MeVis Medical Solutions AG

Earnings Release • May 18, 2010

News Details

Corporate | 18 May 2010 07:30

MeVis Group consolidates its leading market position in 1st quarter:

MeVis Medical Solutions AG / Quarter Results

18.05.2010 07:30

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Thanks to its market leadership in the field of breast diagnostics, MeVis
Medical Solutions continues to grow in 1st quarter

• Strong Digital Mammography segment causes quarterly Group sales to rise
  by 7.5%, to reach 3.7 million euros (previous year: 3.4 million euros)

• Group EBIT drops to 0.15 million euros (previous year: EUR 0.44 million
  euros)

• Group net financial income improves to -0.25 million euros (previous
  year: -0.39 million euros)

• Consolidated net profit for the period reaches -0.15 million euros
  (previous year: 0.13 million euros)

• Cash flow from operating activities increases to 1.8 million euros
  (previous year: -0.2 million euros)

Bremen, May 18, 2010 - MeVis Medical Solutions AG [ISIN: DE000A0LBFE4], a
leading medical imaging software company, today published its results for
the 1st quarter of the year 2010. According to the figures, Group sales
continued to grow in its profitable core business. The primary reason for
this was a significant increase as planned in maintenance and service
revenues compared with the previous year. At the same time, the cost
reduction measures initiated last year led to a further reduction in other
operating expenses. Accordingly, it was possible to keep earnings before
interest, taxes, depreciation and amortization (EBITDA) stable at about 1
million euros despite a lower capitalization level of development costs.
However, the increased depreciation/amortization of capitalized development
costs year-on-year in the first quarter led to a decline in earnings before
interest and taxes (EBIT) to 0.15 million euros (previous year: 0.44
million euros).

The business segment of digital mammography, which generates the lion's
share of sales revenues within the Group, recorded an increase of 18%, to
2.7 million euros (previous year: 2.2 million euros), again making a
disproportionately large contribution to growth. What was of decisive
importance in this respect were the new 'BreastCare' products launched in
the course of 2009 as well as the planned increase in maintenance and
service revenues thanks to an expanded installation base.

Consolidated sales in the business segment of Other Diagnostics decreased
by 13%, to about 1 million euros (previous year: 1.15 million euros). This
decline is mainly attributable to the release change of the lung product
Visia(TM) CT Lung System. Anticipation of the release of this latest
product generation resulted in a decline of orders for the current product
version in Q1. The extension of the Group's market position with its new
products in the fields of neurology and prostate was only partially
successful in the first quarter.

Personnel capacity, at 182 employees (full-time equivalents) remained
almost unchanged at Group level (previous year: 186). In spite of extensive
cost-cutting measures in fiscal 2009, it was possible to reduce other
operating expenses once again by 24% year-on-year, to 0.62 million euros
(previous year: 0.8 million euros). However, Group profitability declined
on account of increased scheduled depreciation and amortization of
capitalized development costs to an EBIT margin of 4% (previous year: 13%).

Net financial income improved to -0.25 million euros (previous year: -0.39
million euros). In this context, the change in value of financial
derivatives for hedging exchange rates contributed, as did currency
translation gains and the pro-rata results of the minority holding acquired
in the Dutch company Medis Holding B.V. in January.

Consolidated net result for the period, amounting to -0.15 million euros
(previous year: 0.13 million euros), made a corresponding contribution
equivalent to earnings per share of -0.09 euro (previous year: 0.08 euro).

Cash flow from operations increased significantly in the first quarter, to
1.8 million euros (previous year: -0.2 million euros). What was of decisive
importance in this context was the 0.95 million euros decrease in trade
receivables in the period under review (previous year: 0.24 million euros).

With 15.5 million euros in liquid funds (previous year: 15.1 million
euros), the MeVis Group continues to have sound financial resources.
Moreover, as at the balance sheet date the Company held treasury shares
worth approx. 2.7 million euros. Other financial liabilities amounting to
13.2 million euros are essentially related to the remaining payment
obligations arising from the acquisition of business shares and units.

'Launching the new Visia(TM) CT Lung System represents the first in a
series of product introductions planned for the next several quarters,
which are based on the company's proprietary MeVisAP technology platform.
Several new products, to address applications in the medical fields of
liver, breast, lung, neurological, prostate and colonoscopy, are expected
to generate additional sales and profitability in the Other Diagnostics
segment in the following two years.,' says Thomas E. Tynes, President and
CEO of MeVis Medical Solutions, Inc. and a member of the Management Board
of MeVis Medical Solutions AG.

'Following the speedy market rollout of our next Visia(TM) product
generation we perceive very good prospects for the further extension of our
distribution channels,' says Dr. Carl J.G. Evertsz, 'and that's why we
affirm our forecast for the current financial year.'

The complete consolidated interim financial statements for Q1/2010 are
available for download on the company's website at
http://www.mevis.de/mms/en/Financial_Reports.html.

18.05.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.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 Berlin, München, Düsseldorf, Stuttgart

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