Compumed, Inc. (CMPD) research, news, and more from GeoInvesting

Company description

Mon, 08 Apr 2019 22:06:13 GMT

CompuMed, Inc. Diagnostic Telemedicine Solutions provide patients with the highest level of clinical care at reduced costs. Our telecardiology and teleradiology solutions provide direct access to U.S. Board-Certified specialists through cloud-based technology and integrated medical devices. The company services over 1,000 clinical settings. We have established a large network for remote electronic processing of electrocardiograms (“ECGs”), echocardiograms (“Echos”), ultrasound studies and X-rays. CompuMed has created an electronic telemedicine infrastructure to link clinical diagnostic equipment data collected at the patient’s point of care with top specialists. We also provide real-time access to specialists for consultations. The equipment that we rent and sell consist primarily of 12-lead ECG and ultrasound devices. CompuMed also provides mobile imaging services, including the administration of radiology and cardiology diagnostic exams. We are providing single lead ECG interpretations for the consumer market through a handheld device. One of our innovations is the workflow technology being used to manage the inflow of data to our servers, and the routing of that data to specialists through technology such as Picture Archiving and Communication Systems (PACS).

Research

Wed, 31 Dec 2025 05:00:00 GMT

CompuMed, Inc. (OTC:CMPD) ($4.09; $5.4M market cap) announced Q4 2025 and full-year results:

Q4 sales of $2,028,284 vs. $1,618,537 in the prior year
Q4 2025 loss per share: ($0.15) vs. EPS of $0.02 in the prior year
FY 2025 sales of $7,546,201 vs. $6,222,018 in FY 2024
FY 2025 loss per share: ($0.05) vs. EPS of $0.15 in FY 2024

Management Commentary

“This performance highlights the resilience of our business model and our ability to adapt to evolving market conditions. EBITDA margin declined during the period, primarily due to higher operating costs, strategic investments to support long-term growth, and one-time third-party professional fees.”

“We have taken significant steps to ensure our leadership team’s interests are directly tied to shareholder success. Following an independent compensation review, the Board issued 400,000 restricted shares to executive officers. These shares do not vest immediately; they are tied to aggressive performance milestones, including stock price targets of $9.00, $12.00, and $15.00 per share. This structure preserves our near-term liquidity while providing a meaningful incentive for long-term value creation, and strengthens the alignment of the executive team and shareholders.”

“As part of our ongoing commitment to strong corporate governance and also given the company’s continued investment in proprietary technology and long-term growth initiatives, the Board adopted a Shareholder Rights Agreement. This measure is intended to protect long-term shareholder value by discouraging coercive takeover tactics and ensuring that the Board has sufficient time to evaluate any proposal that may arise.”

CompuMed, Inc. provides enterprise telemedicine services, including telecardiology, teleradiology, and remote diagnostic solutions that connect medical facilities and patients with board-certified specialists through cloud-based technology.

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Research

Thu, 26 Oct 2023 14:32:03 GMT

Compumed Inc ( OTC:CMPD) ($2.51; $4.1M market cap) - On Monday, CMPD, the go-to provider of clinical organ analysis, offering rapid diagnostic reads by industry-best expert physicians through a seamless platform and process, announced it will integrate the Techcyte Digital pathology reviewing platform to help increase transplanted organs.

Techcyte, Inc.is the world leader in AI-based cellular digital diagnostics.

"CompuMed's collaboration with Techcyte signifies a pivotal moment in the field of transplantation, offering the promise of better organ graft evaluation and higher success rates," says Lee Keddie, CEO of CompuMed. "By leveraging technology to enhance the assessment of transplant organs, this collaboration aims to reshape the landscape of organ transplantation, allowing quicker, more accurate decisions, increasing the organs transplanted, and ultimately, saving more lives."

We added CMPD to our Run to One Model Portfolio in December of 2019 (prior to 1 for 25 split in May 2022). The company’s progress has been slow, and notable top line growth has yet to be achieved. We have been waiting for the company to explore ways to expand its telemedicine business outside its core service offering. It’ll be interesting to see if this new technology partnership can begin to drive top and bottom line growth.

Research

Thu, 15 Jun 2023 12:40:30 GMT

Compumed Inc ( OTC:CMPD) ($1.82; $3.4M market cap), an enterprise telemedicine solutions company that provides clinical care services for patients and medical facilities, announced the purchase of shares held by VI Capital Fund which David Pointer (Director of CMPD) and Lee Keddie (CEO of CMPD) are investors in. The company purchased 425,403 shares or 25.3% of the outstanding shares for $2.00 per share.

