EANS-Adhoc: LifeWatch AG to announce results for the first quarter 2011 (with document)

--------------------------------------------------------------------------------
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
--------------------------------------------------------------------------------

3-month report/LifeWatch AG Results Q1 2011

12.05.2011

• Continuous enrollment growth in all services lines - LifeWatch
monitored

almost 65,000 patients in the first quarter 2011
• Secured 32 new contracts with insurance companies
• Achieved gross margin of 58.5%
• Positive EBITDA of USD 1.40 million
• Vice President Jake Mendelsohn will leave LifeWatch at the end of this
week

International conference call and audio web cast about LifeWatch AG
results in the first quarter 2011:

• Thursday, May 12, 2011 at 10:00 a.m. CEST;
• Dial-in number: +41 (0)91 610 56 00 (Europe) / +44 (0)203 059 58 62 (UK) /
+1 (1) 866 291 41 66 (USA - Toll-free);
• Audio Webcast http://services.choruscall.eu/links/lifewatch110512.html;

Neuhausen am Rheinfall/Switzerland - LifeWatch AG (SIX Swiss
Exchange: LIFE), the leading provider of wireless telemedicine, today
announces the results for the first quarter 2011. LifeWatch´s
operating results continued to improve in Q1 2011, with positive
levels of EBIT and EBITDA. Enrollments for cardiac monitoring and
home sleep test services rose 7% compared with Q1 2010. At the same
time, LifeWatch is announcing that Vice President Jake Mendelsohn
will leave the company at the end of this week.

You will find a PDF version of this press release and the letter to
shareholders with the results of the first quarter 2011 at the end of
this message.

Fourth Quarter 2010 Financial Highlights:

• Revenues were down 6% to reach USD 21.08 million, compared to USD 22.39
million in Q1 2010.

• Gross margin improved significantly to 58.5%, compared to 40.8% in Q1
2010.

• G&A expenses decreased by USD 1.22 million from Q1 2010.

• EBIT of USD 0.08 million, compared to LBIT of USD 3.99 million in Q1 2010.

• EBITDA of USD 1.40 million, compared to LBITDA of USD 2.35 million in
2010.

• Cash, cash equivalents, marketable securities and structures amounted to
USD 24.1 million.

• Capital reduction and repayment to shareholders of approx. USD 9.1 million
during Q1 2011

Management changes:

We have also to report the departure of our Vice President Jake
Mendelsohn, who will leave the Company at the end of this week. The
Board of Directors thanks Jake Mendelsohn for his work since joining
the Company.

Service Enrollments:

Enrollments for our cardiac monitoring and home sleep test services
rose 7% compared to Q1 2010. In order to boost enrollments further,
as already communicated in March, LifeWatch made significant changes
to our sales force by promoting a team of leaders from within our
sales organization at the end of February. These individuals possess
strong selling skills, have a deep understanding of the market, and
are experienced at identifying and implementing new business
strategies. The team reports directly to executive management and has
been mandated to develop successful selling programs and to improve
our revenue streams.

As reported previously, the Centers for Medicare & Medicaid Services
(CMS) introduced national pricing guidelines for payment code 93229
in January 2011 bringing, in our view, increased clarity and
stability to the marketplace. LifeWatch continues to engage
proactively with the Reimbursement Denial carriers to overturn their
current policies, and we are confident that the CMS ruling will have
a favorable impact on our negotiations.

NiteWatch:

The NiteWatch service was re-launched in Q1 2011 with a refined,
multi-faceted sales strategy, and additional sales individuals. To
drive further growth, our cardiology sales force will educate our
cardiology clients on the availability of NiteWatch Home Sleep Test
services, while the new NiteWatch sales team will call on other
medical disciplines such as ENTs (ear, nose and throat),
pulmonologists and general practitioners. A team of independent
representatives, who work strictly on commission, was also retained
to help bolster growth in areas where we have no representation. We
are also exploring partnerships with sleep labs and sleep equipment
vendors across the country.

Sales Force:

As mentioned previously, LifeWatch restructured its sales force
during the first quarter of 2011. A team of sales professionals with
combined strengths in training, identifying new strategies, and
implementing monitoring programs will lead the sales organization.
This team reports directly to executive management on a weekly basis.
LifeWatch constantly explores new areas of growth. Our target growth
areas include:

• Current Services - expand and grow the cardiac monitoring and sleep test
businesses
• New Services - identify and expand into new areas of healthcare remote
monitoring
• New Geographies - identify and expand into attractive international
markets

Third Call Center in the USA:

As reported in March, LifeWatch opened a new office in San Francisco,
CA during Q1 2011. The office will house approximately 50 - 60
employees when fully staffed by the end of summer 2011 and will
primarily be devoted to clinical call center operations. LifeWatch
now operates call centers in three time zones providing redundancy,
flexibility and a competitive advantage in the marketplace.

Revenues:

Our consolidated revenues in the first quarter of 2011 are reported
below:

• U.S.A. - USD 20.78 million, compared to USD 22.08 million in Q1 of 2010.
• Other markets - Revenues reached USD 0.30 million, compared to USD 0.31
million in Q1 2010

Our main sales and marketing efforts continue to focus primarily on the U.S.

monitoring services market.

