EANS-Adhoc: LifeWatch to announce results for the second quarter 2011 (with document)
2 Documents
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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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6-month report/LifeWatch Q2 2011 results
23.08.2011
Continuous enrollment growth in all services lines
New NiteWatch Sales approach leads to 50% more growth
San Francisco Call Center with new Medicare IDTF provider number
Important cost savings initiatives of USD 15 m annually on track
In total 33 new contracts
International conference call about LifeWatch AG results in the second quarter
2011:
Tuesday, August 23, 2011 at 10:00 a.m. CEST
Dial-in number: +41 (0)91 610 56 00 (Europe) / +44 (0)203 059 58 62 (UK) /
+1 (1) 866 291 41 66 (USA - Toll-free)
Neuhausen am Rheinfall/Switzerland - LifeWatch AG (SIX Swiss Exchange: LIFE),
the leading provider of wireless telemedicine, today announces the results for
the second quarter 2011. LifeWatch´s financial results are still affected by
the difficult reimbursement environment in the U.S. healthcare market but the
Company achieved important operational improvements.
At the end of this message you will the PDF-versions of this press release and
of the letter to shareholders with the results for the second quarter 2011.
Second Quarter 2011 Financial Highlights:
ACT enrollments rose 6.6% compared to Q2 2010
NiteWatch enrollments increased 50.4% over Q2 2010
16 new managed care contracts for ACT Services
17 new managed care contracts for NiteWatch services
Revenues decreased 13.4% to USD 20.15 million, versus USD 23.27 million in
Q2 2010
Gross margin decreased to 43.8%, compared to 51.0% in Q2 2010
LBIT of USD 8.55 million, compared to EBIT of USD 0.12 million in Q2 2010
LBITDA of USD 7.02 million, compared to EBITDA of USD 1.57 million in Q2
2010
Cash, cash equivalents, marketable securities and structures amounted to
USD 11.53 million
Accounts receivable this quarter include USD 9.00 million for Medicare
services provided at our San Francisco call center, which will be
collected in Q3 2011
Management analysis:
The difficult reimbursement and overall economic environment in the U.S.A. and
in the healthcare market continued to impact our business and our revenues.
This difficult environment has compelled the company to implement major
restructuring and cost savings initiatives of approximately USD 15 million
annually. The company is on its way to complete the cost savings initiatives by
mid-October 2011. The restructuring will include more automation, outsourcing
and other measures which will reduce the labour costs and other expenses
significantly. We expect these measures to have a relative impact on our 2011
fiscal results, and a positive impact on our 2012 results. In mid-February 2011
we opened our third call center in San Francisco and applied for a Medicare
provider number, which is the normal administrative process. From mid-February
until August, the Company provided services to Medicare patients in the amount
of USD 12.5 million. On August 10, 2011 we received this Medicare provider
number for the San Francisco call center, which will now enable the Company to
collect for these services.
R&D:
The company is investing heavily in the development of two new breakthrough
products that will be ready for launch in the second half of 2012. We believe
these new products will completely change the business direction, financial
situation and total positioning of the company, and further diversify our
offerings.
Gross Profit, LBIT and LBITDA:
Gross profit was USD 8.82 million (43.8%), compared to gross profit of USD
11.87 million (51.0%) in Q2 2010. The lower gross margin is mainly
attributable to 1) the decline in reimbursement, while fixed costs for the
provision of monitoring services remained the same; and 2) overlapping
payroll expenses related to hiring and training staff at our San Francisco
call center which took longer than anticipated.
LBIT was USD 8.55 million, compared to EBIT of USD 0.12 million in Q2
2010. The operational expenses were affected by the cost items below:
- Investment in R&D developing new products and services
- Expenses for legal services including intellectual property
protection of the Company
- Expenses related to restructuring and other
LBITDA was USD 7.02 million, compared to EBITDA of USD 1.57 million in Q2
of 2010.
Net Loss:
LifeWatch reported a net loss of USD 10.07 million in Q2 2011, compared to a
net profit of USD 1.87 million recorded a year ago. Loss per share was USD 0.81
(fully diluted), compared to earnings per share of USD 0.14 (fully diluted) in
the second quarter of 2010.
ACT Monitoring Services:
ACT enrollments rose 6.6% over Q2 2010; however a lower Average Selling Price
(ASP) had a negative impact on ACT revenues. We expect the ASP for ACT services
to rise in Q3 2011 as we have terminated the provision of services when there
is no insurance coverage.
