NEW YORK, Nov. 9 /PRNewswire-FirstCall/ -- MGT Capital Investments, Inc. (Amex: MGT), a holding company focused on the Healthcare Information Technology sector, today reported financial results for the third quarter ended September 30, 2007 and provided an update on strategic milestones.
Tim Paterson-Brown, MGT Chairman and CEO, stated, "We are excited about the significant progress that our company and its subsidiaries made in the third quarter. Most notably, our Medicsight subsidiary reported initial revenue for its CAD software, which received European approval earlier this year, and completed its initial public offering on the London Stock Exchange's AIM market in June 2007. We anticipate revenues from Medicsight's CAD software to ramp up quickly over the fourth quarter and 2008 through strategic distribution agreements with some of the world's largest virtual colonoscopy software providers.
"In addition, a major independent study funded by the U.S. National Institute of Health and conducted by the American College of Radiology Imaging Network (ACRIN) recently released definitive results supporting the use of virtual colonoscopies when screening for colorectal cancer. This study solidifies the message that we have been championing for some time now, which is that medical imaging offers the best solution for screening the growing number of people 50 years old and older for colorectal cancer. We believe this study will lead to a material increase in the use of virtual colonoscopies for screening worldwide."
Paterson-Brown continued, "Our Medicexchange subsidiary is also beginning to gain traction in the market, experiencing over 850% growth in monthly traffic since January 2007. We are concentrating on building up the site's content, with more than 200 sources currently supplying updated news and articles. Medicexchange has also been increasing the number of vendor agreements with medical software providers worldwide."
1 Tim Paterson-Brown, MGT Chairman and CEO, acquired 250,000 shares of MGT
common stock from an existing shareholder in a single private
transaction at $3.75 per share, for $937,500.
2 MGT announced recent commercial partnerships for its subsidiary company
Medicexchange PLC, a global web portal that delivers sales, jobs and
information channels for diagnostic, treatment and surgery planning
solutions across breast imaging, cardiac imaging, musculoskeletal
imaging, abdominal-pelvic imaging, thoracic imaging and neuro imaging
from a range of different companies. The first partnership is with
AllHealthcareJobs.com, whereby Medicexchange utilizes the
AllHealthcareJobs.com job bank search engine to populate
jobs.medicexchange.com. The second partnership is with Valley Forge
Publishing Group (VFPG) who have signed an exclusive agreement to be
Medicexchange's sole advertising agent.
3 MGT recently engaged KCSA Worldwide as the Company's new outside
Investor Relations firm. In doing so, it is the Company's intention to
provide shareholders with an additional avenue through which they can
garner better insight into the MGT story and to more effectively reach
its rapidly expanding roster of existing and potential investors.
Financial Results for the nine months ended September 30, 2007
For the nine months ended September 30, 2007 and September 30, 2006 our revenues from operations were $12,000 and $0, resulting from the sale of Medicsight software licenses.
Total operating expenses in nine month period ended September 30, 2007 were $14.1 million, compared to total operating expenses of $11.3 million for the nine month period ended September 30, 2006. The increase in operating expenses is attributable in part to costs related to Medicsight's IPO.
For the nine month period ended September 30, 2007, net loss was $9.8 million, or $0.25 per diluted share, compared to a net loss of $10.9 million, or $0.29 per diluted share, in the same period in 2006.
As of September 30, 2007, cash balances equivalents were $99.6 million, compared to $19.8 million at December 31, 2006. The increase in cash balance is attributable to the net proceeds of $61.1 million that the Company received following the listing of its subsidiary on the AIM market.
About MGT Capital Investments, Inc.
MGT Capital Investments, Inc is a 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 (traded on the AIM market of the London Stock Exchange, under the Ticker symbol MDST) is a medical imaging software development company developing enterprise-wide Computer-Aided Detection (CAD) software which analyzes computer tomography (CT) scans for the early detection and measurement of colorectal polyps and lung lesions. Medicsight has focused on two of the leading causes of cancer-related death, colorectal cancer and lung cancer.
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 Exchange Commission.
For further information: Media enquiries:
MGT Capital Investments KCSA Worldwide
Alex van Klaveren Todd Fromer / Garth Russell
Tel: +1 646-257-2644 Tel: +1 212-896-1215 / 212-896-1250
|SOURCE MGT Capital Investments, Inc.|
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