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MGT Capital Investments Inc Reports Operating Results (10-Q)

August 14, 2009 | About:

MGT Capital Investments Inc (MGT) filed Quarterly Report for the period ended 2009-06-30.

MGT Capital Investments is an investment 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 and computer assisted reader 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 Medicexchange.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.com provides these solutions in a low-cost on-demand and downloadable format enhancing access to information and products for medical imaging professionals. MGT Capital Investments Inc has a market cap of $16.3 million; its shares were traded at around $0.5 with and P/S ratio of 46.

Highlight of Business Operations:

· Net loss increased 115% to $19,175 and resulted in a loss per share of $0.59 compared to a net loss of $8,915 and net loss per share of $0.23 in 2008.

Operating costs, excluding the goodwill impairment, have decreased by $5,305 due to a focus on reducing costs and because of a reduction in headcount in Medicsight in the six months ended June 30, 2009. A fall in the value of sterling from $1.99:£1.00 to $1.65:£1.00 contributed to the reduction in reportable costs by approximately $2,600 using the average exchange rate for the six months ended June 30, 2008 as the majority of our costs are incurred in sterling in Medicsight.

We have generated revenues of $121 and gross profit of $119 for the six months ended June 30, 2009, compared to $137 and $107 for the six months ended June 30, 2008. Medicsight increased revenues in the period and Medicexchanges decreased.

Interest and other (expense) income was an expense of $993 in the six months to June 30, 2009 compared to income of $1,145 in the same period in the prior year. The expense was made up of impairment losses in Eurindia ($176) and HipCricket ($739) which were incurred in the three months to March 31, 2009 and impairment losses on XShares ($230) incurred in the three months to June 30, 2009. There were also realized losses on other investments ($37) and interest income of $189 spread over the six months to June 30, 2009. The interest income consisted of bank interest and a portion of the arrangement fee and interest from the XShares convertible note.

Net loss attributable to equity holders of MGT Capital Investments, Inc. was $3,845 for the three months ended June 30, 2009 compared to a net loss of $5,136 for the three months ended June 30, 2008. Net loss per share for the three months ended June 30, 2009 was $0.12 (based on weighted average shares outstanding of 32,550,590), compared to $0.14 for the three months ended June 30, 2008 (based on weighted average shares outstanding of 35,539,746).

Net loss attributable to equity holders of MGT Capital Investments, Inc. was $19,175 for the six months ended June 30, 2009 compared to a net loss of $8,915 for the six months ended June 30, 2008. Net loss per share for the six months ended June 30, 2009 was $0.59 (based on weighted average shares outstanding of 32,550,590), compared to $0.23 for the six months ended June 30, 2008 (based on weighted average shares outstanding of 37,956,351).

Read the The complete Report

Rating: 1.0/5 (2 votes)

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