Q1 2009 Highlights include:
Gross profit of $17.1 million increased 107% over Q1 2008, reaching a 61% margin
EBITDA of $6.9 million generated a 24.7% margin, versus 5.3% margin in Q1 2008
Positive operational cash flow of $4.5 million, compared with negative $1.0 million in Q1 2008
Days sales outstanding of 49 days in the quarter, decreased 7 days from the same period a year ago
13 new managed care contracts were signed at LifeWatch Services in Q1 2009, bring the total to 458 contracts and covering over 291 million lives
LifeStar ACT wireless monitoring service achieved 15,427 enrolments in Q1 2009, generating $17.9 million, and reflecting more than five times growth over Q1 2008
Card Guard recorded a balance of cash, cash equivalents, marketable securities and structures in the amount of $25.6 million at the end of Q1 2009, up from $24.0 at year end 2008.
Dr. Yacov Geva, chairman and chief executive officer, remarked, Card Guard recorded a strong increase in revenues during Q1 2009, marking the sixth consecutive quarter of year-over-year growth. Q1 2009 consolidated revenues reached $28.0 million, an increase of approximately 75% compared with Q1 2008 revenues of $16.0 million. The company also realized strong sequential revenue growth this quarter of 12.9%, driven by the continued market adoption of the ACT offering for wireless cardiac monitoring services at its U.S. subsidiary, LifeWatch Services, Inc. Card Guard also continued to improve its operational costs
demonstrated by EBIT margin expansion and net income growth.
Monitoring Services
Card Guards Monitoring Services achieved revenues of $26.2 million in Q1 2009, an extremely strong increase of 86% over Q1 2008. These impressive results were driven by the LifeStar ACT wireless monitoring service and reflect the success of our talented sales force which experienced significant expansion during the quarter. As reported in the Q4 2008 letter to shareholders, Card Guard has shifted its focus to the growing wireless monitoring services.
Sales of Systems
The Q1 2009 revenues from our Sales of Systems of $1.8 million, decreased as expected of 7% from Q1 2008, due to the weakened demand for capital equipment by hospitals and clinics. Although we are recording less revenue from sales of
products, we see an increasing interest in out-sourcing non-core out-patient services, such as cardiac monitoring, leading to additional opportunities from our hospital customer base.
2009 Guidance
Card Guard reiterates its outlook for the full year 2009 with revenue growth greater than 50%, EBITDA margins exceeding 20% and EBIT margins above 16%.
Card Guard AG is a telemedicine solutions provider, focused on delivering the next generation ehealth delivery platforms for consumers, high-risk and chronically ill patients, and to Telemedicine, eHealth, Telecare, remote patient monitoring, home health, disease management, and wellness / fitness markets.
