EANS-Adhoc: LifeWatch AG continues on track successfully with positive third quarter 2012 results (with document)

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3-month report/Lifewatch AG

07.11.2012

+ Revenues increased by 5.7% up to USD 19.86 million;

+ EBIT of USD 1.86 million and EBITDA of USD 2.68 million;

+ Improved gross margin of nearly 60%;

+ Positive Cash Flow of USD 1.61 million;

International analyst and media conference call and audio web cast on
LifeWatch Q3 2012 financial results

+ Wednesday, November 7, 2012 at 10.00 a.m. CET;

+ 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 web cast
http://services.choruscall.eu/links/lifewatch121107.html

Neuhausen am Rheinfall/Switzerland - LifeWatch AG (SIX Swiss
Exchange: LIFE), the leading provider of wireless telemedicine, today
announces the results for the third quarter 2012. The Company
continues also in the third quarter 2012 to improve EBIT and EBITDA
levels and to increase significantly its gross margin. LifeWatch
returns to a positive cash flow position with cash provided from
operations in the amount of USD 1.61 million.

You will find a PDF-version of this press release and of the letter
to shareholders with the results for Q3 2012 at the end of this
message.

Third Quarter 2012 Financial Highlights:

- Revenues of USD 19.86 million compared with USD 18.78 million in Q3
2011.

- Gross margin of 59.5% compared with 46.9% in Q3 2011.

- Total departmental expenses were 50.1% of revenues compared with 152.6% in
Q3 2011.

- EBIT of USD 1.86 million compared with LBIT of USD 19.84 million in Q3
2011.

- EBITDA of USD 2.68 million compared with LBITDA of USD 18.37 million in Q3
2011.

- Positive cash flow from operations of USD 1.61 million compared with

negative amount of USD 3.22 million in Q3 2011.

Q3 2012 Revenues:

Revenues grew this quarter to USD 19.86 million an increase of 5.7%
over Q3 2011 revenues. Our sales team is committed to meeting their
goals for the year, despite the challenging reimbursement situation
in the USA. Many of our accounts who are frustrated by the lack of
insurance for some of their telemetry patients have welcomed our
Elite service, which was launched in early 2012. While the Elite
service can serve as a provisional solution, our goal is to validate
the importance of our ACT remote telemetry platform with health
insurers.

Gross Profit, EBITDA and LBIT:

- Gross profit was USD 11.81 million in Q3 2012, showing a greatly
improved margin of 59.5%, compared with gross profit of USD 8.81
million and aa margin of 46.9% in Q3 2011.

- EBITDA of USD 2.68 million in Q3 2012 compared with a LBITDA of USD 18.37
million in Q3 2011.

- EBIT was USD 1.86 million this quarter compared with a LBIT of USD 19.84
million in Q3 2011.

The improved results are a result of increased revenues, effective
cost cutting initiatives and careful management of all other
operating expenses.

Net Loss:

LifeWatch reported a small net loss of USD 0.57 million compared to a
net loss of USD 20.40 million in Q3 2011. Our net loss was mainly
affected by deferred, non-cash income tax expenses related to
LifeWatch Services, Inc. Loss per share was USD 0.004 (fully
diluted), compared to a loss per share of USD 1.64 (fully diluted)
reported in the third quarter of 2011.

Outlook 2012

Our third quarter results prove our commitment in growing revenues
while improving profitability. Reimbursement continues to be an
issue, as does the impact of the presidential elections this
November. While we cannot give a precise forecast for full fiscal
year 2012, we are in a strong position and will cope with these
current conditions. Our new service and technology pipeline will
provide us with opportunities that create more service and
geographical diversification, improve revenue streams and lower our
reliance on our current business focus.

About LifeWatch AG:

LifeWatch AG, headquartered in Neuhausen am Rheinfall and listed on
SIX Swiss Exchange (LIFE), Switzerland, is the leading healthcare
technology and solution company, specializing in advanced telehealth
systems and wireless remote patient monitoring services. LifeWatch
services cater to individuals, ranging from high-risk and chronically
ill patients, to consumers of health and wellness products. LifeWatch
AG has operative subsidiaries in the United States, in Switzerland
and in Israel and is the parent company of LifeWatch Services Inc.,
and LifeWatch Technologies, Ltd. LifeWatch Services, Inc. is a
leading US-based provider of cardiac monitoring services and home
sleep testing of Obstructive Sleep Apnea (OSA). LifeWatch
Technologies Ltd., based in Israel, is a leading developer and
manufacturer of telemedicine products. The Company is planning to
introduce the LifeWatch V, an Android-based smartphone with medical
sensors and apps that uses a cloud-based service platform. For
additional information, please visit www.lifewatch.com.

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

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:
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http://resources.euroadhoc.com/us/mdttPc7K
http://resources.euroadhoc.com/us/Bi0ybJoo

Further inquiry note:
Sensus Investor and Public Relations, Zürich:
Tel +41 43 366 55 11 | Fax +41 43 366 55 12 | Email lifewatch@sensus.ch

end of announcement euro adhoc
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Attachments with Announcement:
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http://resources.euroadhoc.com/us/mdttPc7K
http://resources.euroadhoc.com/us/Bi0ybJoo

issuer: LifeWatch AG
Rundbuckstrasse 6
CH-8212 Neuhausen am Rheinfall
phone: +41 52 632 00 50
FAX: +41 52 632 00 51
mail: users@lifewatch.com
WWW: www.lifewatch.com
sector: Healthcare Providers
ISIN: CH0012815459
indexes: SPI, SPIEX
stockmarkets: free trade: Berlin, Open Market / XETRA: Frankfurt, Main Standard:
SIX Swiss Exchange
language: English