“Both David Pointer and Lee Keddie are investors in the Fund. Mr. Keddie is the CEO of CompuMed and both he and Mr. Pointer are Directors of CompuMed. Both Mr. Keddie and Mr. Pointer recused themselves from the Corporation's decision to offer $2.00 per share for shares held by the Fund.”

CMPD plans to retire the shares.

Research

Mon, 16 May 2022 14:42:46 GMT

Compumed Inc ( OTC:CMPD) ($0.18; $7.7M market cap), an enterprise telemedicine solutions company that provides clinical care services for patients and medical facilities, announced Q2 2022 results:

Sales of $1.59 million vs $1.63 million in the prior year

Net profit of $38,994 vs net profit of $143,900

EPS of $0.00 vs $0.00

“At March 31, 2022 CompuMed enjoyed a cash + accounts receivable position of $2.6 million, down 7.0% from December 31, 2021 down 8.5% from one year ago. Over the past several quarters we have meaningfully reduced outstanding lease balances, have increased our equipment portfolio, and have maintained our cash levels with the investments made in technology.

Please note, CompuMed has not utilized the majority of the previously disclosed $1 million share buyback authorization.”

Research

Tue, 15 Feb 2022 17:44:10 GMT

Compumed Inc ( OTC:CMPD) ($0.29; $8.3M market cap), an enterprise telemedicine solutions company that provides clinical care services for patients and medical facilities, announced Q1 2022 results:

Sales of $1.54 million vs $1.47 million in the prior year
Net profit of $121,000 vs net profit of $108,000
EPS of $0.00 vs $0.00

In its Q4 2021 release, the company announced several corporate actions that will be voted on during the annual meeting on March 15, 2022, including a reverse stock split of 1 for 25 and the elimination of preferred stock.

Research

Thu, 16 Dec 2021 05:00:00 GMT

Compumed Inc ( OTC:CMPD) ($0.24; $7.3M market cap), an enterprise telemedicine solutions company that provides clinical care services for patients and medical facilities announced Q4 2021 results:

Sales of $1.45 million vs $1.26 million in the prior year
Net profit of $480,440 vs net profit of $95,789
EPS of $0.00 vs $0.00

"During the fourth quarter of fiscal 2021 CompuMed management made the decision to change the way we account for certain software development costs. Many high technology companies with significant research and development expenses choose to capitalize rather than expense these costs. This more appropriately reflects the value of these investments as they impact the financial performance of the Company in future years. This accounting change had the impact of increasing CompuMed's reported earnings in the first three quarters of the Fiscal Year 2021 by $305,823. Additionally, the change resulted in an Information System Asset of $424,644 being added to the balance sheet."

Announced several corporate actions to be voted on during annual meeting, including a reverse stock split of 1 for 25 and the elimination of preferred stock.

Research

Tue, 17 Aug 2021 17:00:54 GMT

Sales of $1.76 million vs $1.13 million in the prior year
Net profit of $236,428 vs net profit of $86,971
EPS of $0.00 vs $0.00

“Over the past several years, Management of CompuMed has believed that the share price would eventually fairly reflect the fundamental business performance of the Company. Throughout this time, many shareholders have requested that rather than publish a shareholder letter as part of CompuMed's normal quarterly filing with OTC Markets, that the Company issue a press release as many publicly-traded companies do. Although this is less common among OTC Pink sheet companies such as CompuMed, we will initiate this practice starting this quarter. In part, with the hope that investors would place on the CompuMed common share a more appropriate value...

...From the statement of operations shown below this indicates that currently CMPD shares trade at 8.3x trailing earnings. We do not believe this is an appropriate share price reflecting the value of CompuMed's growth.

We believe it is likely that one factor contributing to the low share price is the fact that many brokerage firms today restrict their clients from buying shares in companies whose shares trade at less than $5. Many potential investors in CompuMed are in effect 'left-out' of the market for our shares. Our shareholders should know that CompuMed's leadership is working hard to find solutions to this problem, and we take very seriously our role in delivering value to you as owners of our Company. We most fervently believe that the best way to add value to the owners of CompuMed is our continued focus on the growth in sales, earnings, and cash flow. Nonetheless, we must also explore ways for the CompuMed shareholder to see these benefits reflected in the very method in which each of you determine your own return; the share price.”

We want to look further into this comment from management:

“We enjoyed a great third quarter, and expect overall full year revenue growth to approximate 20%”

With 5 straight quarters of sequential growth, the guidance implies that Q4 may be sequentially down given that at the 9 month mark, the company’s growth stands at around 20%. We’re planning to reach out to management to gain more clarity. We have had a tough time reaching management in the past, but it now appears that they may be more receptive to speaking with us..

