Hypertension Diagnostics Announces Third Quarter 2010 Results

• Comparable Quarterly Revenue Increases by 95%
• Nine Month Revenue Improves by 162%

ST. PAUL, MNMay 19, 2010 – Hypertension Diagnostics, Inc. (OTC: HDII.OB) (www.hdii.com), today announced financial results for the third quarter of fiscal year 2010 ended March 31, 2010 (Q3 2010).

Revenue for Q3 2010 totaled $126,261 compared to $64,765 for the quarter ended March 31, 2009 (Q3 2009), which represents a 95% increase. The Company’s net loss was $334,377 for Q3 2010 or $(.01) per share, compared with a net loss of $18,989 for Q3 2009, or $(.00) per share. Included in the net loss for Q3 2010 are total non-cash charges (deferred compensation, depreciation, stock options) expenses of $229,317. In Q3 2009, total non-cash benefits were $122,123. The increase in the Company’s stock price during Q3 2010 resulted in a deferred compensation charge of $198,750. The decrease in the Company’s stock price during Q3 2009 resulted in a deferred compensation benefit of $147,000. When deferred compensation expense, which is largely influenced by changes in the Company’s stock price, is excluded the Company generated a non-GAAP pro-forma net loss of $135,267 for Q3 2010 and a net loss of $165,989 for Q3 2009.

For the nine month period ended March 31, 2010 (9 months FY 2010), total revenue was $886,661 compared to $338,484 for the nine month period ended March 31, 2009 (9 months FY 2009), a 162% increase. For the 9 months FY 2010, the Company incurred a net loss of $1,347,573, including a non-cash charge of $1,400,324, or $.03 per share, compared with a net loss of $88,549, including a non-cash benefit of $234,643, or $(.00) per share, for the 9 months FY 2009. When deferred compensation expense, which is largely influenced by changes in the Company’s stock price, is excluded the Company generated a non-GAAP pro-forma net loss of $25,323 for the 9 months FY 2010 and $398,299 for the 9 months FY 2009. The Company reported a cash balance on March 31, 2010 of $942,976.

“We are pleased with the continued rebound in our sales,” said Mark Schwartz, Chairman and CEO. “Our third quarter sales results provide encouragement that our market is recovering. We are implementing a plan to aggressively expand our U.S. independent distribution network. Over the next nine months, the Company’s objective is to double the number of our independent distributor groups in the U.S.,” said Schwartz.
 

 

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.
 

View PDF file: 2010 Quarter 3 Results
 

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: Mark Schwartz, CEO
651-687-9999

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Copyright © 2010 Hypertension Diagnostics, Inc
Last revised Wednesday June 23, 2010
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