LifeWatch AG / Key word(s): Final Results
LifeWatch reports 2016 Financial Results
In 2016 revenue was USD 113.8 million representing an increase of 6.8% over prior year's adjusted revenues. Gross profit for the period was USD 56.7 million, or 49.8% of revenue resulting in an EBITDA of USD 2.1 million.
While the revenue in 2016 was modestly higher than the estimated growth in the Company's market segment, the Company's profitability was negatively impacted by two large legal settlements, one-time costs associated with the discontinuation of the Vital Signs Patch (VSP) and International Normalized Ratio (INR) initiatives as well as the discontinuation of internal device development and closure of subsidiaries in Japan and India. These strategic decisions facilitated LifeWatch's transition to a pure-play service provider and have resulted in a nimbler organization which LifeWatch believes will yield improved operating results for the Company in 2017 and beyond.
In 2016, on a non-adjusted basis, EBIT was a negative USD 7.7 million due to increases in non-capitalized R&D, sales and marketing, general and administrative costs, increased legal expenses and costs attributable to the establishment of a joint-venture in Turkey.
After adjusting for one-time costs and write-offs, EBIT and EBITDA would result in approximately USD 4 million and USD 14 million, or 4% and 12% of revenue, respectively.
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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, the 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.
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Document title: 20170317_Financial Results16_EN
End of ad hoc announcement