CompuGROUP Increases Sales by 23%

CompuGROUP Holding AGIn the first nine months of the business year 2008, CompuGROUP Holding AG has increased its group-wide sales by 23% compared to the same period in the previous year, while operating profit and cash flow were at the same level as last year. Business development activities remain at a high level, and CompuGROUP has secured its largest contract ever in the Austrian hospital information systems sector.

CompuGROUP continues to pursue its growth strategy. Year-to-date revenue reached a new record high of EUR 158.2 million compared to EUR 128.6 million in the same period last year. Acquisitions contributed 19% to growth while organic growth was 4%. The Koblenz-based group was able to increase its earnings before taxes, interest, depreciation and amortization (EBITDA) by EUR 1.2 million to EUR 37.1 million. This result corresponds to an EBITDA margin of 23%.

Depreciation and amortization during the first nine months of 2008 amounted to EUR 22 million compared to EUR 16.9 million in the same period of 2007. This increase is mostly related to acquisitions. Earnings after tax for the reporting period were EUR 8.1 million, which is a decrease by EUR 8.6 million compared to last year. This change is mostly related to the increased amortizations as well as a higher tax rate compared to the same period in 2007.

In October 2008, the Austrian CompuGROUP company Systema Human Information Systems signed a contract for the largest IT project in company history, in competition with worldwide renowned companies. Systema is going to implement the new system in twelve hospitals and eleven geriatrics centers belonging to Vienna's hospital network (Wiener Krankenanstaltenverbund, KAV). The system, which is part of the IMPULS KIS project, will be fully implemented in these institutions by 2013. The net value of the contract amounts to EUR 42 million with a total project value, includ-ing optional proportions, of EUR 58 million.

With this contract, CompuGROUP has taken a major step to further expand its share of the healthcare IT market. Frank Gotthardt, Chairman of the Board of CompuGROUP Holding AG, states: "Our diversified product portfolio for all parties involved in the healthcare system and in social institutions enables all users to allocate their resources more efficiently."

Outlook
CompuGROUP expects regulatory changes in Germany to lead to only a small decrease in revenue and earnings in the HCS (Health Connectivity Services) segment for the remainder of 2008. Germany's health insurance companies continue to be reluctant to enter into large contracts for products of the process and decision support system sector. The slow development of the group's EPS (Electronic Patient Services) segment affects the group's results negatively, and this is also expected to be reflected in the results for the remainder of 2008. In the Health Professional Services segment (HPS I), whose business are information systems for doctors and dentists, CompuGROUP expects sales and earnings to exceed the results targeted for 2008. For the rest of the year, good margins are expected in France and the Czech Republic. Lower growth rates and margins will probably be produced by the Turkish companies acquired in 2007.

In summary, CompuGROUP confirms its prognosis for 2008, which was adjusted in July 2008. For the business year 2008, the group's management board expects an EBITDA of about EUR 50 million (roughly the same as last year), and group sales amounting to about EUR 225 million (a growth rate of 25% compared to 2007).

Related news articles:

About CompuGROUP Holding AG
CompuGROUP is one of the leading eHealth companies worldwide. Its software products, designed to support all medical and organizational activities in doctors' offices and hospitals, its information services for all parties involved in the healthcare system and its web-based personal health records contribute towards safer and more efficient healthcare. The services of CompuGROUP are based on its unique customer base of about 320,000 doctors, dentists, hospitals, associations and networks as well as other service providers. CompuGROUP is the eHealth company with the biggest coverage among eHealth service providers worldwide. The company operates in 14 European countries, Malaysia, Saudi Arabia and in South Africa and currently employs around 2,500 people. For further information, please visit http://www.compugroup.com.

Most Popular Now

AI-Powered CRISPR could Lead to Faster G…

Stanford Medicine researchers have developed an artificial intelligence (AI) tool to help scientists better plan gene-editing experiments. The technology, CRISPR-GPT, acts as a gene-editing “copilot” supported by AI to help...

Groundbreaking AI Aims to Speed Lifesavi…

To solve a problem, we have to see it clearly. Whether it’s an infection by a novel virus or memory-stealing plaques forming in the brains of Alzheimer’s patients, visualizing disease processes...

AI Spots Hidden Signs of Depression in S…

Depression is one of the most common mental health challenges, but its early signs are often overlooked. It is often linked to reduced facial expressivity. However, whether mild depression or...

ChatGPT 4o Therapeutic Chatbot 'Ama…

One of the first randomized controlled trials assessing the effectiveness of a large language model (LLM) chatbot 'Amanda' for relationship support shows that a single session of chatbot therapy...

AI Tools Help Predict Severe Asthma Risk…

Mayo Clinic researchers have developed artificial intelligence (AI) tools that help identify which children with asthma face the highest risk of serious asthma exacerbation and acute respiratory infections. The study...

AI Model Forecasts Disease Risk Decades …

Imagine a future where your medical history could help predict what health conditions you might face in the next two decades. Researchers have developed a generative AI model that uses...

AI Distinguishes Glioblastoma from Look-…

A Harvard Medical School–led research team has developed an AI tool that can reliably tell apart two look-alike cancers found in the brain but with different origins, behaviors, and treatments. The...

Smart Device Uses AI and Bioelectronics …

As a wound heals, it goes through several stages: clotting to stop bleeding, immune system response, scabbing, and scarring. A wearable device called "a-Heal," designed by engineers at the University...

AI Model Indicates Four out of Ten Breas…

A project at Lund University in Sweden has trained an AI model to identify breast cancer patients who could be spared from axillary surgery. The model analyses previously unutilised information...

Overcoming the AI Applicability Crisis a…

Opinion Article by Harry Lykostratis, Chief Executive, Open Medical. The government’s 10 Year Health Plan makes a lot of the potential of AI-software to support clinical decision making, improve productivity, and...

Dartford and Gravesham Implements Clinis…

Dartford and Gravesham NHS Trust has taken a significant step towards a more digital future by rolling out electronic test ordering using Clinisys ICE. The trust deployed the order communications...