STOCKHOLM, Sweden, Feb. 18, 2002 (PRIMEZONE) -- Ortivus AB (publ) significant events:
-- Sales increased during the year by 128 percent to MSEK 152.4 (66.7
preceding year not including Sweet). Sales of Mobimed increased by
159 percent to MSEK 28.7 (11.1).
-- The result before items affecting comparability, depreciation,
amortization and financial items was MSEK 5.8 (-19.0 for the
preceding year not including Sweet). The result after financial
items was charged with items affecting comparability in the amount
of MSEK 49.9 (0.0 for the preceding year). These items include a
writedown of goodwill in the amount of MSEK 47.8 and restructuring
costs in connection with the closing of the office in Goteborg in
the amount of MSEK 2.1. The result after financial items amounted
to MSEK -61.8 (-30.4 for the preceding year not including Sweet)
and after taxes to MSEK -65,9 (-30,5 for the preceding year not
including Sweet).
-- The acquisition of Sweet Computer Services, Inc. (Sweet) has been
highly successful, with strong sales performance during the year
of MSEK 59.2. Net revenues in the United States amounted to MSEK
59.8. The net result on this market was a profit of MSEK 5.9 (not
including amortization of goodwill for Sweet of MSEK 4.2).
-- Ortivus has decided to concentrate its Swedish operations to Taby
by closing the Goteborg office.
-- The rollout of Mobimed 300 during the fall was successful, with
sales of a total of 22 ambulance units in Great Britain, Norway,
Finland and Sweden. Orders for 11 additional ambulance units have
been received.
Financial Report January - December 2001
Sales and result
Consolidated revenue amounted to MSEK 152.4 (66,7*). MSEK 61.0 (51.9) of this revenue referred to sales to Philips Medical System; MSEK 59.2 referred to sales in subsidiary Sweet; MSEK 28.7 (11.1) referred to sales of Mobimed; MSEK 3.5 (3.7) referred to other sales. The revenue from Philips was determined under the contractual minimum guaranty. MSEK 7.2 was recognized as revenue during the year under the agreement for technology and product development between Philips and Ortivus.
Overhead (not including items affecting comparability) amounted to MSEK 137.6 (87.0*), including depreciation and amortization of MSEK 21.3 (15.3). The higher overhead is explained by expenses in the newly acquired subsidiary Sweet, development costs in a cooperation agreement with the University of Uppsala**, and increased consulting costs in conjunction with completion of the new generation of Mobimed. These consulting costs amounted to MSEK 6.1 during the period. No further capitalization of development expenses in Sweet was effected during the period.
Items affecting comparability include a writedown of goodwill for Biosys in the amount of MSEK 47.8 after a cash flow analysis in accordance with RR17, and restructuring costs in connection with the closing of the office in Goteborg in the amount of MSEK 2.1.
The result after financial items amounted to MSEK -61.8 (-30.4*). The operating result before items affecting comparability, depreciation, amortization and financial items was MSEK 5.8 (-19,0). The improved result is explained by a high rate of growth in sales of Mobimed in Great Britain and by the acquisition of Sweet.
Total consolidated cash flow for the period amounted to MSEK -29.6 (- 37,8). Not including the acquisition of Sweet and transactions in connection therewith, the cash flow was MSEK -6.3.
The Group's equity declined during the period to MSEK 161.9 from 207.6. Equity grew by MSEK 20.3 through a new issue of shares in connection with the acquisition of Sweet Computer Services, Inc. Equity has subsequently declined by the year's result in the amount of MSEK -65,9 and translation differences in the subsidiaries in the amount of MSEK - 0.1.
Investments in tangible fixed assets amounted to MSEK 1.8 (2.3).
The Group's liquid funds stood at MSEK 66.0 (95.6). Interest-bearing liabilities amounted to MSEK 0.0 (1.1). The debt to equity ratio was 0 percent (1 percent). The Group's net financial items were MSEK 3.6 (4.0).
The Group had hedged estimated currency inflows in US dollars during the period. Without hedging, the reported result would have been MSEK 4.3 higher. The Group's tax expense of MSEK 4.1 is attributable to Sweet.
The Parent Company's revenue amounted to MSEK 84.8 (65.7) and the result after financial items and taxes amounted to MSEK -82.2 (-18.0), of which MSEK 74.6 (14.0) is attributable to a writedown of shares in subsidiaries.
The Group has estimated accumulated tax loss carryforwards of at least MSEK 140 for year 2001.
