Corporate News: Third quarter profitable again for MeVis

Existing industrial partnerships are strengthened

  • Consolidated sales amount to € 10.1 m after the first nine months (pre-vious year: € 10.9 million)
  • Share of maintenance business rises to 40% within the Group (previous year: 33%)
  • Earnings before interest and taxes (EBIT) of € 0.7 m (previous year: € 0.8 m)
  • Liquidity increased to € 9.6 m (end of 2010: € 8.2 m)
  • Strategic refocus of business activities until the end of the year

Bremen, November 21, 2011 – MeVis Medical Solutions AG [ISIN: DE000A0LBFE4], a leading software provider for the medical imaging mar-ket, today announced its results for the first three quarters of 2011.

New business with the products DynaCAD® Breast and DynaSuite Neuro dropped, while licensing sales in the third quarter were particularly boosted by one-off payments received on account of the sale of licenses for the lung product Visia™ Lung-CT and from Siemens for the breast MRT product syngo™ BREVIS.

With a high share of maintenance revenues, consolidated sales in the third quarter amounted to € 3.4 m (previous year: € 3.6 m), slightly above the average of the first two quarters of the current year. With EBIT of € 0.5 m (previous year: € 0.7 m) well ahead of the first two quarters of this year, the ongoing cost reduction measures again resulted in a clearly positive operat-ing result for the period.

Sales in the first nine months consequently dropped by 7% to € 10.1 m (previous year: € 10.9 m). Throughout the Group, the share of maintenance revenue went up to 40% (previous year: 33%).

Staff costs fell again steeply by 13% to € 7.0 m (previous year: € 8.0 m) and at the same time, other operating expenses were reduced by a further 11% to € 2.0 m (previous year: € 2.2 m) within the scope of the ongoing cost reduction measures. With depreciation and amortization being almost constant, the 16% drop in capitalized development services to € 1.8 m (previous year: € 2.2 m) contributed to the slight fall in earnings before in-terest and taxes (EBIT) to € 0.7 m (previous year: € 0.8 m). Corresponding-ly, the EBIT margin, standing at approximately 7%, remained almost un-changed (previous year: 8%).

The financial result of € -0.4 m (previous year: € -0.2 m) was mainly influ-enced by the development of the USD exchange rate. Additionally, the prorata loss on our 41% equity interest in Medis Holding B.V., amounting to € -0.1 m (previous year: € -0.1 m), also negatively impacted our financial result.

Taking into account high income tax expenses, largely defined by deferred tax expenditures with no impact on liquidity, MeVis recorded a loss of € -0.9 m for the first three quarters of the current financial year (previous year: € -0.4 m). This resulted in earnings per share of € -0.54 (previous year: € 0.20).

“As already stated in our Interim Report H1/2011, we are currently review-ing our business strategy. In this context, we will be reassessing our marketing policy, particularly regarding our software platform activities, our product policy in the Other Diagnostics segment and the question of whether we should enter the market for cardiovascular imaging in close cooperation with our Supervisory Board by the end of this year,” com-mented Dr. Carl J.G. Evertsz, CEO of MeVis Medical Solutions AG. “Discussions with selected parties interested in making a strategic investment have been ongoing, however we will continue to independently refocus our own activities.”

“We are confirming our guidance for the current financial year published in the Group management report 2010 on account of business developments so far and expect a slight drop in consolidated sales and slightly positive consolidated earnings before interest and taxes (EBIT),” said Dr. Robert Hannemann, member of the Executive Board of MeVis Medical Solutions AG.

MeVis Group increased its cash and cash equivalents to € 9.6 m as of the balance sheet date (December 31, 2010: € 8.2 m). As planned, Group li-quidity will fall again due to the payment obligations of up to € 3.5 m that are due in 2011 on the strategic acquisition of the 49% interest in MBS KG.

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

Download release as pdf-file