Tuesday, 12 June 2007

LMS Year End Revenues Up Dramatically. Business Traction is Apparent

LMS Medical Systems Inc. (LMZ - TSX/AMEX) reported today that it attained record revenues of $2.85 million for Fiscal 2007 (March 31). This is an increase of 80% over the $1.58 million in F2006.
Importantly, the order backlog has tripled to $4.4 million from $1.4 million and it realized a 134% increase in total new contracts. New client installations jumped to 27 from 9 in F06 bringing the total installed base to 56 sites.

As previously released, Q4 2007 was also dramatic as revenue rose from $262 thousand in the corresponding quarter of F06 to $1.44 million.

LMS has completed its first hospital group sale to install multiple systems at 12 facilities throughout 5 US States a key sign that business traction is begining to take place.

Also key to investors, the programming phase under development with McKesson has also been completed. Quality assurance is now being carried out and should shortly be released into the marketplace.

In conjunction with the year end results, Claude Camire of Paradigm Capital Inc. has revised his revenue estimates to reflect the success of LMS in the marketplace. Mr. Camire stated "Our confidence in the growth of revenue is supported both by the growth of backlog and the launch of the integrated platform including CALM Pattern in the coming weeks. We have increased our revenue expectations for FY08 and FY09 from $4.8m and $11.6m to 7.0m and 13.0m respectively. We estimate that LMS could achieve profitability in the next 12-15 months". Paradigm is maintaining a buy rating and their target price of $2.25.

Click here to read the news release.