Tuesday, 15 May 2007

Paradigm Hikes Revenue Target For LMS Medical


In conjunction with the initial Q4F07 results, Claude Camire of Paradigm Capital has updated his research on LMS (LMZ:TSX, LMZ:AMEX) stating that "LMS reported better than expected preliminary revenues of $1.5m for the fourth quarter ending March 2007, exceeding our estimates of $0.7m." and further stated that " We see this stronger quarter as a reflection of new hospital installations completed. We anticipate revenues will continue to grow at a faster rate in the following quarters as they release the integrated software platform including CALM Patterns."

"We have revised upwards our revenue estimates to reflect the success of LMS in the marketplace. Our confidence in the growth of revenues is supported both by the growth of revenues/backlog and the launch of the integrated platform including CALM Pattern in the coming weeks. We have increased our revenue expectations for FY08/09 from $4.8m/$11.6m to $7.0m/$13.0m respectively. We estimate that LMS could achieve profitability in the next 12-15 months. We are maintaining our Buy rating and our target price to $2.25 based on discounted cash flow."