Corporate News: MeVis’ profitability further increased in 2012

MeVis Medical Solutions sees slight fall in sales, substantial reduction in costs, and significant earnings improvements

  • Consolidated sales declined slightly by 2 % to € 13.3 m (previous year: € 13.7 m)
  • Maintenance business further grew by 8 % to € 6.0 m (previous year: € 5.5 m); new licensing business fell by 8 % to € 7.0 m (previous year: € 7.6 m)
  •  EBIT of € 3.0 m (22 % margin), significantly above previous year (€ 1.2 m before extraordinary items)
  • Consolidated net profit of € 2.2 m (previous year: € -4.1 m)
  • Stable cash flow from operating activities of € 5.3 m (previous year: € 5.1 m
  •  Liquidity increased by € 1.2 m to € 8.7 m despite purchase price payment of € 1.4 m

Bremen, April 26, 2013 – MeVis Medical Solutions AG [ISIN: DE000A0LBFE4], a leading software provider for the medical imaging market, has released the final results for its 2012 fiscal year. Earnings and liquidity could be increased significantly despite a slight decline in sales.

2012 group revenues fell by 2 % to € 13.3 m. While sales of new licenses declined by 8 %, revenues from maintenance contracts continued to do well and grew throughout the Group by 8 %, now representing 45 % of total net sales (previous year: 41 %).

Reporting a 3 % decline in segment sales to € 10.1 m, the Digital Mammography segment was once again the top performer in the Group over the last fiscal year. The segment’s net profit amounted to € 5.2 m (previous year: € 5.6 m).

Net sales in the Other Diagnostics segment grew slightly to € 3.2 m. Maintenance revenues have substantially increased in this segment as well: Standing at € 0.9 m, they now account for 29 % of the segment’s total sales (previous year: 24 %).

Costs have been substantially reduced again in 2012: Personnel costs declined by € 1.1 m to € 8.1 m and other operating expenses by € 0.7 m to € 2.3 m.

Depreciation and amortization decreased to € 3.0 m (previous year: € 6.1 m, including a one-off impairment loss of € 2.5 m).

Due to the cost reduction measures, earnings before interest and taxes (EBIT) increased to € 3.0 m (previous year: € 1.2 m before extraordinary items) thereby reaching an EBIT margin of 22 %.

The Group financial result improved from € -1.3 m to € -0.6 m, based on earnings improvements of the Dutch company Medis where we hold a 41 % stake.

After tax expenses of € 0.2 m (previous year: € 1.2 m), the consolidated net result for the period came to € 2.0 m (previous year: € -4.1 m) which corresponds to earnings per share of € 1.26 (previous year: € -2.38).

During the fiscal year 2012, liquidity increased by € 1.2 m to € 8.7 m. In addition, a last purchase price payment of € 1.4 m was paid out of the operating cash flow, thus in total € 2.6 m liquidity could be generated in 2012.

The equity ratio increased from 64 % to 74 %.

Dr. Robert Hannemann, CFO at MeVis Medical Solutions AG, said, “Based on the development of our new license business, we expect another slight revenue decline in the current fiscal year. By expanding our conservative approach to capitalization of development expenses, we will minimize balance sheet risks but also impact current year’s EBIT. As a result, we expect a slight EBIT decline this year.”

Marcus Kirchhoff, Chairman of the Executive Board and CEO of MeVis Medical Solutions AG, added: “In order to increase revenues in the years to come, we intend to broaden our relationships with existing customers, to acquire new industrial customers, and to establish new sales channels. The successful execution of the group consolidation brought us into a liquidity and cost position which provides us with sufficient financial leeway to pursue interesting growth opportunities.”

Due to the current developments and market conditions, the Executive Board will provide further details about its business forecast during the course of the current fiscal year.  

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