|By Business Wire||
|November 8, 2012 02:20 PM EST||
Cegedim, a technology and services company specializing in the healthcare field, posted consolidated Q3 2012 revenues of €207.6 million, up 5.4% on a reported basis and 1.4% like for like.
Following a second quarter during which economic conditions deteriorated in a number of developed countries and clients put off making decisions, like-for-like* revenues returned to growth in the third quarter even though tough conditions persisted.
Cegedim remains confident in its growth potential because its product portfolio meets the needs of a wide variety of markets. In particular, Cegedim’s rich and varied offering fits healthcare players’ demand for “Digital” products and services. Cegedim has become a significant force in the digital field: in the CRM and strategic data sector, with interactive CRM offerings across multiple mobile devices; in the Healthcare professionals sector, with software solutions and drug databases available on the web and tablet computers, and new solutions that help companies market to patients and doctors; and in the Insurance and Services sector, with the creation of online policyholder benefits verification for the electronic reimbursement platform in France.
Last August, Cegedim decided to renew the Performance Improvement Plan it launched in November 2011. All of the costs of the second plan will be recorded in the second half of 2012, and a gross impact of more than €10 million is expected in 2013. Along with revenue growth, this plan is expected to boost the Group’s operating cash flow, making it possible to speed up debt reduction. Lastly, the Group believes it will have an adequate level of liquidity to respect its financial commitments.
- The change in revenues per sector of activity for the third quarter is as follows:
|€ thousands||Q3 2012||Q3 2011||Growth|
|CRM and strategic data||111,112||111,982||-0.8%||-4.3%|
|Insurance and services||33,848||31,337||+8.0%||+8.0%|
*at constant scope and exchange rates
Like-for-like* revenue growth in the third quarter of 2012 came to 1.4% relative to the same period in 2011. The drop in CRM and strategic data sector revenues was more than offset by the strong growth in the Healthcare professionals and Insurance and Services sectors. The positive impact of the ASP Line acquisition was offset by the sale of Pharmapost, resulting in a net positive contribution to revenues of 0.4%. Currencies made a positive contribution of 3.6%.
- The change in revenues per sector of activity over nine months is as follows:
|€ thousands||9M 2012||9M 2011||Growth|
|CRM and strategic data||348,310||361,188||-3.6%||-5.9%|
|Insurance and services||106,780||100,480||+6.3%||+6.3%|
*at constant scope and exchange rates
Like-for-like* revenue growth over the first nine months of 2012 came to -1.5% relative to the same period in 2011. The drop in CRM and strategic data sector revenues was only partly offset by growth in the Healthcare professionals and Insurance and Services sectors. Acquisitions had no impact on revenue growth, as the impact of the ASP Line acquisition was offset by that of the Pharmapost sale. Currencies made a positive contribution of 2.3%.
Analysis of business trends by sector
- CRM and strategic data
Third quarter 2012 revenues came to €111.1 million, down 0.8% on a reported basis. Currencies made a positive contribution of 4.7%. The sale of Pharmapost made a negative contribution of 1.1%. Like-for-like* revenues fell 4.3% over the period.
Sector revenues over the first nine months of 2012 came to €348.3 million, down 3.6% on a reported basis. The sale of Pharmapost had a negative impact of 0.7%, whereas currencies had a positive impact of 3.0%. Like-for-like* revenues fell 5.9% over the period.
In mature markets, even though pharmaceutical companies’ continued belt-tightening was a drag on the market research business in the third quarter, the number of CRM solution users is leveling off, and in some countries even increasing. The stabilization of the situation in Italy and Spain in the third quarter is worth noting. On the other hand, Greece and Portugal remain mired in difficulties. The strong growth at SK&A since the start of the year reflects the success of OneKey in the US. SK&A is a California-based company acquired in January 2010 to strengthen the healthcare professional database offering in the US.
The Group benefited greatly from growth in emerging countries, with fine performances in – among others – Latin and Central America (double-digit growth), and a ramp-up in market research in China.
Cegedim continues its tireless innovation, particularly in digital products and services. Most notably, the new range of CRM products for tablets MI Touch (IOS 6 and Windows 8) offer native integration of functions that create interactive presentations from the digital information generated by healthcare industries. Note that the Group has the first CRM solution that is 100% compatible with tablets running Windows 8. The Group also has specific digital offerings such as ScreenPub that help healthcare companies reach healthcare professionals via their computer screens.
- Healthcare professionals
In the third quarter of 2012, sector revenues came to €62.6 million, up 16.6% on a reported basis. The ASP Line acquisition boosted revenues by 3.9% over the quarter. Currencies had a positive impact of 3.4%. Like-for-like* revenues rose 9.2% over the period.
Over the first nine months of 2012, sector revenues came to €205.8 million, up 6.1% on a reported basis. The ASP Line and Pharmec acquisitions had a positive impact on revenues of 1.3%, and currencies, a positive impact of 2.0%. Like-for-like* revenues rose 2.8% over the period.
