LMS second quarter 2008 financial results - Q2 revenue increases 166% to $735,000 - Ytd revenue increases 87% to $1.7 million
November 14 2007 - 4:10PM
PR Newswire (US)
MONTREAL, Nov. 14 /PRNewswire-FirstCall/ -- LMS Medical Systems
(TSX: LMZ, AMEX: LMZ), a healthcare technology company and
developer of the CALM-clinical information system and risk
management software tools for obstetrics, today reported its
unaudited financial results for the second quarter ended September
30, 2007. All amounts are in Canadian dollars. On the strength of
new installations and growing recurring maintenance and technical
service revenues, our comparative quarterly revenues for Q2 2008
grew 166% to $735,000 from $276,000 in Q2 2007. Our recurring
maintenance and technical revenues continue to grow from our
installed client base and increased by 36% to $703,000 from
$517,000 for the comparative six-month period. For the second
quarter these revenues increased 85% to $339,000 from $184,000.
Year-to-date revenues increased by 87% to $1.7 million from
$907,000. Management estimates that the recently implemented
program to streamline operations will reduce operating cash
expenses by $1.5 million to March 31, 2008. In conjunction with
seasonally stronger winter and spring quarters (Q3 and Q4) and
streamlining of operations, management anticipates reaching a cash
flow break even at the end of the current fiscal year. The backlog
of signed and recurring contracts was maintained at $4.6 million as
well as sales opportunities which were maintained at $25 million.
The overall increases of $US200,000 in the backlog and US 2.0
million in the sales opportunities, were offset by reduction in the
US dollar in which most of our contracts are denominated. Our
committed (signed) and installed client base has grown on a
consistent basis over the last 6 quarters. We anticipate reaching
100 committed client sites by the end of the current fiscal year.
The combination of the increase in revenues of $459,000 and lower
overall expenses of $183,000 reduced the comparative operating loss
by $642,000 from $2.36 million ($0.13 per share) in Q2 2007 to
$1.74 ($0.08 per share) million in Q2 2008. Decreases in research
and development expenses of $125,000, lower selling marketing
product management expenses of $73,000, lower stock option expense
of $48,000 and a gain on foreign exchange of $117,000, were offset
slightly by smaller increases in other expenses. Cash, cash
equivalents and short-term investments held to maturity, as at
September 30, 2007 totaled $1.93 million compared to $3.38 as at
March 31, 2007. SECOND QUARTER HIGHLIGHTS: - Revenues in Q2 2008
increased by 166% to $735,000 from $276,000 in Q2 2007. - In
conjunction with seasonally stronger winter and spring quarters (Q3
and Q4) and corporate streamlining of operations, we anticipate
reaching a cash flow break even at the end of the current fiscal
year. - Our recurring maintenance and technical revenues continue
to grow from our installed client base and increased by 36% to
$703,000 from $517,000 for the comparative six-month period. For
the second quarter these revenues increased 85% to $339,000 from
$184,000. - Year-to-date revenues increased by 87% to $1.7 million
from $907,000 in F2007. - The backlog of signed contracts was
maintained at $4.6 million and identified sales opportunities
stayed the same at $25 million. The overall increases of $US200,000
in the backlog and US$2.0 million in the sales opportunities, were
offset by reduction in the US dollar in which most of our contracts
are denominated. - Horizon Perinatal Care(TM) ("HPC"), the first
seamlessly integrated perinatal information system achieved general
availability. This system was developed in conjunction with
McKesson Provider Technologies, our distributor. HPC is designed to
support continuity of care between the labor and delivery
department and other hospital departments and units. - CALM
Patterns, an innovative risk management software tool specifically
directed at the health of the fetus, was released. Fetal distress
during labor is recognized as one of the greatest complexities of
childbirth and therefore a significant issue insofar as risk
management is concerned. CALM Patterns is a real time proprietary
software tool that can, on a heartbeat to heartbeat basis,
constantly analyze and present updated information to medical teams
to assist in the identification of significant fetal distress. - We
released CALM 3.08, a new version of our Clinical Information
Systems which includes significant new features and
functionalities. - Saint-Mary's Health Center in Montreal,
affiliated with McGill University signed on to implement CALM
Patterns. - LMS entered into an agreement with Best Practices
Medical Partners for the use of CALM Shoulder Screen by its insured
OB/GYNs. LMS complete results for the quarter ended September 30,
2007 along with Management's Discussion and Analysis will be
released in normal course on or about November 14th and will be
available in Canada at http://www.sedar.com/, in the United States
at http://www.sec.gov/ and at http://www.lmsmedical.com/. 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/
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