Research

Tue, 15 Dec 2020 17:06:09 GMT

Compumed Inc ( OTC:CMPD) ($0.22; $7.3M market cap), an enterprise telemedicine solutions company that provides clinical care services for patients and medical facilities, announced fiscal 2020 year end results:

Q4 sales of $1.26 million vs $1.34 million in the prior year
Q4 EPS of $0.00 vs $0.01 in the prior year

In the year end filing, the company offered a letter to shareholders discussing how an increase in spending for 2020 and coming 2021 is setting the stage for a much stronger and broader technology platform. Here are a few of the highlights from the annual letter:

“Dear CompuMed Shareholders,

2020 was a unique year for CompuMed and the US economy as a whole. Covid-19 dominated the - news, the political debate, and much of the economic activity and spending decisions throughout the year. All industries were and continue to be impacted. As the 2020 calendar year ends Covid cases are reported to once again be on the rise. Most believe that effective vaccines are coming soon. Many believe that Covid will lead to a more rapid acceptance and adoption of telemedicine. We are unsure how this will impact CompuMed as our business serves institutions rather than individual physician/patient relationships. We believe CompuMed’s strong and growing technology platform, fast and helpful customer service, and competitive pricing provide a great value to our markets; positioning our Company to grow in the years ahead.

A few comments from our year:

Revenue gained 4% for the full year including a sequential gain of 11% in our fiscal 4th quarter.

Net income margin fell significantly from 19.3% of revenue to 6.4% of revenue.

Cash and A/R grew 6% sequentially in the 4th quarter to $2,682,050, gaining more than 33% for the full year in spite of significant increases in capex as we continue to upgrade our equipment portfolio.

Value of our equipment portfolio increased 80% net of depreciation, signifying the improvement in the quality, and aging of the machines in our rental fleet.

A 23% increase in CompuMed’s book value during the year.

We want to express our excitement for the future regarding the investments made at CompuMed these past 12 months. These investments had the impact of lowering our current year profitability, nonetheless we think they will prove wise over time. Two additional comments for you to consider:

Additional team compensation over last year of approximately $500,000 ($150,000 was one time in nature). We are pleased to have added strength to our team and to have increased CompuMed’s capacity to grow our operations.

An additional $210,000 over last year in consulting, software development, and outside support costs. CompuMed benefits greatly from many outside contractors and software developers. As we invest in our business you will see these costs increase again in FY2021; we believe they are well worth it and are contributing to a much stronger and broader technology platform on which we are building our future.

We have been unsuccessful in our recent attempts to secure an interview with management. We are very intrigued about the possibility of the company broadening their offerings. We will continue to pursue management to learn more about these opportunities.”

Research

Tue, 24 Mar 2020 16:23:28 GMT

Compumed Inc ( OTC:CMPD ) ($0.29; $4.1M market cap) - In May 2019 we began bringing you some due diligence on CMPD, an enterprise telemedicine solutions company that provides clinical care services for patients and medical facilities.

On December 20, 2019 we published a more comprehensive research note . We've been taking a closer look at the company over the last few days, due to the increased emphasis the government is placing on the adoption of telehealth services, amid the coronavirus crisis.

To determine what this means to the company, it's important to understand the company's business model. We have not been able to secure an interview with the company yet. However, it looks like the company leases certain diagnostic machines to medical centers and then provides tele health services to patients.

CompuMed, Inc.a leader in providing Diagnostic Telemedicine provides patients with the highest level of clinical care and access specialist. Our telecardiology and teleradiology offerings provide direct access to U.S. Board-Certified specialists through cloud-based technology and integrated medical devices. We have established one of the nation's largest networks for remote electronic processing of electrocardiograms ("ECGs"), echocardiograms ("Echos"), ultrasound studies and X-rays. We provide ECG equipment and cardiology services to our clients and perform tens of thousands of ECG interpretations/overreads annually.

The impact on the company in the short term is unclear if we are to assume that less patients will be utilizing out-of-home diagnostic services. It’s possible that current patients would probably use their telehealth services more. The question becomes can the company utilize its current telehealth platform to expand that service to a broader set of uses and patients?.

The company issued a release today letting customers know that they are fully operational during this crisis.

“In response to the current global situation with COVID-19, we want to assure our customers that you will continue to have uninterrupted access to the CompuMed systems and diagnostic services. We understand that your ability to access ECG devices, medical images, and timely diagnostics interpretations could be even more important to you in the coming days and beyond.”

