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MGT Capital Investments Reports Second Quarter 2007 Financial Results and Provides Update on Recent Developments
Aug 10, 2007 (08:08 AM EDT)
LONDON, Aug. 10 /PRNewswire-FirstCall/ -- MGT Capital Investments, Inc. , a holding company focused on the Healthcare Information Technology ("HCIT") sector, today reported financial results for the second quarter ended June 30, 2007 and provided an update on strategic milestones.
Tim Paterson-Brown, Chairman and CEO, stated, "Healthcare IT continues to be an attractive sector for investors, exhibiting strong growth and ripe for consolidation. MGT is well positioned to capitalize on these positive trends and the demand for software and distribution solutions in the sector, both through our subsidiaries and through potential strategic acquisitions and investments."
Mr. Paterson-Brown continued, "During the second quarter, we achieved a major milestone with the AIM listing of our subisidiary, Medicsight, which unlocked significant value for our shareholders. MGT received net proceeds of $61.1 million, strengthening our cash position, and maintained 55 percent controlling ownership of Medicsight, which we expect will further enhance our shareholder value as Medicsight commercializes its CAD products. Medicsight has recently expanded its corporate partnerships, bringing the total potential installed base for its colon product to over 7,500 CT workstations and licenses. Our investment in Medicexchange is also tracking nicely, with preliminary price testing in North America and Asia scheduled to be completed by year end."
Mr. Paterson-Brown concluded, "The outlook for both our subsidiaries is bright, with several important milestones upcoming, including first revenues from both projected for 2008. In addition, MGT will leverage the experience and expertise across both companies to make strategic acquisitions and investments in HCIT products and companies."
Recent Developments June 2007 -- MGT's subsidiary, Medicsight PLC, began trading its ordinary shares on the AIM market of the London Stock Exchange. Medicsight raised $64 million (pounds 32m), before expenses, by placing 29,090,909 ordinary shares at $2.19 (pounds 1.10) per share that resulted in a market capitalization of $340 million (pounds 171m) based on the placing price. In concert with the offering, MGT reduced its holding in Medicsight PLC to 55% and received net proceeds of $24.6 million during the month of July. -- Tim Paterson-Brown, Chief Executive Officer and Allan Rowley, Chief Financial Officer of MGT, rang the opening bell at the American Stock Exchange ("AMEX"), affirming the significant progress the Company has made in the year and half it has been trading on the AMEX. -- MGT announced it had been included in the Russell Microcap(R) Index. Membership remains in place for one year and ensures automatic inclusion in the appropriate growth and value style indices. -- Medicsight received a CE mark for MedicRead Colon 1.0 and ColonCAD(TM) API 3.2, and was granted a medical device license from the Therapeutic Products Directorate of Health Canada to begin marketing and selling Medicsight MedicRead Colon 1.0. July 2007 -- Medicsight entered into a global contract with Barco N.V., a leading provider of enterprise-wide 3D advanced visualization solutions, which will enable Medicsight's ColonCAD(TM) image analysis software tools to be distributed with Barco's 3D visualization products and through the Picture Archiving and Communication Systems (PACS) offered by Barco's partners.
Financial Results for the six months ended June 20, 2007
Total operating expenses in six month period ended June 30, 2007 were $9.1 million, compared to total operating expenses of $7.1 million for the six month period ended June 30, 2006. The increase in operating expenses on a year over year basis was attributable in part to the expansion of the international operations.
For the six month period ended June 30, 2007, net loss was $7.3 million, or $0.19 per diluted share, compared to a net loss of $7.0 million, or $0.19 in the same period in 2006.
As of June 30, 2007, cash balances equivalents were $72.5 million, compared to $19.8 million at December 31, 2006. The increase is attributable to the net proceeds of $61.1 million that the Company received following the listing of its subsidiary on the AIM market.
About MGT Capital Investments, Inc.
MGT Capital Investments is a holding company with two direct subsidiaries that focus solely on the dynamic and consolidating HCIT sector. The first subsidiary, Medicsight PLC, is a leading developer of computer-aided detection (CAD) and computer assisted reader (CAR) software solutions that are tested using one of the world's largest databases of verified CT scan data. Medicsight's CAD and CAR products help clinicians identify, measure, and analyze suspicious pathology, such as colorectal polyps and lung lesions. MGT Capital Investments has invested in and controls a second subsidiary, Medicexchange PLC, which operates www.medicexchange.com www.mgtci.com , an online multi- vendor sales channel for diagnostic, treatment and surgery planning solutions for cardiac, thoracic, breast imaging, orthopedic, and gastro intestinal imaging. Medicexchange provides these solutions in a low-cost, on-demand and downloadable format, enhancing access to information and products for medical imaging professionals. Additional information can be found at .
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.
Company contacts: For more information: MGT Capital Investments, Inc. Investors: Alex van Klaveren Stephanie Carrington / Zack Kubow 1410 Broadway +1 646-536-7017 / 7020 22nd Floor firstname.lastname@example.org New York, NY 10018 +1 646-257-2644
CONTACT: Alex van Klaveren of MGT Capital Investments, Inc., email@example.com+1-646-257-2644, ; Investors, Stephanie Carrington,+1-646-536-7017, , or Zack Kubow,+1-646-536-7020,
Web site: http://www.mgtci.com/