Wednesday, 24 October 2007

LMS Medical Trains Its Sights On Rapid Growth & Profitability

LMS (TSX: LMZ, AMEX: LMZ) made an important announcement today it is now in the position to begin cutting R & D costs while simultaneously driving cash flow and revenue growth.
In large part, it has been operating as a technology development company as it rolls out software suites for Obstetrics.

LMS can now go full steam ahead as a technology implementation company along with a shift to sales & distribution, which will cut expenses and generate positive cash flow.

This move is tied to LMS’ September news release, in which it announced that LMS’ major distribution partner McKesson (MCK: NYSE) is now actively selling Horizon Perinatal CareTM to hospitals in the US, after two years of development. LMS’ Calm-clinical information system is a major component of McKesson’s Horizon technology.

McKesson is the leading healthcare services and IT company in the U.S., with a market cap of over $16 Billion and a client base that consists of 30% of all U.S. hospitals.

Today’s news release also states the company’s commitment to bringing in more distribution partners to further increase its market presence.

At this point, it’s impossible to quantify what all of this means. However, LMS’ message is very clear and obviously directed at the market and shareholders.

To read the news release, click here.