QUEBEC CITY, Aug. 28 /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 three and six-month periods ended June 30, 2008.
- Received firm order for 2,500 Urgentys Lone Worker GPS devices valued
at Cdn$1.5 million
- Signed a partnership agreement to test 100 Vega GPS Bracelets with
the Mutualité Française Côte-d'Or Yonne
- Received firm purchase orders for 500 Vega GPS Bracelets from Reial
Automobil Club de Catalunya
- Signed first commercialization license agreement with LUXGSM and
received initial order of 300 units
- Signed first license agreement in the U.K. with Masternaut Three X
for Urgentys Lone-Worker
"I am very proud to report that the investment we made since the
beginning of the year to strengthen our operations and expand our product
offering is delivering strong sales momentum," said Philippe P. Huneault,
President and CEO of Medical Intelligence. "The quarter was highlighted by an
order received in Spain for 2,500 Urgentys Lone-Workers, our new emergency GPS
button for workers in remote locations. More recently, we successfully
introduced our new licensing business model and signed two license agreements
in new markets, Luxembourg and the U.K."
"We now have an order backlog of 5,600 devices to be delivered in the
third and fourth quarters of 2008, which represents over $2.4 million in
revenue. Looking forward, we expect to continue exporting our technology to
other European regions and to expand our existing customer relationships to
increase initial device orders."
Revenues for the three months ended June 30, 2008, totaled $31,000
compared to $23,000 for the corresponding period in 2007. Revenues for the
quarter were comprised of mobile telesecurity and amortization of deferred
revenues from the sale of equipment over the subscription period.
Selling expenses for the second quarter of 2008 totaled $1,338,000
compared to $940,000 in the second quarter of 2007. The increase in selling
expenses during the quarter reflect intensified sales efforts in Europe which
resulted in an increase in salaries, traveling expenses, marketing expenses
and general fees.
General and Administrative ("G&A") expenses, before stock-based
compensation, for the second quarter of 2008, totaled $893,000, compared to
$554,000 in the second quarter of 2007. The increase in G&A expenses is mainly
the result of an increase in legal and consulting fees.
Research and development ("R&D") expenses, net of tax credits, for the
three-month period ended June 30, 2008, totaled $229,000, compared to $185,000
for the same period in 2007. The increase in R&D expenses is primarily related
to an increase in salaries, components purchasing, offset by higher tax
In the second quarter of 2008, the Company recorded a non-cash provision
for obsolete inventory totaling $1,287,000 of the first generation units
manufactured in 2006. Considering the life cycle of its products and the
recent launch of the second generation of its products, the Company has
adopted a policy for obsolete inventory that provides for a total write-down
of the value of its units three years after it has been assembled and a
progressive write-down of 15% after one year of assembly and 50% following the
second year. The Company intends to maintain this conservative approach for
inventory valuation, but will continue its commercialization efforts in order
to materialize the original cost of its products.
Consolidated loss for the second quarter of 2008 was ($3,985,000) or
($0.054) per share (basic and fully diluted), compared to a loss of
($2,258,000) or ($0.033) per share in the second quarter of 2007. The increase
in net loss during the quarter mainly reflects the previously mentioned
provision for obsolete inventory.
For the six months ended June 30, 2008, revenues totaled $58,000,
compared to $39,000 for the corresponding period in 2007. Selling expenses for
the first half of 2008 totaled $2,662,000, compared to $1,533,000 in the first
half of 2007. G&A expenses and R&D expenses for the six-month period ended
June 30, 2008, totaled $1,593,000 and $408,000 respectively, compared to
$946,000 and $282,000 for the same period in the previous year. Consolidated
loss for the first six months of 2008 totaled ($5,463,000) or ($0.074) per
share, compared to a loss of ($3,464,000) or ($0.059) per share, for the first
six months of 2007.
As at June 30, 2008, the Company had cash and cash equivalents of
$2,741,000 compared to $8,514,000 as at December 31, 2007.
As at August 22, 2008, Medical Intelligence had 73,560,484 common shares
issued and outstanding.
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.
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:
For further information: Arianna Vanin, Investor Relations, The Equicom
Group Inc., (514) 844-4680, email@example.com