Corporate News: New products deliver third-quarter profits for MeVis Medical Solutions

Interim report Q3/2009


  • Third quarter sales up 59% from the third quarter of 2008
  • Sales in the first nine months almost on a par with the full-year sales figure for 2008 thanks to positive consolidation effects and increased maintenance revenue
  • EBIT of EUR 0.7 million in the first nine months (previous year: EUR 1.3 million) depressed by depreciation and amortization of development costs of newly launched products
  • Good liquidity position of EUR 16.5 million provides a solid basis for further company growth

Bremen, November 9, 2009 – Despite unfavorable market conditions in the current fiscal year, MeVis Medical Solutions AG [ISIN: DE000A0LBFE4] has increased its consolidated sales by 30% year-on-year, which, at EUR 10.3 million (previous year: EUR 7.9 million), just falls short of the full-year figure for the previous year. Digital Mammography accounts for approximately EUR 7.4 million (previous year: EUR 4.9 million) of consolidated sales, and Other Diagnostics EUR 2.9 million (previous year: EUR 3.0 million).

This strong company growth can be attributed in particular to the additional revenue delivered by the new products launched in the current fiscal year as well as to positive consolidation effects. Had it not been for this consolidation effect, resulting from the full inclusion of the high-yield business with our industry partner Hologic, Inc., consolidated sales in the first nine months would have been down 11% from the previous year. The third quarter saw the first income from the sale of licenses to Siemens for the new breast diagnostic reporting and intervention software Syngo BreVis and Syngo BreVis Biopsy. In addition, license sales of the new diagnostic software for the automatic ultrasound breast volume scanner ACUSON S2000 from Siemens, which was launched in the first half of the year, further progressed very satisfactorily in the third quarter. Lastly, maintenance revenue accounted for 21% of consolidated sales in the current fiscal year, triple that of last year’s percentage.

Now that market rollout of these new products is complete, their previously capitalized development costs are now being depreciated. Consequently, the Group’s depreciation and amortization costs rose in the current fiscal year to EUR 1.9 million (previous year: EUR 0.6 million) causing a strain on the Group’s EBIT in the first nine months of 2009, which contracted to EUR 0.7 million (previous year: EUR 1.3 million). However, the Group’s operating EBITDA increased 31% in this period, to EUR 2.6 million, which reflects the company’s strong operating performance. The EBITDA margin was unchanged at approximately 25%.

The net financial result of -EUR 0.14 million (previous year: EUR 0.98 million) was particularly impacted by interest cost of arranged installments on the purchase price of the business divisions acquired in 2008 as well as by lower interest income. Accordingly, MeVis consolidated earnings for the period dropped to EUR 0.27 million (previous year: EUR 1.35 million), which corresponds to earnings per share of EUR 0.16 (previous year: EUR 0.80).

Operating cash flow decreased in the first nine months of 2009 to EUR 0.55 million (previous year: EUR 1.34 million). “Payments of around EUR 2.5 million were received in early October, so that they did not account for operating cash flow at the balance sheet date”, says Christian H. Seefeldt, CFO of MeVis Medical Solutions AG, “thus, the profitability of the company remains strong.”

“While Group profitability is heavily burdened by this year’s sharp decrease in demand due to the global economic crisis, we stayed on track along our growth path”, says Dr. Carl J.G. Evertsz, Chairman and CEO of MeVis Medical Solutions AG. “Together with the continuing innovation of our technology platform, which serves as a base for our dedicated software-solutions, we will take advantage of acquisition opportunities arising from current economic conditions. Thereby we want to further accelerate our company growth and supplement our product portfolio.”

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

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