Business & Finance
Business and Finance
Business and Finance 
Thu, October 29, 2009
Wed, October 28, 2009
TORONTO, ONTARIO--(Marketwire - Oct. 28, 2009) -
Attention: Business/Financial Editors:
The Medipattern Corporation ("Medipattern") (TSX VENTURE:MKI), a pioneer in the development of medical software solutions that help improve imaging workflow and productivity, today announced its business highlights and audited financial results for the fiscal year ended June 30, 2009.
"Our 2009 results reflect the change in business model we have adopted and as a result are significantly lower in the near term. However, the successful introduction of B-CAD-FOR-LIFETM, which was well received in the initial phase of release, now positions this program to make significant contributions to revenue in the coming quarters," said Jeff Collins, CEO of Medipattern. "We expect the national roll out of this product to begin in November of this year. With the affirmation of the B-CAD-FOR-LIFETM model and our entry next year into the considerably larger vascular market with the introduction of Vascular iQTM, we anticipate Medipattern will generate significant revenue in fiscal 2010."
Business Highlights of Fiscal 2009:
- October 8, 2008 - Announced that a study abstract, showing statistically significant increase in diagnostic accuracy (44%) when using B-CAD Version 2 on lesions less than 1 cm in size, was published in the October 2008 American Journal of Clinical Oncology;
- October 15, 2008 - Introduced B-CAD version 1.3 and 2.3 combining CAD with structured digital reporting for greater consistency and productivity;
- December 9, 2008 - Announced that China Primary Health Care Foundation (CPHCF) purchased 200 B-CAD systems as part of a pilot breast screening program for rural China as part of a large-scale trial to finalize breast screening protocol prior to launching their national screening program;
- December 19, 2008 - Signed a non-exclusive Original Equipment Manufacturers agreement allowing iPACS, LLC to integrate B-CAD into its product line;
- January 29, 2009 - Extended the collaboration and development agreement with GE Healthcare to create ultrasound-based Vascular Imaging Quantification Tools as an application: Vascular iQ;
- February 12, 2009 - Introduced B-CAD-FOR-LIFE, a new sales model for accessing the benefits of B-CAD. All of the components to tailor the installation for each customer including B-CAD software, seat licenses and hardware, as well as training, installation and maintenance fees, are bundled under one flat monthly fee. Subsequent installations include:
-- April 30, 2009 - Enterprise Wide B-CAD-FOR-LIFE managed service contract with Zwanger-Pesiri Radiology, Long Island, New York's largest private medical imaging practice;
-- May 8, 2009 - Enterprise Wide B-CAD-FOR-LIFE managed service contract with Metropolitan Diagnostic Imaging Group who service the metropolitan New York area with locations in Manhattan, Forest Hills, Queens, Brooklyn and Long Island. The installation marks the 100th B-CAD install;
-- June 23, 2009 - B-CAD-FOR-LIFE agreement with Long Island Radiology Associates; and
-- August 4, 2009 - B-CAD-FOR-LIFE agreement with Manhattan Diagnostic Radiology.
- May 26, 2009 - Commenced shipments to the China Primary Health Care Foundation ("CPHCF") as part of the CPHCF's purchase order for two hundred (200) B-CAD systems, as previously announced in December 2008. The CPHCF is purchasing the equipment for a pilot breast-screening program in hospitals throughout rural China;
- Raised $357,000 through a convertible debenture financing and $2.7 million (as of the date of this release) through non-brokered private placements to support the development of new products such as Vascular iQ and B-CAD-FOR-LIFE.
Financial Highlights for Fiscal 2009:
- Revenue totaled $229,466 (2008 - $800,617) for the fiscal year ended June 30, 2009 (fiscal 2009). Professional fees totaled $122,343 (2008 - $480,674) as a result of software development work done to customize B-CAD for a specific customer. Licensing revenue totaled $107,123 compared to $319,943 for the fiscal year ended June 30, 2008 (fiscal 2008);
- Operating expenses in fiscal 2009 totaled $4.10 million versus $4.33 million in fiscal 2008. During the second half of fiscal 2009, Medipattern undertook cost cutting measures in response to the overall economic decline including staff reductions and general reductions in discretionary spending such as advertising, promotion, travel to conference and trade shows, and contract fees;
- Resulting net loss for the 2009 fiscal year was $4.24 million ($0.10 per share) versus $3.53 million ($0.08 per share) for the same period in the previous year. The results for fiscal 2009 include impairment write-downs totaling $370,977, or $0.01 per share, of deferred technology charges and web site development costs;
- As at June 30, 2009, cash and cash equivalents totaled $1.85 million, current assets were $2.21 million (June 30, 2008 - $4.15 million) and current liabilities were $351,745 (June 30, 2008 - $470,834). Working capital totaled $1.86 million and long term debt was nil as at June 30, 2009.
Results of Operations:
THE MEDIPATTERN CORPORATION
UNAUDITED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
FOR FISCAL YEARS ENDED JUNE 30, 2009 AND 2008
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Increase
2009 2008 (Decrease)
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REVENUES
Licensing fees $ 107,123 $ 319,943 $ (212,820)
Professional fees 122,343 480,674 (358,332)
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229,466 800,617 (571,151)
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EXPENSES
Research and development 1,417,360 1,681,490 (264,130)
Administration and
product support 1,396,670 1,629,703 (233,033)
Sales and marketing 1,251,624 1,135,360 116,263
Interest on convertible
debenture 10,681 - 10,681
Accreted interest on
convertible debenture 38,940 - 38,940
Foreign exchange (gain)
loss (18,228) 10,077 (28,304)
Investment income (52,924) (166,881) 113,957
Investment income on
held to maturity
investment (3,037) (18,338) 15,301
Amortization of property
and equipment 53,480 57,834 (4,354)
Amortization of
intangible assets 4,913 - 4,913
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4,099,479 4,329,244 (229,765)
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LOSS BEFORE UNDERNOTED (3,870,013) (3,528,627) (341,386)
Impairment of
intangible assets (370,977) - (370,977)
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NET LOSS AND
COMPREHENSIVE LOSS $ (4,240,990) $ (3,528,627) $ (712,363)
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For further details concerning Medipattern's results, please see the Company's filings on SEDAR. ([ www.sedar.com ]).
2009 Upcoming Events:
- RSNA (Radiological Society of North America), November 29 to December 3, 2009, Chicago, IL
About The Medipattern Corporation:
Medipattern® (TSX VENTURE:MKI) is a pioneer in the development of medical software solutions that help improve imaging workflow and productivity. Our first-to-market, award-winning B-CAD® advances breast ultrasound computer aided detection (CAD) by streamlining workflow and organizing information into a comprehensive patient record. Medipattern uses its CadenzaTM CAD Technology to power the digital conversion in medical communications. B-CAD automatically creates fully digital standardized worksheets and reports that make every practice more efficient, productive and ultimately more effective. For more information, please visit the Company's website at: [ www.medipattern.com ].
B-CADTM and B-CAD MRITM are trademarks of The Medipattern Corporation. Medipattern® is a registered mark of The Medipattern Corporation.
Forward-looking statements
This document contains forward-looking statements relating to Medipattern's performance, operations, or business environment. These statements are based on what we believe are reasonable assumptions given currently available information and our understanding of Medipattern's current activities. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential," and similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or control. A number of factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements. These factors include but are not limited to those set forth in the Company's corporate filings, (posted at [ www.sedar.com ]). In addition, these forward-looking statements relate to the date on which they are made. The Company disclaims any intention or obligation to update or revise any forward-looking statements for any reason. Readers should not rely on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.