NEW YORK, March 30 MGT Capital Investments, Inc. (NYSE Amex: MGT), a holding company, today reported financial results for the year ended December 31, 2009.
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For the year ended December 31, 2009 MGT Capital Investments, Inc. reported total revenue of $228,000 compared to $354,000 for the year ended December 31, 2009. Total operating expenses for the year December 31, 2009 of $29.4 million, compared to total operating expenses of $29.7 million in the comparable period for 2008. This includes a $12.2 million dollar impairment of goodwill relating to Medicsight, in the year ended December 31, 2009.
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For the year ended December 31, 2009 net loss was $26.4 million, or ($0.81) per basic and diluted share, compared to a net loss of $20.0 million, or ($0.60) per basic and diluted share, for the same period in 2008. Net loss per share for the year ended December 31, 2009 was based on 32,550,590 shares outstanding, compared to a weighted average of 33,188,294 shares outstanding for the comparable period in 2008.
As of December 31, 2009 cash, cash equivalents and marketable securities were $22.2 million compared to $40.2 million at December 31, 2008. The decrease in the cash balance is primarily attributable to general operations.
"MGT's operating costs for 2009 excluding the $12.2 million goodwill impairment decreased 42% compared to last year. This is predominantly due to reduced headcount and other initiatives to lower costs across the group. The group has also benefited from a strengthened US Dollar rate compared to Sterling.
"Medicsight has progressed its applications for US FDA and Japanese MHLW regulatory approvals. A second request for additional information was received from the FDA in January 2010 and we are currently working on our response to be submitted in the first half of 2010. We are currently waiting feedback on our submission to the Japanese MHLW. We are confident that these submissions will be successful but timing remains uncertain."
"In the year ended December 31, 2009, MGT invested a nominal sum in order to acquire a 49% stake in Moneygate, an Independent Financial advisor based in the UK. In addition MGT provided a working capital facility of $398 and an acquisition facility of up to $3,186. The facility will provide Moneygate with the ability to significantly grow the business and provide a return on our investment."
"With approximately $22.2 million in cash and cash equivalents as of December 31, 2009 we remain confident in MGT's ability to persevere through the current economic downturn and start to achieve a return on our investments in both Medicsight and Moneygate," concluded Mr. Paterson-Brown.
About MGT Capital Investments, Inc.
MGT Capital Investments, Inc. is a holding company. The Company has two subsidiaries, Medicsight and Medicexchange.
Medicsight PLC (AIM: MDST) is a leading developer of computer-aided detection (CAD) and image analysis software for the medical imaging market. The CAD software automatically highlights suspicious areas on computerized tomography (CT) scans of the colon and lung, helping radiologists to identify, measure and analyze potential disease and early indicators of disease. Medicsight's CAD software has been validated using one of the world's largest and most population diverse databases of verified patient CT scan data. Medicsight's ColonCAD(TM) and LungCAD(TM) software products are seamlessly integrated with the advanced 3D visualization workstations of several industry-leading imaging equipment partners.
Medicexchange provides medical imaging professionals with a global web portal containing an online sales, jobs and information channel for diagnostic, treatment and surgery planning solutions. This combined with a variety of relevant clinical papers, training materials and content gives these professionals access to information and products that they otherwise would have difficulty accessing.
Additional information can be found at www.mgtci.com.
All forward-looking statements are made pursuant to the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Potential risks and uncertainties include, but are not limited to, the risks described in company filings with the Securities and Exchange Commission.
SOURCE MGT Capital Investments, Inc.
