EANS-Adhoc: LifeWatch to announce positive results for first quarter 2012 (with document)

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3-month report/LifeWatch AG

10.05.2012

+ EBIT of USD 1.62 million and EBITDA of USD 2.85 million;

+ More than 70 million new covered lives and 41 additional contracts;

+ Home sleep test revenues rose by 100% in the first quarter 2012;

International analyst and media conference call and audio web cast on
LifeWatch Q1 2012 financial results:

+ Thursday, May 10, 2012 at 10.00 a.m. CEST;

+ Dial-in number: + 41 (0)91 610 56 00 (Europe), + 44 (0)203 059 58
62 (UK), +1 (1)866 291 41 66 (USA - Toll-free);

+ Audio web cast
http://services.choruscall.eu/links/lifewatch120510.html;

Neuhausen am Rheinfall/Switzerland - LifeWatch AG (SIX Swiss
Exchange: LIFE), the leading provider of wireless telemedicine, today
announces the results for the first quarter 2012. The Company
continues to improve operating profit on EBIT and EBITDA level. All
service lines of LifeWatch were able to attract new major contracts.

First Quarter 2012 Financial Highlights:

- Revenues of USD 21.13 million, compared with USD 21.08 million in Q1 2011.

- Gross margin was 58.0% compared with 58.5% in Q1 2011.

- Total departmental expenses were 50.4% of revenues compared with
58.1% in Q1 2011:

- R&D expenses rose by approximately USD 0.30 million.

- S&M expenses decreased by USD 1.69 million compared with Q1 2011

- G&A expenses decreased by USD 0.32 million from Q1 2011.

- EBIT of USD 1.62 million compared with EBIT of USD 0.08 million in Q1
2011.

- EBITDA of USD 2.85 million compared with EBITDA of USD 1.40 million in Q1
2011.

- Net income of USD 0.60 million compared with a net loss of USD 0.95

million in Q1 2011.

Monitoring Services Updates:

In March 2012 LifeWatch announced a joint development with U.S.
medical technology developer Ansar on a break-through Parasympathetic
& Sympathetic technology for diagnosing cardiogenic, neurogenic and
vasovagal syncope. For the first time in the wireless cardiac
monitoring industry, a treating physician will be able to measure
individual parasympathetic and sympathetic responses of their
patient. This information will be significant in providing additional
clinical data for patients with Atrial Fibrillation, Syncope,
Congestive Heart Failure, Cardiac Autonomic Neuropathy and
Hypertension. These conditions together affect an estimated 99
million Americans. Millions of patients currently prescribed Beta
blockers will also benefit from this test. The Company has made
considerable progress with the deployment of the Ansar technology on
the ACT wireless cardiac monitoring platform.

The Company launched the Elite outpatient cardiac monitoring service
and technology during Q1 2012. The Elite service is a
software-defined wireless cardiac monitoring platform designed with a
programmable feature that allows a switch from the advanced ACT III
ambulatory ECG telemetry system to a sophisticated
Auto-Detect/Auto-Send 3-channel ECG cardiac monitoring system. This
state-of-the-art technology enables a streamlined enrolment process,
easier onsite inventory control and further efficiencies provided by
a multi-functional solution which can replace the confusing array of
monitoring technologies and services. The Elite service also benefits
patients who do not have a dedicated landline and would not be able
to transmit their ECGs using traditional cardiac monitors. The Elite
service is arguably the most sophisticated outpatient cardiac
monitoring service and technology in the market today.

Managed Care Updates:

During the first quarter 2012 LifeWatch achieved 20 new contracts for
ACT Services and 21 new contracts for NiteWatch services.
Collectively, these new agreements represent over 71 million covered
lives. Of note, UnitedHealthCare and all of its affiliates completed
a major new follow-on national agreement as an In-Network Preferred
Provider providing coverage of our standard cardiac event monitoring
and home sleep testing services to about 70 million members.
Prime/NAMM of California contracted for cardiac monitoring services
to their 205,000 members. Dimension Health PPO of South Florida
contracted for Home Sleep Test services covering approximately
400,000 lives, and Fidelis Care of New York contracted for all
LifeWatch service lines for more than 725,000 covered lives.
LifeWatch continues to prove to providers the value of our cost
effective health monitoring services. These new contracts corroborate
our momentum in obtaining important coverage and payment contracts.

Revenues:

Total revenues reached USD 21.13 million, an increase over Q1 2011.
Revenues were slightly impacted by the discontinuation of Pacemaker
services in Q2 2011, which are only offered to a few select accounts
in Q1 2012. Our main sales and marketing efforts continue to focus
primarily on the U.S. monitoring services market.

