EANS-News: CompuGroup Medical AG - Second Quarter Results 2010
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quarterly report
August 12, 2010: CompuGroup Medical AG today presented the financial report for the second quarter of 2010. The company, one of the leading global providers of eHealth solutions, achieved revenue of EUR 76.7 million, up from EUR 75.1 million in the second quarter 2009. Operating profit (EBITDA) came in at EUR 15.8 million, an increase of 20 percent compared to the same period of 2009. Cash net income increased 24 percent from EUR 8.1 million in the second quarter 2009 to EUR 10.1 million in the second quarter 2010. CompuGroup also signed several new contracts with health insurance companies in Germany during the quarter which, combined with accelerating development in USA, is expected to lead to a continued increase in business volume during the second half of 2010.
With this result, CompuGroup Medical AG continues its strategy and growth based on the greatest coverage among healthcare providers (physicians, dentists, hospitals etc.) worldwide. In the HPS (Health Provider Services) business segment, revenue was EUR 60.5 million compared to EUR 57.5 million in the second quarter of 2009. This represents an increase of 5 percent. In the HCS (Health Connectivity Services) business segment, revenue rebounded from the slow start of the year (first quarter 2010 revenue of EUR 13.9 million) up to EUR 16.1 million in the second quarter.
CompuGroup Medical also made further progress during the reporting period to develop its business in the US. During the first six months of 2010, CompuGroup significantly increased sales personnel and software development resources to ensure the ability to address the market and to meet all technical requirements. These initiatives combined with early adopting doctors beginning to place orders based in the HITECH stimulus drove revenue in Noteworthy 46 percent higher in the second quarter of 2010 compared to the same period in 2009. Based on order bookings and feedback from doctors so far, a continued increase in business volume is expected during the second half of 2010. Since March 2010, Noteworthy is fully owned by CompuGroup.
CompuGroup also continues to develop its business relationship with the health insurance funds in Germany. After a successful first implementation of the product "Smart Exchange", a system to safely and systematically improve measures to drive higher levels of generic substitution to save care costs without sacrificing care quality, CompuGroup has signed two new contracts during the second quarter covering a population of 7 million people. There is a good pipeline for potential additional "Smart Exchange" contracts expected to be signed in the coming quarters.
Frank Gotthardt, Chairman of the Board of CompuGroup Medical AG, stated: "The second quarter shows that we are on the right way to fulfill our goals for this year. I am particularly excited about the accelerating development in USA and l can assure everybody that we will do everything in our power to make the United States a key future market for CompuGroup."
CompuGroup reaffirms the guidance for 2010 presented in the Annual Report 2009:
Revenue is expected to be in the range of EUR 315 million to EUR 330 million. Operating income (EBITDA) is expected to be in the range of EUR 67 million to EUR 73 million.
About CompuGroup Medical AG CompuGroup Medical is one of the leading e-health companies worldwide. Its software products, designed to support all medical and organizational activities in doctors´ offices and hospitals, its information services for all parties involved in the healthcare system and its web-based personal health records contribute towards safer and more efficient healthcare. The services of CompuGroup Medical are based on its unique customer base of around 360,000 doctors, dentists, hospitals and networks as well as other service providers. CompuGroup Medical is the e-Health company with the biggest coverage among e- health service providers worldwide. The company operates in 14 European countries, Malaysia, Saudi Arabia, South Africa and in the USA and currently employs around 2,800 people.
Conference Call for Journalists, Investors and Analysts: The management board of CompuGroup Medical AG will go through the Q2 results at a conference for analysts and investors today at 15:00 hours CEST. The conference will be broadcast live via telephone (see the following list of telephone numbers). Its recording can be replayed later.
You can participate in this conference call by dialing one of the following phone numbers: +49 69 210869703 (Germany) +44 16 16018902 (UK) +1 2153054495 (USA) Participant code: 18561270
At the beginning of the conference call, a presentation will be made available for download on the CompuGroup Medical website at www.cgm.com. The presentation can be viewed live at https://compugroup.webex.com.
end of announcement euro adhoc
Further inquiry note:
CompuGroup Medical AG
Barbara Zörner
Consultant Press & Media
P +49 (0) 261 8000-1293
F +49 (0) 261 8000-3284
E-Mail: press@cgm.com
Branche: Software
ISIN: DE0005437305
WKN: 543730
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
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