LMS announces first quarter 2006 financial results
August 12 2005 - 5:11PM
PR Newswire (US)
MONTREAL, Aug. 12 /PRNewswire-FirstCall/ -- LMS Medical Systems
(TSX: LMZ, AMEX: LMZ), a healthcare technology company and
developer of the CALM(TM) system (Computer Assisted Labor
Management) today reported results of operations for the first
quarter ended June 30th, 2005. All amounts are in Canadian dollars.
Revenue for the first quarter totaled $268,000 versus $231,000 for
the same period last year. The loss for the first quarter of fiscal
2006 was $2,462,000 ($0.15 per share) versus a loss of $1,801,000
($0.13 per share) for the same period in fiscal 2005. The increased
loss resulted primarily from additional net research and
development expenses in the amount of $355,000 due to an increase
of contractual staff in the drive to release CALM(TM) 3.0, as well
as additional administrative expenses of $193,000 for functions
related to being a public company in the U.S. and Canada. Cash,
cash equivalents and short-term investments held to maturity, as at
June 30, 2005, totaled $10,506,000 versus $11,858,000 as at March
31, 2005. The decrease is a function of our net loss of $2,462,000
for the three months ended June 30, 2005, reduced by stock based
compensation of $225,000 and offset by a net change in non-cash
operating working capital of $965,000, which resulted primarily
from the collection of accounts receivable and the receipt of an
amount of $560,000 of investment tax credits receivable during the
period. An expanded Management's Discussion and Analysis for the
quarter, and previous periods, is accessible on the LMS website at
http://www.lmsmedical.com/ Highlights: - We have substantially
completed CALM(TM) 3.0, our labor and delivery product suite for
large scale health facilities and expect to release the final
product in the coming weeks. CALM(TM) 3.0 is the newest release of
our CALM(TM) suite of products, and is currently scheduled for
installation at a number of leading U.S. based hospitals. - We
unveiled CALM(TM) Shoulder Screen, a new addition to our Decision
Support Suite. CALM(TM) Shoulder Screen focuses on the prediction
of shoulder dystocia, a key obstetrical challenge. - 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. LMS and AON will work
together to expand our customer base. AON will propose to its
clients that they consider the implementation of LMS decision
support tools to address key clinical indicators with their
obstetrics practice. - 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. To date, Dr. Thomas J. Garite, Professor Emeritus in
the Department of Obstetrics and Gynecology at the University of
California, Irvine, Editor in Chief of the American Journal of
Obstetrics and Gynecology; Dr. Eric Knox, Professor of OB/GYN at
the University of Minnesota and Dr. Marilyn Sue Bogner, President
and Chief Scientist with the Institute for the Study of Human Error
have been appointed to the Advisory Board. Presiding as Chair is
Mr. Harry G. Hohn of New York. Mr. Hohn is the former Chairman and
Chief Executive Officer of New York Life. LMS will hold its Annual
and Special Meeting of Shareholders on Wednesday September 14,
2005, at 2:00p.m. eastern time at the Queen Elizabeth Hotel in
Montreal. 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. Except for historical information contained herein, the
matters discussed in this news release are forward-looking
statements. Because these forward- looking statements involve risks
and uncertainties, there are important factors that could cause
actual results to differ materially from those expressed implied by
the forward-looking statements including, but without limitation,
economic conditions in general and in the healthcare market, the
demand for and market for our products in domestic and
international markets, our current dependence on the CALM product
suite, the challenges associated with developing new products and
obtaining regulatory approvals if necessary, research and
development activities, the uncertainty of acceptance of our
products by the medical community, the lengthy sales cycle for our
products, third party reimbursement, competition in our markets,
including the potential introduction of competitive products by
others, our dependence on our distributors, physician training,
enforceability and the costs of enforcement of our patents,
potential infringements of our patents and the other factors set
forth from time to time in the Company's filings with the United
States Securities and Exchange Commission and with the Canadian
Securities Commissions. The Company has no intention of or
obligation 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, ; Website: http://www.lmsmedical.com/
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