Gross Profit, EBITDA and EBIT:

Gross profit was USD 12.26 million, reflecting a margin of 58.0%,
compared with gross profit of USD 12.33 million with a margin of
58.5% in Q1 2011. EBITDA was USD 2.85 million in Q1 2012 compared
with EBITDA of USD 1.40 million in Q1 2011. EBIT reached USD 1.62
million compared with EBIT of USD 0.08 million in Q1 2011.

Net Income:

LifeWatch reported a net income of USD 0.60 million compared to a net
loss of USD 0.95 million in Q1 2011. Earnings per share were USD 0.05
(fully diluted), compared to a loss per share of USD 0.08 (fully
diluted) in the first quarter of 2011.

Outlook 2012:

LifeWatch is committed to increasing revenues and improving
profitability in 2012. The Company is investing in new service and
technology offerings and expanding into new geographies and disease
states.

About LifeWatch AG:

LifeWatch AG, headquartered in Neuhausen am Rheinfall and listed on
SIX wiss Exchange (LIFE), Switzerland, is the leading healthcare
technology and solution company, specializing in advanced telehealth
systems and wireless remote patient monitoring services. LifeWatch
services cater to individuals, ranging from high-risk and chronically
ill patients, to consumers of health and wellness products. LifeWatch
has subsidiaries in the United States, the Netherlands, Japan, the
United Kingdom, Switzerland and Israel. LifeWatch AG is the parent
company of LifeWatch Services Inc., a leading US-based cardiac
monitoring service provider, and manufacturer of telecardiology
products. LifeWatch is also introducing a new program for Home Sleep
Testing of Obstructive Sleep Apnea (OSA) patients under the brand
name NiteWatch. For additional information, please visit
www.lifewatch.com.

Sign-up for customized E-mail alerts and documentation requests is
available at http://production.investis.com/lifewatch/alert-service/

This press release includes forward-looking statements. All
statements other than statements of historical facts contained in
this press release, including statements regarding future results of
operations and financial position, business strategy and plans and
objectives for future operations, are forward-looking statements. The
words "believe," "may," "will," "estimate," "continue,""anticipate,"
"intend," "expect" and similar expressions are intended to identify
forward-looking statements. LifeWatch AG has based these
forward-looking statements largely on current expectations and
projections about future events and financial trends that it believes
may affect the financial condition, results of operations, business
strategy, short term and long term business operations and
objectives, and financial needs. These forward-looking statements are
subject to a number of risks, uncertainties and assumptions. In light
of these risks, uncertainties and assumptions, the forward-looking
events and circumstances described may not occur and actual results
could differ materially and adversely from those anticipated or
implied in the forward-looking statements. All forward-looking
statements are based only on data available to LifeWatch AG at the
time of the issue of this press release. LifeWatch AG does not
undertake any obligation to update any forward-looking statements
contained in this press release as a result of new information,
future events or otherwise.

THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF
AMERICA AND SHOULD NOT BE DISTRIBUTED TO UNITED STATES PERSONS OR
PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS
PRESS RELEASE DOES NOT CONSTITUTE AN OFFER OF SECURITIES OF LIFEWATCH
AG OR ANY OF ITS SUBSIDIARIES FOR SALE IN THE UNITED STATES OR AN
INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES OF LIFEWATCH
AG OR ITS SUBSIDIARIES IN THE UNITED STATES. IN ADDITION, THE
SECURITIES OF LIFEWATCH AG AND ITS SUBSIDIARIES HAVE NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES LAWS AND MAY NOT BE
OFFERED, SOLD OR DELIVERED WITHIN THE UNITED STATES OR TO U.S.
PERSONS ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE UNITED STATES SECURITIES LAWS. ANY
PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE
MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM LIFEWATCH AG
OR ITS SUBSIDIARIES, AS APPLICABLE, AND WILL CONTAIN DETAILED
INFORMATION ABOUT THE ISSUER AND ITS MANAGEMENT AS WELL AS FINANCIAL
STATEMENTS OF THE ISSUER.

Attachments with Announcement:
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http://resources.euroadhoc.com/us/3qJFtaGQ

Further inquiry note:
Sensus Investor and Public Relations, Zürich:
Tel +41 43 366 55 11 | Fax +41 43 366 55 12 | Email lifewatch@sensus.ch

end of announcement euro adhoc
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Attachments with Announcement:
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http://resources.euroadhoc.com/us/3qJFtaGQ

issuer: LifeWatch AG
Rundbuckstrasse 6
CH-8212 Neuhausen am Rheinfall
phone: +41 52 632 00 50
FAX: +41 52 632 00 51
mail: users@lifewatch.com
WWW: www.lifewatch.com
sector: Healthcare Providers
ISIN: CH0012815459
indexes: SPI, SPIEX
stockmarkets: free trade: Berlin, Open Market / XETRA: Frankfurt, Main Standard:
SIX Swiss Exchange
language: English