The Medipattern Corporation

The Medipattern Corporation

November 28, 2008 06:00 ET

Medipattern Reports First Quarter Results for Fiscal 2009

TORONTO, ONTARIO--(Marketwire - Nov. 28, 2008) -

Attention: Business/Financial Editors:

The Medipattern Corporation ("Medipattern") (TSX VENTURE:MKI), a pioneer in the development of medical software solutions that help improve imaging workflow and productivity, today announced its business highlights and unaudited financial results for the first quarter of fiscal 2009 ended September 30, 2008.

Jeff Collins, CEO of Medipattern stated, "During the first quarter, we focused on finalizing the enhanced versions of B-CAD for fall release and its introduction at the upcoming Radiological Society of North America (RSNA) convention. Medipattern is very pleased to be featured in the GE Healthcare pavilion this year at RSNA as well as our own booth, 5875. We will be showcasing a fully digital ultrasound workflow designed to embrace consistent organized communication that is comprehensive and easy to use. The system is fully compliant with the American College of Radiology (ACR) Breast Imaging Reporting and Data System (BI-RADS®) Lexicon and supports connectivity to Picture Archiving and Communication Systems (PACS) used throughout medical imaging practices. We will be introducing our latest updates in six languages to support the opportunities we have prioritized globally."

"B-CAD Version 1.3 is now available for sale in the United States and version 2.3, the global version, is available in Simplified Chinese, French, German, Italian, Spanish as well as English. We have also been very active strengthening our reseller channels, especially in China, where B-CAD has received enormous praise for its effectiveness and accuracy. Our successful study conducted earlier this year at PLA301 in Beijing has positioned us well to penetrate this extremely large and important market," concluded Collins.

Business Highlights:

- October 8, 2008 - Medipattern announces that a study abstract, showing statistically significant increase in diagnostic accuracy when using B-CAD Version 2 on lesions less than 1 cm in size, has been published in the October 2008 American Journal of Clinical Oncology

- October 15, 2008 - Medipattern released enhanced versions of B-CAD (v. 1.3/2.3). The Catholic Medical Center in New Hampshire (beta site) reported added time saving, improved consistency, and ease of reimbursement with version 1.3

- October 20, 2008 - Medipattern announces that Cindy Rapp, VP Clinical Program Development was recognized by the Society of Diagnostic Medical Sonography as the 2008 recipient of the Joan P. Baker Pioneer Award established to honor sonographers who have made outstanding contributions in the profession

Financial Highlights of Q1 2009:

- Revenue was $76 thousand in the first quarter of fiscal 2009 versus $130 thousand in the same period last year. All the revenue resulted from professional fees as no licensing fees were recognized during the quarter ended September 30, 2008 ($88 thousand in the same period last year). Included in the first quarter results in the quarter ended September 30, 2007 was the recognition of $41 thousand of deferred revenue resulting from the pre-sale of B-CAD licenses in January 2005 and recognized quarterly until June 30, 2008.

- Total expenses rose 58 percent to $1.2 million versus $760 thousand in the same period last year, mostly as a result of increased sales and marketing costs, and administrative and product support costs. Year-over-year, research and development expenses increased to $420 thousand from $342 thousand in the first quarter of fiscal 2008. Administration and product support costs rose to $391 thousand in the first quarter versus $235 thousand in the same period last year due in large part to a non-cash expense relating to granting of stock options, while sales and marketing expenses reached $390 thousand versus $203 thousand in the comparative period last year. These expenses were offset by investment income of $28 thousand versus $46 thousand in the first quarter of fiscal 2008.

- Resulting net loss in the first quarter rose 75 percent to $1.1 million from $627 thousand in the previous period.

- Cash and cash equivalents totaled $2.6 million as at September 30, 2008, compared to $2.9 million at the end of fiscal 2008. Investments totaled $nil as at September 30, 2008, compared to $475 thousand at the end of fiscal 2008.

Results of Operations:


September 30, 2008 September 30, 2007
(3 months) (3 months)
Licensing fees $ - $ 88,043
Professional fees 75,974 41,666
--------------------- --------------------
75,974 129,709
Research and development 419,492 342,313
Administration and product
support 391,112 234,829
Sales and marketing 390,231 203,248
Foreign exchange (10,185) 13,455
Investment income (27,968) (45,756)
Amortization of property and
equipment 14,248 8,453
--------------------- --------------------
1,176,930 756,542

------------------------------------------------------- --------------------
NET LOSS AND COMPREHENSIVE LOSS $ (1,100,956) $ (626,833)

For further details concerning Medipattern's results, please see the Company's filings on SEDAR. (

2008 Upcoming Events:

- Radiological Society of North America (RSNA) Annual Meeting November 30 to December 5, Chicago, IL at the Medipattern Booth and at the GE Booth

About The Medipattern Corporation:

Medipattern® is a pioneer in the development of medical software solutions that help improve imaging workflow and productivity. Our first-to-market, award-winning B-CAD® advances breast ultrasound computer aided detection (CAD) by streamlining workflow and organizing information into a comprehensive patient record. Medipattern uses its Cadenza™ CAD Technology to power the digital conversion in medical communications. B-CAD automatically creates fully digital standardized worksheets and reports that make every practice more efficient, productive and ultimately more effective. For more information, please visit the company's website at:

B-CAD® and Medipattern® are a registered mark of The Medipattern Corporation.

Forward-looking statements

This document contains forward-looking statements relating to Medipattern's performance, operations, or business environment. These statements are based on what we believe are reasonable assumptions given currently available information and our understanding of Medipattern's current activities. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential", and similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or control. A number of factors could cause actual outcomes and results to differ materially from those expressed in forward-looking statements. These factors include but are not limited to those set forth in the Company's corporate filings, (posted at In addition, these forward-looking statements relate to the date on which they are made. The Company disclaims any intention or obligation to update or revise any forward-looking statements for any reason. Readers should not rely on forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release and has neither approved nor disapproved of the contents of this release.

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