The Medipattern Corporation

The Medipattern Corporation

November 27, 2009 15:03 ET

Medipattern Reports First Quarter Results for Fiscal 2010

TORONTO, ONTARIO--(Marketwire - Nov. 27, 2009) - 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 2010 ended September 30, 2009.

Jeff Collins, CEO of Medipattern stated, "Revenue in the first quarter dropped as expected due primarily to timing issues as we shifted from a traditional licensing model to an annuity model utilizing B-CAD-FOR-LIFE™. We introduced B-CAD-FOR-LIFE early this year in response to a change in customer buying patterns caused by the economic slowdown in the United States. Under our new model, the customer pays on a monthly basis for all the features and benefits of B-CAD instead of paying a onetime licensing fee. As an inducement under the long term contract, we give customers a grace period before payments begin, which impacted our results in the quarter. We anticipate revenue from B-CAD-FOR-LIFE to begin to flow during the second fiscal quarter of 2010."

Financial Highlights of Q1 2010:

- Revenue was $2,119 in the first quarter of fiscal 2010 versus $75,974 in the same period last year.

- Total expenses declined 39 percent to $0.72 million versus $1.18 million in the same period last year, mostly as a result of reduced sales and marketing costs, and administrative and R&D costs. Year-over-year, research and development expenses decreased to $221 thousand from $419 thousand in the first quarter of fiscal 2009 as certain software developers were no longer required subsequent to the release of new versions of B-CAD. Administration and product support costs decreased to $261 thousand in the first quarter versus $391 thousand in the same period last year due primarily to company wide cost reduction efforts.

- Resulting net loss in the first quarter was $0.72 million versus $1.10 million in the previous period, an improvement of approximately 35 percent.

- Cash and cash equivalents totaled $1.65 million as at September 30, 2009, compared to $1.85 million at the end of fiscal 2009. As at September 30, 2009 working capital totaled $1.67 million and the Company had no long term debt.

"In response to the significant change in our core markets, we have built up our cash position and significantly reduced our operating costs" added Mr. Collins. "We expect that the steps taken over the past months will ensure our ability to grow our market share for B-CAD, and enter the much larger vascular market through our VasculariQ product we are developing with GE healthcare."

Business Highlights:

- Medipattern signs an agreement for B-CAD-FOR-LIFE with Manhattan Diagnostic Radiology.

- Medipattern closes a non-brokered private placement in two tranches, issuing a total of 3,500,000 common shares in the capital stock of the Company at $0.20 per common share for gross proceeds of $700,000 to the Company.

Results of Operations:


September 30, September 30, Increase
2009 UNAUDITED 2008 UNAUDITED (Decrease)
(3 months) (3 months)
Licensing fees $ 2,119 $ - $ 2,119
Professional fees - 75,974 (75,974)
2,119 75,974 (73,855)

Research and development 220,578 419,492 (198,914)
Administration and product
support 261,291 391,112 (129,821)
Sales and marketing 218,451 390,231 (171,780)
Foreign exchange (gain) loss 10,018 (10,185) 20,203
Investment income (1,280) (20,504) 19,225
Investment income on held to
maturity investment - (7,464) 7,464
Amortization of property and
equipment 10,347 14,248 (3,901)
719,405 1,176,930 (457,525)

LOSS $ (717,286) $ (1,100,956) $ 383,670

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

2009 Upcoming Events:

- RSNA (Radiological Society of North America), November 29 to December 3, 2009, Chicago, IL In the Medipattern booth 1009, PenRad Booth 4600 and GE Healthcare Booth 4029.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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