LMS Announces third quarter 2006 Financial Results - Year to date revenues increase by $335,000 or 34% to $1.32 million
February 14 2006 - 4:13PM
PR Newswire (US)
MONTREAL, Feb. 14 /PRNewswire-FirstCall/ -- LMS Medical Systems
Inc. (TSX: LMZ, AMEX: LMZ), a healthcare technology company and
developer of the CALM(TM) system today reported results of
operations for the third quarter ended December 31, 2005. All
amounts are in Canadian dollars. Revenues for the nine-month period
ended December 31, 2005 increased 34% to $1.32 million from
$985,000 for the same period in the prior year. The increase in
revenue is the result of new hospital installations occurring
subsequent to the release of CALM(TM)3.0 and higher support
revenues resulting from an increased installed hospital base.
During the third quarter, LMS received sales orders for six new
hospital installations, and completed four hospital installations.
As a result of the deferral of two customer orders until the fourth
quarter, revenue for the third quarter totaled $501,000 versus
$678,000 for the same period last year. The two additional customer
orders on hand were not completed in the third quarter, due to time
constraints and customer availability for installation. Revenues
related to these two orders should be recognized, upon
installation, in the fourth quarter. The loss for the third quarter
decreased to $2.02 million ($0.12 per share) compared to a loss of
$2.28 million ($0.15 per share) for the same period in fiscal 2005.
For the quarter, the overall decreases in all spending categories
were in line with quarterly revenues and lower refundable
investment tax credits. Cash, cash equivalents and short-term
investments held to maturity, as at December 31, 2005 totaled $6.87
million versus $11.86 million as at March 31, 2005. For the
nine-month period, the decrease of $4.99 million was predominantly
due to our net loss of $6.61 million offset by non-cash items and
net changes in non-cash working capital of $1.85 million. For the
third quarter, the cash used in operations decreased by 52% or
$1.56 million from $2.98 million in 2004 to $1.42 million in 2005.
An expanded Management's Discussion and Analysis for the quarter,
and previous periods, is accessible on the LMS website at
http://www.lmsmedical.com/ and with Company's regulatory filings in
Canada at http://www.sedar.com/ and in the United States at
http://www.sec.gov/. OUTLOOK Regarding the fourth quarter, LMS'
potential revenue pipeline continues to be strengthened, as we
pursue multiple customer orders. Should these orders be confirmed
and installed in the fourth quarter, the anticipated revenues would
be in line with expectations for the fourth quarter and for the
year ended March 31, 2006. In light of the inherent uncertainties,
the actual timing of revenue recognition is partly dependant on the
customer's availability and could be delayed. HIGHLIGHTS - LMS
realized record revenues of $1.32 million, an increase of 34% over
prior year; - LMS received six sales orders for installation of its
systems in new hospital sites, of which four were installed during
the third quarter and two are expected to be installed in the
fourth quarter; - LMS completed the development of its new product
CALM Shoulder Screen which is now commercially available; - Dr.
Arthur Porter, Director General and CEO of the McGill University
Health Center and former CEO of Detroit Medical Center, joined the
Board of Directors effective January 16, 2006; - Dr. Emily
Hamilton, founder of LMS and VP Medical Research, presented on
February 2nd, 2006 in Miami at a conference of OB/GYN, the results
of a study addressing the prediction of injury due to shoulder
dystocia; - Dr. Henry Lerner, OB/GYN, FACOG, a Clinical Instructor
at Harvard Medical School having medical, legal and risk management
experience, joined LMS as a Clinical Market Development Specialist.
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, (514) 488-3461, Fax: (514)
488-1880, , http://www.lmsmedical.com/
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