NiteWatch:
During this reporting quarter, enrollments for our NiteWatch Home Sleep Test
service grew 50.4%, compared to Q2 2010. The growth is due to the
implementation of a multi-faceted sales approach. We also received 17 new
managed care contracts. LifeWatch will continue its investments into this
service line.
Outlook 2011:
Given the current environment, we will not meet our previously announced
forecast for 2011. The Company has lowered the fiscal revenue forecast to USD
80 - 82 million. For the remainder of the fiscal year the Company will focus on
completing the restructuring and cost savings initiatives in order to return to
profitability.
Sign-up for customized E-mail alerts and documentation requests is available at
http://production.investis.com/lifewatch/alert-service/
About LifeWatch AG:
LifeWatch AG, headquartered in Neuhausen am Rheinfall, Switzerland and listed
on SIX Swiss Exchange (LIFE), is the leading healthcare technology and
solutions company, specializing in advanced telemedicine systems and wireless
remote patient monitoring services. LifeWatch provides services to high-risk
and chronically ill patients, health conscious consumers and wellness programs.
LifeWatch has subsidiaries in the United States, the Netherlands, Japan, the
United Kingdom, Switzerland and Israel. LifeWatch AG is the parent company of
LifeWatch Services, Inc., a leading US-based wireless remote telemedicine
provider. LifeWatch services include Home Sleep Testing for Obstructive Sleep
Apnea patients under the brand name NiteWatch. For additional information,
please visit www.lifewatch.com and www.nitewatchservices.com.
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,
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 expectations and projections about future
events and financial trends that it believes may affect the financial
condition, results of operations, business strategy, short term and long term
business operations and objectives, and financial needs. These forward-looking
statements are subject to a number of risks, uncertainties and assumptions. In
light of these risks, uncertainties and assumptions, the forward-looking events
and 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 release.
LifeWatch AG does not undertake any obligation to update any forward-looking
statements contained in this press release as a result of new information,
future events or otherwise.
THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF AMERICA AND
SHOULD NOT BE DISTRIBUTED TO UNITED STATES PERSONS OR PUBLICATIONS WITH A
GENERAL CIRCULATION IN THE UNITED STATES. THIS PRESS RELEASE DOES NOT
CONSTITUTE AN OFFER OF SECURITIES OF LIFEWATCH AG OR ANY OF ITS SUBSIDIARIES
FOR SALE IN THE UNITED STATES OR AN INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY
SECURITIES OF LIFEWATCH AG OR ITS SUBSIDIARIES IN THE UNITED STATES. IN
ADDITION, THE SECURITIES OF LIFEWATCH AG AND ITS SUBSIDIARIES HAVE NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD
OR DELIVERED WITHIN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION
UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
UNITED STATES SECURITIES LAWS. ANY PUBLIC OFFERING OF SECURITIES TO BE MADE IN
THE UNITED STATES WILL BE MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED
FROM LIFEWATCH AG OR ITS SUBSIDIARIES, AS APPLICABLE, AND WILL CONTAIN DETAILED
INFORMATION ABOUT THE ISSUER AND ITS MANAGEMENT AS WELL AS FINANCIAL STATEMENTS
OF THE ISSUER.
Attachments with Announcement:
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http://resources.euroadhoc.com/us/1HCW6Rjz
http://resources.euroadhoc.com/us/IBzY8Led
Further inquiry note:
Kobi Ben Efraim, Chief Financial Officer, LifeWatch AG:
Tel +41 52 632 00 50 | Fax +41 52 632 00 51 | E-mail kobibe@lifewatch.com
Sensus Investor & Public Relations, Zürich:
Tel +41 43 366 55 11 | Fax +41 43 366 55 12 | E-mail lifewatch@sensus.ch
end of announcement euro adhoc
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Attachments with Announcement:
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http://resources.euroadhoc.com/us/1HCW6Rjz
http://resources.euroadhoc.com/us/IBzY8Led
issuer: LifeWatch AG
Rundbuckstrasse 6
CH-8212 Neuhausen am Rheinfall
phone: +41 52 632 00 50
FAX: +41 52 632 00 51
mail: users@lifewatch.com
WWW: www.lifewatch.com
sector: Healthcare Providers
ISIN: CH0012815459
indexes: SPI, SPIEX
stockmarkets: Open Market / XETRA: Frankfurt, free trade: Berlin, Main Standard:
SIX Swiss Exchange
language: English