Health Robotics first half gross revenues increase 42% to $9.4 million

Health Robotics today announced 1H2011 financial results, delivering record levels of revenues, gross margins and net earnings for a six-month period. Gross Revenues reached $9.4 million (€6.5M) and Gross Margins were $7.3 million (€5M), respectively 42% and 72% increases over-year-ago period; both increases were directly linked to the significantly improved performance resulting from Health Robotics' greater dependence on its own European and American based staff, replacing its prior, non-functioning indirect distribution and service channels.

"We are quickly moving within reach of our objective to restore Health Robotics to its historical margins (80% Gross-20% Net) and double-digit top-line growth, while continuing to win 100% of World's I.V. Robot purchases over the past 18 months. Given these positive results in overcoming the problems caused by our prior distributors in selected markets, the company intends to diligently continue channel partner line-up switches to direct sales strategies in local markets where our distributors under-perform Health Robotics' own standards", stated Gaspar DeViedma, Health Robotics' Executive Vice President.

Operating Expenses in 1H2011 grew 77% over-year-ago period to $4.8 million (€3.3M) as a direct consequence of the company's increased reliance on its own installation and support engineers: a required investment resulting from the termination of McKesson Automation. EBITDA reached $2.5 million (€1.7M), a 62% increase over-year-ago period, attributable to higher levels of gross revenues and margins brought by the sales channel strategy changes mentioned above. Net Profits including extraordinary items rose to $1.6 million (€1.1M), a 95% increase over-year-ago period. Excluding extraordinary items, Net Earnings in 1H2011 were $1.3 million (€0.9M), a 326% increase over-year-ago period. The positive trends in both earnings increases and extraordinary expenses decreases over-year-ago period reflect Health Robotics' own staff's success in generating "live" sites, broad customer satisfaction whereas prior distributors failed to sell and install a single Robot, and legal expenses associated with defending (and winning) groundless lawsuits.

Mr. DeViedma concluded his remarks as follows: "Health Robotics' plans for the remainder of 2011 include: a) continuing the considerable infrastructure and staff investments required to totally replace McKesson Automation's now-terminated duties and obligations in the United States of America and Canada; b) the expansion of Health Robotics' direct sales and customer operations in Italy, Belgium, Netherlands, France, and Luxembourg; c) additional channel-strategy changes with under-performing distributors; and d) i.v.STATION ONCO's beta-tests and regulatory certifications."