Corporate News: MeVis’ upward trend stabilized in Q2 2012

Significantly improved profitability and increased liquidity with slightly rising sales

  • Group sales grew moderately to € 6.9 million in the first six months (prev. year: € 6.7 million)
  • License and maintenance business increased, the maintenance business share remained constant at 43 %
  • Earnings before interest and taxes (EBIT) climbed to € 1.3 million (prev. year: € 0.2 million)
  • Liquidity rose further to € 9.0 million (end of 2011: € 7.5 million)

Bremen, August 27, 2012 – MeVis Medical Solutions AG [ISIN: DE000A0LBFE4], a leading provider of medical imaging software, today announced its results for the first half of 2012.

Sales in the first half of 2012 amounted to € 6,878 k, 3 % above the first half of 2011 (€ 6,688 k) with both license (+2 %) and maintenance (+3 %) business contributing to this growth. The share of maintenance business remained constant at 43 % of total sales in the first half of the year.

Sales in the Digital Mammography segment went down slightly by 1 % to € 5,145 k compared to the strong first half of 2011 (prev. year: € 5,191 k). Sales in the Other Diagnostics segment developed positively, rising by 16 % to € 1,733 k (prev. year: € 1,497 k).

Sales in the second quarter of 2012 came to € 3,241 k, corresponding to a 9 % increase year-on-year.

In the first half of 2012, capitalization of development costs went up by 8 % to € 1,409 k compared to the previous year’s period.

Personnel expenses dropped by a total of 9 % year-on-year in both the second quarter and the first six months and amounted to € 4,422 k in the first half of the year. At the same time, other operating expenses could be reduced noticeably again by 19 % to € 1,158 k on account of the continuing cost savings measures.

After depreciation and amortization of € 1,656 k (7 % down year-on-year), earnings before interest and taxes (EBIT) increased by around € 1.1 million – one of the main reasons being the cost savings measures − to € 1,256 k (prev. year: € 181 k) in the first half of the year. The EBIT margin rose steeply to 18 % as a result (prev. year: 3 %).

The net financial result of € 254 k (prev. year: € -617 k) also improved considerably, with the results of operation of the Dutch investment Medis and the strong US dollar contributing to this development.

Pre-tax earnings rose correspondingly by almost € 2 million to € 1,510 k in the period under review (prev. year: € -436 k). Taking into account income tax expenses of € 844 k, a figure on par with the previous year and which is still primarily influenced by non-cash deferred taxes, MeVis closed the first half of the current financial year with consolidated net profit of € 666 k (prev. year: -1,172 k). Earnings per share therefore amounted to € 0.39 (prev. year: € -0.68).

Liquid funds increased again in the second quarter and amounted to € 9,037 k on June 30, 2012 (compared to € 7,749 k on March 31, 2012 and € 7,506 k on December 31, 2011).

“Following the positive first half of 2012, we are confirming our 2012 guidance in which we forecast Group sales to stabilize at the previous year’s level. We expect the EBIT to rise slightly as a result of our improved cost position,” said Dr. Robert Hannemann, CFO of MeVis Medical Solutions AG. “We also anticipate further positive liquidity from operating activities in 2012, whereby a purchase price payment of € 3.0 million as part of the acquisition of the 49% stake in MBS KG will be due for the last time this year, which will have a corresponding impact on liquidity.”

“We have successfully started implementing our strategic reorientation. During our visits, we reassured our industrial customers that we will be increasingly focusing our business activities on their needs,” added Marcus Kirchhoff, CEO of MeVis Medical Solutions AG. “We have also started our internal restructuring process. We have, for instance, provided the first resources for developing the new strategic business field, online services, from which we expect medium-term growth.”

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

Download release as pdf-file