Corporate News: MeVis profitable start in 2014

Still strong profit situation, but decrease in revenues and results as expected

  • Development of a lung screening software solution, market potential especially in the United States
  • From 2014 onwards MBC consolidated at equity, previous year adjusted for comparison purpose
  • Slight decline in sales in the first quarter by 4 % to € 2.8 m (previous year € 2.9 m)
  • Share of maintenance business still significant at now 49 % (previous year 51 %)
  • Earnings before interest and taxes (EBIT) decreased to € 0.7 m (previous year € 0.9 m), but with 25 % still strong EBIT margin
  • Net profit for the period also declined slightly to € 0.7 m (previous year € 0.8 m) 
  • Liquidity of € 13.1 m as at March 31, 2014 (Dec. 31, 2013: € 13.5 m)  

Bremen, May 19, 2014 – MeVis Medical Solutions AG [ISIN: DE000A0LBFE4], a leading provider of medical imaging software, today announced its results for the first quarter of 2014.

Sales in the first quarter of 2014 came to € 2,828 k, down by 4 % to just below the level of the first quarter of 2013 (€ 2,948 k). Sales in the new license business declined slightly by 2 % to € 1,337 k, while sales in the maintenance business were down by 9 % to € 1,372 k, accounting for 49 % of total sales. Sales in the Digital Mammography segment decreased by 3 % to € 2,227 k (prev. year: € 2,285 k) and sales in the Other Diagnostics segment fell by 9 % to € 601 k (prev. year: € 663 k).

Operating expenses in the first quarter of 2014 rose primarily due to higher staff costs, which increased by 11 % to € 1,812 k (prev. year: € 1,636 k), particularly due to salary increases, conservative provisions and a change in the personnel structure. Other operating expenses declined slightly by 9 % to € 411 k (prev. year: € 449 k).

Capitalized development expenses were almost unchanged at € 428 k in the first quarter of 2014 (prev. year: € 410 k).

EBITDA (earnings before interest, taxes, depreciation and amortization) was down by 16 %, from € 1,304 k to € 1,100 k year on year due to the slight reduction in sales and higher costs.

Depreciation and amortization came to € 406 k (up 11 % year on year), resulting in EBIT (earnings before interest and taxes) of € 694 k (down a sharp 26 % on the prior-year figure of € 938 k) and still a strong EBIT margin of 25 % (prev. year: 32 %).

The net financial result improved by € 72 k to € 79 k year on year, while tax expenses fell by € 55 k to € 88 k.

After-tax earnings fell by € 117 k to € 685 k, which is equivalent to earnings per share of € 0.40.

Cash and cash equivalents fell by € 400 k to € 13,050 k as of March 31, 2014 compared to the end of 2013, with the positive operating cash flow being more than offset by a temporary increase in receivables as of March 31, 2014.

"In line with the results of the first quarter 2014 we confirm our forecast for the current fiscal year, especting a slight decline in revenues to € 12.0 to 12.5 million. In our estimation the development of earnings before interest and taxes (EBIT) is substantially influenced by the expected slight decline in sales and a slight increase in cost. We expect an EBIT of € 3.0 to 3.5 million.” said Dr. Robert Hannemann, CFO of MeVis Medical Solutions AG. “We also expect - driven by sustained positive cash flows - a liquidity from € 15.0 to 16.0 million at year-end 2014."

"We see lung screening as a potential growth market. We envisage that lung screening will initially commence in the U.S., where the patient benefits were already documented in large-scale studies. Some private health insurance companies start reimbursing lung screening measures at the beginning of 2015. The decision of the public health insurance companies in the U.S. (Medicare and Medicaid) on how and when lung screening will be reimbursed for these patients is expected in November 2014." added Marcus Kirchhoff, CEO of MeVis Medical Solutions AG. "Therefore we have decided to develop a dedicated software solution, together with world-leading clinical partners, and launch it as one of the first vendors. For marketing purposes we are currently conducting very promising discussions with an industrial customer. Our product is to be introduced in the market in the second half of 2014."

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