Revenues increased from $31,000 in Q2 to $395,000 in Q3
QUEBEC CITY, Nov. 27 /CNW/ - Medical Intelligence Technologies Inc.
(TSX-V: MIZ), a provider of innovative monitoring solutions for the mobile
telecare industry, today announced its operational and financial results for
the third quarter ended September 30, 2008.Recent Highlights
- Achieved its first significant revenues from the sale of its
monitoring solutions.
- Signed licensing agreement to grant exclusive commercialization
rights for its products and services (Vega GPS Bracelet, PERSmobile
GPS Emergency System, and Urgentys GPS Lone Worker) to LUXGSM.
- Signed licensing agreement with Masternaut Three X in the U.K. for an
initial order of Urgentys Lone Workers for $440,000.
- Launched commercial pilot with Tunstall Healthcare U.K., provider of
telecare and telehealth solutions to over 2.5 million customers, to
test the Vega GPS Bracelet.
- Concluded private placement financing of convertible debentures
valued at $1,001,000 with Canaccord Capital Corporation.
- Granted a full non-exclusive commercial license for the Company's
products and services to Bjorn Steiger Stiftung Service of Germany
("BSSS"), which allows the Company to commercialize its products and
services in five countries."The third quarter was highlighted by the delivery of the first units of
our second generation product to our clients in Spain and UK. We were also
pleased with the signing of our first license agreement in Luxembourg with
LUXGSM. We maintained this momentum and continued to expand our geographic
footprint in Europe with the signing of two additional commercial licenses -
Masternaut Three X in the U.K. and Bjorn Steiger Stiftung Service in Germany
subsequent to end of the quarter," said Philippe P. Huneault, President and
CEO of Medical Intelligence. "These agreements validate the effectiveness our
new licensing business model adopted earlier this year. Our backlog now stands
at 6,200 devices and we expect to record our highest quarterly revenues to
date in the fourth quarter of 2008. Our objective is to continue to increase
our product leadership position in current markets and expand into new growth
markets. Our pilot with Tunstall in the U.K. is progressing well and may
result in a commercial introduction of the Vega in early 2009."
Financial Results
Revenues for the three months ending September 30, 2008 totaled $395,000
compared to $26,000 for the corresponding period in 2007. Revenues for the
quarter comprised sales from mobile telesecurity and the amortization of
deferred revenues from equipment sales over the subscription period.
Selling expenses for the third quarter of 2008 totaled $1,064,000
compared to $863,000 in the third quarter of 2007. The higher selling expenses
were comprised of salaries, traveling expenses, marketing expenses and general
fees, and reflected increased sales activities in Europe and implementation of
pilot projects. The Company expects to reduce these costs in future quarters.
General and Administrative ("G&A") expenses, before stock-based
compensation, for the third quarter of 2008, totaled $848,000 compared to
$362,000 in the third quarter of 2007. The increase in G&A expenses is mainly
the result of additional staff in its European subsidiaries and increase in
legal and consulting fees. Again, the Company expects a tangible reduction of
these expenses in future quarters.
Research and development ("R&D") expenses, net of tax credits, for the
three-month period ended September 30, 2008 totaled $251,000 compared to
$244,000 for the same period in 2007. The increase in R&D expenses is
primarily related to an increase in salaries and components purchasing, offset
by higher tax credits.
Consolidated loss for the third quarter of 2008 was ($2,474,000) or
($0.034) per share (basic and fully diluted), compared to a loss of
($2,021,000) or ($0.028) per share in the third quarter of 2007. The increase
in revenues and gross margin partly offset the increase in selling and G&A
expenses.
For the nine months ending September 30, 2008, revenues totaled $453,000,
compared to $65,000 for the corresponding period in 2007. Selling expenses for
the first nine months of 2008 totaled $3,725,000 compared to $2,396,000 in the
first nine months of 2007. G&A expenses for the nine-month period ending
September 30, 2008 totaled $2,442,000 compared to $1,308,000 for the same
period in the previous year, an increase of $1,134,000. Consolidated loss for
the first nine months of 2008 totaled ($7,936,000) or ($0.108) per share,
compared to a loss of $5,486,000 or $0.086 per share with increased revenues
and gross margin partly offsetting higher G&A costs and a provision for
obsolete inventory of $1,287,000 relating to first generation products.
As of September 30, 2008, the Company had cash and cash equivalents of
$521,000 compared to $8,514,000 as of December 31, 2007.
On November 24th, 2008, Medical Intelligence had 73,560,484 common shares
issued and outstanding.
On November 24th 2008, the Board of Directors approved, as tendered, the
respective resignations of two Directors, namely Messrs. Michel Ghetti and
Steve Forget, effective immediately. The Board of Directors and the management
thank Mr Ghetti and Forget for their contribution to the development of the
Company.
Additional information about the Company, including the MD&A and
financial results, can be found on SEDAR at www.sedar.com.
About Medical Intelligence Technologies Inc.
Medical Intelligence is an early innovator in the mobile telecare
industry, providing solutions that integrate information and
telecommunications technologies. The Company designs portable GPS monitoring
and locating devices that assist individuals with health or safety concerns.
Based in Quebec City, the Company also has subsidiaries in France, Spain and
the United Kingdom (Medical Mobile) where it commercializes its four
solutions; the Columba GPS Bracelet; the Vega GPS Bracelet; the PERSmobile GPS
Emergency System, and Urgentys GPS Lone Worker. For further information, visit
www.medicalintelligence.ca or www.medicalmobile.com.
Forward-looking statements
Any statement in this press release that does not relate directly and
exclusively to historical facts can be considered a forward-looking statement.
Such statements reflect the intentions, plans, expectations and beliefs of
Medical Intelligence Technologies, and are subject to risks, uncertainties and
other factors that are largely beyond the Company's control, to the extent
that actual results may differ significantly from those contemplated by such
statements. Medical Intelligence Technologies neither intends nor is required
to update or revise such forward-looking statements based on new information
or future events, or for any other reason.The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information: Investor relations: Jeremy Mackenzie-Lee, Vice
President, The Equicom Group Inc., (514) 844-6054,
jmackenzielee@equicomgroup.com
