NEW YORK, Aug. 8 /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 second quarter ended June 30, 2008, and provided an update on strategic milestones.
Tim Paterson-Brown, MGT Chairman and CEO, stated, "Our results through the first half of 2008 reflect continued progress in the development of our ColonCAD technology, as we work towards gaining regulatory approval in several large markets later this year, including the U.S. and Japan. During the second quarter we successfully added China to the list of markets where we have received regulatory approval, other areas where our ColonCAD technology has been approved include the European Union, Canada and Brazil. While we are currently selling in each of these markets, we anticipate measurable revenues to start for our ColonCAD software once we obtain approval in either the U.S. or Japan. As we get closer to obtaining regulatory approval in these key markets we have built up our international sales force, which has resulted in higher selling, general and administrative costs compared to last year."
Mr. Paterson-Brown concluded, "I am pleased to report that the company completed the repurchase of nearly all of the 6,350,000 shares of common stock authorized by the Board of Directors in the first quarter of 2008. We believe our current market capitalization does not reflect the true value of our revolutionary technology and have continued raising awareness of our Company to the investment community through a proactive investor relations campaign. The next six months should prove to be a very exciting time for our Company."
-- As of August 8, 2008, MGT Capital repurchased approximately 6.3 million shares of common stock;
-- In June 2008, data presented at the European Society of Gastrointestinal and Abdominal Radiology (ESGAR) 2008 Conference found that Medicsight ColonCAD technology assisted radiographers in identifying 100 percent of the cancers within the study group;
-- In May 2008, Medicsight PLC ("Medicsight") signed an exclusive CAD clinical research agreement with leading American CT colonography (CTC) radiologists Dr. Perry Pickhardt and Dr. David Kim from the University of Wisconsin Medical School, USA. In 2004, Dr. Pickhardt's group was the first to establish a third-party reimbursed CT colonography colorectal cancer screening programme. Since then Drs. Pickhardt and Kim have both played an instrumental role in building the clinical evidence base that has proven the comparable effectiveness of CTC for the detection of colorectal neoplasia within an asymptomatic population in relation to optical colonoscopy. Their specialist advice and experience of CTC practice will enhance the clinical validation of Medicsight's Colon CAD products set in the context of the world's largest healthcare market;
-- In April 2008, Medicsight signed a Partnership Agreement with INFINITT Company Limited ("Infinitt"). Infinitt has agreed to integrate Medicsight ColonCAD into its Colon solution for global distribution. As well as being South Korea's leading PACS supplier, Infinitt also has a growing presence in both the USA and Japan with a global network of offices, partners and sales channel representatives in 26 countries; and
-- In the six months ended June 30, 2008, Medicsight was granted regulatory approval for MedicRead Colon from the Chinese State Food and Drug Administration (SFDA) and the Brazilian National Health Surveillance Agency (ANVISA). More recently, Medicsight received Brazilian ANVISA regulatory approval for its ColonCAD product.
Financial Results for the quarter ended June 30, 2008
For the three months ended June 30, 2008 our revenues from operations were $85,000, compared to $nil for June 30, 2007. Total operating expenses for the quarter ended June 30, 2008 were $8.6 million, compared to total operating expenses of $5.1 million in the comparable period for 2007.
For the six months ended June 30, 2008 our revenues from operations were $137,000, compared to $nil for June 30, 2007. Total operating expenses for the six months ended June 30, 2008 were $14.7 million, compared to total operating expenses of $9.1 million in the comparable period for 2007.
For the quarter ended June 30, 2008, net loss was $5.1 million, or $0.14 per share, compared to a net loss of $4.1 million, or $0.11 per share, for the same period in 2007. Net loss per share for the quarter ended June 30, 2008 was based on weighted average of 35.5 million shares outstanding, compared to a weighted average of 38.9 million shares outstanding for the comparable period in 2007.
For the six months ended June 30, 2008, net loss was $8.9 million, or $0.23 per share, compared to a net loss of $7.3 million, or $0.19 per share, for the same period in 2007. Net loss per share for the six months ended June 30, 2008 was based on weighted average of 38.0 million shares outstanding, compared to a weighted average of 38.9 million shares outstanding for the comparable period in 2007.
As of June 30, 2008, cash, cash equivalents and marketable securities were $60.6 million compared to $94.6 million at June 30, 2007. The decrease in cash balance is primarily attributable to the Company's repurchase of its common stock and the purchase of shares in Medicsight.
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 and Medicexchange PLC ("Medicexchange").
Medicsight PLC (AIM: MDST) is a leading developer of computer-aided detection (CAD) and image analysis software for the medical imaging market. The CAD software automatically highlights suspicious areas on computerised tomography (CT) scans of the colon and lung, helping radiologists to identify, measure and analyze potential disease and early indicators of disease. Medicsight's computer-aided detection (CAD) software has been validated using one of the world's largest and most population diverse databases of verified patient CT scan data. Medicsight's ColonCAD(TM) and LungCAD(TM) software products are seamlessly integrated with the advanced 3D visualisation workstations of several industry-leading imaging equipment partners.
Medicexchange 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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