LMS YTD revenue increases 80% to $2.85 million realized contracts for 2007 increase 134% to $5.85 million from $2.50 million in
June 12 2007 - 5:26PM
PR Newswire (US)
MONTREAL, June 12 /PRNewswire-FirstCall/ -- LMS Medical Systems
(TSX: LMZ, AMEX: LMZ), a healthcare technology company and
developer of the CALM(TM) clinical information system and risk
management software tools for obstetrics, today reported its
audited financial results for the fiscal year ended March 31, 2007.
All amounts are in Canadian dollars. Annual revenues increased 80%
to $2.85 million from $1.58 million in 2006. Comparative quarterly
revenue for Q4 2007 increased to $1.44 million from $262,000. In
addition, orders signed though not completed due to client
availability or timely recognition of revenue represented an
additional $0.9 million or total realized contracts of $2.34
million for Q4. The backlog of signed and recurring contracts in Q4
2007 increased by 26% to $4.40 million from $3.50 million reported
in Q3. The continued increase in revenues is a reflection of new
hospital installations completed during Q4, as well as related
recurring maintenance and technical revenues, which continue to
grow as a result of an increasing client base. The net loss for the
year was in line with expectations at $9.31 million ($0.50 per
share) compared to $9.41 million ($0.57 per share) in 2006. Revenue
growth of $1.27 million was offset somewhat by higher direct costs
of 0.2 million. In addition, in anticipation of new revenue
opportunities, sales and marketing expenses were increased by $0.54
million. Other net increases in expenses and a reduction in
investment tax credits of $0.2 million accounted for the balance of
the change. Cash, cash equivalents and short-term investments held
to maturity, as at March 31, 2007 totaled $3.46 million compared to
$5.58 million as at March 31, 2006. The decrease of $2.12 million
is explained by our loss of $9.31 million reduced by non-cash items
of $1.43 million, inflows from financing activities of $6.06
million, and outflows from capital spending and debt repayment of
$0.25 million. In addition, at March 31, 2007 LMS had additional
$1.95 million of liquidities consisting of contractual backlog
receivables and deferred revenues, which are not recognized under
generally accepted principles in the March 31, 2007 financial
statements, but represent additional liquidity for LMS, as the
deferred revenue liability related to these items is a non-cash
item, which will be settled by delivery of LMS software products
and services, in the normal course of operations. With a robust
pipeline of products, LMS has been focusing its efforts in 2007 on
the expansion of its sales and distribution network and growth of
its revenues. During the past year, LMS has achieved the following
accomplishments: - Attained record revenues of $2.85 million, an
increase of 80% over 2006. - Tripled the order backlog to $4.40
million from $1.40 million at the end of 2006. - Realized a 134%
increase in total new contracts of $5.85 million, including
recorded revenues and new backlog, compared to $2.50 million in
2006. - Sustained the value of identified sales opportunities at
$25 million, while increasing the order backlog. - Completed
private placements generating $6.05 million in net cash proceeds. -
Tripled the number of new client installations to 27 from 9 in
2006, bringing the total installed base to 56 client sites. -
Completed its first hospital group win, having been selected by
IASIS Healthcare LLC, to install CALM CIS at 12 facilities
providing obstetrical services in five US states. - Fulfilled the
programming phase of the interoperability components for the
private label OB solution under development with McKesson.
Completion of the software bridge enables a seamless flow of
administrative and clinical information between the LMS system and
hospital information management systems. Quality assurance on the
application is currently being carried out, early field
implementation being followed immediately by release to the
marketplace. Business Outlook and Guidance As previously announced,
LMS anticipates that revenue and backlog growth will continue due
to following factors: - LMS' growing presence in the marketplace is
the result of sales efforts with several hospital groups, the
continued success of which should drive further additional revenue
opportunities. - Increases in revenues related to the CALM Clinical
Information System and our risk management tools are anticipated
pending the release of interoperability components for a private
branded product developed in conjunction with McKesson where
commercial availability of this product is scheduled for this
summer. - As a result of increased system sales and our growing
client base, revenues from maintenance and technical support
service agreements are also expected to increase commensurate with
the growth of our installed base. - Additional revenues are
expected from the commercial release of CALM Patterns this year. -
New products and business alliances are being pursued to develop
additional market opportunities thereby extending the reach of LMS'
existing line of software and risk management tools. An expanded
Management's Discussion and Analysis for 2007, and previous
periods, is accessible on the LMS website at
http://www.lmsmedical.com/ and with Company's regulatory filings in
Canada at http://www.sedar.com/ and in the United States at
http://www.sec.gov/. ABOUT LMS LMS is a leader in the application
of advanced mathematical modeling and neural networks for medical
use. The LMS CALM(TM) Suite provides physicians, nursing staff,
risk managers and hospital administrators with clinical information
systems and risk management tools designed to improve outcomes and
patient care for mothers and their infants during childbirth.
Except for historical information contained herein, the matters
discussed in this news release are forward-looking statements.
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause actual
results to differ materially from those expressed implied by the
forward-looking statements including, but without limitation,
economic conditions in general and in the healthcare market, the
demand for and market for our products in domestic and
international markets, our current dependence on the CALM product
suite, the challenges associated with developing new products and
obtaining regulatory approvals if necessary, research and
development activities, the uncertainty of acceptance of our
products by the medical community, the lengthy sales cycle for our
products, third party reimbursement, competition in our markets,
including the potential introduction of competitive products by
others, our dependence on our distributors, physician training,
enforceability and the costs of enforcement of our patents,
potential infringements of our patents and the other factors set
forth from time to time in the Company's filings with the United
States Securities and Exchange Commission and with the Canadian
Securities Commissions. The Company has no intention of or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
DATASOURCE: LMS MEDICAL SYSTEMS INC. CONTACT: about LMS Medical
Systems please contact: Yves Grou, Chief Financial Officer, LMS
Medical Systems Inc., (514) 488-3461 Ext. 238, Fax: (514) 488-1880,
; http://www.lmsmedical.com/; David Gordon/Grant Howard, The Howard
Group Inc., Toll Free: 1-888-221-0915, ;
http://www.howardgroupinc.com/
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