LMS Announces 2005 Financial Results
June 14 2005 - 5:14PM
PR Newswire (US)
LMS Announces 2005 Financial Results MONTREAL, June 14
/PRNewswire-FirstCall/ -- LMS Medical Systems (TSX: LMZ), a
healthcare technology company and developer of the CALM(TM) system
(Computer Assisted Labor Management) today reported results of
operations for the fiscal year ended March 31st, 2005. All amounts
are in Canadian dollars. Revenue for the year ended March 31, 2005
increased by $946,000 to $1,060,000 from $114,000 for the same
period last year. The loss for the fiscal year 2005, inclusive of
special charges, was $9,237,000 ($0.60 per share) versus a loss of
$5,636,000 ($0.93 per share) for the same period in 2004. The
increased loss is primarily attributable to increases in
development, sales & marketing, administrative expenses and
special charges. Development expenses increased primarily due to
increased staffing to meet development milestones. This resulted in
a total increase, net of investment tax credits, of $1,822,000.
Expenditures for sales & market development increased by
$750,000 due to increased activities and new employees.
Administrative expenses increased by $660,000 due to expenses
associated with being a public company and additional office,
general and rental expenses related to increased Company staffing.
In addition, in connection with the registration of the Company
with the Toronto Stock Exchange and the Securities & Exchange
Commission in the United States and listing fees for the American
Stock Exchange, special charges of $763,000 were incurred during
the year ($nil in 2004). Finally the company recorded an expense of
$485,000 in connection with stock options issued during the year
($nil in 2004). Cash, cash equivalents and short-term investments
held to maturity, as at March 31, 2005 totaled $11,858,000 versus
$1,481,000 at March 31, 2004. The increase is due to the completion
of the private placement, the reverse takeover transaction and the
exercise of warrants, which generated gross proceeds of
$20,100,000. The total number of shares outstanding as at March 31,
2005 was 16.5 million compared to 9.2 million as at March 31, 2004.
An expanded Management's Discussion and Analysis for the year, and
previous periods, is accessible on the LMS website at
http://www.lmsmedical.com/ Highlights: - We completed the following
issuance of common shares raising total gross proceeds of $20.1
million: 1. On April 1, 2004, we completed the reverse takeover
transaction and as a result we obtained net monetary assets of $1.0
million. The net monetary assets were obtained by the non-operating
public enterprise prior to the reverse takeover transaction, mainly
from the issuance of capital stock for gross proceeds of $1.0
million in January 2004. In addition, as part of the reverse
takeover transaction, the unsecured convertible debentures in the
amount of $5.8 million were converted into 1,740,000 of our Common
Shares; 2. In April 2004, we completed a $12 million equity
financing; 3. In fiscal 2005, 2,150,000 warrants were exercised
generating cash of $6.9 million; and 4. In fiscal 2005, 49,000
options were exercised generating cash of $0.2 million. - In April
2004, our Common Shares were listed on the Toronto Stock Exchange.
- In February 2005, our Common Shares were listed on the American
Stock Exchange. - We expanded our existing sales channels by
signing a distribution contract with a distributor in the United
States (McKesson). This agreement covers the United States, Canada,
the United Kingdom and Mexico. - In February 2005, we received
clearance from the United States Food and Drug Administration to
market Patterns, a new and innovative decision support software
tool specifically directed at the health of the fetus. Development
of the product is in progress and expected to be completed in the
fourth quarter of 2006. - In the first half of fiscal 2006, we plan
to release CALM(TM)3.0, our foundation labor and delivery product
suite for large-scale health facilities. CALM(TM)3.0 was initially
planned for release in March 2005, and is currently scheduled for
installation at a number of leading U.S. based hospitals. - In
April of 2005, we entered into an agreement with AON Risk Services,
a subsidiary of AON Corporation, to assist hospitals in improving
their risk management profile in obstetrics. - We have established
a Risk and Patient Safety Advisory Board that will provide guidance
on how to achieve widespread adoption of our risk management tools.
This will include strategies to mobilize hospital teams to
implement proactive risk reduction programs and to develop value
propositions that address the concerns of hospital administrators,
clinicians, risk managers and insurers. The Company expects
installations and sales of its CALM 3.0 software to commence upon
the product's market introduction in the second quarter of the
fiscal 2006 year. The successful introduction of CALM 3.0 is
anticipated to increase the Company's U.S installed base resulting
in significantly increased revenues over that of fiscal 2005.
Despite this projected increase in revenues the Company does not
expect expenses to materially increase in the coming year. After
deduction of third party distribution costs, the Company expects to
incur a substantially reduced loss for fiscal 2006. ABOUT LMS: LMS
is a leader in the application of advanced mathematical modeling
and neural networks for medical use. The LMS CALM(TM) Decision
Support Suite provides physicians, nursing staff, risk managers and
hospital administrators with clinical information systems and
decision support tools designed to improve outcomes and patient
care for mothers and their infants during labor and delivery. This
press release contains forward-looking statements that involve
risks and uncertainties, which may cause actual results to differ
materially from the statements made. For this purpose, any
statements that are contained herein that are not statements of
historical fact may be deemed to be forward-looking statements made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Without limiting the foregoing, the
words "believes," "anticipates," "plans," "intends," "will,"
"should," "expects," "projects," and similar expressions are
intended to identify forward-looking statements. You are cautioned
that such statements are subject to a multitude of risks and
uncertainties that could cause actual results, future
circumstances, or events to differ materially from those projected
in the forward-looking statements. These risks include, but are not
limited to, those associated with the success of research and
development programs, the adequacy, timing, and results of clinical
trials, the regulatory approval process, competition, securing and
maintaining corporate alliances, market acceptance of the Company's
products, the strength of intellectual property, financing
capability, the potential dilutive effects of any financing,
reliance on subcontractors and key personnel, and other risks
detailed from time-to-time in the Company's public disclosure
documents or other filings with the Canadian and U.S. securities
commissions or other securities regulatory bodies. The
forward-looking statements are made as of the date hereof, and the
Company disclaims any intention and has no obligation or
responsibility, except as required by law, to update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise. DATASOURCE: LMS MEDICAL SYSTEMS INC.
CONTACT: Andrea Miller, Communications, LMS Medical Systems Inc.,
(514) 488-3461, Ext. 222, Fax: (514) 488-1880, ,
http://www.lmsmedical.com/
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