practice Physician that brings a unique perspective and skill set to our firm. Her depth of expertise and knowledge of the medical field significantly enhances the Company’s credibility and brings great support for our network of medical professionals across the globe.
In the area of supply chain and logistics, Ultroid’s transition of production and distribution to Molding Services of Illinois (MSI) has gone seamlessly. In addition to the logistics transition, the Company has been working closely with MSI on the production of the new Ultroid Medical Device, U2. The U2 device is a major step forward for the Company with a start of the art medical device; more ergonomic, major aesthetic improvements, and significantly improved functionality and ease use than the current Ultroid Device.
Financially the Company made important investments during the quarter, all from operating cash flows from the business. In addition to funding the design of the new U2 device, the Company invested in further intellectual property protection, new research and studies, new US Distributor relationships and conferences, new internal sales people, and new international distribution relationships, conferences and country registrations.
Outlook
Ultroid Technologies, Inc. now has exponential top-line growth and is effectively doubling every quarter. In the first quarter of 2009, the Company vaulted to profitability. With good execution on a number of key priorities; expanding US distribution partnerships, publication of further studies validating Ultroid’s efficacy, expanding its network of nurse trainers across the US, and production of the new U2 device, the Company is well positioned for further growth. When coupled with the impact of fulfilling the international contracts already in place, Ultroid’s outlook for the remainder of 2009 is highly encouraging.
About Vascular and Ultroid Technologies, Inc.
Vascular Technologies, Inc. is one of the fastest growing medical device companies in the United States. Its principal product is the Ultroid® Medical System, a non-invasive, pain-free, and lower cost treatment than current procedures for the treatment of Hemorrhoid Disease (HD) with further applications for the treatment of other varicose and spider veins. In over 40,000 procedures Ultroid® has had over a 95% effective rate with no reported complications, and replaces ineffective over-the-counter creams and painful surgeries that can be accompanied by infection and prolonged recovery. The Ultroid® procedure can be performed by any physician, regardless of specialty, in their office, in usually less than 10 minutes. Patients are able to resume their normal daily activities immediately, versus the several month recovery often associated with current laser and other surgical treatments. Ultroid® is the only FDA-cleared Medical Device for the treatment of all grades of Hemorrhoids and accepted by most insurers and Medicare.
The Company's website is www.Ultroid.com. The brand names referenced in this press release are trademarks of Vascular Technologies, Inc. and Ultroid® Technologies, Inc. its affiliated companies, customers, or other third parties. The company manages web video enabled training clinics, Ultroid Wellness Centers and markets and manufactures the Ultroid® Medical Device.
Safe Harbor Statements
This press release may contain forward-looking statements reflecting management's current expectations regarding future results of operations, economic performance, financial condition and achievements of the Company. The forward-looking statements are based on the assumption that operating performance will continue to exponentially grow in line with recent trends and consistent with distribution expansion. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Forward-looking statements, specifically those concerning future performance are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Company's filings. The Company undertakes no obligation to publicly update or revise any forward-looking statements.
Contact Information:
Ultroid Technologies, Inc.
Mike Wodstrchill
Tel: 877-858-0555
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
Ultroid Technologies, Inc.
Mike Wodstrchill
Tel: 877-858-0555
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
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