“We recognize that you have put your trust in CompuMed and we take that trust seriously. We are well prepared to continue providing access, support, and service during this difficult time."

Research

Fri, 20 Dec 2019 15:48:30 GMT

Disclosing Initial Position in CMPD and Adding The Stock to Our Run-To-One Model Portfolio

Yesterday, via premium tweet we disclosed a starter position in Compumed Inc ( OTC:CMPD ) ($0.26; $7.1M market cap), an enterprise telemedicine solutions company that provides clinical care services for patients and medical facilities.

We still have much more due diligence to perform, including the need to take a closer look at the telemedicine solutions industry itself. If everything pans out, we still caution that the quarterly results will be volatile, and because of this, our assessment of the company will be on an annual basis . We also added the stock to our Run-To-One mock portfolio.

Yesterday the company reported its 2019 annual results :

Full year sales of $5.0 million vs $3.5 million in the prior year
Full year EPS of $0.03 vs $0.00 in the prior year
Q4 sales of $1.3 million vs $1.0 million
Q4 EPS of $0.01 vs $0.00

Below is a quick overview of what CMPD does, from the Company’s site.

CompuMed Inc. offers state-of-the-art telemedicine infrastructure, 24/7 support and a network of board-certified specialists to deliver world-class clinical care anywhere, anytime and at the best possible value. We currently provide diagnostic telemedicine solutions in cardiology, radiology, dermatology, pathology and diagnostic equipment.

Over the past 30 years, CompuMed’s board-certified cardiologists have successfully completed almost two million ECG interpretations.

CompuMed currently services over 1,000 clinical settings including hospitals, occupational health clinics, urgent care centers, surgical centers, organ procurement organizations, rural clinics, correctional facilities, as well as branches of the U.S. Federal and State Government.

A few more reasons for optimism should be considered from information present in its 2019 annual report , which includes a letter to shareholders (Page 6):

On an annual basis, every financial metric has been improving

The company is making key new hires as it continues to grow.
The company has executed several transactions to reduce its outstanding share count, eliminate dilutive preferred stocks and simplify its capital structure:
- Management has been buying back stock under its Board authorized $1 million buyback announced in 2018.
- In 2018, management redeemed class A and B preferred stock (along with accumulated dividends).
- CompuMed granted the purchase to the CEO as compensation in lieu of 475,000 of the RSU grant and reduced original 1 million RSUs to 525,000 shares. “While this transaction was not a re-purchase of shares (since the shares had not yet been issued to the CEO), the transaction had the effect of reducing the number of new shares issued by 475,000. We believe this was a great opportunity for CompuMed shareholders.”
- CMPD was approached by an investor to purchase 250,000 shares which the company purchased at open market prices
- The company is open to buying more shares from shareholders who are interested and offers contact information if one is interested in such a transaction.

There seems to be no need to raise capital, as CMPD believes cash flow from operations will be sufficient to meet its expected capital needs for the next 12 months. The improvement in the company’s working capital also supports this view. Finally, the company’s current working capital of $1.5 million and free cash flow of $715,064 is greater than the company’s working capital expenditures in each of the last two years.

Valuation metrics:

ROE = 52.6%
ROIC = 84.5%
P/S = 3.1
EV/S = 2.8
Adjusted P/E = 14.9
Debt/Equity = No long term debt
Current ratio = 3.5

Caveats:

There is a legal matter involving the Chairman of the board who provided a loan to the company, but failed to disclose the pledge. We need to look into this situation further for more clarity on how this may affect perception, or even tangible risk for the company going forward.
The share structure still includes class A preferred stock, class A warrants and stock options that, if all are accounted for, would dilute the count by roughly 12 to 18 million shares
- 8 million shares from class A preferred stock conversion
- 4 million shares from class A preferred stock warrants convertible at $0.30
- 5.3 million employee options exercisable at $0.10

We still need to dissect info on the options to determine how much are included in the current basic share count of 32.4 million. While 50 million is right at the top of our preferred diluted share count threshold, the fact that the company has taken steps to reduce shares and minimize dilution is encouraging and has us believing they will continue to do so in the future. Speaking with management should help us to this end.

This comment from its annual report could be concerning to some:

“As regular readers know, CompuMed does not issue any kind of financial guidance. While we remain optimistic about the long-term future of the Company; there is little doubt that the business performance will not be linear . We make decisions in the business based on a long-term view.”

Again, we encourage you to read the letter to shareholders included in the company’s annual report, starting on page 6.