Thursday, 12 June 2008

The Audited Numbers Are In - LMS Hitting Its Stride

LMS Medical Systems
(LMZ - TSX)
Shares outstanding: 25.8m
Fully Diluted: 30.7 million

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LMS Medical Systems has been pushing the message for some months that it’s in a sales and marketing mode with today’s (June 12th) news demonstrating these aren’t just words. LMS released its audited financial results for the Fiscal 2008 (March 31) with some key highlights on the year:

· 62% increase in Q4 revenue to $2.32 million from $1.44 million (F07).
· Revenue increased 74% for the fiscal year to $4.97 million from $2.85 million (F07).
· Importantly, recurring maintenance and technical service revenue is up 192% for the fiscal year to $1.69 million from $880 thousand.
· Operating expenses declined $632 thousand Q4F08 with the loss on the quarter falling dramatically to just over $300 thousand compared to $1.87 million Q4F07.
· F08 expenses fell just over $2 million to $9.8 million with the loss on the year down to $5.4 million from $9.4 million.
· Cash and cash equivalents at the end of F08 were $3.6 million.
· The client base grew to 93 from 53 at the end of F07.
· Identified sales opportunities have grown to $31 million.































What’s management’s perspective on the future? The announcement also provided investors with a business outlook for F09. During the course of this year LMS anticipates it will double both its client base and revenue. This means approximately 190 clients, revenue of approximately $10 million and cash flow break even within the fiscal year.

To view the full release, click here.