Corporate News: MeVis Medical Solutions confirms preliminary figures for fiscal 2008

MeVis Group remains on growth track in spite of difficult market conditions


  • Sales revenues up by 37%, to reach EUR 10.8 million (previous year: EUR 7.9 million)
  • EBIT amounting to EUR 0.7 million (previous year: EUR 0.8 million)
  • Net financial result increases to EUR 2 million (previous year: EUR 0.3 million)
  • Consolidated net profit for the year reaches EUR 2.1 million (previous year: EUR 0.1 million)
  • Earnings per share amount to EUR 1.21 (previous year: EUR 0.17)

Bremen, April 30, 2009 – MeVis Medical Solutions AG [ISIN: DE000A0LBFE4], a software specialist for image-based medicine, confirms its preliminary figures released in February for fiscal 2008.

Accordingly, in spite of a weak fourth quarter, Group sales amounted to approx. EUR 10.8 million for the last fiscal year. While sales generated in Europe were up by 11%, revenues in the U.S. region increased by 40%, to reach approx. EUR 9.6 million.

Sales in the 'Digital Mammography' segment were bolstered by 25%, to approx. EUR 6.8 million. With a share of 63%, this segment remains the Group's main growth driver for sales. It comprises the extensive 'BreastCare' applications from the MeVis Group for early detection and diagnosis of breast cancer, which are successfully distributed worldwide via the industry partners Hologic, Inc. and Siemens AG. Following the carve-out under company law from the joint venture operated with Siemens, since November 1, 2008 business with the industry partner Hologic has been fully consolidated in this segment.

In the segment 'Other Diagnostics', sales were boosted by 69%, to approx. EUR 4 million, via industry partners within the scope of OEM distribution and though clinics as end customers for specialized services. This segment comprises the software application for the world's leading diagnostic workstation for contrast-enhanced magnetic resonance imaging of the breast, from industry partner Invivo, other sales-generating software applications for digital radiology and services in the field of pre-operative planning of surgery. The segment also extends to include the development of new software applications in the area of lung, neuro, prostate and colon. These new products generated little or no sales revenues as yet in fiscal 2008.

EBIT, amounting to roughly EUR 0.7 million, was impacted in particular by the 83% increase in personnel expenditure, amounting to approximately EUR 7.7 million (previous year: EUR 4.2 million). The size of the workforce doubled on an annual average, to reach 181. The initial capitalization of development expenses in accordance with IAS 38 produced gains of about EUR 1.9 million in fiscal 2008.

Currency translation gains and losses are no longer reported within EBIT, as was the case in the previous year, but within net financial result. "In the past, group operating results were exposed to daily fluctuating market valuations of currency hedge transactions", says Christian H. Seefeldt, new Chief Financial Officer of MeVis Medical Solutions. "As a result, both operational control and the true value of EBIT were substantially impaired." Without this policy change, the MeVis Group would have reported EBIT of approx. EUR 2.0 million for fiscal 2008 (previous year: EUR 0.5 million).

The change in value of financial instruments for currency hedging purposes and currency translation gains, at approx. EUR 1.3 million (previous year: EUR 0.3 million) contributed roughly EUR 2.0 million to net financial income (previous year: EUR 0.3 million). Consolidated net profit for the year after taxes thus rose to roughly EUR 2.1 million (previous year: EUR 0.1 million). This corresponds to earnings per share of EUR 1.21 (year-ago period: EUR 0.17).

"Due to the ongoing substantial uncertainties prevailing in the U.S. market, a reliable forecast for the current fiscal year is not possible", says Dr. Carl J.G. Evertsz, CEO of MeVis Medical Solutions. "However, the effective impact for the entire fiscal year 2009 of the full consolidation of the Hologic division in the 'Digital Mammography' segment and the gradual market launch of new products, such as diagnostic software for the automated ultrasound breast volume scanner ACUSON S2000 (ABVS) from Siemens should lead to a substantial surge in revenues in 2009 and, as of the second half-year, also to improved earnings."

The company`s financial reports are available for downloading at our website.