BioSpace Collaborative

Academic/Biomedical Research
News & Jobs
Biotechnology and Pharmaceutical Channel Medical Device and Diagnostics Channel Clinical Research Channel BioSpace Collaborative    Job Seekers:  Register | Login          Employers:  Register | Login  

NEWSLETTERS
Free Newsletters
Archive
My Subscriptions

NEWS
News by Subject
News by Disease
News by Date
PLoS
Search News
Post Your News
JoVE

CAREER NETWORK
Job Seeker Login
Most Recent Jobs
Search Jobs
Post Resume
Career Fairs
Career Resources
For Employers

HOTBEDS
Regional News
US & Canada
  Biotech Bay
  Biotech Beach
  Genetown
  Pharm Country
  BioCapital
  BioMidwest
  Bio NC
  BioForest
  Southern Pharm
  BioCanada East
  US Device
Europe
Asia

DIVERSITY

PROFILES
Company Profiles

INTELLIGENCE
Research Store

INDUSTRY EVENTS
Research Events
Post an Event
RESOURCES
Real Estate
Business Opportunities

 News | News By Subject | News by Disease News By Date | Search News
Get Our Industry eNewsletter FREE email:    
   

Medipattern™ Corporation Reports Results for Fiscal 2010


10/29/2010 11:21:28 AM

TORONTO, ONTARIO--(Marketwire - October 29, 2010) - Attention: Business/Financial Editors

The Medipattern Corporation ("Medipattern") (TSX VENTURE: MKI), a pioneer in the development of medical software solutions that help improve imaging workflow and productivity, today announced its business highlights and financial results for the fiscal year ended June 30, 2010.

Jeff Collins, CEO of Medipattern, commented "Results for fiscal 2010 are much weaker than we anticipated due mainly to weaker than expected acceptance of reimbursement from US healthcare insurance companies (payers) for the B-CAD® procedure. During our fiscal year 2010 we significantly increased the footprint of B-CAD FOR LIFE™ gaining valuable knowledge about its usage and what it will take to make this product a success. At the end of June 2010 we had approximately 127 users generating over 10,000 scans per month. Revenue for this new software as a service model started to flow in during the second quarter of fiscal 2010. We have made progress in helping our customers earn incremental revenue while using B-CAD to increase accuracy and improve communications. Medipattern is pursuing a reimbursement strategy that would ultimately lead to a unique Current Procedural Terminology (CPT) code for B-CAD. We continue to use Healthcare iQ to provide reimbursement advice to our customers and to manage denials from payers while gaining acceptance. Had we been successful in this strategy, we are confident we would have made our projections. We continue to establish usage in the market as well as prove clinical effectiveness. A paper demonstrating the clinical utility of B-CAD will be presented this year at RSNA and several studies have been conducted to show enhancement to workflow and reductions in time required to complete breast ultrasound exams".

Collins also remarked "We have been working with our partner PenRad Technologies Inc. to expand CAD for breast ultrasound into their existing installed base as part of our national roll out strategy. We will demonstrate an integrated B-CAD system with PenRad at RSNA in their PenView Mammography Review and Reporting Workstation. Our entry into the vascular market is expected in early calendar 2011 with the release of our Visualize:Vascular™ product. We have had strong indications that this product will be well received based on our showcasing the vascular product to various luminary groups and our clinical partner Navix Diagnostix Inc. the leading provider of outsourced vascular imaging services in the Northeastern US. We continue to believe we are providing solutions that fit a market need and will do everything possible to generate meaningful revenue in 2011."

Business Highlights of Fiscal 2010:


--  August 4, 2009 - Medipattern signs an agreement for B-CAD-FOR-LIFE™
    with Manhattan Diagnostic Radiology. 

--  November 26, 2009 - Medipattern and PenRad Technologies Inc. sign a
    sales and distribution agreement for PenRad to incorporate Medipattern's
    B-CAD™ computer aided detection for breast ultrasound imaging product
    line. 

--  November 29, 2009 - Medipattern and Sentinelle Medical Inc. announce
    that they are entering a technology access and distribution agreement to
    partner in the development of Breast MRI solutions. 

--  December 14, 2009 - Medipattern announces the expansion of its B-CAD-
    FOR-LIFE™ program with Ocean Medical Imaging Centers in New Jersey,
    U.S.A. 

--  December 21, 2009 - Medipattern installs 150th B-CAD® license at
    Weinstein Imaging in Pennsylvania, U.S.A. 

--  March 2, 2010 - Medipattern announces Doshi Diagnostic Imaging to deploy
    B-CAD-FOR-LIFE™ in 38 centers in the United States. 

--  June 9, 2010 - Medipattern announces it will introduce and preview its
    3D Visualize:Vascular™ software at the 2010 Annual Vascular Meeting
    of the Society of Vascular Surgeons and Society of Vascular Ultrasound.

Subsequent to the end of the fiscal year:

--  September 22, 2010 - Medipattern announces its core technology "system
    and method of computer-aided detection (CAD)" received United States
    Patent # 7,783,094. 

