MeVis Medical Solutions AG

Earnings Release • Nov 22, 2010

News Details

Corporate | 22 November 2010 07:00

MeVis reports stable group revenues and low profitability

MeVis Medical Solutions AG / Key word(s): Interim Report/Quarter Results

22.11.2010 07:00

CORPORATE NEWS

MeVis Medical Solutions profits from high maintenance revenues in the 3rd
quarter

• Group revenues rose by 6% to 10.9 million Euros in the first three
  quarters (previous year: 10.3 million Euros) due to higher maintenance
  revenues

• Group EBIT of 0.8 million Euros (previous year: 0.7 million Euros)
  influenced by the capitalization of 2.2 million Euros and the
  amortization of 2.6 million Euros

• Group financial result of -0.2 million Euros burdened by lower interest
  income and proportionate loss from 41% investment in Medis

• Group net result for the period of -0.3 million Euros (previous year:
  0.3 million Euros) encumbered by tax expenses of 1 million Euros

Bremen, November 22, 2010 - MeVis Medical Solutions AG [ISIN:
DE000A0LBFE4], a leading company in medical imaging software, today
released its results for the first three quarters of 2010. Group revenues
in the 3rd quarter of 2010 have remained almost at level with the previous
quarter, due to the low sales dynamic in the licensing business. Compared
to the previous year, group revenues decreased by 9% to EUR 3,582,000
(previous year: EUR 3,905,000) in the 3rd quarter.

Revenues in the Digital Mammography segment amounted to EUR 8,230,000
(previous year: EUR 7,374,000) and have once again experienced a
disproportionate growth of 12% in the first three quarters of 2009. This is
especially due to the increase in maintenance revenues in this segment
compared to the previous year. In addition, positive one-time effects on
the revenues from license sales with Siemens in the field of breast MRI
diagnostics, as well as on the maintenance revenues with Hologic in the
field of multi-modal breast diagnostics, were recorded in the 3rd quarter.

Group maintenance revenues have risen by 69% in the first three quarters,
and at
EUR 3,558,000 they represent a third of total group revenues (previous
year: EUR 2,111,000 or 21%).

Revenue growth associated with new products in the fields of neurology,
prostate and lung diagnostics remains depressed in the stagnating U.S.
market. Correspondingly, group revenues in the Other Diagnostics segment
decreased by 8% to EUR 2,677,000 (previous year: EUR 2,895,000) in the
first three quarters of 2010. 'Tightened capital budgets and longer
purchasing cycles of U.S. hospitals have had an adverse impact on several
of our CT and MRI products, which are distributed primarily in the U.S.
market', says Thomas E. Tynes, Executive Board Member responsible for
Marketing & Sales of the MeVis Medical Solutions AG.

Capitalization of group development expenses affecting net income increased
by 24% to EUR 2,163,000 (previous year: EUR 1,748,000) in the reporting
period, and thus contributed substantially to an increase of the EBITDA
(Earnings before Interest, Taxes, Depreciation and Amortization) by 33% to
EUR 3,470,000 (previous year: EUR 2,606,000). Taking into account the
meager increase in revenues, the group's earning position was affected by
the scheduled increase in amortization of development expenses, which
previously had been capitalized. Amortizations increased by a total of 39%
to EUR 2,636,000 (previous year: EUR 1,893,000) in the first three
quarters. The capitalization balance, namely the relationship of
amortizations on capitalized development expenses to newly capitalized
development expenses, increased significantly to 0.62 (previous year: 0.35)
in the reporting period.

Despite considerably higher EBITDA, an increase in EBIT (earnings before
interest and taxes) of only 17% to EUR 834,000 was achieved (previous year:
EUR 713,000). Correspondingly, the EBIT margin increased only slightly to
8% (previous year: 7%).

The financial result in the first three quarters of EUR -160,000 (previous
year: EUR -143,000) has slightly declined compared to the same period last
year. The financial result is affected by positive non-cash changes in the
value of derivative financial instruments used for exchange rate hedging as
well as lower imputed interest expenses. However, the financial result was
encumbered by lower interest received as well as by the proportionate loss
from the 41% Medis capital share, compared to the previous year.

Correspondingly, earnings before tax have improved to EUR 674,000 (previous
year: EUR 570,000) in the reporting period. Taking into account
significantly higher tax expenditures, we closed the first three quarters
of 2010 with a loss of EUR -346,000 (previous year: EUR 272,000). Earnings
per share amount to EUR -0.20 (previous year: EUR 0.16).

'With the gradual market introduction of our new Advanced Applications
based on the Visia(TM) platform, we expect a revitalization in the
licensing business in the future, which will bring respective positive
effects on group sales and profitability. The planned entry into the
cardiovascular imaging market forms an important part of this', says Dr.
Carl J.G. Evertsz, CEO of the MeVis Medical Solutions AG.

'We have sufficient liquidity for financing our future growth. Group assets
totaled EUR 13.7 million on 30 September 2010. Group payment obligations of
EUR 542,000 still exist from previous acquisitions, such as the last
purchasing price installment of the 'R2 Image Checker CT' for the lung
business, as well as up to EUR 12.5 million for the acquisition of 49% of
shares in MBS KG, which is payable in installments until 2015', says Dr.
Robert Hannemann, Chief Financial Officer of the MeVis Medical Solutions AG
since 1 October 2010.

The complete interim consolidated financial report for the 3rd quarter of
2010 is available for download on the company's website at
http://www.mevis.de/mms/en/Financial_Reports.html.

MeVis Medical Solutions AG was founded in 1997 and is one of the world's
leading independent manufacturers and vendors of medical imaging software
with focus on dedicated, disease-oriented clinical applications. Over the
past few years, there has been an enormous increase in the complexity and
volume of medical imaging data derived from digital imaging processes such
as computed tomography (CT), magnetic resonance imaging (MRI), and
ultrasound (US). MeVis Group's products analyze and process this data in
such a way as to provide medical professionals with crucial information for
early detection, diagnosis and intervention in the areas of cancer and lung
diseases as well as neurological conditions. The Group develops its
software solutions in close consultation with the world's leading medical
experts and original equipment makers in the medical technology sector and
primarily markets this software via these partnerships.

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Corporate contacts:
MeVis Medical Solutions AG
Dr. Kai Holtmann
Investor Relations Manager
Tel:
+49 421 22495-63
E-mail: kai.holtmann@mevis.de

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Language: English
Company: 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 München, Düsseldorf, Berlin, Stuttgart

End of Announcement DGAP News-Service

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