The CHS (Cegedim Healthcare Software) division experienced strong growth in the third quarter after a stable first half. This renewed activity was driven principally by strong growth in products for UK pharmacists following their swift adoption of the Electronic Prescription Service (EPS). Last autumn, after investing in innovative development for the past few years, Cegedim earned the first EPS certification granted by UK health authorities. The division also benefited from growth in sales to pharmacists in France and the growth of US software publisher Pulse.
Point-of-sale advertising in pharmacies and parapharmacies, with RNP, experienced double-digit growth in the third quarter after a tough first half, demonstrating the judiciousness of the business’ reorganization and investment in digital media.
Lastly, the financial lease company, Cegelease, continued to post brisk growth in the third quarter, just as it did over the first six months of the year.
In this sector, the Group also innovates with new digital offerings including:
- Drug information solutions for consumers, available over the internet (infos-medicaments.com) and on the iPhone (iMediguide); the latter also helps users match brand-name drugs with their generic equivalents.
- A comprehensive medical practice management solution for tablet computer (Simply Vitale) and a full web solution for healthcare professionals (monLogicielMedical.com).
- Solutions allowing healthcare companies to communicate digitally with patients inside pharmacies, personalized by point of sale (Clip Santé), or outside with giant video screens (RNP digital offering).
- Insurance and services
Sector revenues in the third quarter of 2012 came to €33.8 million, up 8.0% both on a reported basis and like for like.
Over the first nine months of 2012, sector revenues came to €106.8 million up 6.3% both on a reported basis and like for like.
The pick-up in activity noted in July continued throughout the quarter. Thus, revenue growth is back in line with the pace set in Q4 2011 and Q1 2012 following a second quarter in which growth was only up 2.4%.
Growth was principally driven by the double-digit increase in revenue from online third-party payer management services, and the more than 30% growth in Q3 of SRH in France, which provides payroll and HR management outsourcing. Cegedim SRH continues to garner numerous commercial successes.
In this sector, the Group is also very well positioned on online offerings, including the planned launch in 2013 – after a favorable test phase involving 6,000 pharmacies – of 100% secure online verification of complementary health insurance benefits, including real-time reimbursement calculation (Visiodroit).
Financial resources – Third quarter highlights
On July 3, 2012, Cegedim completed the acquisition of ASP Line, France’s fourth-largest publisher of pharmacist software, serving more than 1,300 pharmacies present around the country, thus strengthening Cegedim’s leadership position in the pharmacy computerization market in France (see release sent on July 3, 2012). Generating synergies with other Group activities, this acquisition brings with it significant development potential for the years ahead.
Financed by internal financing, these activities represent annual revenues of around €9 million and are part of the consolidation scope of Cegedim Group from July 1, 2012.
On September 26, Cegedim received the “Mid Cap Corporate Governance” award, sponsored by L’AGEFI, in recognition of the quality of the transparency and governance practices that the Group has adopted.
Significant post-closing transactions and events
- Readjustment of bank covenants
On October 3, Cegedim obtained the consent of its banking partners (Banc of America, Banque Palatine, BNP Paribas, BRED Banque Populaire, Caisse Régionale de Crédit Agricole Mutuel Centre Loire, CIC, Crédit Lyonnais, HSBC France, Société Générale) under the credit facility to amend certain covenants thereunder. This consent signals the continued confidence of our banking partners in the Group (see release sent on October 3, 2012).
Cegedim, which was in compliance with its covenants under the credit facility as of June 30, 2012, has agreed additional headroom under its leverage and interest cover financial covenants as set out in the following table.
|December 31, 2012||3.60||3.00||3.00||4.50|
|June 30, 2013||3.60||3.00||3.00||4.50|
|December 31, 2013||3.50||3.00||3.00||4.50|
|June 30, 2014||3.50||3.00||3.00||4.50|
|December 31, 2014||3.25||3.25||3.00||4.50|
|June 30, 2015||3.25||3.25||3.00||4.50|
|December 31, 2015||3.00||3.50||3.00||4.50|
In relation to these changes, Cegedim has agreed to change the applicable margins under the credit facilities as follows:
|Leverage Ratio||Margin (% p.a.)|
|Term Loan||RCF EUR||RCF USD|
|≤ 3.60 and > 3.00||3.75||3.25||3.75|
|≤ 3.00 and > 2.50||3.25||3.00||3.50|
|≤ 2.50 and > 2.00||2.75||2.50||3.00|
Cegedim has also agreed to:
- No dividend while the Leverage Ratio is greater than 2.50;
- Reduce permitted Joint Ventures from €200 million to €50 million;
- Limit acquisitions to €5 million per fiscal year while the Leverage Ratio is greater than 3.00;
- Limit acquisitions to €25 million per fiscal year while the Leverage Ratio is between 2.00 and 3.00;
- Limit the shareholder loan payments to a cumulative amount of €5m as long as the Leverage Ratio is greater than 2.00. Total repayment is possible as long as the Leverage Ratio is less than 2.00.
