HASBROUCK HEIGHTS, N.J., May 23, 2006 (PRIMEZONE) -- U.S. MedSys Corp. (OTCBB:UMSY) (the "Company") is pleased to announce the filing of its Form 10-QSB for the third quarter of fiscal 2006 which showed continued revenue growth for the sixth straight quarter. For the third quarter of fiscal 2006, the Company recognized net revenue of $1,104,819 compared to net revenue of $232,479 for the third quarter of fiscal 2005. Gross profit from operations was $321,862 and $97,637 or an increase of 229% for the respective periods.
Net revenue for the first nine months of fiscal 2006 was $2,784,020 versus $360,035 for the comparative 2005 fiscal period. The Company's gross margin increased to $776,936 versus $225,193 or an increase of 245% for the respective periods. The Company's results from our second quarter over the third quarter, showed an increase of 15.9% in net revenue.
The Net loss for the nine month period decreased to ($2,990,966) as compared to a net loss of ($4,210,335) for the nine months of fiscal 2005. The increased revenue is directly related to the Company's diabetic supply business and its efforts of expanding of existing contracts and programs. The Company has been able to maintain a relatively stable spending pattern during these past nine months but it will increase in the upcoming months, since the Company's manufacturing division in Wilton, Maine has commenced operations.
Total shareholders' equity decreased to ($2,594,899) as of March 31, 2006 from $2,486,089 as of June 30, 2005. For the third quarter of fiscal 2006, the net loss per share recorded was (.03) as compared to (.05) for the third quarter of fiscal 2005. For the first nine months of fiscal 2006, the net loss per share recorded was (.09) as compared to (.15) for the first nine months of fiscal 2005. The Company reported total assets of $3,064,748 as of March 31, 2006 which is a increase compared to the total assets of $3,691,007 reported as of June 30, 2005.
Anthony R. Rubino, CFO, stated: "We continue to be very excited about the growth of our business. Our organization has been able to sustain on average 20% growth over the past six quarters. In mid-March and early April, GMD was added as an approved provider of diabetic supplies to both The Health Care Payors Coalition of New Jersey and CHN Solutions. These two organizations represent a great opportunity for growth for GMD over the next several quarters. We will continue to seek other opportunities for us to expand our diabetic supply program. In addition to the revenue generated by GMD we have also begun to recognize revenue from NEODS, our manufacturing facility in Wilton, Maine. NEODS ability to offer diabetic shoes, custom and semi-custom orthotics and custom orthotic braces are proving to be valuable asset to both GMD and our foot care network. The overall response to our NEODS product line in the marketplace has been very satisfying. We look forward to NEODS continuing contribution to the growth of UMSY. This is a very exciting time for our company and we look forward to a strong finish for fiscal 2006 and we feel we are well positioned for continued growth in 2007."
Investors are encouraged to review the complete report available at www.sec.gov or at the company's website at www.usmedsyscorp.com.
About U.S. MedSys Corp.
U.S. MedSys Corp. is a medical network developer, marketing and distribution organization which provides support services and medical technology to the healthcare industry. U.S. MedSys Corp. is focusing on its core competencies in healthcare delivery, network development and marketing. The Company's purpose is to create a total platform that can be presented to healthcare providers as a means for healthcare administrators to cut costs without sacrificing quality of care to its membership. The UMSY business network consists of Global Medical Direct, a provider of sales, marketing and distribution of self-management products and services to patients with diabetes, PMC/Footcare, LLC, PMC Occular, LLC and New England Orthotic and Diabetic Shoe Company (NEODS), which has been established to manufacture and market semi-custom orthotics, diabetic shoes, insoles and orthotic braces. The company also markets its proprietary wound care program to the nursing home and wound care markets.
Safe Harbor Forward-Looking Statements:
This press release may contain "forward-looking statements" within the meaning of section 27A of the 1933 Securities Act and Section 21E of the Securities Exchange Act. Actual results could differ materially, as the result of such factors as competition in the markets for the company's products and services and the ability of the company to execute its plans. By making forward-looking statements, the company can give no assurances that the transactions described in this release will be successfully completed, and undertakes no obligation to update these statements for revisions or changes after the date of this press release.