EANS-Adhoc: LifeWatch AG continues on track successfully with positive third quarter 2012 results (with document)
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The issuer is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- 3-month report/Lifewatch AG 07.11.2012 + Revenues increased by 5.7% up to USD 19.86 million; + EBIT of USD 1.86 million and EBITDA of USD 2.68 million; + Improved gross margin of nearly 60%; + Positive Cash Flow of USD 1.61 million; International analyst and media conference call and audio web cast on LifeWatch Q3 2012 financial results + Wednesday, November 7, 2012 at 10.00 a.m. CET; + 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); + Audio web cast http://services.choruscall.eu/links/lifewatch121107.html Neuhausen am Rheinfall/Switzerland - LifeWatch AG (SIX Swiss Exchange: LIFE), the leading provider of wireless telemedicine, today announces the results for the third quarter 2012. The Company continues also in the third quarter 2012 to improve EBIT and EBITDA levels and to increase significantly its gross margin. LifeWatch returns to a positive cash flow position with cash provided from operations in the amount of USD 1.61 million. You will find a PDF-version of this press release and of the letter to shareholders with the results for Q3 2012 at the end of this message. Third Quarter 2012 Financial Highlights: - Revenues of USD 19.86 million compared with USD 18.78 million in Q3 2011. - Gross margin of 59.5% compared with 46.9% in Q3 2011. - Total departmental expenses were 50.1% of revenues compared with 152.6% in Q3 2011. - EBIT of USD 1.86 million compared with LBIT of USD 19.84 million in Q3 2011. - EBITDA of USD 2.68 million compared with LBITDA of USD 18.37 million in Q3 2011. - Positive cash flow from operations of USD 1.61 million compared with negative amount of USD 3.22 million in Q3 2011. Q3 2012 Revenues: Revenues grew this quarter to USD 19.86 million an increase of 5.7% over Q3 2011 revenues. Our sales team is committed to meeting their goals for the year, despite the challenging reimbursement situation in the USA. Many of our accounts who are frustrated by the lack of insurance for some of their telemetry patients have welcomed our Elite service, which was launched in early 2012. While the Elite service can serve as a provisional solution, our goal is to validate the importance of our ACT remote telemetry platform with health insurers. Gross Profit, EBITDA and LBIT: - Gross profit was USD 11.81 million in Q3 2012, showing a greatly improved margin of 59.5%, compared with gross profit of USD 8.81 million and aa margin of 46.9% in Q3 2011. - EBITDA of USD 2.68 million in Q3 2012 compared with a LBITDA of USD 18.37 million in Q3 2011. - EBIT was USD 1.86 million this quarter compared with a LBIT of USD 19.84 million in Q3 2011. The improved results are a result of increased revenues, effective cost cutting initiatives and careful management of all other operating expenses. Net Loss: LifeWatch reported a small net loss of USD 0.57 million compared to a net loss of USD 20.40 million in Q3 2011. Our net loss was mainly affected by deferred, non-cash income tax expenses related to LifeWatch Services, Inc. Loss per share was USD 0.004 (fully diluted), compared to a loss per share of USD 1.64 (fully diluted) reported in the third quarter of 2011. Outlook 2012 Our third quarter results prove our commitment in growing revenues while improving profitability. Reimbursement continues to be an issue, as does the impact of the presidential elections this November. While we cannot give a precise forecast for full fiscal year 2012, we are in a strong position and will cope with these current conditions. Our new service and technology pipeline will provide us with opportunities that create more service and geographical diversification, improve revenue streams and lower our reliance on our current business focus. About LifeWatch AG: LifeWatch AG, headquartered in Neuhausen am Rheinfall and listed on SIX Swiss Exchange (LIFE), Switzerland, is the leading healthcare technology and solution company, specializing in advanced telehealth systems and wireless remote patient monitoring services. LifeWatch services cater to individuals, ranging from high-risk and chronically ill patients, to consumers of health and wellness products. 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 US-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. The Company is planning to introduce the LifeWatch V, an Android-based smartphone with medical sensors and apps that uses a cloud-based service platform. For additional information, please visit www.lifewatch.com. Sign-up for customized E-mail alerts and documentation requests is available at http://production.investis.com/lifewatch/alert-service/ 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: ---------------------------------------------- http://resources.euroadhoc.com/us/mdttPc7K http://resources.euroadhoc.com/us/Bi0ybJoo Further inquiry note: Sensus Investor and Public Relations, Zürich: Tel +41 43 366 55 11 | Fax +41 43 366 55 12 | Email lifewatch@sensus.ch end of announcement euro adhoc -------------------------------------------------------------------------------- Attachments with Announcement: ---------------------------------------------- http://resources.euroadhoc.com/us/mdttPc7K http://resources.euroadhoc.com/us/Bi0ybJoo 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: free trade: Berlin, Open Market / XETRA: Frankfurt, Main Standard: SIX Swiss Exchange language: English