NEW YORK, May 12 /PRNewswire-FirstCall/ -- MGT Capital Investments, Inc. (AMEX: MGT), a technology holding company focused on the Healthcare Information Technology ("HCIT") sector, today reported financial results for the first quarter ended March 31, 2008, and provided an update on strategic milestones.
Tim Paterson-Brown, MGT Chairman and CEO, stated, "We anticipate 2008 will be a significant turning point for our subsidiaries, Medicsight and Medicexchange. In the first quarter, Medicsight increased the reach of its technology through key strategic partnerships including Toshiba. We believe that the value of our subsidiaries' businesses and underlying technologies are not reflected in our share price. As such, our Board authorized a buyback of up to 1 million shares of MGT stock which is now largely complete, and we have completed the repurchase of a block of 5.35 million restricted shares.
"In the coming months, we intend to increase our investor outreach in order to raise awareness of the value we believe our shares currently offer and potential value we are looking to build for our shareholders.
"We recently announced approval from the Chinese State Food and Drug
Administration ("SFDA") for our MedicRead Colon workstation, and we plan to
launch this workstation via our extensive Chinese dealer network. Our CAD
software has been validated against an extremely diverse geographic, gold
standard read database and in numerous clinical trials over the past
several years. Between this and our patents, we believe there is a
significant barrier to entry for competitors, giving us an advantage within
our space, and confidence in our gaining widespread approval."
-- In April 2008, MGT's Medicsight PLC subsidiary received approval from
the Chinese State Food and Drug Administration ("SFDA") for its
MedicRead Colon workstation. Medicsight will launch this workstation
via a Chinese dealer network which gives the Company access to almost
1000 sales representatives. China is one of the world's fastest
growing medical imaging markets.
-- In April 2008, MGT's Medicsight PLC subsidiary announced a new global
partnership with INFINITT, one of the world's leading medical imaging
and picture archiving and communication systems (PACS) companies.
Combined INFINITT-Medicsight products for the detection of colorectal
cancer will be distributed using INFINITT's global network of offices
in six strategic countries and partners and sales channel
representatives in 20 other countries worldwide. INFINITT is currently
the PACS market leader in South Korea and is experiencing rapid growth
in other major markets.
-- In February 2008, MGT's Board authorized a buyback of up to 1,000,000
shares of MGT stock between February 14, 2008 and December 31, 2008,
and announced in the following month that it had contracted to buy back
an additional 5,349,793 MGT shares. On March 31, 2008, the Company
announced that it had purchased additional shares in its Medicsight PLC
subsidiary through the open market. The Company purchased an
additional 1.0 million shares and now holds 86.0 million shares (55%)
of Medicsight PLC.
Financial Results for the quarter ended March 31, 2008
For the three months ended March 31, 2008 our revenues from operations were $52,000, compared to $0 for March 31, 2007. Revenue for the 2008 period is from the sale of Medicsight software licenses and from Medicexchange's online advertising and offline product revenues.
Total operating expenses for the quarter ended March 31, 2008 were $6.1 million, compared to total operating expenses of $4.0 million in the comparable period for 2007. The increase in operating expenses is attributable to continued business growth.
For the quarter ended march 31, 2008, net loss was $3.8 million, or $0.10 per share, compared to a net loss of $3.2 million, or $0.08 per share, for the same period in 2007. Net loss per share for the quarter ended march 31, 2008 was based on weighted average of 38,846,986 shares outstanding, compared to a weighted average of 38,900,383 shares outstanding for the comparable period in 2007.
As of March 31, 2008, cash, cash equivalents and marketable securities were $84.0 million compared to $94.6 million at December 31, 2007. The decrease in cash balance is primarily attributable to the Company's repurchase of its common stock MGT Capital investments and the purchase of shares in Medicsight PLC.
About MGT Capital Investments, Inc.
MGT Capital Investments, Inc. is a technology holding company that focuses on investments in the global healthcare information technology market. The Company has two subsidiaries, Medicsight PLC and Medicexchange PLC.
Medicsight PLC (AIM: MDST) is a leading developer of computer-aided detection (CAD) software solutions. Medicsight's CAD solutions help clinicians utilizing Computed Tomography (CT) scans to identify, measure and analyze suspicious pathology within the colon and lungs. The Medicsight CAD products are validated against one of the world's largest databases of verified CT scan data collected from leading healthcare institutions from around the world. Medicsight products allow radiologists and physicians to review scans more quickly and accurately -- saving both time and lives.
Medicexchange PLC provides medical imaging professionals with a global web portal containing an online sales, jobs and information channel for diagnostic, treatment and surgery planning solutions. This combined with a variety of relevant clinical papers, training materials and content gives these professionals access to information and products that they otherwise would have difficulty accessing.
Additional information can be found at http://www.mgtci.com.
All forward-looking statements are made pursuant to the 'safe harbor'
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on current management expectations
that involve risks and uncertainties that may result in such expectations
not being realized. Potential risks and uncertainties include, but are not
limited to, the risks described in company filings with the Securities and
Investor & Media enquiries:
KCSA Strategic Communications
Todd Fromer / Garth Russell
Tel: +1 212-896-1215 / 212-896-1250
|SOURCE MGT Capital Investments, Inc.|
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