Medipattern revenues declines to $2,119 in the first quarter of fiscal 2010

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 unaudited financial results for the first quarter of fiscal 2010 ended September 30, 2009.

Jeff Collins, CEO of Medipattern stated, "Revenue in the first quarter dropped as expected due primarily to timing issues as we shifted from a traditional licensing model to an annuity model utilizing B-CAD-FOR-LIFE^TM. We introduced B-CAD-FOR-LIFE early this year in response to a change in customer buying patterns caused by the economic slowdown in the United States. Under our new model, the customer pays on a monthly basis for all the features and benefits of B-CAD instead of paying a onetime licensing fee. As an inducement under the long term contract, we give customers a grace period before payments begin, which impacted our results in the quarter. We anticipate revenue from B-CAD-FOR-LIFE to begin to flow during the second fiscal quarter of 2010."

Financial Highlights of Q1 2010:

- Revenue was $2,119 in the first quarter of fiscal 2010 versus $75,974 in the same period last year.

- Total expenses declined 39 percent to $0.72 million versus $1.18 million in the same period last year, mostly as a result of reduced sales and marketing costs, and administrative and R&D costs. Year-over-year, research and development expenses decreased to $221 thousand from $419 thousand in the first quarter of fiscal 2009 as certain software developers were no longer required subsequent to the release of new versions of B-CAD. Administration and product support costs decreased to $261 thousand in the first quarter versus $391 thousand in the same period last year due primarily to company wide cost reduction efforts.

- Resulting net loss in the first quarter was $0.72 million versus $1.10 million in the previous period, an improvement of approximately 35 percent.

- Cash and cash equivalents totaled $1.65 million as at September 30, 2009, compared to $1.85 million at the end of fiscal 2009. As at September 30, 2009 working capital totaled $1.67 million and the Company had no long term debt.

"In response to the significant change in our core markets, we have built up our cash position and significantly reduced our operating costs" added Mr. Collins. "We expect that the steps taken over the past months will ensure our ability to grow our market share for B-CAD, and enter the much larger vascular market through our VasculariQ product we are developing with GE healthcare."

Business Highlights:

- Medipattern signs an agreement for B-CAD-FOR-LIFE with Manhattan Diagnostic Radiology.

- Medipattern closes a non-brokered private placement in two tranches, issuing a total of 3,500,000 common shares in the capital stock of the Company at $0.20 per common share for gross proceeds of $700,000 to the Company.


Source: The Medipattern Corporation