MeVis Medical Solutions AG / Interim Report/Half Year Results
28.08.2009
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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* 16% increase in revenues despite decline in demand due to consolidation
effect
* Succesful cost management secures EBIT of EUR 0.5 million (H1 2008: EUR
0.9 million)
* Consolidated profit amounts to EUR 0.2 million (H1 2008: EUR 0.9 million)
* Significant increase of cash flow from operating activities to EUR 1.6
million (H1 2008: 0.67 million)
* Positive impetus expected from three new products in the second half of
the year
Bremen, August 28, 2009 - Despite ongoing buyer reluctance of clinical end
users, MeVis Medical Solutions AG [ISIN: DE000A0LBFE4] increased its
consolidated sales revenues by 16% during the first half of fiscal 2009 to
the amount of approx. EUR 6.5 million (H1 2008: EUR 5.5 million). Revenues
are spread across the segments of Digital Mammography, amounting to EUR 4.5
million (H1 2008: EUR 3.4 million), and Other Diagnostics of EUR 1.9
million (H1 2008: EUR 2.1 million).
The second quarter of the current fiscal year, like the first, was marked
by purchasing restraint on the part of clinical end users due to the
continuing global economic crisis. This has slowed our pace of growth.
While consolidated sales revenues increased by 16% year-to-year, this is
solely attributable to the positive consolidation effect resulting from the
complete integration of the Hologic business into the MeVis Group. Had it
not been for this consolidation, sales would have fallen by around 20%
compared to the first half of 2008.
MeVis reported a significant year-to-year decrease in demand by its
industry partners for software products in its Digital Mammography
business segment. This correlates with the overall weakness of the market
for Digital Mammography, which is due to reductions in capital budgets and
spending, and long sales-cycles. Were it not for this poor performance,
which had a negative effect on company sales in the Digital Mammography
segment, sales growth would have been more significant in this highly
profitable segment.
In contrast, the Other Diagnostics segment reported a decline in sales of
only 8%. This segment now also includes MeVis' new neuro diagnostic and
surgical planning software which is marketed by OEM partner Invivo as
DynaSuite(TM) Neuro - as well as several additional products under
development. As expected, the associated high development expenses weighed
heavily on the operating results of the segment. This burden was not fully
offset at a consolidated level in the first half of the year as originally
planned. This is attributed to the overall economic environment and, in
particular, the distinct decline in demand in the Digital Mammography
segment since Q4 2008.
'Accordingly, our operating EBIT margin at a consolidated level dropped to
7%', says Christian H. Seefeldt, CFO of MeVis Medical Solutions AG. 'With
our promptly initiated cost-cutting measures we could successfully counter
the weak overall sales performance and prevent group profitability from
slipping further. For example, other operating expenses have been reduced
by 19% year-to-year'.
The Group's net financial result, amounting to EUR 0.76 million (H1 2008:
EUR 0.58 million), suffered considerably on account of the lower level of
interest rates year-to-year as well as calculated interest on payment
installments related to the acquisitions carried out in 2008. Accordingly,
MeVis reports consolidated earnings for the period of only EUR 0.16 million
(H1 2008: EUR 0.92 million), which corresponds to earnings per share of EUR
0.09 (H1 2008: EUR 0.67).
Our operating cash flow increased significantly from EUR 0.67 million in
the first half of 2008 to EUR 1.6 million in the first half of 2009. This
equates to approximately one quarter of consolidated revenues. As a result,
the operating cash flow almost fully covered not only the company's current
investments but also investments in capitalized development costs for
planned future corporate growth.
During the first half-year 2009 MeVis has introduced two new innovative
products: The diagnostic software for the ACUSON S2000(TM) ABVS ultrasound
breast scanner from Siemens and the diagnostic and interventional software
DynaCAD(R) Prostate for Invivo. Additionally, the company further
strengthened its market position in the magnetic resonance imaging segment
by releasing the Syngo BreVis MRI diagnostic and interventional software
application for Siemens.
'While continuing to pursue our growth strategy, we will increase our
efforts in the second half of this year to improve results', says Dr. Carl
J.G. Evertsz, CEO of MeVis Medical Solutions AG. Such means include the
introduction of further products and the expansion of existing sales
partnerships. Currently, around 94% of the company's consolidated revenues
are generated through OEM distribution. Through this sales channel, if
demand for medical equipment falls, sales of software licenses typically
decline accordingly.
'By progressively building up new sales partnerships and expanding products
which bear our own brand and trademark Visia(TM), we intend to open up
alternative channels of distribution and after-market sales for our
software applications', says Thomas E. Tynes, President & CEO of MeVis
Medical Solutions, Inc. and CMO of MeVis Medical Solutions AG. These
after-market sales shall increasingly provide a complimentary source of
incremental, high-margin revenues for the company. Maintenance revenues
almost quadrupled in the first half of 2009 year-to-year amounting to EUR
1.1 million.
Evertsz: 'Although we expect our new products to make an increasingly
positive contribution to sales over the course of the second half of the
year, the business environment will remain extremely tough for the MeVis
Group for the rest of the year. We assume that sales will continue to
fluctuate significantly from month to month. For that reason, we have
decided not to issue any forecast for expected sales and results for MeVis
Group in 2009.'
The full interim report for the first half of 2009 is available for
download at the Company's website at
http://www.mevis.de/mms/en/Financial_Reports.html.
DGAP 28.08.2009
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Language: English
Issuer: MeVis Medical Solutions AG
Universitätsallee 29
28359 Bremen
Deutschland
Phone: +49 421 330 74-0
Fax: +49 421 330 74-50
E-mail: ir@mevis.de
Internet: http://www.mevis.de
ISIN: DE000A0LBFE4
WKN: A0LBFE
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart
End of News DGAP News-Service
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DGAP-News: MeVis Medical Solutions successfully defies adverse economic environment during the first half of 2009
| Source: EQS Group AG