LMS announces 2006 year end financial results revenues increase 49% to $1.6 million
June 13 2006 - 5:15PM
PR Newswire (US)
MONTREAL, QC, June 13 /PRNewswire-FirstCall/ -- LMS Medical Systems
Inc. (TSX & AMEX: LMZ), a healthcare technology company
developing and selling a series of leading edge software-based
products to be used as decision support tools for obstetricians and
gynecologists and developer of the CALM(TM) systems, today reported
results of operations for the year ended March 31, 2006. All
amounts are in Canadian dollars. Revenues in 2006 increased by 49%
to $1.6 million from $1.06 million in 2005. In addition, two
installations occurring in fiscal 2006 with revenues of
approximately $0.3 million will be recognized after the year end.
The increase in revenue is a result of new hospital installations
occurring subsequent to the release of CALM 3.0 and higher support
revenues resulting from a growing client base. The net loss for
2006 was in line with expectations at $9.4 million ($0.57 per
share) compared to $9.2 million ($0.60 per share) in 2005. Overall
increase in revenues and decreases in most expense categories were
offset by $0.8 million of incremental non-cash stock based
compensation expense totaling $1.4 million in 2006 compared to $0.6
million in 2005. The $1.4 million non-cash stock based compensation
in 2006 consisted of stock option expense of $0.7 million, bonus
plan paid in common shares of $0.5 million and $0.2 million
relating to director deferred share unit compensation. Excess
investment tax credits received relating to prior years were $0.2
million lower in 2006, and $0.8 million of special charges incurred
in 2005 related to obtaining the listing on the TSX and AMEX stock
exchanges did not reoccur in 2006. Cash, cash equivalents and
short-term investments held to maturity, as at March 31, 2006
totaled $5.5 million compared to $11.8 million as at March 31,
2005. The decrease of $6.3 million was primarily due to our net
loss of $9.4 million reduced by non-cash items of $1.6 million and
net inflow from the changes in the non-cash working capital items
of $1.8 million. For 2006, the cash used in operations decreased by
28% or $2.3 million from $8.3 million in 2005 to $6.0 million in
2006. In May 2006, an additional $2.5 million in equity financing
further strengthened our balance sheet. An expanded Management's
Discussion and Analysis for the year, 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/. FOURTH QUARTER HIGHLIGHTS: - LMS realized
record YTD revenues of $1.6 million, an increase of 49% over 2005;
- In addition, two installations occurring in fiscal 2006 with
revenues of approximately $0.3 million will be recognized after the
year end; - Recurring technical support and other revenues more
than tripled from $0.2 million to $0.7 million in 2006; -
Contracted with Calgary Foothills Hospital for the installation of
a complete suite of CALM products, including CALM 3.0 Clinical
Information System, CALM Curve, CALM Shoulder Screen and CALM
Patterns (when released); - Received FDA clearance of a web based
standalone CALM Curve product; - Added CALM Shoulder Screen and
CALM Patterns to our distribution agreement with McKesson
Information Systems; LMS objectives for fiscal 2007 are to: -
Generate substantial product sales increases in the United States
and Canada, thereby increasing our install base and related
maintenance revenues; - Finalize and commercialize CALM Patterns in
the United States and Canada; - Continue to develop activities with
risk managers and insurance companies to raise their awareness of
the role that our decision support tools can play in addressing
medical/legal concerns in obstetrics; - Complete the interface of
CALM products with distributor documentation applications; 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: Yves Grou, Chief
Financial Officer, LMS Medical Systems Inc., (514) 488-3461, Ext.
238, Fax: (514) 488-1880, ; http://www.lmsmedical.com/
Copyright