In the first three months of the business year 2009, CompuGROUP Holding AG, one of the leading e-Health providers worldwide, has increased its group-wide sales by 36 percent compared to the same period in the previous year. The operating profit decreased from EUR 12.8 million in 2008 down to EUR 11.9 million, mainly because of acquisition related restructuring processes and regulatory implications. Business development activities remain at a high level and CompuGROUP has begun the HIS deliveries to hospitals in Asia.
CompuGROUP continues to pursue its growth strategy. The revenue reached EUR 64.5 million in the first quarter of 2009 compared to EUR 47.5 million in the same period last year. The Koblenzbased group decreased its earnings before taxes, interest, depreciation and amortization (EBITDA) by EUR 0.9 million to EUR 11.9 million. This result corresponds to an EBITDA margin of 18 percent. Cash flow from operations increased to EUR 16.0 million, up from EUR 9.0 million in the first quarter of 2008.
Depreciation and amortization during the first three months of 2009 amounted to EUR 7.6 million compared to EUR 5.5 million in the same period of 2008. This increase is mostly related to acquisitions.
Earnings after tax for the reporting period were EUR 1.7 million, down from EUR 5.0 million last year. This change is mostly related to the increased amortization and depreciation as well as increased financial expenses compared to the same period in 2008.
In the HPS segment, the company records a strong delivery and expects an accelerated growth and improving margins for the rest of 2009. Concerning the HCS business, it is on stabilized basis in Germany. Further on, CompuGROUP has started to implement the HIS deliveries to hospitals in Asia. The guidance for 2009 is reaffirmed.
In February, CompuGROUP has entered into the US market by an agreement with Noteworthy Medical Systems, Inc. for the purchase of 51.6 percent of the shares in the Ohio-based company. Noteworthy is a provider of connected healthcare technology solutions for the primary care sector and offers a complete suite of applications, from web-based practice management to EHR software and tools for turn-key health information exchange.
Outlook
CompuGROUP reaffirms the guidance stated in the financial report for the fourth quarter and preliminary annual results for 2008 issued in January this year: The management board of CompuGROUP holding AG expects revenue growth to reach or exceed 25 percent and EBITDA to reach or exceed EUR 59 million.
In the HPS segment, the implementation of new hospital contracts and the changing business model in Germany is expected to accelerate growth and increase margins over the rest of 2009. The new acquisitions in USA and France are expected to contribute negatively to EBITDA during 2009. In total, year-on-year growth in the HPS segment is expected to reach or exceed 35 percent with increasing EBITDA margin.
In the HCS segment, the forecast assumes that the business volume during the first quarter will remain stable, with a gradual increase in insurance-related revenue during the second half of the year. In total, the HCS segment is expected to decline in revenue and EBITDA by approximately 10 percent relative to 2008.
Based on external revenue, the EPS segment is expected to experience negative operating margin also for the remainder of 2009.
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About CompuGROUP Holding AG
CompuGROUP is one of the leading e-health companies in the world. Its software products designed to support medical and organizational activities in physicians surgeries and hospitals, its information services for all parties involved in the health sector and its Web-based personal medical files contribute to the development of a more reliable and efficient health service system. The basis for the services offered by CompuGROUP is an unparalleled customer base comprising some 326,000 physicians, dentists, hospitals and networks, as well as other service providers. CompuGROUP is the e-health company with the widest global reach among service providers. The firm operates in 14 European countries, Malaysia, Saudi Arabia, South Africa and the U.S. and currently employs roughly 2,700 people.