Reporting period October - December 2001
Sales and result
Consolidated revenue amounted to MSEK 46.6 (20.5*). MSEK 18.0 (15.7) of this revenue referred to sales to Philips Medical System; MSEK 18.4 (0) referred to sales in subsidiary Sweet; MSEK 7.3 (4.4) referred to sales of Mobimed; and MSEK 2.9 (0.4) referred to other sales. The revenue from Philips was determined by the contractual minimum guaranty. MSEK 3.1 was recognized as revenue during the period under the agreement for technology and product development between Philips and Ortivus.
Operating profit before items affecting comparability, depreciation, amortization and financial items was MSEK 4.0 (-8.2). The result after financial items amounted to MSEK -52.7 (-12.6). Items affecting comparability of MSEK -49.9 impacted the result.
(*) Not including Sweet Computer Services, Inc. (Sweet)
(**) Ortivus cooperates with three researchers at the University of Uppsala to develop a computer-based, decision-making support system for early diagnosis, risk evaluation and treatment of patients with suspected myocardial infarction.
Market
MIDA
Cooperation agreement with Philips Medical System (Agilent Technologies (Hewlett-Packard))
Royal Philips Electronics acquired the Health Care Division of Agilent Technologies during the year, which has become a part of Philips Medical System. This makes Philips one of the three largest suppliers of medical technology equipment and of solutions for the health care industry. The agreements between Ortivus AB and Agilent Technologies have been transferred to Philips. The cooperation will thus continue according to plan. The agreements have a term of five years and consist of a global sole right to sell MIDA and one agreement for technical development work. Both agreements contain provisions for guaranteed minimum compensation totaling USD 32 million. By year-end 2001, Ortivus had recognized USD 13.2 million as revenue.
Mobimed
Marketing and selling efforts resulted in several large orders. Order bookings were very high in Great Britain, where a total of 59 patient and 12 hospital units were ordered (year 2000: 15 patient units and 2 hospital units).
The rollout of Mobimed 300 during the fall was successful with deliveries to customers of a total of 22 ambulance units in Great Britain, Norway, Finland and Sweden. Orders have been received for 11 additional ambulance units. There are 34 ambulance organizations in Great Britain, 10 of which have purchased Mobimed. In West Midland the National Health Service has evaluated different systems for tele-medical transmission of ECG information, which has resulted in a recommendation for Ortivus' system for five ambulance organizations. Discussions are in progress about procurement in this region. In Sweden, discussions are under way with two ambulance organizations for procurement of major systems. Three county councils have complemented their existing systems with a total of two patient and four hospital units. In Norway, two ambulance organizations have purchased a total of 11 Mobimed 300 systems.
Mobimed was installed in a total of 148 ambulances and 24 hospitals in Sweden, Norway, Finland and Great Britain. The system in Finland is a reference installation. Experience from the other reference installations is very positive, which is the basis for orders received.
The new generation of Mobimed was rolled out at AMBEX in Great Britain June 29 - July 1, 2001 and for a broader audience at European Society of Cardiology Convention in Stockholm September 1 - 5, 2001. The system was also presented at the FLISA ambulance trade show in Halmstad September 3 - 5, 2001. The system is based on Windows 2000, which makes it more suitable for broader rollout in the European market via distributors. Ortivus exhibited Mobimed 300 and Biosaca at the Medica trade show in Dusseldorf November 21 - 24, 2001.
Sweet Computer Services, Inc.
Ortivus acquired the American company Sweet January 1, 2001. Sweet is the market leader in the United States for administrative programs for ambulance health care.
Sweet has recently introduced new software that offers a complete administrative system for dispatching, invoicing and patient medical records that has been well received. Sweet's existing sales & service organization and customer base of 1,700 customers all across the United States prepares the way for Mobimed in the American market. Together with Ortivus' clinical systems, a complete product program for ambulance health care can be offered in the United States.
Ortivus AB combines IT and telecommunication in medical/technical applications. The Company develops, manufactures and markets systems and components that save lives and monitor patient health in ambulances, at hospitals and in the home. Ortivus areas of operation are Patient Informatics and decision-making support in the area of acute cardiac disease, pre-hospital monitoring, and analysis and support in investigations of sleep disturbances, epilepsy and other neurologic conditions. Ortivus AB was started in 1985 in Sweden and aside from subsidiary Biosys, subsidiaries are established in the United Kingdom and the United States. In January 2001 the American subsidiary Sweet Computer Services, Inc. was acquired. Sweet is the market leader in the Untied States in the area of administrative programs for ambulance care. Sales in 2001 were MSEK 152. The number of employee is about 110.
Since January 1997, Ortivus AB is listed on the O-list of the Stockholm Stock Exchange (OM Stockholmsborsen AB).
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