LMS First Quarter 2009 Financial Results - Q1 Revenues total $801,000

    MONTREAL, Aug. 12 /CNW Telbec/ - LMS Medical Systems (TSX: LMZ), a
healthcare technology company and developer of the CALM(R) clinical
information system and risk management software tools for obstetrics, today
reported its unaudited financial results for the first quarter ended June 30,
2008. All amounts are in Canadian dollars.
    Revenues totaled $801,000 for Q1 2009, a decrease of 17% from $962,000
for Q1 2008. Revenues did not meet expectations due to a delay of our
distributor's software release which integrates our product. Notwithstanding
lower than expected revenues, we believe this will rectify itself with the new
release. The Company's sales have increased significantly on a year to year
basis over the past three years, a trend which, based on our backlog and
growing pipeline, we believe will continue.
    Recurring revenues for the quarter totaled $471,000, an increase of 50%
over Q1 2008 when they totaled $314,000.
    Our backlog remained stable at $3.9 million. However, our pipeline of
opportunities increased to $34 million from $31 million.
    LMS continues to concentrate its efforts on revenue generation, servicing
the Company's growing customer base and profitability. LMS looks to develop
additional partnerships to increase market presence.
    Total expenses for Q1 2009 amounted to $2,278,000 compared to
$2,928,000 for Q1 2008, a decrease of $650,000 or 22%, which contributed to
the reduction of the comparative operating loss by $504,000 or 24%, from
$2,090,000 ($0.10 per share) to $1,586,000 ($0.06 per share). The cash used in
operating activities before net changes in non-operating working capital items
decreased by $422,000 to $1,461,000 for Q1 2009 compared to $1,883,000 for Q1
2008, due primarily to a lower net loss for Q1 2009 compared to Q1 2008.
    Under our contract with a distributor, LMS is entitled to receive amounts
for contracts contained in our backlog. As at June 30, 2008, this amount,
which does not qualify as a receivable under generally accepted accounting
principles, amounted to $907,000 and will provide short term additional
liquidity. As such, the total cash, cash equivalents, short term investments
and accounts receivable, including this amount, amounted to $2,546,000 as at
June 30, 2008. To date, we have funded our research and development phase and
the regulatory process with equity issuance. We intend to seek additional
financing to fund operations and sales activities through sales ramp up.


    - Included in revenues of $801,000 for Q1 2009 are revenues of a
      recurring nature, totaling $471,000, or 59% of total revenues, compared
      to $314,000, or 33% of total revenues for Q1 2008.
    - We increased the value of identified sales opportunities being pursued
      from $31 million to $34 million.
    - Our backlog remained stable at $3.9 million.
    - We expanded our sales and marketing team, as we continue to concentrate
      on increasing our presence in the market.
    - Our current total client base has grown to 98 with those additional
      customer commitments won during the quarter having been secured through
      our direct sales channel.
    - We signed a contract with Premier Purchasing Partners, LP, one of the
      largest group purchasing organizations in the United States. Premier
      has awarded LMS a group contract, making us a contracted supplier for
      its Clinical Situational Awareness tools.
    - We signed our first consulting agreement regarding our OB/Performance
      Excellence Program with Princeton Insurance of New Jersey.

    LMS complete results for the first quarter ended June 30, 2008 along with
an expanded Management's Discussion and Analysis will be released in normal
course on or about August 12th and will be available at www.sedar.com and at


    LMS is a leader in the application of advanced mathematical modeling and
neural networks for medical use. The LMS CALM(TM) Suite provides physicians,
nursing staff, risk managers and hospital administrators with clinical
information systems and risk management tools designed to improve outcomes and
patient care for mothers and their infants during childbirth.

    Except for historical information contained herein, the matters discussed
in this news release are forward-looking statements. Because these
forward-looking statements involve risks and uncertainties, there are
important factors that could cause actual results to differ materially from
those expressed implied by the forward-looking statements including, but
without limitation, economic conditions in general and in the healthcare
market, the demand for and market for our products in domestic and
international markets, our current dependence on the CALM product suite, the
challenges associated with developing new products and obtaining regulatory
approvals if necessary, research and development activities, the uncertainty
of acceptance of our products by the medical community, the lengthy sales
cycle for our products, third party reimbursement, competition in our markets,
including the potential introduction of competitive products by others, our
dependence on our distributors, physician training, enforceability and the
costs of enforcement of our patents, potential infringements of our patents
and the other factors set forth from time to time in the Company's filings
with the Canadian Securities Commissions. The Company has no intention of or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

For further information:

For further information: about LMS Medical Systems: Yves Grou, Chief
Financial Officer, LMS Medical Systems Inc., (514) 488-3461 Ext. 238, Fax:
(514) 488-1880, yves.grou@lmsmedical.com; www.lmsmedical.com

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