DGAP-Adhoc: LifeWatch achieves volume growth of 13.1% in the first half of 2014
LifeWatch AG / Key word(s): Half Year Results
20.08.2014 07:05
Release of an ad hoc announcement pursuant to Art. 53 KR
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Press Release
LifeWatch achieves volume growth of 13.1% in the first half of 2014
LifeWatch continued to expand as sales reached USD 48.12 million in H1
2014, an increase of 10.2% versus H1 2013. Higher expenses resulted in a
net loss of USD 4.72 million in H1 2014. Based on the on-going operational
improvements and a more focused sales approach a turnover in excess of USD
100 million and a positive operating result for FY 2014 is targeted.
In total, revenues surged by 10.2% to USD 48.12 million in the first six
months of 2014, compared to USD 43.68 million in the first half of 2013.
99% of revenues were generated by our US-based subsidiary. The volume
increase was higher than the revenue increase as a result of an 8% price
decrease by Medicare. Gross profit margin amounted to 52.1% versus 59.3% a
year earlier. The margin drop is attributable to one-off costs of USD 1.84
million. Adjusted for these one-time effects, a gross margin of 56.0% would
have resulted. Furthermore, the initiated optimization process together
with increased Sales and Marketing and General and Administration costs had
an impact on profitability and resulted in an operating loss of USD 4.13
million compared to an EBIT of USD 2.71 million in H1 2013. As a result of
the corrective action taken we expect this reduction in profits to be
temporary.
On-going operational improvements
We expect that the various streamlining activities initiated thus far will
bear fruit as of the second half of this year and especially next year. The
objectives being addressed include the broadening of the product and
service offering, the expansion of the current technology globally, the
assessment of developing a mHealth accessory device as well as the move
towards becoming a fully-integrated biomedical informatics provider.
The following measures and strategies have already been implemented:
a) restructuring and redefinition of the Israeli R&D operation,
b) realignment of US sales territories and regions to improve efficiency
as well as refocusing of the sales commission plan,
c) implementation of a global Governance, Risk and Compliance program,
d) structural changes including realigning the business along global lines
and
e) establishment of a senior management leadership and training program.
In addition we are in the process of updating and standardizing our
financial reporting systems.
Vital Signs Patch on track for launch in 2015
LifeWatch signed 19 new or amended agreements for NiteWatch Home Sleep Test
services and Ambulatory Cardiac Telemetry (ACT) services during the first
half of 2014. We further expect to launch the Vital Signs Patch (VSP) in
the first half of 2015, following marketing clearance from the FDA. This
potentially game changing technology is an easy to use sensor worn on a
patient's upper chest. Once activated, the system provides automation and
alerts of key vital signs via continuous wireless monitoring.
Outlook
LifeWatch expects to exceed its goal of USD 100 million in revenues in
2014, with an improvement in EBIT and EBITDA. We are confident of growing
revenues by strengthening our market share in existing markets as well as
globalizing our service offerings.
Dr Stephan Rietiker commented: "I strongly believe in our company's people,
technology and service offering and I am working, together with my team, to
bring the company to the next level. I also firmly believe that this year
of transition will set the stage for the future and I am excited about the
prospects for the company."
Key figures (unaudited, USD millions):
H1 2014 H1 2014 H1 2013
adjusted
Revenues 48.12 48.12 43.68
Gross Profit 26.93 25.09 25.92
As % of revenues 56.0% 52.1% 59.3%
EBITDA / (LBITDA) 1.45 (1.52) 4.32
As % of revenues 3.0% NA 9.9%
EBIT / (LBIT) (1.16) (4.13) 2.71
As % of revenues NA NA 6.2%
Net income (loss) (1.75) (4.72) 8.88
Earnings per share (basic) (0.36) 0.68
Total fixed assets, net 13.02 7.76
Total Assets 68.54 69.28
Total equity 34.82 44.12
As % of assets 51% 64%
Net Cash Flow (3.92) 4.97
Employees 561 535
Adjustments to H1 2014 figures USD millions
LifeWatch V Healthphone inventory write-off 1.19
One-off costs for improved phone contract 0.40
Memory cards purchase 0.25
Adjustment to Gross Profit 1.84
Disputed billings 0.38
Israel restructuring 0.25
Legal reserve 0.50
Total adjustment * 2.97
* to EBITDA (LBITDA), EBIT (LBIT) and Net Income (Loss)
Detailed reporting
The report on the first half 2014 can be found on our website using the
following link:
http://irlifewatch.com/websites/lifewatch_ir/English/4020/quarterly-report
s.html
Today's conference call
A conference call on our half-year results will be held today at 14.00 CET.
Dial-in will be as follows:
CH: +41 44 580 65 22
GER: +49 69 2017 44 210
US: +1 877 423 0830
Participant Pin Code: 558424#
For further questions:
LifeWatch AG
c/o Dynamics Group, Philippe Blangey / Doris Rudischhauser
Phone: +41 43 268 32 35
E-mail: investor-relations@lifewatch.com
About LifeWatch AG:
LifeWatch AG, headquartered in Neuhausen am Rheinfall and listed on SIX
Swiss Exchange (LIFE), Switzerland, is a leading healthcare technology and
solution company, specializing in advanced telehealth systems and wireless
remote Patient monitoring services. LifeWatch's services provide physicians
with critical information to determine appropriate treatment and thereby
improve Patient outcomes. LifeWatch AG has operative subsidiaries in the
United States, in Switzerland and in Israel, and is the parent company of
LifeWatch Services Inc., and LifeWatch Technologies, Ltd. LifeWatch
Services, Inc. is a leading U.S.-based provider of cardiac monitoring
services and home sleep testing of Obstructive Sleep Apnea (OSA). LifeWatch
Technologies Ltd., based in Israel, is a leading developer and manufacturer
of telemedicine products. For additional information, please visit
www.lifewatch.com.
Sign up for customized e-mail alerts and documentation requests at
http://www.irlifewatch.com/alert-service.aspx
This press release includes forward-looking statements. All statements
other than statements of historical facts contained in this press release,
including statements regarding future results of operations and financial
position, the business strategy, and plans and objectives for future
operations, are forward-looking statements. The words "believe," "may,"
"will," "estimate," "continue," "anticipate," "intend," "expect" and
similar expressions are intended to identify forward-looking statements.
LifeWatch AG has based these forward-looking statements largely on current
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subject to a number of risks, uncertainties and assumptions. In light of
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circumstances described may not occur and actual results could differ
materially and adversely from those anticipated or implied in the
forward-looking statements. All forward-looking statements are based only
on data available to LifeWatch AG at the time of the issue of this press
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forward-looking statements contained in this press release as a result of
new information, future events or otherwise.
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Language: English
Company: LifeWatch AG
Rundbuckstrasse 6
8212 Neuhausen am Rheinfall
Switzerland
Phone: +41 52 632 00 50
Fax: +41 52 632 00 51
E-mail:
Internet: www.lifewatch.com
ISIN: CH0012815459
Valor: 811189
Listed: Freiverkehr in Berlin, Stuttgart; Frankfurt in Open
Market ; SIX
End of Announcement EQS Group News-Service
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