SOURCE: CEGEDIM

May 06, 2010 12:13 ET

CEGEDIM : Q1 2010 revenues

PARIS--(Marketwire - May 6, 2010) - Quarterly Financial Information as of March 31, 2010 (IFRS - Regulated information - Not audited)

Cegedim: Strong commercial rebound, FY 2010 outlook unchanged

Paris, May 6, 2010 - Cegedim, a global technology and services company specializing in the healthcare field, generated consolidated first-quarter 2010 revenues of €206 million.

The first quarter was marked by numerous commercial successes. Nevertheless, delays in implementing certain large-scale CRM projects and hesitancy in the UK healthcare professionals market ahead of the election, postponed activity by a few months.

Revenues fell by 1.5% on a reported basis compared with first quarter 2009. The year-on-year comparison was particularly demanding in light of the 9.9% growth posted in 2009.

On the back of its commercial successes, Cegedim is confident going into the second quarter in its ability to improve margins over the full year. The company is maintaining its goal of 5% revenue growth in 2010.

Revenue trends by sector are as follows:

+-------------------------+---------+---------+--------------------+--------+
|€ thousands              |  Q1 2010|  Q1 2009|Q1 10 / Q1 09 change|        |
+-------------------------+---------+---------+--------------------+--------+
|Reported                 |   L-f-L*|         |                    |        |
+-------------------------+---------+---------+--------------------+--------+
|CRM and strategic data   |  109,498|  115,568|               -5.3%|   -8.1%|
+-------------------------+---------+---------+--------------------+--------+
| Healthcare professionals|   65,268|   66,137|               -1.3%|   -1.8%|
+-------------------------+---------+---------+--------------------+--------+
|Insurance and services   |   30,854|   26,957|              +14.5%|  +14.5%|
+-------------------------+---------+---------+--------------------+--------+
|Group                    |  205,620|  208,662|               -1.5%|   -3.2%|
+-------------------------+---------+---------+--------------------+--------+
+-------------------------+---------+---------+--------------------+--------+
* comparable structure and exchange rates

Like-for-Like (L-f-L) sales fell by 3.2% compared with Q1 2009. Due to a good regional mix of Group activities, currency impacts were negligible. The dollar's gains against the euro were offset by depreciation in other currencies. Acquisitions contributed additional revenues of over €3.6 million.

- CRM and strategic data

First-quarter 2010 revenues came to €109 million, down 8.1% in L-f-L* terms and 5.3% in reported terms. Currency impacts were negligible and the Nomi and SK&A acquisitions contributed €3.6 million.

Over the first quarter, Cegedim picked up the pace of its sales and marketing efforts, notably signing a Mobile Intelligence (MI) contract with one of the world's leading pharmaceutical companies and of the Group's top five clients for all emerging countries. Furthermore, UCB announced that it has selected SaaS delivery of MI for its operations worldwide. And two more of the Group's top five clients decided to migrate to the latest version of MI.

These commercial performances validate the Group's major strategic choices: a global presence following the Dendrite acquisition, particularly on rapidly growing markets like the emerging world; expansion of platforms; transferring Dendrite to Cegedim's model (services vs. licenses); and continued strong investment in research and development to support new products.

By the end of the year, the Group will see positive effects from the launch of new Mobile Intelligence offerings (version 5.1, version for iPad® and iPhone®, etc.) and new services, such as conversion of the US market to the software as a service model that Cegedim has always shown to be relevant in Europe.

However, the first quarter was disrupted by delays in implementing certain large-scale CRM projects, resulting in a temporary postponement of revenues that will be offset in the months ahead.

The "strategic data" business started to stabilize in the first quarter, and the Group expects a recovery following the implementation of automated processes that match pharmaceutical companies' needs.

- Healthcare professionals

First-quarter 2010 revenues came to €65 million, a decline of 1.8% in L-f-L* terms and 1.3% in reported figures. Currencies and external growth had a negligible impact.

Even though, as expected, Cegelease's business slowed substantially following an exceptional 2009, the sector managed to limit the drop in its revenues with robust sales of software for physicians in France, Belgium, Italy and Spain - particularly around Madrid - and for physical therapists and pharmacists in France.

Awaiting the outcome of the upcoming election in the UK, British physicians unsurprisingly postponed their investments. By contrast, the level of computerization sales to UK pharmacists was stable, principally due to the highly recurring nature of that business.

Lastly, it is worth noting the very fine performances by RESIP, the Banque Claude Bernard database for assistance in prescribing and dispensing medication, and the pharmacy promotional information business.

The sector's 2010 margin rate is likely to benefit from the relative slowdown in Cegelease's business.

- Insurance and services

First-quarter 2010 revenues came to €31 million, giving solid growth of 14.5% in both L-f-L* and reported terms.

With its numerous commercial successes, the Group has again demonstrated the relevance of its software and services offerings in a changing health insurance market, where differentiation and productivity gains are crucial. Thus, the new Activ'Infinite offering, various data flow management platforms, and a relevant business model contributed to the activity's strong gains.

It is also worth noting the continued robust momentum of Cegedim SRH, specialist in outsourced payroll and HR management services, whose revenues rose by more than 15% in the first quarter.

Financial resources

Over the course of the first quarter, to Cegedim's best knowledge, there were no events or changes that could significantly alter the Group's financial situation.

2010 outlook

Because of its flexibility, good regional mix and business mix of revenues, and strong sales momentum, the Group is confident in its prospects for 2010. Its goal remains to consolidate its leadership in the world healthcare market with revenue growth of approximately 5%.

