The Medipattern Corporation

The Medipattern Corporation

February 19, 2008 16:30 ET

Medipattern Reports Results for Second Quarter of Fiscal 2008

TORONTO, ONTARIO--(Marketwire - Feb. 19, 2008) - The Medipattern Corporation ("Medipattern") (TSX VENTURE:MKI), an award-winning developer of computer-aided detection (CAD) medical imaging software designed to aid physicians in making better informed biopsy decisions and to permit a higher standard of care for the millions of patients at risk of breast cancer, today announced its business highlights and unaudited financial results for the second quarter and six-months ended December 31, 2007.

"The second quarter of fiscal 2008 was an important period as Medipattern achieved a number of important objectives," said Jeff Collins, CEO of Medipattern. "The most significant of these was Medipattern's debut in its own booth at the RSNA (Radiological Society of North America) annual conference in November where both B-CAD for ultrasound and MRI received an overwhelmingly favorable response. In total, Medipattern had B-CAD on display in 6 other booths at the RSNA, including the booths of GE Healthcare and Confirma, among others. The professionals attending RSNA are the decision makers and end-users that constitute our target market and we expect that our success at this event, combined with the results from recent studies demonstrating B-CAD as a useful application for increased effectiveness and efficiency, will significantly increase our profile in the industry. We are actively pursuing opportunities to show our platforms adaptability to other indications and we are diligently working to expand both our distribution network and our product offering."

Highlights of the Second Quarter Ended December 31, 2007:

- November 2007 - Medipattern announced that it had launched B-CAD 2.2 with a lead order in Mexico.

- November 2007 - Medipattern announced an agreement with Osiris Medical to distribute B-CAD in Canada.

- November 2007 - Medipattern announced that six versions of B-CAD for breast ultrasound imaging and one version of B-CAD for breast MRI (Magnetic Resonance Imaging) would be demonstrated at RSNA (Radiological Society of North America) in Chicago, IL. Those demonstrating B-CAD in their own booths at RSNA include GE Healthcare, Confirma, Sectra, Cedara, Sonocine and Medipattern.

- December 2007 - Medipattern announced the installation of B-CAD v2 in the General Hospital in Gorzia, Italy.

Financial Highlights of the Second Quarter:

- Revenues in the second quarter of fiscal 2008 reached $216 thousand, versus total revenues of $77 thousand in the same quarter of fiscal 2007. For the six month period ended December 31, 2007, Medipattern reported revenue of $392 thousand versus $216 thousand in the corresponding period in 2006;

- Operating expenses in the second quarter of fiscal 2008 totaled $1.08 million versus $677 thousand in the second quarter of fiscal 2007, primarily due to additional investment in research & development and sales & marketing to support the Company's ultrasound product launch. For the six months ended December 31, 2007, operating expenses were $1.88 million versus $1.36 million in the same period in 2006;

- Resulting net loss for the second quarter of the current fiscal year was $861 thousand ($0.02 per share) versus $600 thousand ($0.01 per share) for the same period in the previous year. For the six months ended December 31, 2007, Medipattern reported a net loss of $1.5 million ($0.04 per share) compared to a net loss of $1.1 million ($0.03 per share) in the same period in 2006;

- Cash and cash equivalents totaled $5.1 million at the end of the second quarter of fiscal 2008, compared to $3.2 million at the end of the second quarter of the prior year. As at December 31, 2007 current assets were $5.7 million (June 30, 2007 - $2.1 million) and current liabilities were $499 thousand (June 30, 2007 - $477 thousand). During Q2 2008, working capital decreased from $6.0 million as at September 30, 2007 to $5.2 million as at December 31, 2007 as a result of ongoing operating losses during the three and six month periods of fiscal 2008.


"As of December 2007, Medipattern's B-CAD for ultrasound is available through GE Healthcare's product catalogue. We are continuing the momentum with GE from RSNA and are receiving very strong response from their sales team," concluded Mr. Collins.

Results of Operations:


December December December December
31, 2007 31, 2006 31, 2007 31, 2006
(6 months) (6 months) (3 months) (3 months)

Royalty income $ 156,551 $ 82,047 $ 68,508 $ 41,023
Professional fees 131,682 69,515 90,016 6,013
Interest 103,510 63,962 57,753 30,292
391,743 215,524 216,277 77,328

Research and
development 757,344 575,961 415,031 276,953
Administration and
product support 626,088 445,601 377,805 223,562
Sales and marketing 476,135 322,361 272,887 169,300
Amortization of
property and
equipment 19,782 15,304 11,328 7,838
1,879,349 1,359,227 1,077,051 677,653

NET LOSS (1,487,606) (1,143,703) (860,774) (600,325)

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

2008 Upcoming Events:

Medipattern is participating in the following events:

- European Congress of Radiology (ECR), March 7 to 11, Vienna, Austria

- American Institute of Ultrasound in Medicine (AIUM) Annual Meeting, March 12 to 15, San Diego, CA, USA

- Ultrasound Woman's Imaging Show, April 3 to 6, Boston, MA, USA

- China Med Show, April 10 to 15, Beijing, PRC

- The Breast Course, April 13 to 16, Quebec City, Quebec, Canada

- American Society of Breast Surgeons (ASBS) Annual Meeting, April 30 to May 4, New York City, NY, USA

- 33rd National Conference on Breast Cancer, American College of Radiology (ACR) Society of Breast Imaging (SBI), May 8 to 10, Orlando FL, USA

- Radiological Society of North America (RSNA), November 30 to December 5, Chicago, IL, USA

The Medipattern Corporation

Medipattern develops computer-aided detection (CAD) solutions for medical imaging. These products enhance workflow while improving interpretive and diagnostic confidence. The Company's initial clinical applications are B-CAD™ for breast ultrasound and B-CADMRI™. Both have received awards for innovation in the industry. The B-CAD products, part of the Company's CADENZA™ platform, use pattern recognition technology to assist radiologists in their efforts to classify and characterize lesions in images of the breast. Please visit the company's website at:

B-CAD™ and B-CAD MRI™ are trademarks of The Medipattern Corporation.
Medipattern® is 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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