EQS-Adhoc

LifeWatch AG: LifeWatch AG reports above-market revenue growth of 9.1% and substantial improvement in profitability during first half 2015

EQS Group-Ad-hoc: LifeWatch AG / Key word(s): Half Year Results
LifeWatch AG: LifeWatch AG reports above-market revenue growth of 9.1%
and substantial improvement in profitability during first half 2015

20.08.2015 / 07:00
Release of an ad hoc announcement pursuant to Art. 53 KR.
The issuer is solely responsible for the content of this announcement.

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LifeWatch AG reports above-market revenue growth of 9.1% and substantial
improvement in profitability during first half 2015

Revenue growth of 9.1% to USD 52.5 million - above-market growth in core
monitoring services resulting in market share gains - substantial increase
in profitability as efficiency measures bear fruit - EBITDA margin of 13.8%
achieved - net profit of USD 1.9 million vs. net loss of USD 4.7 million in
H1 2014 - full-year guidance reiterated

Zug/Switzerland, August 20, 2015 - LifeWatch AG (SIX Swiss Exchange: LIFE),
a leading developer and provider of medical solutions and remote diagnostic
monitoring services in the digital health market, is pleased to report on
good progress during the first half of 2015. In total, revenues during the
first six months amounted to USD 52.5 million, an increase of 9.1% compared
to the prior year period. Monitoring services (99.7% of revenues) grew by
12.1%, clearly outperforming the market average and thus resulting in
market share gains. During the first half year, our US-based subsidiary
LifeWatch Services Inc. signed 40 new or amended contracts, underpinning
our brand and sales force successes. Device sales declined to USD 0.2
million due to delivery delays into the second half of 2015. The gross
profit margin amounted to 52.8% versus 52.1% a year earlier. We expect the
gross margin to continue to expand mid-term as on-going cost and efficiency
measures, product mix improvements and new project launches take effect.

Substantial improvement in operating profitability
Our operating profitability improved substantially thanks to the positive
impact of the restructuring and productivity measures that we implemented
over the past year. As such, EBITDA during the first half year reached USD
7.2 million (H1 2014 LBITDA of USD -1.5 million), equivalent to an EBITDA
margin of 13.8%, and EBIT amounted to USD 3.8 million (EBIT margin of
7.3%), marking the highest levels since the first half of 2009. Significant
progress was achieved in Sales & Marketing thanks to sales force
optimization and territory realignment, resulting in an 800 bps reduction