LMS Announces Third Quarter 2007 Financial Results - Total Realized and Signed Q3 Contracts up 30% to $1.3 Million Contract Back
February 14 2007 - 4:05PM
PR Newswire (US)
MONTREAL, Feb. 14 /PRNewswire-FirstCall/ -- LMS Medical Systems
(TSX: LMZ, AMEX: LMZ), a healthcare technology company and
developer of the CALMTM clinical information system and risk
management software tools for obstetrics, today announced results
of operations for the third quarter of F2007 ended December 31,
2006. All amounts are in Canadian dollars. Revenues in Q3 2007 were
$506,000 compared to $502,000 in Q3 2006 while contracts signed
though not completed due to client availability or timely
recognition of revenue, represented an additional $750,000. Year to
date revenues increased to $1.4 million. The net loss for Q3 2007
was in line with expectations at $2.5 million ($0.14 per share)
compared to $2.0 million ($0.12 per share) in the prior year. Scale
up of the sales, marketing and product management expenses in
anticipation of the introduction of new products in 2007 were the
primary drivers of the increases in expenses. Cash, cash
equivalents, short-term investments and investments held to
maturity, as at December 31, 2006 totaled $3.0 million compared to
$5.6 million as at March 31, 2006. Year to date inflows from
private placement financings totaled $3.8 million (net of issue
costs of $0.28 million). THIRD QUARTER HIGHLIGHTS: - Total realized
and signed contracts during the quarter reach $1.3 million and $3.0
million for the nine-month period. - The backlog of signed and
recurring contracts increased by $750,000 or 27% to $3.5 million
from $2.75 million reported in Q2 2007. - Identified sales
opportunities increased from $24 million last quarter to $25
million after adjustment for the elimination of certain
opportunities due to sales activity reorganization. As a result,
LMS is better positioned to focus resources in a more strategic
manner. - Year to date revenues increased to $1.4 million. - Q3
backlog included multiple signed contracts for CALM Clinical
Information Systems and risk management products, as well as a
newly signed contract for a large hospital group, and anticipated
$750,000 in revenues. Contracts of this magnitude and nature
confirm the acceptance and recognition of LMS' products, as a
leading proprietary software solutions provider, leveraging
innovative approaches for obstetrical risk prevention and reduction
for hospitals and insurers. - LMS completed the programming phase
of the interoperability components for the private label OB
solution under development for its distributor. Completion of the
software bridge enables a seamless flow of administrative and
clinical information between the LMS system and hospital
information management systems. Quality assurance on the
application is currently being carried out and will be followed
immediately by early field implementation and thereafter release to
the marketplace. - LMS increases in backlog and sales opportunities
over the last two quarters reflect the significant expected
increase in revenues related to CALM Clinical Information Systems
and associated risk management tools. 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/. 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 risk management 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: LMS Medical Systems:
Yves Grou, Chief Financial Officer, LMS Medical Systems Inc., (514)
488-3461 Ext. 238, Fax: (514) 488-1880, ,
http://www.lmsmedical.com/; David Gordon, Grant Howard, The Howard
Group Inc., Toll Free: 1-888-221-0915, ,
http://www.howardgroupinc.com/
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