CompuGROUP Holding AG today presented the financial report for the first quarter of 2010. The company, one of the leading global providers of eHealth solutions, achieved revenue of EUR 69.3 million, an increase of 7 percent compared to the same period of 2009. Operating profit (EBITDA) came in at EUR 12.6 million, up from EUR 11.9 million in the first quarter of 2009. Cash net income increased from EUR 7.3 million in the first quarter 2009 to EUR 7.5 million in the first quarter 2010, corresponding to a Cash net income per share of 15 Cent (Q1/2009: 14 Cent). The quality of earnings is strong with an operating cash flow of EUR 31.0 million, almost double the amount of the first quarter last year.
With this result, CompuGROUP Holding AG continues its strategy and growth based on the greatest coverage among healthcare providers (physicians, dentists, hospitals etc.) worldwide. In the HPS (Health Provider Services) business segment, revenue was EUR 55.3 million compared to EUR 47.4 million in the first quarter of 2009. This represents an increase of 17 percent. In the HCS (Health Connectivity Services) business segment, special market conditions affected sales during the first quarter of 2010 resulting in revenue of EUR 13.9 million compared to EUR 16.1 million in the first quarter of 2009.
It should be noted that the first quarter results include a oneoff, noncash, loss on sale of shares in medi cine medienproduktions GmbH of EUR 0.5 million. Also, the business of Innomed Gesellschaft für medizinische Softwareanwendungen GmbH, Austria, is not consolidated for the first quarter (proforma figures: Revenue EUR 1.3 million, EBITDA EUR 0.6 million). Retroactive consolidation from 01.01.2010 expected beginning with the second quarter report when transaction closing is complete.
CompuGROUP also made further progress during the reporting period to develop its business relationship with the health insurance funds in Germany. A successful first implementation of the product "Smart Exchange" was performed for one statutory health insurance company during the first quarter. Smart Exchange is a system to safely and systematically drive higher levels of generic substitution to save care costs without sacrificing care quality. The two existing diabetes management pilots, including the AV+ pilot with AOK Hessen that has been operating since 2007, have continued unchanged during the first three months of 2010. There is a good pipeline for additional diabetes management contracts both in new regions and with new health insurance companies. In total, a positive trend within Workflow & Decision Support is expected in the coming quarters of 2010.
Frank Gotthardt, Chairman of the Board of CompuGROUP Holding AG, stated: "Growth and profit for the first quarter this year do not reflect the growthpower we predict for the total year 2010, but fully comply with our internal planning for the course of the year. Not least, the strong order booking reaffirms our expectations for the business development in the upcoming quarters."
CompuGROUP reaffirms the guidance for 2010 presented in the Annual Report 2009:
- Revenue is expected to be in the range of EUR 315 million to EUR 330 million.
- Operating income (EBITDA) is expected to be in the range of EUR 67 million to EUR 73 million.
With this result, CompuGROUP Holding AG continues its strategy and growth based on the greatest coverage among healthcare providers (physicians, dentists, hospitals etc.) worldwide. In the HPS (Health Provider Services) business segment, revenue was EUR 55.3 million compared to EUR 47.4 million in the first quarter of 2009. This represents an increase of 17 percent. In the HCS (Health Connectivity Services) business segment, special market conditions affected sales during the first quarter of 2010 resulting in revenue of EUR 13.9 million compared to EUR 16.1 million in the first quarter of 2009.
It should be noted that the first quarter results include a oneoff, noncash, loss on sale of shares in medi cine medienproduktions GmbH of EUR 0.5 million. Also, the business of Innomed Gesellschaft für medizinische Softwareanwendungen GmbH, Austria, is not consolidated for the first quarter (proforma figures: Revenue EUR 1.3 million, EBITDA EUR 0.6 million). Retroactive consolidation from 01.01.2010 expected beginning with the second quarter report when transaction closing is complete.
CompuGROUP also made further progress during the reporting period to develop its business relationship with the health insurance funds in Germany. A successful first implementation of the product "Smart Exchange" was performed for one statutory health insurance company during the first quarter. Smart Exchange is a system to safely and systematically drive higher levels of generic substitution to save care costs without sacrificing care quality. The two existing diabetes management pilots, including the AV+ pilot with AOK Hessen that has been operating since 2007, have continued unchanged during the first three months of 2010. There is a good pipeline for additional diabetes management contracts both in new regions and with new health insurance companies. In total, a positive trend within Workflow & Decision Support is expected in the coming quarters of 2010.
Frank Gotthardt, Chairman of the Board of CompuGROUP Holding AG, stated: "Growth and profit for the first quarter this year do not reflect the growthpower we predict for the total year 2010, but fully comply with our internal planning for the course of the year. Not least, the strong order booking reaffirms our expectations for the business development in the upcoming quarters."
CompuGROUP reaffirms the guidance for 2010 presented in the Annual Report 2009:
- Revenue is expected to be in the range of EUR 315 million to EUR 330 million.
- Operating income (EBITDA) is expected to be in the range of EUR 67 million to EUR 73 million.
