Company also Provides Update on Recent Developments
NEW YORK, Mar. 17 /PRNewswire-FirstCall/ -- MGT Capital Investments, Inc. (AMEX:MGT), a holding company focused on the Healthcare Information Technology ("HCIT") sector, today reported financial results for the year ended December 31, 2007, announced that it had contracted to buy back an additional 5,349,793 MGT shares and provided an update on strategic milestones.
Tim Paterson-Brown, MGT Chairman and CEO, stated, "Our company made significant progress in 2007 as our Medicsight PLC and Medicexchange PLC subsidiaries signed important commercial agreements and delivered initial revenues. We were also extremely pleased to see that virtual colonoscopy continues to receive important external validation, including the American Cancer Society's (ACS) decision to add Computerized Tomography Colonography (CTC) to its colon cancer screening guidelines. The ACS endorsement, as well as recently introduced Congressional legislation to increase patient access to CTC, is widely expected to lead to routine reimbursement. Increased adoption of CTC screening will in turn drive demand for CAD software to unlock radiologist workflow.
"Overall, I am very pleased by the speed and the quality of our progression. Medicsight recently signed a preliminary agreement with the System Integration division (PACS) of Toshiba Medical Systems Corporation for the resale of its MedicRead Colon software throughout Japan. Medicsight's CAD software is now approved in several markets, and we expect to gain U.S. and Japanese approvals during the course of 2008. Our Medicexchange subsidiary also recently signed a preliminary agreement to acquire the Chinese online business Maydeal.com, and continues to make strides in this market with offices in Beijing and Shanghai and over 40,000 registered users and 1,000 distributors serving 80% of tier 1 and 2 urban hospitals.
"It is with this backdrop that our board of directors began a buyback program in the open market to buy back up to 1 million shares of MGT stock and has authorized the buyback of up to an additional 5.35 million shares of MGT stock. We continue to believe that the current market value of MGT shares does not accurately reflect the underlying value of the MGT group of companies. I know that I speak for our entire company when I say that were are very excited about the growth that is ahead in 2008." Recent Developments
-- The American Cancer Society recently decided to add Computerized
Tomography Colonography ("CTC") to its colon cancer screening
guidelines, commenting that "Provided that advanced, proven techniques
are employed in the clinical setting, CTC is included in the guidelines
as an option for colorectal cancer screening and prevention in average-
risk adults aged 50 years and older."
-- MGT's Board authorized a buyback of up to 1,000,000 shares of MGT stock
between February 14, 2008 and December 31, 2008. The repurchase of
shares by MGT has already begun, and will be made from time to time in
the open market on the American Stock Exchange ("AMEX") and in private
transactions. On March 11, 2008 the MGT Board authorized the buyback
of up to 5,350,000 shares of MGT stock in off-market transactions. Following Board approval, MGT has contracted to purchase 5,349,793 MGT
shares at $3.00 per share in a transaction worth $16,049,379. -- MGT's Medicsight PLC subsidiary announced that it had signed a
preliminary agreement with the System Integration (PACS) division of
Toshiba Medical Systems Corporation ("Toshiba") for the resale of its
MedicRead Colon software throughout Japan. Toshiba will work with
Medicsight to obtain Japanese Ministry of Health, Labor and Welfare
(MHLW) regulatory approval. -- MGT's Medicexchange PLC subsidiary signed a preliminary agreement to
acquire the Chinese online business Maydeal.com. The acquisition of
Maydeal.com will significantly extend Medicexchange's existing online
and offline business offerings in China. The combined business will
provide one of the largest online sources of medical products, news and
services to Chinese Medical Imaging professionals, hospitals and
manufacturers. -- U.S. Representative Barbara Cubin (R-WY) introduced legislation to
increase patient access to CTC. CTC is the innovative screening test
for colorectal cancer that has the potential to save thousands of
lives. Cubin's bill (H.R. 4879, the Virtual Screening for Cancer Act
(VSCA) of 2007) includes CTC as a colorectal cancer screening test
covered under Medicare. CTC, also known as Virtual Colonoscopy, offers
a non-invasive and cost-effective means of detecting early stage cancer
of the colon. -- In November 2007 MGT Chairman and CEO, Tim Paterson-Brown, acquired an
additional 500,000 shares of MGT common stock from an existing
shareholder in a single private transaction at $3.50 per share, for
$1,750,000. He now holds 2,000,000 shares or 5.2% of the Company. Financial Results for the year ended December 31, 2007
For the year ended December 31, 2007 and December 31, 2006 our revenues from operations were $89,000 and $0, resulting from the sale of Medicsight software licenses and from Medicexchange's online advertising and offline service revenues.
Total operating expenses for the year ended December 31, 2007 were $22 million, compared to total operating expenses of $15.7 million for 2006. The increase in operating expenses is attributable in part to costs related to Medicsight's continued business growth.
For the year ended December 31, 2007, net loss was $13.8 million, or $0.35 per share compared to a net loss of $14.9 million, or $0.39 per share, in the same period in 2006. Net loss per share for Fiscal 2007 was based on weighted average of 38,900,383 shares outstanding, compared to a weighted average of 38,092,965 shares outstanding for Fiscal 2006. The decrease in net loss for Fiscal 2007 is principally due to the increase in amounts attributable to minority interests which increased significantly following the Medicsight IPO.
As of December 31, 2007, cash, cash equivalents and marketable securities were $94.6 million compared to $24.7 million at December 31, 2006. The increase in cash balance is attributable to the net proceeds of $85.6 million that the Company received following the listing of its subsidiary on the AIM market of the London Stock Exchange and MGT's sell down of Medicsight shares.
About MGT Capital Investments, Inc.
MGT Capital Investments, Inc is a holding company that focuses on investments in the global healthcare information technology market. The Company has two subsidiaries, Medicsight PLC and Medicexchange PLC.
Medicsight PLC (AIM: MDST) is a leading developer of computer-aided detection (CAD) software solutions. Medicsight's CAD solutions help clinicians utilizing Computed Tomography (CT) scans to identify, measure and analyze suspicious pathology within the colon and lungs. The Medicsight CAD products are validated against one of the world's largest databases of verified CT scan data collected from leading healthcare institutions from around the world. Medicsight products allow radiologists and physicians to review scans more quickly and accurately -- saving both time and lives Medicexchange PLC provides medical imaging professionals with a global web portal containing an online sales, jobs and information channel for diagnostic, treatment and surgery planning solutions. This combined with a variety of relevant clinical papers, training materials and content gives these professionals access to information and products that they otherwise would have difficulty accessing.
Additional information can be found at http://www.mgtci.com/.
All forward-looking statements are made pursuant to the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Potential risks and uncertainties include, but are not limited to, the risks described in company filings with the Securities and Exchange Commission. DATASOURCE: MGT Capital Investments, Inc.
CONTACT: Investor & Media enquiries, Todd Fromer, +1-212-896-1215, , or Garth Russell, +1-212-896-1250, , both of KCSA Strategic Communications for MGT Capital Investments, Inc.
Web site: http://www.mgtci.com/ http://maydeal.com/
|