To the best of the company’s knowledge, there have been no other significant events since the closing date.
In a tough environment, the Group remains confident in its growth potential, while continuing to prioritize innovation, deleveraging and its Performance Improvement Program.
Despite a satisfactory performance in Q3 2012, the Group prefers to remain cautious and therefore confirming that it expects a slight increase in revenue in 2012 combined with a very slight decrease of its EBITDA compared to 2011. The Group also confirms that it has no plans to make further acquisitions by the end of the year.
|The Group will hold a conference call in English this evening, November 8, 2012, at 6:15 pm (Paris time). The call will be hosted by Jan Eryk Umiastowski, Cegedim Chief Investment Officer and Head of Investor Relations.|
+33(0)1 70 99 42 77
Conference ID : 7212641
January 15, 2013
- 3rd Investor Summit
March 4, 2013, after the market closes
- FY 2012 results announcement followed by a conference call
March 5, 2013, at 11:30 am
- SFAF meeting to present FY 2012 results
May 6, 2013, after the market closes
- Q1 2013 revenues announcement
July 30, 2013, after the market closes
- Q2 2013 revenues announcement
September 19, 2013, after the market closes
- H1 2013 results announcement
September 20, 2013
- SFAF meeting to present H1 2013 results
November 7, 2013, after the market closes
- Q3 2013 revenues announcement
The Audit committees and the Board of Directors met in the presence of the Statutory Auditors on November 7 and 8, 2012, to examine Q3 2012 revenue figures.
Complete financial information is available on our website: www.cegedim.com/finance.
A presentation of Cegedim’s third quarter revenues is also available on the website (www.cegedim.com/finance).
- Revenues by sector and by quarter:
# Figures rounded to the nearest unit
* at constant scope and exchange rates
|CRM and strategic data||111,092||126,105||111,112||348,310|
|Insurance and services||35,817||37,115||33,848||106,780|
|CRM and strategic data||113,116||136,091||111,982||149,443||510,631|
|Insurance and services||32,893||36,251||31,337||40,557||141,037|
- 9 months revenues by sector and by region are as follows:
|France||EMEA ex. France||Americas||APAC|
|CRM and strategic data||32%||34%||24%||10%|
|Insurance and services||100%||0%||0%||0%|
- 9 months 2012 revenues by sector and by currency are as follows:
|CRM and strategic data||50%||20%||4%||26%|
|Insurance and services||99%||-||-||1%|
Founded in 1969, Cegedim is a global technology and services company specializing in the healthcare field. Cegedim supplies services, technological tools, specialized software, data flow management services and databases. Its offerings are targeted notably at healthcare industries, life sciences companies, healthcare professionals and insurance companies. The world leader in life sciences CRM, Cegedim is also one of the leading suppliers of strategic healthcare industry data. Cegedim employs 8,200 people in more than 80 countries and generated revenue of €911 million in 2011. Cegedim SA is listed in Paris (EURONEXT: CGM).
To learn more, please visit: www.cegedim.com,
And follow Cegedim on Twitter: #CegedimGroup.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Dec. 11, 2016 12:00 AM EST Reads: 1,112
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
Dec. 11, 2016 12:00 AM EST Reads: 2,393
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
Dec. 11, 2016 12:00 AM EST Reads: 909
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 10, 2016 11:15 PM EST Reads: 1,219
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 10, 2016 09:15 PM EST Reads: 1,355
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Dec. 10, 2016 07:30 PM EST Reads: 1,822
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Dec. 10, 2016 07:00 PM EST Reads: 4,159
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
Dec. 10, 2016 06:30 PM EST Reads: 1,036
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Dec. 10, 2016 06:30 PM EST Reads: 1,551
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Dec. 10, 2016 06:30 PM EST Reads: 1,973
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Dec. 10, 2016 06:15 PM EST Reads: 1,099
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 10, 2016 05:30 PM EST Reads: 1,012
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Dec. 10, 2016 05:15 PM EST Reads: 1,428
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Dec. 10, 2016 04:30 PM EST Reads: 1,842
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Dec. 10, 2016 04:30 PM EST Reads: 1,933
"At ROHA we develop an app called Catcha. It was developed after we spent a year meeting with, talking to, interacting with senior citizens watching them use their smartphones and talking to them about how they use their smartphones so we could get to know their smartphone behavior," explained Dave Woods, Chief Innovation Officer at ROHA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 10, 2016 03:30 PM EST Reads: 950
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
Dec. 10, 2016 01:45 PM EST Reads: 793
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, discussed how VPaaS enables you to move fast, creating scalable video experiences that reach your aud...
Dec. 10, 2016 01:00 PM EST Reads: 451
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Dec. 10, 2016 12:45 PM EST Reads: 2,178
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Dec. 10, 2016 12:15 PM EST Reads: 7,535