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Medipattern announced its financial results for its first fiscal quarter of 2011 ended September 30, 2010.

The Medipattern Corporation, a pioneer in the development of medical software solutions that help improve imaging workflow and productivity, announced its financial results for its first fiscal quarter of 2011 ended September 30, 2010.

Jeff Collins, CEO of Medipattern, commented, "Results for Q1 2011 remain much weaker than we anticipated due mainly to the ongoing reimbursement concerns in the US. Revenue for this new software as a service model started to flow in during the second quarter of fiscal 2010, and although B-CAD ® procedural volume is growing quarter over quarter, revenue is not what we anticipated due to lower than expected reimbursement yield per report. Healthcare iQ is continuing to provide reimbursement advice to our customers and to manage denials from payers while gaining acceptance for the B-CAD® procedure. Through our relationship with GE Healthcare we welcome our first B-CAD® installation in Louisiana at the Baton Rouge Clinic. Celebrating 60 years of serving its community, the clinic offers screening and digital mammography, diagnostic breast ultrasound as well as biopsies and even surgical procedures. Baton Rouge Clinic will now include B-CAD® in their diagnostic ultrasound procedures. The clinic offers a full range of general and specialized medical procedures caring for over 250,000 patients per year. We have been working with our partner, PenRad Technologies Inc., to expand CAD for breast ultrasound into their existing installed base as part of our national roll out strategy. We will demonstrate an integrated B-CAD® system with PenRad® at RSNA in their PenView(TM) Mammography Review and Reporting Workstation. This will be the first Mammography Review Station to offer integrated CAD for Mammography, Ultrasound and MRI generating reports compliant with the American College of Radiology Breast Imaging Standards."

Collins also remarked, "Our entry into the vascular market remains expected in early calendar 2011 with the release of our Visualize:Vascular(TM) product." Francis Porreca MD, FACS RPVI, director of the Vascular Surgery and Vascular Laboratory at the Albert Einstein College of Medicine discussed his paper, "Carotid Plaque Morphology, New Horizons on Non-invasive Diagnosis," featuring Medipattern's new Visualize:Vascular(TM), at the November 17 - 21 Veith Symposium in New York City. Attendees consider the technology to be a useful new step in understanding vascular disease. We continue to believe we are providing solutions that fit a market need and will do everything possible to generate meaningful revenue in the latter half of fiscal 2011."

Financial Highlights for Q1 Fiscal 2011:

--  Revenue totaled $33,434 (Q1 2010 - $2,119) for the fiscal quarter ended
    September 30, 2010, a significant increase from last year. Licensing
    fees totaled $16,432 compared to $2,119 for fiscal 2010 while
    subscription rental fees increased to $17,002 (fiscal 2010 - nil) in the
    ongoing response to the North American roll out of the Company's B-CAD-
    FOR-LIFE(TM) subscription rental program. No professional fees were
    earned in Q1 fiscal 2011 (fiscal 2010 - Nil) as the Company remains
    focused on meeting its deadlines for completion of internal development
    and commercialization of its new vascular software
    Visualize:Vascular(TM) scheduled for early calendar 2011; 
    
--  Operating expenses in Q1 fiscal 2011 totaled $607,099 versus $719,405 in
    last years' first fiscal quarter, an overall decline of 16%. Medipattern
    remains committed to preserving its cash resources and controlling all
    discretionary spending until operating cash flow improves in response to
    its ongoing commercialization of its award winning software products; 
    
--  Resulting net loss for Q1 fiscal 2011 was $573,665 ($0.01 per share)
    versus $717,286 ($0.1 per share) for the 2010 Q1 fiscal quarter; 
    
--  As at September 30, 2010, cash and cash equivalents totaled $143,398
    (June 30, 2010 - $269,329), current assets, including highly liquid
    short-term investments of $1,050,000 (June 30, 2010 - $1,250,000), were
    $1,627,513 (June 30, 2010 - $2,070,913) and current liabilities were
    $369,293 (June 30, 2010 - $377,443). 
    

Working capital at September 30, 2010 totaled $1,258,220 (June 30, 2010 - $1,693,470).

Results of Operations:                                                      
                                                                                                   THE MEDIPATTERN CORPORATION                         
     UNAUDITED STATEMENTS OF OPERATIONS, COMPREHENSIVE LOSS AND DEFICIT     
             FOR THE 3 MONTHS ENDED SEPTEMBER 30, 2010 AND 2009             
                                                                            
                                                                            
                                                                            
                                                 September        September 
                                                   30,2010          30,2009 
                                                 UNAUDITED        UNAUDITED 
                                           ----------------  ---------------
                                           ----------------  ---------------
                                                (3 Months)       (3 Months) 
                                                                            
REVENUES                                                                    
  Licensing fees                            $       16,432   $        2,119 
  Professional fees                                      -                - 
  Subscription rental fees                          17,002                - 
                                           ----------------  ---------------
                                                    33,434            2,119 
                                           ----------------  ---------------
                                                                            
EXPENSES                                                                    
  Research and development (Note 17)               230,064          220,578 
  Administration and product support               200,452          261,291 
  Sales and marketing                              103,590          218,451 
  Interest on convertible debt (Note 10)            41,690                - 
  Accretion of interest on convertible debt                                 
   (Note 10)                                        21,127                - 
  Foreign exchange loss                              4,680           10,018 
  Investment income                                 (2,862)          (1,280)
  Amortization of property and equipment             8,358           10,347 
                                           ----------------  ---------------
                                                                            
                                                   607,099          719,405 
                                           ----------------  ---------------
                                                                            
NET LOSS AND COMPREHENSIVE LOSS             $     (573,665)  $     (717,286)
                                           ----------------  ---------------
                                           ----------------  ---------------
                                                                            
DEFICIT, BEGINNING OF YEAR                  $  (18,969,163)  $  (16,348,417)
                                                                            
  Net loss for the period                         (573,665)        (717,286)
                                           ----------------  ---------------
                                                                            
DEFICIT, END OF PERIOD                      $  (19,542,828)  $  (17,065,703)
                                           ----------------  ---------------
                                           ----------------  ---------------
                                                                            
                                                                            
LOSS PER SHARE (Note 13) - basic and                                        
 diluted                                    $        (0.01)  $        (0.01)
                                           ----------------  ---------------
                                           ----------------  ---------------
                                                                            
Weighted average number of common shares                                    
 outstanding                                    57,154,579       54,432,357 
                                           ----------------  ---------------

For further details concerning Medipattern's results, please see the Company's filings on SEDAR. (www.sedar.com).

2010 Upcoming Events:

--  RSNA 2010 ( Radiological Society of North America ), November 28 to December 2, 2010, Chicago, IL. Booth 4600

Source: Medipattern Corporation