Corporate News: MeVis' profitability further increased in the first quarter

Further improvements in earnings with slightly declining sales


  • Consolidated sales declined in the first three months as expected, by 9% to € 3.3 million (prev. year: € 3.6 million)
  • Maintenance business contribution further increased to 47 % (prev. year: 42 %)
  • Earnings before interest and taxes (EBIT) up to € 0.8 million (prev. year: € 0.6 million)
  • Consolidated net profit increased significantly to € 0.8 million (prev. year: € 0.1 million)
  • Liquidity stable at € 8.6 million (December 31, 2012: € 8.7 million)

 

Bremen, May 16, 2013 - Today, MeVis Medical Solutions AG [ISIN: DE000A0LBFE4], a leading software provider for the medical imaging market, announced its results for the first quarter of 2013.

As expected sales in the first quarter of 2013 came to € 3,318 k, down 9 % on the first quarter of 2012 (€ 3,637 k). While license sales declined by 21 % to € 1,589 k (prev. year: € 2,011 k), due in part to a package of LungCAD licenses in the Other Diagnostics segment in the first quarter of 2012, maintenance and service revenues again rose by 4 % to € 1,568 k (prev. year: € 1,513 k).

Sales in the Digital Mammography segment went up slightly by 1 % to € 2,673 k (prev. year: € 2,650 k). In contrast, sales in the Other Diagnostics segment declined by 35 % to € 645 k (prev. year: € 987 k).

Capitalized development expenses were lowered considerably by 41 % year on year to € 410 k (prev. year: € 691 k).

Operating costs were again significantly reduced in the first quarter of 2013. As personnel expenses amounted to € 1,949 k, thus being 15 % down on the prior-year quarter. Other operating expenses also decreased to € 484 k, corresponding to a 20 % reduction year on year.

After depreciation and amortization of € 495 k (44 % down year on year), and due to the ongoing cost-cutting measures, EBIT (earnings before interest and taxes) could be improved considerably to € 806 k (up a significant 30 % on the prior-year figure of € 622 k). The EBIT margin increased to 24 % (prev. year: 17 %).

An improvement in the financial result from € -90 k in the previous year to € 102 k in the first quarter of 2013, results in pre-tax earnings in the reporting period of € 908 k (prev. year: € 532 k). Taking into account lower income tax expenses of € 106 k MeVis closed the first quarter of the current financial year with a consolidated net profit of € 802 k (prev. year: € 108 k). Thus earnings per share amount to € 0.47 (prev. year: € 0.06).

Liquid funds remained stable in the reporting period and amounted to € 8,622 k on March 31, 2013 (December 31, 2012: € 8,665 k).

"On account of business development in the first three months of 2013, we confirm our forecast for the current fiscal year, which expected sales in 2013 to be down slightly on the 2012 fiscal year. In our opinion the consolidated earnings before interest and taxes (EBIT) is mainly influenced the expected slight drop in sales, the lower level of capitalized development expenses and the again slight reduction in personnel expenses. Overall, we expect EBIT to decline slightly." says Dr. Robert Hannemann, CFO of MeVis Medical Solutions AG. "In addition, we expect a positive cash flow again in 2013, where in addition to the ongoing business the reduction in trade receivables should make a significant contribution."

"We now focus on the development and implementation of measures to generate future sales growth so as to offset the trend of a declining new license business." added Marcus Kirchhoff, CEO of MeVis Medical Solutions AG. "The expansion of business relationships with existing industrial customers is showing initial signs of success, which are expected to materialize into small contributions to sales in the second half of the year. We have also had initial talks with potential new industrial customers to gain additional customers in our core business of selling software licenses and therefore to modify and expand our product portfolio to meet the needs of our customers. In order to build up the business with Internet-based services, we will launch initial services on the market this year and gradually expand these services. "

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