Press Release 05/2010
August 12, 2010
CompuGroup Medical NE
CompuGroup Medical AG - Second Quarter Results 2010
CompuGroup Medical AG today presented the financial report for the second quarter of 2010. The company, one of the leading global providers of eHealth solutions, achieved revenue of EUR 76.7 million, up from EUR 75.1 million in the second quarter 2009. Operating profit (EBITDA) came in at EUR 15.8 million, an increase of 20 percent compared to the same period of 2009. Cash net income increased 24 percent from EUR 8.1 million in the second quarter 2009 to EUR 10.1 million in the second quarter 2010. CompuGroup also signed several new contracts with health insurance companies in Germany during the quarter which, combined with accelerating development in USA, is expected to lead to a continued increase in business volume during the second half of 2010.
With this result, CompuGroup Medical 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 60.5 million compared to EUR 57.5 million in the second quarter of 2009. This represents an increase of 5 percent. In the HCS (Health Connectivity Services) business segment, revenue rebounded from the slow start of the year (first quarter 2010 revenue of EUR 13.9 million) up to EUR 16.1 million in the second quarter.
CompuGroup Medical also made further progress during the reporting period to develop its business in the US. During the first six months of 2010, CompuGroup significantly increased sales personnel and software development resources to ensure the ability to address the market and to meet all technical requirements. These initiatives combined with early adopting doctors beginning to place orders based in the HITECH stimulus drove revenue in Noteworthy 46 percent higher in the second quarter of 2010 compared to the same period in 2009. Based on order bookings and feedback from doctors so far, a continued increase in business volume is expected during the second half of 2010. Since March 2010, Noteworthy is fully owned by CompuGroup.
CompuGroup also continues to develop its business relationship with the health insurance funds in Germany. After a successful first implementation of the product "Smart Exchange", a system to safely and systematically improve measures to drive higher levels of generic substitution to save care costs without sacrificing care quality, CompuGroup has signed two new contracts during the second quarter covering a population of 7 million people. There is a good pipeline for potential additional "Smart Exchange" contracts expected to be signed in the coming quarters.
Frank Gotthardt, Chairman of the Board of CompuGroup Medical AG, stated: "The second quarter shows that we are on the right way to fulfill our goals for this year. I am particularly excited about the accelerating development in USA and l can assure everybody that we will do everything in our power to make the United States a key future market for CompuGroup."
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.