First-quarter highlights

On January 7, 2010, the Group acquired US company SK&A Information Services, Inc., a top-notch supplier of healthcare data. The acquisition strengthens Cegedim's OneKey offering in the US. Created 26 years ago, SK&A has built and maintains a database with targeted information on more than 2 million healthcare professionals, including more than 800,000 prescribing physicians. This is the only database of US prescribing physicians and other healthcare professionals for which every single email address has been verified by phone contact. The acquired businesses generate full-year revenues of roughly $15 million. The deal was financed by internal financing.

Under the agreement signed by the parties, all other terms of the transaction are confidential.

Financial calendar

The Group will hold a conference call this evening at 7:00 pm in French and 7:45 pm in English at the following numbers:

- 01 72 30 02 03 from France

- 1616 018 915 (local number) from UK

- 703 62 19 122 (local number) from the US

Access code: 13648531#

Early June 2010

- US Roadshow

August 5, 2010

- H1 revenues announcement

September 23, 2010

- H1 results announcement

November 15, 2010

- Q3 revenues announcement

Significant post-closing transactions and events

Since the closing, to Cegedim's best knowledge, there have been no events or changes that could significantly alter the Group's financial situation.

Additional information

Cegedim is naturally committed to sustainable development. For more on its commitments and its efforts, visit the Sustainable development section of the Cegedim website.

Full financial information for the Cegedim Group, including the 2009 Reference Document filed with the Autorité des Marchés Financiers as of April 26, 2010, is available on the web at www.cegedim.fr/finance.

Appendices

Revenues by sector and by quarter #:

# Figures rounded to the nearest unit.

FY 2010

+-------------------------+---------+----+----+----+---------+
|€ thousands              |    Q1   |  Q2|  Q3|  Q4|   Total |
+-------------------------+---------+----+----+----+---------+
|CRM and strategic data   |  109,498|    |    |    |  109,498|
+-------------------------+---------+----+----+----+---------+
| Healthcare professionals|   65,268|    |    |    |   65,268|
+-------------------------+---------+----+----+----+---------+
|Insurance and services   |   30,854|    |    |    |   30,854|
+-------------------------+---------+----+----+----+---------+
|Group                    |  205,620|    |    |    |  205,620|
+-------------------------+---------+----+----+----+---------+
+-------------------------+---------+----+----+----+---------+
FY 2009
+-------------------------+---------+---------+---------+---------+---------+
|€ thousands              |    Q1   |    Q2   |    Q3   |    Q4   |   Total |
+-------------------------+---------+---------+---------+---------+---------+
|CRM and strategic data   |  115,568|  119,579|  115,972|  135,883|  487,002|
+-------------------------+---------+---------+---------+---------+---------+
| Healthcare professionals|   66,137|   74,625|   59,216|   71,075|  271,053|
+-------------------------+---------+---------+---------+---------+---------+
|Insurance and services   |   26,957|   31,041|   22,829|   35,190|  115,017|
+-------------------------+---------+---------+---------+---------+---------+
|Group                    |  208,662|  225,244|  198,018|  242,148|  874,072|
+-------------------------+---------+---------+---------+---------+---------+
+-------------------------+---------+---------+---------+---------+---------+
Breakdown of revenues by sector and by currency:
+-------------------------+------+-----+-----+--------+--+
|                         |  Euro|  USD|  GBP|  Others|  |
+-------------------------+------+-----+-----+--------+--+
|CRM and strategic data   |   49%|  24%|   4%|     23%|  |
+-------------------------+------+-----+-----+--------+--+
| Healthcare professionals|   79%|    -|  21%|       -|  |
+-------------------------+------+-----+-----+--------+--+
|Insurance and services   |   98%|    -|    -|      2%|  |
+-------------------------+------+-----+-----+--------+--+
|Group                    |   66%|  13%|   9%|     12%|  |
+-------------------------+------+-----+-----+--------+--+
+-------------------------+------+-----+-----+--------+--+
Breakdown of revenues by sector and by region:
+-------------------------+--------+------------------+---------------+
|                         |  France|  Europe ex France|  North America|
+-------------------------+--------+------------------+---------------+
|CRM and strategic data   |     28%|               36%|            25%|
+-------------------------+--------+------------------+---------------+
| Healthcare professionals|     76%|               24%|              -|
+-------------------------+--------+------------------+---------------+
|Insurance and services   |     98%|                 -|              -|
+-------------------------+--------+------------------+---------------+
|Group                    |     54%|               27%|            13%|
+-------------------------+--------+------------------+---------------+
+-------------------------+--------+------------------+---------------+

+-------------------------+-------------------+--+
|                         |  Rest of the world|  |
+-------------------------+-------------------+--+
|CRM and strategic data   |                11%|  |
+-------------------------+-------------------+--+
| Healthcare professionals|                  -|  |
+-------------------------+-------------------+--+
|Insurance and services   |                 2%|  |
+-------------------------+-------------------+--+
|Group                    |                 6%|  |
+-------------------------+-------------------+--+
+-------------------------+-------------------+--+
About Cegedim: Founded in 1969, Cegedim is a global technology and services company specializing in the healthcare field. Cegedim supplies services, technological tools, specialized software, data flow management services and databases. Its offerings are targeted notably at healthcare industries, life sciences companies, healthcare professionals and insurance companies. The world leader in life sciences CRM, Cegedim is also one of the leading suppliers of strategic healthcare industry data. Cegedim employs 8,600 people in more than 80 countries and generated revenue of €874 million in 2009. Cegedim SA is listed in Paris (EURONEXT: CGM). To learn more, please visit: www.cegedim.com

This information is provided by HUGIN

Contact Information