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Vaso Corporation (VASO) reported earnings per share of a penny in the second quarter of 2024, flat year over year.
Revenues in Detail
Vaso registered revenues of $20.2 million in the second quarter, down 0.5% year over year.
Lower revenues from the majority of the segments dampened the topline.
The backlog in Vaso’s IT segment was $39.4 million at the end of the second quarter, which reached a multi-year high.
Segment Details
Vaso derives revenues from three segments — Managed IT systems and services, Professional sales services and Equipment sales and services.
For the quarter under review, Managed IT systems and services revenues were $10.6 million, up 1.5% from the year-ago quarter. This primarily resulted from higher network service revenues, offset by $0.4 million lower revenues in the healthcare IT business.
Vaso’s monthly recurring revenues in the IT segment accounted for $8.8 million (83% of the segment’s revenues in the second quarter of 2024), down 5.9% year over year.
Professional sales services revenues during the second quarter were $9.1 million, down 0.3% year over year. The decrease was due primarily to lower deliveries of diagnostic imaging equipment. However, this was largely offset by increased deliveries of ultrasound products by GE Healthcare in the second quarter of 2024 compared with the prior-year quarter and by slightly higher blended commission rates.
Revenues in the Equipment sales and services segment totaled $0.5 million, down 29.8% year over year. The decline was due to the result of lower sales of ARCS cloud software as a service in the United States, mainly due to the loss of a large customer for its inability to pay and lower equipment deliveries in Vaso’s China operations.
Vaso Corporation Price, Consensus and EPS Surprise
In the quarter under review, Vaso’s gross profit declined 4.3% year over year to $12.2 million. The gross margin contracted 240 basis points (bps) to 60.1%.
Adjusted Operating Expenses Analysis
Selling, general and administrative expenses increased 1.7% year over year to $10.8 million. Research and development expenses declined 5.5% year over year to $0.2 million. Total adjusted operating expenses of $11 million increased 1.5% year over year.
Profitability
Adjusted operating profit totaled $1.1 million, which decreased 39.2% from the prior-year quarter. The adjusted operating margin in the second quarter contracted 348 bps to 5.5%.
In the second quarter, Vaso’s net income was $1.2 million, down 41.7% from the year-ago quarter.
Adjusted EBITDA during the reported quarter was $1.2 million, down 42.5% from the year-ago quarter.
Liquidity & Debt Management
Vaso exited second-quarter 2024 with cash and cash equivalents and short-term investments of $25.7 million compared with $23.8 million at the first-quarter end.
Cumulative net cash provided by operating activities at the end of second-quarter 2024 was $1.7 million compared with $6 million a year ago.
Our Take
Vaso exited the second quarter of 2024 with dismal top-line results. Lower revenues from the majority of the segments and lower monthly recurring revenues in the IT segment were also discouraging. During the reported quarter, both the gross and adjusted operating margins contracted, which did not bode well.
On a positive note, an uptick in Managed IT systems and services revenues during the reported quarter was impressive. The multi-year high backlog in the IT segment was also promising.
Image: Bigstock
VASO Q2 Earnings Flat Y/Y, Revenues Down, Gross Margin Contracts
Vaso Corporation (VASO) reported earnings per share of a penny in the second quarter of 2024, flat year over year.
Revenues in Detail
Vaso registered revenues of $20.2 million in the second quarter, down 0.5% year over year.
Lower revenues from the majority of the segments dampened the topline.
The backlog in Vaso’s IT segment was $39.4 million at the end of the second quarter, which reached a multi-year high.
Segment Details
Vaso derives revenues from three segments — Managed IT systems and services, Professional sales services and Equipment sales and services.
For the quarter under review, Managed IT systems and services revenues were $10.6 million, up 1.5% from the year-ago quarter. This primarily resulted from higher network service revenues, offset by $0.4 million lower revenues in the healthcare IT business.
Vaso’s monthly recurring revenues in the IT segment accounted for $8.8 million (83% of the segment’s revenues in the second quarter of 2024), down 5.9% year over year.
Professional sales services revenues during the second quarter were $9.1 million, down 0.3% year over year. The decrease was due primarily to lower deliveries of diagnostic imaging equipment. However, this was largely offset by increased deliveries of ultrasound products by GE Healthcare in the second quarter of 2024 compared with the prior-year quarter and by slightly higher blended commission rates.
Revenues in the Equipment sales and services segment totaled $0.5 million, down 29.8% year over year. The decline was due to the result of lower sales of ARCS cloud software as a service in the United States, mainly due to the loss of a large customer for its inability to pay and lower equipment deliveries in Vaso’s China operations.
Vaso Corporation Price, Consensus and EPS Surprise
Vaso Corporation price-consensus-eps-surprise-chart | Vaso Corporation Quote
Vaso Gross Margin
In the quarter under review, Vaso’s gross profit declined 4.3% year over year to $12.2 million. The gross margin contracted 240 basis points (bps) to 60.1%.
Adjusted Operating Expenses Analysis
Selling, general and administrative expenses increased 1.7% year over year to $10.8 million. Research and development expenses declined 5.5% year over year to $0.2 million. Total adjusted operating expenses of $11 million increased 1.5% year over year.
Profitability
Adjusted operating profit totaled $1.1 million, which decreased 39.2% from the prior-year quarter. The adjusted operating margin in the second quarter contracted 348 bps to 5.5%.
In the second quarter, Vaso’s net income was $1.2 million, down 41.7% from the year-ago quarter.
Adjusted EBITDA during the reported quarter was $1.2 million, down 42.5% from the year-ago quarter.
Liquidity & Debt Management
Vaso exited second-quarter 2024 with cash and cash equivalents and short-term investments of $25.7 million compared with $23.8 million at the first-quarter end.
Cumulative net cash provided by operating activities at the end of second-quarter 2024 was $1.7 million compared with $6 million a year ago.
Our Take
Vaso exited the second quarter of 2024 with dismal top-line results. Lower revenues from the majority of the segments and lower monthly recurring revenues in the IT segment were also discouraging. During the reported quarter, both the gross and adjusted operating margins contracted, which did not bode well.
On a positive note, an uptick in Managed IT systems and services revenues during the reported quarter was impressive. The multi-year high backlog in the IT segment was also promising.