Financial Highlights for Fiscal 2010:

--  Revenue totaled $304,935 (2009 - $229,466) for the fiscal year ended
    June 30, 2010 (fiscal 2010), an increase of 33%. Licensing fees totaled
    $272,573 compared to $107,123 for the fiscal year ended June 30, 2009
    (fiscal 2009) while subscription rental fees increased to $32,262 (2009
    - nil) in response to the roll out of the Company's B-CAD-FOR-LIFE
    subscription rental program. No professional fees were earned in fiscal
    2010 (2009 - $122,343) as the Company remained focused on meeting its
    deadlines for completion of internal development and commercialization
    of its new vascular software Visualize:Vascular™ scheduled for early
    calendar 2011. Fiscal 2009 professional fees were the result of software
    development work done to customize is B-CAD™ software for a specific
    customer; 

--  Operating expenses in fiscal 2010 totaled $2,925,681 versus $4,099,479
    in fiscal 2009, an overall decline of 29%. Medipattern remains committed
    to controlling all discretionary spending until operating cash flow
    improves in response to its ongoing commercialization of its award
    winning software products; 

--  Resulting net loss for the 2010 fiscal year was $2,620,746 ($0.05 per
    share) versus $ 4,240,990 ($0.10 per share) for the previous year. The
    results for fiscal 2009 included impairment write-downs totaling
    $370,977, or $0.01 per share, of deferred technology charges and web
    site development costs; 

--  As at June 30, 2010, cash and cash equivalents totaled $269,329 (2009 -
    $1,529,507), current assets, including highly liquid short-term
    investments of $1,250,000 (2009 - $321-133), were $2,070,913 (2009 -
    $2,213,614) and current liabilities were $377,443 (June 30, 2009 -
    $351,745). Working capital at June 30, 2010 totaled $1,693,470 (2009 -
    $1,861,869). 

Results of Operations:

                         THE MEDIPATTERN CORPORATION                        
      AUDITED STATEMENTS OF OPERATIONS, COMPREHENSIVE LOSS AND DEFICIT      
                FOR FISCAL YEARS ENDED JUNE 30, 2010 AND 2009               

                                               2010                   2009  
                                ---------------------  ---------------------
                                ---------------------  ---------------------

REVENUES                                                                    
 Licensing fees                  $          272,573     $          107,123  
 Professional fees                                -                122,343  
 Subscription rental fees                    32,362                      -  
                                ---------------------  ---------------------
                                            304,935                229,466  
                                ---------------------  ---------------------

EXPENSES                                                                    
 Research and development                   929,788              1,417,360  
 Administration and product                                                 
  support                                 1,114,295              1,396,670  
 Sales and marketing                        806,129              1,251,624  
 Interest on convertible debt                18,305                 10,681  
 Accretion of interest on                                                   
  convertible debt                           10,008                 38,940  
 Foreign exchange loss (gain)                 8,224                (18,228) 
 Investment income                           (3,859)               (52,924) 
 Investment income on held to                                               
  maturity investment                             -                 (3,037) 
 Amortization of property and                                               
  equipment                                  42,791                 53,480  
 Amortization of intangible                                                 
  assets                                          -                  4,913  
                                ---------------------  ---------------------

                                          2,925,681              4,099,479  
                                ---------------------  ---------------------

LOSS BEFORE UNDERNOTED                   (2,620,746)            (3,870,013) 

 Impairment of intangible assets                  -               (370,977) 
                                ---------------------  ---------------------

NET LOSS AND COMPREHENSIVE LOSS  $       (2,620,746)    $       (4,240,990) 
                                ---------------------  ---------------------
                                ---------------------  ---------------------

DEFICIT, BEGINNING OF YEAR       $      (16,348,417)    $      (12,146,367) 

 Net loss                                (2,620,746)            (4,240,990) 

 Transfer of equity portion of                                              
  convertible debenture                                                     
  upon redemption                                  -                 38,940 
                                ---------------------  ---------------------

DEFICIT, END OF YEAR             $      (18,969,163)    $      (16,348,417) 
                                ---------------------  ---------------------

For further details concerning Medipattern's results, please see the Company's filings on SEDAR (www.sedar.com).

2010 Upcoming Events:


--  RSNA (Radiological Society of North America), November 28 to December 2,
    2010, Chicago, IL. 

About The Medipattern Corporation:

Medipattern® (TSX VENTURE: MKI) is a pioneer in the development of medical software solutions that help improve imaging workflow and productivity. Our first-to-market, award-winning B-CAD® advances breast ultrasound computer aided detection (CAD) by streamlining workflow and organizing information into a comprehensive patient record. Medipattern uses its Cadenza™ CAD Technology to power the digital conversion in medical communications. B-CAD automatically creates fully digital standardized worksheets and reports that make every practice more efficient, productive and ultimately more effective. For more information, please visit the Company's website at: www.medipattern.com.

B-CAD™ and B-CAD MRI™ are trademarks of The Medipattern Corporation. Medipattern® is a registered mark of The Medipattern Corporation.

Forward-looking statements

This document contains forward-looking statements relating to Medipattern's performance, operations, or business environment. These statements are based on what we believe are reasonable assumptions given currently available information and our understanding of Medipattern's current activities. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates,'' "believes,'' "estimates,'' "expects,'' "plans,'' "intends,'' "potential'', and similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or control. A number of factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements. These factors include but are not limited to those set forth in the Company's corporate filings, (posted at www.sedar.com). In addition, these forward-looking statements relate to the date on which they are made. The Company disclaims any intention or obligation to update or revise any forward-looking statements for any reason. Readers should not rely on forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


Contacts:
The Medipattern Corporation
Jeff Collins
CEO
(416) 744-0009 ext. 224
jcollins@medipattern.com

Spinnaker Capital Markets Inc.
Kevin O'Connor
(416) 962-3300 x226
ko@spinnakercmi.com



Read at BioSpace.com

   

ADD TO DEL.ICIO.US    ADD TO DIGG    ADD TO FURL    ADD TO STUMBLEUPON    ADD TO TECHNORATI FAVORITES
 

//-->