MINNEAPOLIS, Nov. 3, 2010 (GLOBE NEWSWIRE) -- Vital Images, Inc. (Nasdaq:VTAL),a leading provider of advanced visualization and analysis software, today reported financial results for the third quarter ended September 30, 2010.
Third quarter revenue was $14.9 million, compared to $14.3 million for the third quarter of 2009. Third quarter net income was $554,000, or $0.04 per diluted share, compared to a net loss of $750,000, or $(0.05) per diluted share for the third quarter of 2009.
Third quarter adjusted EBITDA (a non-GAAP measure) was $1.9 million, compared to $1.2 million for the third quarter of 2009. The company's total cash and investments was $137.9 million as of September 30, 2010, compared to $143.1 million as of June 30, 2010. During the third quarter, the company repurchased $5.7 million of common stock under its share repurchase program.
"We are pleased with our year-over-year direct revenue growth," said Michael H. Carrel, Vital Images president and chief executive officer. "We continue to see increased revenue from enterprise sales which offset decreased sales within the CT market. We are confident our cost management, strategic position and calculated investments will enable us to succeed in the market long-term."
Vital Images also reported today that it has been awarded nine Qualifying Therapeutic Discovery Project ("QTDP") grants from the U.S. government in the amount of $1.5 million based on Vital Images' research expenditures for certain therapeutic discovery projects. The QTDP grants will be recognized as an offset to research and development expense in the fourth quarter of 2010. According to Mr. Carrel, "These grants are a reflection of Vital Images' commitment to innovation, patient care and improved user productivity and communication."
Conference Call and Webcast
Vital Images will host a live webcast of its third quarter earnings conference call on Thursday, November 4, 2010 at 10:30 a.m. CT. The webcast can be accessed on the Vital Images website at www.vitalimages.com. An audio replay of the conference call will be available beginning at 2:00 p.m. CT on Thursday, November 4, 2010 through 5:00 p.m. CT on Thursday, November 18, 2010 by calling (888) 203-1112 and entering passcode 4449533.
About Vital Images
Vital Images, Inc. is a leading provider of advanced visualization and analysis software for physicians and healthcare specialists. The company's software provides users productivity and communication tools to improve patient care that can be accessed throughout the enterprise anytime, anywhere via the Web. Established in 1988 and headquartered in Minneapolis, Vital Images also has offices in Europe and Asia. For more information, visit .
Vital Images® and Vitrea® are registered trademarks of Vital Images, Inc. Vital Images disclaims any proprietary interest in the marks and names of others.
The Vital Images, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5843
Non-GAAP Information
To supplement the company's condensed consolidated financial statements presented on a GAAP basis, the company uses adjusted EBITDA (a non-GAAP measure), which excludes certain items presented under GAAP. The company uses adjusted EBITDA to develop budgets, to assess its operating performance, to increase comparability among different periods and to serve as a measurement for incentive compensation. The company uses adjusted EBITDA even though it is not probable that the financial impact of excluded amounts will be immaterial in the future. Additionally, amounts excluded from adjusted EBITDA are managed by and are the responsibility of the company's management. The company believes that adjusted EBITDA is useful to investors because it provides supplemental information that allows investors to review the company's results of operations from the same perspective as management and the company's board of directors.
The method the company uses to produce non-GAAP measures is not in accordance with GAAP and may not be computed the same as similarly titled measures used by other companies. These non-GAAP results should not be considered in isolation or regarded as a substitute for corresponding GAAP measures but instead should be utilized as a supplemental measure of operating performance in evaluating the company's business. Non-GAAP measures do have limitations in that they do not reflect certain items that may have a material impact upon the company's reported financial results. As such, these non-GAAP measures should be viewed in conjunction with both the company's financial statements prepared in accordance with GAAP and the reconciliation of the supplemental non-GAAP financial measures to the comparable GAAP measures.
Forward-Looking Statements
Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are intended to enjoy the protection of the safe harbor for forward-looking statements provided by that Act. These statements involve risks and uncertainties which could cause results to differ materially from those projected, including but not limited to dependence on market growth, challenges associated with international expansion, the ability to predict product, customer and geographic sales mix, fluctuations in interest rates, regulatory approvals, the timely introduction, availability and acceptance of new products, the impact of competitive products and pricing, dependence on major customers, the ability to successfully manage operating costs, fluctuations in quarterly results, approval of products for reimbursement and the level of reimbursement, and other factors detailed from time to time in Vital Images' SEC reports, including its annual report on Form 10-K for the year ended December 31, 2009. Vital Images encourages you to consider all of these risks, uncertainties and other factors carefully in evaluating the forward-looking statements contained in this release. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this release. The forward-looking statements made in this release are made only as of the date of this release, and, except as may be required by law, the company undertakes no obligation to update them to reflect subsequent events or circumstances.
CONTACT: Vital Images Peter J. Goepfrich, Chief Financial Officer (952) 487-9500 www.vitalimages.com Padilla Speer Beardsley Nancy A. Johnson (612) 455-1745 njohnson@psbpr.com Marian Briggs (612) 455-1742 mbriggs@psbpr.com