|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.
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT depl...
Jan. 21, 2017 03:45 AM EST Reads: 1,985
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
Jan. 21, 2017 02:00 AM EST Reads: 5,815
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet and...
Jan. 21, 2017 01:30 AM EST Reads: 6,566
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Jan. 21, 2017 01:15 AM EST Reads: 5,052
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Jan. 21, 2017 01:15 AM EST Reads: 2,886
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jan. 21, 2017 01:15 AM EST Reads: 4,900
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Jan. 21, 2017 12:15 AM EST Reads: 6,375
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Jan. 21, 2017 12:00 AM EST Reads: 4,709
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
Jan. 20, 2017 10:45 PM EST Reads: 929
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus o...
Jan. 20, 2017 08:45 PM EST Reads: 4,390
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
Jan. 20, 2017 05:45 PM EST Reads: 2,104
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...
Jan. 20, 2017 05:15 PM EST Reads: 3,827
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 20, 2017 03:00 PM EST Reads: 1,664
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
Jan. 20, 2017 02:15 PM EST Reads: 647
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Jan. 20, 2017 01:30 PM EST Reads: 5,749
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Jan. 20, 2017 01:30 PM EST Reads: 5,257
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations
Jan. 20, 2017 12:30 PM EST Reads: 1,668
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Jan. 20, 2017 12:30 PM EST Reads: 4,361
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.
Jan. 20, 2017 12:30 PM EST Reads: 3,206
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...
Jan. 20, 2017 12:15 PM EST Reads: 5,847