Evolved Digital Systems Inc releases results for the quarter and nine months ended September 30, 2007



    MONTREAL, Nov. 13 /CNW Telbec/ - Evolved Digital Systems Inc. (TSX:
EVD)(the "Company"), a leading healthcare technology solutions company, today
announced its results for the quarter and nine months ended September 30,
2007.
    Loss from continuing operations improved approximately 48% for the third
quarter of 2007 as compared to the same period in 2006. The improvement of
nearly $0.7 million is primarily due to a continued decrease in operating
expenses which was partially offset by a reduction in related revenues.
Revenue declined by approximately 43% largely as a result of non-recurring
equipment solutions revenue in 2006 in addition to a multi-site contract that
was not renewed and the expiration or maturity of several historical
transactions. The decline in revenue was offset by a reduction in cost of
services expenses (34%) as well as a reduction in selling and administrative
expenses resulting from the 2006 reduction in workforce.
    The results of the Canadian operations have been classified as
discontinued operations. Earlier this year, the Company completed an asset
purchase transaction with Shimadzu Corporation (Shimadzu) whereby Shimadzu
purchased substantially all of the assets of the Canadian operations of the
Company for US$8.5 million. The proceeds were used to repay all of the
Company's secured and unsecured debt totaling approximately US$5.7 million.
    Sales activity is on the rise with both new and existing partnerships
generating new business for Evolved. A recent partnership with Visionary
Imaging, LLC has already resulted in 2 new installations in the fourth quarter
in addition to an expansion of services at an existing site. Evolved also
continues to see new sales activity from its existing partner, Alliant
Purchasing, LLC with another recent new site installation completed during the
fourth quarter. In addition to the completed installations, the Company also
has commitment of 7 additional sites for various services.

    
    Financial highlights:

    -------------------------------------------------------------------------
    Three months ended September 30,              2007        2006  % Change
    -------------------------------------------------------------------------
    (in thousands, except share and per
     share data)
    Total revenue - continuing operations   $  1,558.5  $  2,718.4    (42.7%)
    Net income (loss):
      From continuing operations                (734.1)   (1,416.8)   (48.2%)
      From discontinued operations                   -       160.2   (100.0%)
        Net income (loss)                       (734.1)   (1,256.6)    41.6%
    Basic and diluted income (loss)
     per share:
      From continuing operations                 (0.01)      (0.02)        -
      From discontinued operations                   -           -         -
                                           ------------------------
        Basic and diluted income
         (loss) per share                   $    (0.01) $    (0.02)        -
    Weighted average number of common
     shares outstanding during the period   56,488,540  56,488,540         -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Nine months ended September 30,               2007        2006  % Change
    -------------------------------------------------------------------------
    (in thousands, except share and per
     share data)
    Total revenue - continuing operations   $  5,195.3  $  7,619.2    (31.8%)
    Net income (loss):
      From continuing operations              (2,855.7)   (3,893.3)   (26.7%)
      From discontinued operations             8,027.7       325.2  2,368.8%
        Net income (loss)                      5,172.0    (3,568.2)   244.9%
    Basic and diluted income (loss)
     per share:
      From continuing operations                 (0.05)      (0.07)        -
      From discontinued operations                0.14        0.01         -
                                           ------------------------
        Basic and diluted income (loss)
         per share                          $     0.09  $    (0.06)        -
    Weighted average number of common
     shares outstanding during the period   56,488,540  56,488,540         -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    About Evolved

    Through its Digital Imaging Workflow Solution, Evolved serves its clients
with a Managed Services approach proven to increase operational efficiency and
to reduce IT spending in hospitals and imaging facilities across the United
States. Evolved's fully managed, web-based RIS solution includes image and
data verification from a modality to the archive and/or HIS, on-line dictation
and transcription, and optional integrated PACS with 5 years of on-site
storage. Evolved's Managed Services offering provides a unique workflow
solution seamlessly integrated, and backed by a highly qualified and dedicated
team of experts. Evolved's clients can additionally choose to utilize
Evolved's secure, state of the art data center for offsite archiving and
disaster recovery. Evolved's solution addresses common challenges small to
medium sized facilities face today by providing custom solutions, founded on a
pay as you go financial model, and backed by unparalleled off-site customer
service and support. Evolved is a publicly traded company listed on the
Toronto Stock Exchange (TSX: EVD). Corporate headquarters are based in Laval,
Quebec. U.S. offices are located at 5141 Virginia Way, Suite 300, Brentwood,
TN 37027.
    For more information, contact EVOLVED at 1-800-5EVOLVED or visit the
company website at www.evolveddigital.com

    FORWARD_LOOKING STATEMENTS: Certain statements in this communication may
constitute forward-looking statements. They are based on management's current
expectation and could be affected by numerous factors and are subject to
various risks and uncertainties. Certain of those risks and uncertainties are
discussed in company filings with the Canadian Securities Commission. Do not
rely on any forward-looking statements as we cannot predict or control many of
the factors that ultimately may affect our ability to achieve the results
estimated. We make no promise to update any forward-looking statement, whether
as a result of changes in underlying factors, new information or future
events.

    The TSX has neither approved nor disapproved the information contained
    herein.





For further information:

For further information: Linda Willis, Vice President and Controller,
(615) 850-3029, E-mail: linda.willis@evolveddigital.com

Organization Profile

EVOLVED DIGITAL SYSTEMS INC.

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