DGAP-News: MeVis' growth in 2010 driven by core business:
(firmenpresse) - DGAP-News: MeVis Medical Solutions AG / Key word(s): Final Results
MeVis' growth in 2010 driven by core business:
19.04.2011 / 20:00
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MeVis Medical Solutions continues its product strategy with adjusted
balance sheet
- Group revenues increase by 3% to EUR 14.3 million (previous year: EUR
13.9 million) thanks to strong maintenance business in Digital Mammography
segment
- Maintenance business grows by 44% to EUR 4.6 million (previous year: EUR
3.2 million), while new license business declines by 10% to EUR 9.0 million
(previous year: EUR 9.9 million)
- One-time charges not influencing liquidity lead to negative EBIT of EUR
-5.4 million (previous year: EUR 1.6 million)
- Adjusted EBIT at EUR 0.7 million, with adjusted EBIT margin of 5%
(previous year: 12%)
- Improved financial result of EUR -0.2 million (previous year: EUR -0.5
million)
- Group result at EUR -8.4 million (previous year: EUR 0.4 million) -
impacted by effects of special items on deferred taxes
- Cashflow from current operating activities at EUR 5.0 million (previous
year: EUR 3.1 million)
Bremen, April 19, 2011 - MeVis Medical Solutions AG [ISIN: DE000A0LBFE4], a
leading software company in medical imaging, today announced its final
financial results for fiscal year 2010. Group revenues rose by 3% to EUR
14.3 million on the basis of a stronger maintenance business, while the new
license business declined. Significant contributing factors in this decline
were the lack of market success in the lung CT business and weak sales in
breast MRI. The development of the lung business since 2008 has led to our
recognizing a complete extraordinary impairment loss on the related balance
sheet items, which has had a considerably negative effect on the result,
but not, however, on liquidity. Competition and U.S. market saturation in
breast MRI were additional contributing factors.
Overall, it has become apparent that no new impulses to drive sales
expansion in the license business for newer products were able to emerge.
The declining momentum in the core business of digital breast diagnostics
caused by increasing market saturation in the USA could not be offset by
the pick-up in license sales in other geographic regions.
Revenues from our maintenance contract business, with group-wide growth
amounting to 44%, have continued to develop positively, and, standing at
EUR 4.6 million, now comprise a third of our total revenues (previous year:
23%). FDA approval at the beginning of 2011 enabled the launch of sales of
the three-dimensional tomosynthesis device for breast diagnostics also in
the USA by our industry partner Hologic, Inc. 'We view this as an important
milestone for our Digital Mammography segment,' said Dr. Carl J.G. Evertsz,
CEO at MeVis Medical Solutions AG, 'because this technology further
strengthens our competitive position. Additionally, our tomosynthesis
application captures additional ongoing business with maintenance
contracts for the SecurView(TM) diagnostics workstation.'
The company is continuing to drive its product strategy of developing
disease-oriented software applications at the high end of technological
innovation for diseases of epidemiological importance. In the next two
years, the company plans the successive launch of a series of
disease-oriented applications on the basis of its proprietary Visia(TM)
Enterprise technology, which for the first time will allow for
simultaneously expanding existing industrial partnerships and initiating
new ones. These new products relate to applications in the areas of
cardiovascular diseases, neurology, breast, prostate, lung and colon, and
should gradually lead to significantly higher revenues and profitability in
the Other Diagnostics segment following their market introduction. In 2010,
the completion of the internal Visia(TM) software platform marked a
significant milestone in product development.
With segment revenues of EUR 10.7 million, marking an increase by 7%, the
Digital Mammography segment was once again the strong pillar of the Group.
This is primarily the result of further significant growth in maintenance
revenues, which came to 38% of the segment's revenues in the reporting
period (previous year: 30%). The result for the segment came to EUR 5.4
million (previous year: EUR 6.3 million).
License sales from new products in the Other Diagnostics segment were a
disappointment in a stagnating market. Segment revenues dropped by 8% to
EUR 3.6 million. The primary reason for this decline, besides the continued
weak sales momentum in our lung business since the purchase of the lung CT
product in 2008, was a slowdown in sales for MRI products for breast
diagnostics. Maintenance revenues also increased in this segment, and, at
EUR 0.5 million, amounted to 14% of segment revenues (previous year: 4%).
Adjusted for the two special items, EBIT came to EUR 0.7 million. With a
slightly improved finan-cial result of EUR -0.2 million, pre-tax earnings
for the fiscal year just concluded were therefore EUR -5.6 million
(adjusted for special items: EUR 0.5 million). The higher tax expense of
EUR 2.7 million (due to the special items) results in a consolidated net
loss for the period of EUR -8.4 million, which represents an
earnings-per-share result of EUR -4.89.
The Group balance sheet structure has not undergone any significant changes
due to the special items. The equity ratio, at 62%, is almost at the
previous year's levels (64%).
'For the current fiscal year, we anticipate a slight decline in revenues
and a break-even EBIT result,' said Dr. Robert Hannemann, CFO at MeVis
Medical Solutions AG. 'We are expecting the successive launch of our new
products developed on the basis of the Visia(TM) Enterprise technology to
give a considerable boost to the momentum of the license business, which
should make a positive impact on revenues and profitability beginning in
fiscal year 2012.'
'These products will also be sold by means of new industry partnerships. We
are expecting Visia(TM) Enterprise to be approved for the US market by the
FDA in the second half of the current fiscal year,' commented Thomas E.
Tynes, Executive Board member for marketing at MeVis Medical Solutions AG,
adding: 'Our planned entry into the market for cardiovascular imaging is a
further building block of our company's future growth; it will depend to a
great degree on the success of our cooperation with the Dutch company Medis
medical imaging systems B.V. We will soon make a decision on a complete
takeover of this equity partner.'
Liquid funds fell to EUR 8.2 million on the balance sheet date (previous
year: EUR 15.1 million). Taking into account the outstanding balance for
the acquisition of 49% of the shares of MBS KG totaling up to EUR 7.5
million, which is due as partial payments until 2015, the company continues
to believe that adequate liquidity is available in the current fiscal year.
The Executive Board will solidify its forecasts during the further course
of the fiscal year, taking current market and business development into
account.
The complete financial statements are available for download on the
company's website at http://www.mevis.de/mms/en/Financial_Reports.html.
End of Corporate News
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Language: English
Company: MeVis Medical Solutions AG
Universitätsallee 29
28359 Bremen
Deutschland
Phone: +49 421 224 95 0
Fax: +49 421 224 95 11
E-mail: ir(at)mevis.de
Internet: http://www.mevis.de
ISIN: DE000A0LBFE4
WKN: A0LBFE
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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120763 19.04.2011
Datum: 19.04.2011 - 20:00 Uhr
Sprache: Deutsch
News-ID 33835
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