[May 03, 2012]

Cegedim: First Quarter 2012 in Line with Expectations.

Regulatory News:

Cegedim, a global technology and services company specializing in the healthcare field, posted consolidated first quarter 2012 revenues of €214.2 million, up 1.3% on a reported basis and 0.3% like for like*.

The Group is benefiting from strong growth in the Insurance and services sector, renewed growth in Cegelease's business and a fine performance by Cegedim Healthcare Software.

Continued sales momentum, the launch of new and innovative products, and the successful execution of the Performance Improvement Plan will have a positive impact on Group revenues and operating profit from continuing operations from the second half onwards. The Group is confident as it begins the second quarter and is maintaining its 2012 targets.

• The change in revenues per sector of activity for the 1st quarter is as follows :

Like-for-like* revenues grew 1.3% in the first quarter of 2012 compared with the same period in 2011. Currency effects and acquisitions boosted revenues by respectively 0.9% and 0.1%.

Analysis of business trends by sector

• CRM and Strategic Data

Sector revenue for Q1 2012 was €111.1 million, down 1.8% on a reported basis. Currencies boosted revenue by 1.2%. Like-for-like* revenue fell 3.0% over the period.

This decrease is correlated to medical representative downsizing in mature markets. Emerging markets partially offset this downsizing, but at lower price levels.

There has been unprecedented demand for tablet and smartphones at Life Sciences companies. Consequently, the Mobile Intelligence app for tablet devices and smartphones has generated significant demand in both mature and emerging markets. This has spurred Cegedim to develop its soon-to-launch third generation Mobile Intelligence apps for tablets, called MI Touch, and for smartphones, called MI Pocket. The Life Sciences-CRM apps contained in the Mobile Intelligence 7 suite are the culmination of months of global collaborative sessions with Life Sciences companies' commercial users and stakeholders to create a highly innovative solution that will enable higher accountability, usability and flexibility.

Governments worldwide are continuing to signal the enactment of legislation requiring Life Sciences manufacturers to provide transparency in reporting payments and other value transfers to healthcare professionals. With the launch of a new version of AggregateSpend360 in March, Cegedim augmented its ability to fulfill worldwide transparency requirements such as those of the Sunshine Act in the US. Cegedim is the clear technology leader in this field.

All of these factors enable the Group to be well positioned to take advantage of growth opportunities.

As previously mentioned, the positive impact of new contracts signed in 2011 will boost the Group's consolidated revenue starting in the second half of 2012.

Lastly, the medical prescription market research business was hit by a delay in order intake. Management remains confident that these delays will be gradually absorbed over the second quarter of 2012.

• Healthcare Professionals

In the first quarter of 2012, sector revenues totaled €67.3 million, up 2.7% on a reported basis. Currency effects and the Pharmec acquisition boosted revenues by respectively 0.7% and 0.4%. Like-for-like* revenues rose 1.6% over the period.

As expected, the sector benefited from renewed growth in Cegelease's activity and from the fine performance by Cegedim Healthcare Software, driven principally by the computerization of pharmacists in the UK and France and by Pulse's (News - Alert) growth in the US.

Cegedim should continue to benefit from:

• The development of performance-based pay for physicians around the world;
• The 2012 French launch of the fully web-based medical software monLogicielMedical.com;
• Renewed growth at RNP and Cegelease.

• Insurance and Services

In the first quarter of 2012, sector revenues came to €35.8 million, up 8.9% on a reported basis and 8.8% like for like*.

This strong growth, building on a similar trend in Q4 2011, continues to be driven by favorable developments in online third-party payer management services. Future growth will be fuelled by expanding these offerings to include hospitals and dentists following the success with optics in 2011.

The sector is currently benefiting from growth in payroll and HR outsourcing.

Financial resources - 1st quarter highlights

To the best of the company's knowledge, there were no events or changes of the sort to significantly alter the Group's financial situation during the period.

Significant post-closing transactions and events

Divestment

Cegedim sold its Pharmapost subsidiary on April 30, 2012, one of France's leading printers of drug information sheets, to the Chesapeake group.

Pharmapost, that synergies with the Group was limited, contributed €5.9 million to Group consolidated revenues in 2011; its contribution to consolidated EBITDA was close to zero.

Under the terms of the agreement between the two parties, all other details regarding the transaction are confidential.

2012 outlook

Over the months ahead, Cegedim will be propelled by:

• The launch of innovative new products;
• The increasing use of performance-based pay policies for physicians, particularly in France;
• The sales momentum initiated in 2011 in the CRM, Compliance and OneKey activities;
• The revolution in online rights control for the health insurance industry;
• Internally, the continued implementation of the Performance Improvement Plan.

These factors will boost the Group's consolidated revenues and EBITDA from the second half of 2012.

Financial calendar

August 1^st 2012 (after the stock market closes)

• 2012 Q2 Revenue release

September 19, 2012 (after the stock market closes)

• 2012 HY Results release

September 20, 2012

• SFAF Meeting for 2012 HY Results

November 8, 2012 (after the stock market closes)

• 2012 Q3 Revenue release

Informations additionnelles

The Audit Committee met in the presence of the Statutory Auditors on May 2, 2011, to review the 1^st quarter revenue figures.

Cegedim's first-quarter revenues presentation, 2011 Reference document and other financial information are available on the website www.cegedim.com/finance.

Appendices

• Revenues by sector and by quarter^# :

# Figures rounded to the nearest unit.

* at constant scope and exchange rates

Year 2012

Year 2011

• By sector of activity and geographic zone, the distribution of revenues for the 1^st quarter of 2012 is as follows :

• By sector of activity and currency, the distribution of revenues for the 1^st quarter of 2012 is as follows :

SA au capital de 13 336 506,43 euros
R. C. S. Nanterre B 350 422 622
www.cegedim.com

[ Back To Cloud Data Center Homepage's Homepage ]