Evolved Digital Systems Inc releases results for the quarter and six months ended June 30, 2007



    MONTREAL, Aug. 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 six months ended June 30,
2007.
    Loss from continuing operations improved approximately 39% for the second
quarter of 2007 as compared to the same period in 2006. The improvement of
better than $.5 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 21% primarily as a result of the expiration
or maturity of several historical transactions in addition to a multi-site
contract that was not renewed. The decline in revenue was substantially offset
by a similar reduction in cost of services expenses (34%) as well as a
reduction in selling and administrative expenses largely resulting from the
2006 reduction in workforce.
    The results of the Canadian operations have been classified as
discontinued operations resulting in net income from discontinued operations
of $8,027,740 for the six-months ended June 30, 2007 as compared to $164,916
for the comparable period in 2006. The increase is primarily attributable to
the gain recognized on the asset purchase transaction discussed below.
    On April 25, 2007 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.
    Current initiatives are beginning to generate sales activity with the
completion of two customer installations during the second quarter as well as
the recent commitment of 9 additional sites for various services. The Company
expects to see modest improvement in the financial results from this activity
later this year.

    
    Financial highlights:

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Three months ended June 30,              2007         2006     % Change
    -------------------------------------------------------------------------
    (in thousands, except share
     and per share data)

    Total revenue - continuing
     operations                        $  1,884.8   $  2,402.0        (21.5%)
    Net income (loss):
      From continuing operations           (805.2)    (1,315.0)       (38.8%)
      From discontinued operations        7,954.1         46.7     16,932.3%
        Net income (loss)                 7,149.0     (1,268.2)       663.7%
    Basic and diluted income (loss)
     per share:
      From continuing operations            (0.01)       (0.02)           -
      From discontinued operations           0.14         0.00            -
                                      ---------------------------
        Basic and diluted income
         (loss) per share              $     0.13   $    (0.02)           -
    Weighted average number of
     common shares outstanding
     during the period                 56,488,540   56,488,540            -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Six months ended June 30,                2007         2006     % Change
    -------------------------------------------------------------------------
    (in thousands, except share
     and per share data)

    Total revenue - continuing
     operations                        $  3,636.8   $  4,900.8        (25.8%)
    Net income (loss):
      From continuing operations         (2,121.6)    (2,476.4)       (14.3%)
      From discontinued operations        8,027.7        164.9      4,767.8%
        Net income (loss)                 5,906.1     (2,311.6)       355.5%
    Basic and diluted income (loss)
     per share:
      From continuing operations            (0.04)       (0.04)           -
      From discontinued operations           0.14         0.00            -
                                      ---------------------------
        Basic and diluted income
         (loss) per share              $     0.10   $    (0.04)           -
    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, linda.willis@evolveddigital.com; Source: Evolved Digital
Systems Inc.

Organization Profile

EVOLVED DIGITAL SYSTEMS INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890