MeVis Medical Solutions AG

Earnings Release • Nov 9, 2009

News Details

Corporate | 9 November 2009 07:30

New products deliver third-quarter profits for MeVis Medical Solutions

MeVis Medical Solutions AG / Interim Report/Quarter Results

09.11.2009

Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.

---

* Third quarter sales up 59% from the third quarter of 2008
* Sales in the first nine months almost on a par with the full-year sales
figure for 2008 thanks to positive consolidation effects and increased
maintenance revenue
* EBIT of EUR 0.7 million in the first nine months (previous year: EUR 1.3
million) depressed by depreciation and amortization of development costs of
newly launched products
* Good liquidity position of EUR 16.5 million provides a solid basis for
further company growth

Bremen, November 9, 2009 - Despite unfavorable market conditions in the
current fiscal year, MeVis Medical Solutions AG [ISIN: DE000A0LBFE4] has
increased its consolidated sales by 30% year-on-year, which, at EUR 10.3
million (previous year: EUR 7.9 million), just falls short of the full-year
figure for the previous year. Digital Mammography accounts for
approximately EUR 7.4 million (previous year: EUR 4.9 million) of
consolidated sales, and Other Diagnostics EUR 2.9 million (previous year:
EUR 3.0 million).

This strong company growth can be attributed in particular to the
additional revenue delivered by the new products launched in the current
fiscal year as well as to positive consolidation effects. Had it not been
for this consolidation effect, resulting from the full inclusion of the
high-yield business with our industry partner Hologic, Inc., consolidated
sales in the first nine months would have been down 11% from the previous
year. The third quarter saw the first income from the sale of licenses to
Siemens for the new breast diagnostic reporting and intervention software
Syngo BreVis and Syngo BreVis Biopsy. In addition, license sales of the new
diagnostic software for the automatic ultrasound breast volume scanner
ACUSON S2000 from Siemens, which was launched in the first half of the
year, further progressed very satisfactorily in the third quarter. Lastly,
maintenance revenue accounted for 21% of consolidated sales in the current
fiscal year, triple that of last year's percentage.

Now that market rollout of these new products is complete, their previously
capitalized development costs are now being depreciated. Consequently, the
Group's depreciation and amortization costs rose in the current fiscal year
to EUR 1.9 million (previous year: EUR 0.6 million) causing a strain on the
Group's EBIT in the first nine months of 2009, which contracted to EUR 0.7
million (previous year: EUR 1.3 million). However, the Group's operating
EBITDA increased 31% in this period, to EUR 2.6 million, which reflects the
company's strong operating performance. The EBITDA margin was unchanged at
approximately 25%.

The net financial result of -EUR 0.14 million (previous year: EUR 0.98
million) was particularly impacted by interest cost of arranged
installments on the purchase price of the business divisions acquired in
2008 as well as by lower interest income. Accordingly, MeVis consolidated
earnings for the period dropped to EUR 0.27 million (previous year: EUR
1.35 million), which corresponds to earnings per share of EUR 0.16
(previous year: EUR 0.80).

Operating cash flow decreased in the first nine months of 2009 to EUR 0.55
million (previous year: EUR 1.34 million). 'Payments of around EUR 2.5
million were received in early October, so that they did not account for
operating cash flow at the balance sheet date', says Christian H. Seefeldt,
CFO of MeVis Medical Solutions AG, 'thus, the profitability of the company
remains strong.'

'While Group profitability is heavily burdened by this year's sharp
decrease in demand due to the global economic crisis, we stayed on track
along our growth path', says Dr. Carl J.G. Evertsz, Chairman and CEO of
MeVis Medical Solutions AG. 'Together with the continuing innovation of our
technology platform, which serves as a base for our dedicated
software-solutions, we will take advantage of acquisition opportunities
arising from current economic conditions. Thereby we want to further
accelerate our company growth and supplement our product portfolio.'

The full interim report for the third quarter of 2009 is available for
download at the Company's website at
http://www.mevis.de/mms/en/Financial_Reports.html.

MeVis Medical Solutions is one of the world's leading independent
manufacturers and vendors of software products for medical imaging,
particularly digital radiology. 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) and
magnetic resonance imaging (MRI). MeVis Medical Solution's products analyze
and process this data in such a way as to provide attending physicians with
crucial information for early detection, diagnosis and intervention in the
areas of cancer and lung diseases as well as neurological conditions. The
Company develops its disease-oriented 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.

09.11.2009 Financial News distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de

---

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 Berlin, München, Düsseldorf, Stuttgart

End of News DGAP News-Service

---