SHL Telemedicine reports first quarter 2011 financial results

• Revenues for the quarter of USD 11.5 million.
• EBITDA for the quarter of USD 2.5 million (21.7% of revenues).
• EBIT for the quarter of USD 1.4 million (12.2% of revenues).
• Net income for the quarter of USD 1.0 million (8.7% of revenues).
• SHL launches smartheart at TechCrunch Disrupt Battlefield in NY, world’s most coveted innovation contest.

Tel Aviv/Zurich, 25 May 2011 – SHL Telemedicine Ltd. (SIX Swiss Exchange: SHLTN), a leading provider and developer of advanced personal telemedicine solutions, today announced results for the first quarter of 2011.

Erez Alroy, Co-CEO of SHL, commented: “The results in the first quarter are as expected, with solid operations both in Israel and Germany. We continue investing significant efforts in our B2B activity in Germany, concentrating on closing the major high value contracts of over USD 50M each with large German health insurers. As we have stated at our year end conference, we expect these to materialize during the second half of the year, leading to renewed growth by year end.“

Erez Alroy added: “We are extremely pleased that we have been selected to present our new telemedicine technology, the “smartheart” at this week’s TechCrunch Disrupt Battlefield Conference in New York, where only 25 selected companies and startups from around the world have been chosen to participate and present their innovations. We are planning to introduce smartheart to the market by the upcoming fall.”

Smartheart is SHL’s latest innovation in the field of cardio telemedicine. Smartheart is a device that will transform smartphones such as iPhones, Androids and Blackberries into a Hospital-Grade ECG. Within 30 seconds, any end-user is able to record a Hospital-Grade ECG and transmit it to his Doctor, Cardiologist, upload it to his Personal Health Record or send it to a hospital and get a medical diagnosis in real time. Smartheart can be used by anyone, anywhere, anytime, whether at home, in the office or on the road. Smartheart is the world smallest Hospital-Grade ECG that can be used by a non-professional end-user, is slightly bigger than an iPhone 4 and weighs slightly less than an iPhone 4.

Financial Highlights

Revenues for the quarter amounted to USD 11.5 million compared to revenues of USD 12.4 million in the first quarter of 2010. This represents a decline of 8.9% quarter over quarter at constant exchange rates* stemming from the decline, as expected, in SHL Germany’s revenues.

Gross profit percentage for the quarter increased to 66.1% of revenues to USD 7.6 million compared to 65.3% of revenues in Q1 2010 which amounted to USD 8.1 million on the increased revenues.

EBITDA for the quarter amounted to USD 2.5 million (21.7% of revenues) compared to an EBITDA of USD 3.1 million (25.0 % of revenues) in Q1 2010 with operating profit amounting to USD 1.4 million (12.2% of revenues) compared to USD 1.7 million (13.7% of revenues) in Q1 2010.

Net income for the quarter amounted to USD 1.0 million (USD 0.1 per share) compared to USD 1.6 million (USD 0.15 per share) in Q1 2010.

Cash flow used in operations amounted to USD 0.1 million compared to USD 0.6 million of cash generated in Q1 2010. Cash, cash equivalents and marketable securities amounted at March 31, 2011 to USD 23.6 million compared to USD 20.2 million at the end of 2010. Cash reserves increased due mainly to the receipt of a further payment from Philips of USD 3.5 million in respect of the Raytel transaction in 2007.

SHL’s balance sheet continues to be strong with assets amounting to USD 98.5 million compared to USD 95.1 million at the end of 2010. Equity at March 31, 2011 stood at USD 77.3 million compared to USD 74.7 million at December 31, 2010.

About TechCrunch Disrupt

TechCrunch Disrupt NYC 2011(http://disrupt.techcrunch.com) is the premiere innovation competition where only 25 companies and startups were invited this year, after careful selection of over 500 applicants, to launch their products on technology’s biggest stage in front of an all-star panel consisting of the biggest innovators, angels, VCs and influencers in the Tech community. 

Full Press Release