Gross Profit, EBITDA and EBIT:

Gross profit improved to reach USD 12.33 million, reflecting a margin
of 58.5%, compared to gross profit of USD 9.14 million with a margin
of 40.8% in Q1 2010. Gross profit in Q1 2010 included a write off-of
USD 1.5 million in inventory. EBITDA was USD 1.40 million, compared
to LBITDA of USD 2.35 million reported in Q1 of 2010. EBIT was USD
0.08 million, compared to LBIT of USD 3.99 million in Q1 2010.

Net loss:

LifeWatch reported a net loss of USD 0.95 million in Q 2011, compared
to a net loss of USD 1.09 million recorded a year ago. Loss per share
was USD 0.08 (fully diluted), compared to a loss per share of USD
0.09 (fully diluted) in the first quarter of 2010.

Outlook 2011:

Our goals for 2011 are to increase our revenues, reduce costs and
improve profitability in both our service lines. With that in mind,
we reiterate our outlook for 2011 of USD 100 - 105 million of
revenue, an EBIT margin of 10% plus and an EBITDA margin of 15% plus.
As part of its long-term growth strategy, LifeWatch will continue to
prudently invest in new services and geographies.

Sign-up for customized E-mail alerts and documentation requests is
available at http://production.investis.com/lifewatch/alert-service/

About LifeWatch AG:

LifeWatch AG, headquartered in Neuhausen am Rheinfall, Switzerland
and listed on SIX Swiss Exchange (LIFE), is the leading healthcare
technology and solutions company, specializing in advanced
telemedicine systems and wireless remote patient monitoring services.
LifeWatch provides services to high-risk and chronically ill
patients, health conscious consumers and wellness programs. LifeWatch
has subsidiaries in the United States, the Netherlands, Japan, the
United Kingdom, Switzerland and Israel. LifeWatch AG is the parent
company of LifeWatch Services, Inc., a leading US-based wireless
remote telemedicine provider. LifeWatch services include Home Sleep
Testing for Obstructive Sleep Apnea patients under the brand name
NiteWatch. For additional information, please visit www.lifewatch.com
and www.nitewatchservices.com.

This press release includes forward-looking statements. All
statements other than statements of historical facts contained in
this press release, including statements regarding future results of
operations and financial position, business strategy and plans and
objectives for future operations, are forward- looking statements.
The words "believe," "may," "will," "estimate," "continue,"
"anticipate," "intend," "expect" and similar expressions are intended
to identify forward-looking statements. LifeWatch AG has based these
forward- looking statements largely on current expectations and
projections about future events and financial trends that it believes
may affect the financial condition, results of operations, business
strategy, short term and long term business operations and
objectives, and financial needs. These forward-looking statements are
subject to a number of risks, uncertainties and assumptions. In light
of these risks, uncertainties and assumptions, the forward-looking
events and circumstances described may not occur and actual results
could differ materially and adversely from those anticipated or
implied in the forward- looking statements. All forward-looking
statements are based only on data available to LifeWatch AG at the
time of the issue of this press release. LifeWatch AG does not
undertake any obligation to update any forward-looking statements
contained in this press release as a result of new information,
future events or otherwise.

THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF
AMERICA AND SHOULD NOT BE DISTRIBUTED TO UNITED STATES PERSONS OR
PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS
PRESS RELEASE DOES NOT CONSTITUTE AN OFFER OF SECURITIES OF LIFEWATCH
AG OR ANY OF ITS SUBSIDIARIES FOR SALE IN THE UNITED STATES OR AN
INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES OF LIFEWATCH
AG OR ITS SUBSIDIARIES IN THE UNITED STATES. IN ADDITION, THE
SECURITIES OF LIFEWATCH AG AND ITS SUBSIDIARIES HAVE NOT BEEN
REGISTERED UNDER THE UNITED STATES SECURITIES LAWS AND MAY NOT BE
OFFERED, SOLD OR DELIVERED WITHIN THE UNITED STATES OR TO U.S.
PERSONS ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE UNITED STATES SECURITIES LAWS. ANY
PUBLIC OFFERING OF SECURITIES TO BE MADE IN THE UNITED STATES WILL BE
MADE BY MEANS OF A PROSPECTUS THAT MAY BE OBTAINED FROM LIFEWATCH AG
OR ITS SUBSIDIARIES, AS APPLICABLE, AND WILL CONTAIN DETAILED
INFORMATION ABOUT THE ISSUER AND ITS MANAGEMENT AS WELL AS FINANCIAL
STATEMENTS OF THE ISSUER.

Attachments with Announcement:
----------------------------------------------
http://resources.euroadhoc.com/us/e5BmaAtQ
http://resources.euroadhoc.com/us/8lHAAnNK

end of announcement euro adhoc
--------------------------------------------------------------------------------

ots Originaltext: LifeWatch AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Kobi Ben Efraim, Chief Financial Officer, LifeWatch AG;
Tel +41 52 632 00 50 | Fax +41 52 632 00 51 | E-mail kobibe@lifewatch.com

Sensus Investor & Public Relations, Zürich;
Tel +41 43 366 55 11 | Fax +41 43 366 55 12 | E-mail lifewatch@sensus.ch

Branche: Healthcare Providers
ISIN: CH0012815459
WKN: 1281545
Index: SPI, SPIEX
Börsen: Frankfurt / Open Market / XETRA
Berlin / free trade
SIX Swiss Exchange / Main Standard