MeVis Medical Solutions AG: Upward trend stabilized in Q2 2012

MeVis' upward trend stabilized in Q2 2012

Significantly improved profitability and increased liquidity with slightly rising sales

- Group sales grew moderately to EUR 6.9 million in the first six months (prev. year: EUR 6.7 million).

- License and maintenance business increased, the maintenance business share remained constant at 43 %.

- Earnings before interest and taxes (EBIT) climbed to EUR 1.3 million (prev. year: EUR 0.2 million).

- Liquidity rose further to EUR 9.0 million (end of 2011: EUR 7.5 million).

Bremen, August 27, 2012 - MeVis Medical Solutions AG [ISIN: DE000A0LBFE4], a leading provider of medical imaging software, today announced its results for the first half of 2012.

Sales in the first half of 2012 amounted to EUR 6,878 k, 3 % above the first half of 2011 (EUR 6,688 k) with both license (+2 %) and maintenance (+3 %) business contributing to this growth. The share of maintenance business remained constant at 43 % of total sales in the first half of the year.

Sales in the Digital Mammography segment went down slightly by 1 % to EUR 5,145 k compared to the strong first half of 2011 (prev. year: EUR 5,191 k). Sales in the Other Diagnostics segment developed positively, rising by 16 % to EUR 1,733 k (prev. year: EUR 1,497 k).

Sales in the second quarter of 2012 came to EUR 3,241 k, corresponding to a 9 % increase year-on-year.

In the first half of 2012, capitalization of development costs went up by 8 % to EUR 1,409 k compared to the previous year's period.

Personnel expenses dropped by a total of 9 % year-on-year in both the second quarter and the first six months and amounted to EUR 4,422 k in the first half of the year. At the same time, other operating expenses could be reduced noticeably again by 19 % to EUR 1,158 k on account of the continuing cost savings measures.

After depreciation and amortization of EUR 1,656 k (7 % down year-on-year), earnings before interest and taxes (EBIT) increased by around EUR 1.1 million - one of the main reasons being the cost savings measures − to EUR 1,256 k (prev. year: EUR 181 k) in the first half of the year. The EBIT margin rose steeply to 18 % as a result (prev. year: 3 %).

The net financial result of EUR 254 k (prev. year: EUR -617 k) also improved considerably, with the results of operation of the Dutch investment Medis and the strong US dollar contributing to this development.

Pre-tax earnings rose correspondingly by almost EUR 2 million to EUR 1,510 k in the period under review (prev. year: EUR -436 k). Taking into account income tax expenses of EUR 844 k, a figure on par with the previous year and which is still primarily influenced by non-cash deferred taxes, MeVis closed the first half of the current financial year with consolidated net profit of EUR 666 k (prev. year: -1,172 k). Earnings per share therefore amounted to EUR 0.39 (prev. year: EUR -0.68).

Liquid funds increased again in the second quarter and amounted to EUR 9,037 k on June 30, 2012 (compared to EUR 7,749 k on March 31, 2012 and EUR 7,506 k on December 31, 2011).

'Following the positive first half of 2012, we are confirming our 2012 guidance in which we forecast Group sales to stabilize at the previous year's level. We expect the EBIT to rise slightly as a result of our improved cost position,' said Dr. Robert Hannemann, CFO of MeVis Medical Solutions AG. 'We also anticipate further positive liquidity from operating activities in 2012, whereby a purchase price payment of EUR 3.0 million as part of the acquisition of the 49% stake in MBS KG will be due for the last time this year, which will have a corresponding impact on liquidity.'

'We have successfully started implementing our strategic reorientation. During our visits, we reassured our industrial customers that we will be increasingly focusing our business activities on their needs,' added Marcus Kirchhoff, CEO of MeVis Medical Solutions AG. 'We have also started our internal restructuring process. We have, for instance, provided the first resources for developing the new strategic business field, online services, from which we expect medium-term growth.'

The financial reports of the company can be downloaded at http://www.mevis.de/mms/Finanzberichte.html.