NEW YORK, Aug. 14 MGT Capital Investments, Inc. (NYSE AMEX: MGT), a holding company, today reported financial results for the quarter ended June 30, 2009 and provided an update on strategic milestones.
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As of June 30, 2009 cash, cash equivalents and marketable securities were $31.0 million compared to $40.2 million at December 31, 2008.
For the quarter ended June 30, 2009, MGT's total revenue was $47,000 compared to $85,000 for the same period last year. The decline in revenue is due to Medicexchange's slow down in medical equipment sales in China and reduced license sales in Medicsight. Total operating expenses for the quarter ended June 30, 2009 were $5.2 million, compared to total operating expenses of $8.6 million in the comparable period of 2008.
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For the six months ended June 30, 2009, MGT's total revenue of $121,000 compared to $137,000 for the same period last year. Total operating expenses for the six months ended June 30, 2009 were $21.5 million, compared to total operating expenses of $14.7 million in the comparable period of 2008. This includes a $12.2 million dollar impairment of goodwill relating to Medicsight, in the six months ended June 30, 2009.
Net loss for the quarter ended June 30, 2009 was ($3.8) million, or ($0.12) per basic and diluted share, compared to a net loss of ($5.1) million, or ($0.14) per basic and diluted share, for the same period in 2008.
Net loss for the six months ended June 30, 2009 was ($19.2) million, or ($0.59) per basic and diluted share, compared to a net loss of ($8.9) million, or ($0.23) per basic and diluted share, for the same period in 2008. The increase in net loss for the six months in 2009 includes a $12.2 million dollar impairment of goodwill relating to Medicsight. This non-cash charge was taken in accordance with Statement of Financial Accounting Standards 142 "Goodwill and Other Intangible Assets", primarily due to a decrease in Medicsight's common stock price as of March 31, 2009. Since there is no remaining goodwill on MGT's balance sheet, this should be considered a one-time charge.
"Operating expenses for the six months ended June 30, 2009 were down as we focused on decreasing costs throughout the business and benefited from a favourable movement in exchange rates. This decrease will not affect Medicsight's ability to meet any requirements to move its ColonCAD software through the regulatory processes in both the U.S. and Japan. We expect to receive updates on the U.S. and Japanese submissions for regulatory approval shortly," stated Tim Paterson-Brown, Chairman and CEO of MGT.
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 Ltd 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.
