NEW YORK, Nov. 10 MGT Capital Investments, Inc. (Amex: MGT), a technology holding company focused on the Healthcare Information Technology ("HCIT") sector, today reported financial results for the third quarter ended September 30, 2008, and provided an update on strategic milestones.
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Tim Paterson-Brown, MGT Chairman and CEO, stated, "During the third quarter of 2008 Medicsight continues to make progress towards submitting our 510(k) application to the U.S. Food and Drug Administration for our ColonCAD technology and also with our MHLW application in Japan. As the largest addressable market for our ColonCAD technology, regulatory approval in the U.S. will be a significant milestone for the Company."
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In September 2008, results of the U.S National Computerized Tomography (CT) Colonography Trial (ACRIN 6664) were published in the New England Journal of Medicine. The study data from more than 2,500 patients shows CT colonography screening identified 90% of patients with colonic polyps or cancers of 10mm and larger. These results support CT colonography being increasingly adopted as a routine examination in screening for colorectal cancer and will ultimately increase the opportunity for widespread utilization of Colon CAD.
As of September 30, 2008, Medicsight's ColonCAD technology has received regulatory approval in China, the European Union, Canada and Brazil.
Financial Results for the quarter ended September 30, 2008
For the three months ended September 30, 2008 our revenues from operations were $120,000, compared to $12,000 for the quarter ended September 30, 2007. Total operating expenses for the quarter ended September 30, 2008 were $6.4 million, compared to total operating expenses of $5.0 million in the comparable period for 2007.
For the nine months ended September 30, 2008 our revenues from operations were $257,000 compared to $12,000 for the prior year period of September 30, 2007. Total operating expenses for the nine months ended September 30, 2008 were $21.1 million, compared to total operating expenses of $14.1 million in the comparable period for 2007.
For the quarter ended September 30, 2008, net loss was $1.3 million, or $(0.04) per share, compared to a net loss of $2.5 million, or $(0.06) per share, for the same period in 2007. Net loss per share for the quarter ended September 30, 2008 was based on a weighted average of 32.6 million shares outstanding, compared to a weighted average of 38.9 million shares outstanding for the comparable period in 2007.
For the nine months ended September 30, 2008, net loss was $10.2 million, or $(0.28) per share, compared to a net loss of $9.8 million, or $(0.25) per share, for the same period in 2007. Net loss per share for the nine months ended September 30, 2008 was based on a weighted average of 36.7 million shares outstanding, compared to a weighted average of 38.9 million shares outstanding for the comparable period in 2007.
As of September 30, 2008, cash, cash equivalents and marketable securities were $55.2 million compared to $94.6 million at December 31, 2007. The decrease in cash balance is primarily attributable to the Company's repurchase of its common stock and the purchase of shares in Medicsight in addition to funding of business operations.
About MGT Capital Investments, Inc.
MGT Capital Investments, Inc is a technology holding company that focuses on investments in the global healthcare information technology market. The Company has two subsidiaries, Medicsight and Medicexchange PLC ("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 computerised tomography (CT) scans of the colon and lung, helping radiologists to identify, measure and analyze potential disease and early indicators of disease. Medicsight's computer-aided detection (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 visualisation 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.
