TORONTO, June 1 /CNW/ - Medworxx Solutions Inc (the "Company")(TSX VENTURE:MWX) announced today it has filed with the Canadian securities authorities its interim consolidated financial statements and management discussion & analysis report for the three month period ended March 31, 2009. These documents may be viewed under the Company's profile at www.sedar.com.
Medworxx posts quarterly results with record revenue, narrowing losses,
and growth in recurring revenue. Highlights include:
- Revenue for the quarter ended March 31, 2009 was $957,175 a 6%
increase over revenue of $904,968 in the previous quarter and a
14% increase over revenue of $842,650 in the same quarter last
year.
- Total expenses for the quarter ended March 31, 2009 before gain on
foreign exchange, SR&ED expense, and interest on long-term debt
were $1,198,585, representing an 8% decrease from expenses of
$1,300,126 in the prior quarter and a 13% decrease from expenses
of $1,382,089 in the same quarter last year. This decrease
reflects the planned control in expenses as Medworxx drives to
profitability.
- The Company incurred losses of $260,866 on revenue of $957,175 for
the quarter ended March 31, 2009 vs. losses of $530,391 incurred
for the same quarter in the prior year on revenue of $842,650,
representing a 51% decrease in quarterly loss. In the prior
quarter, the Company incurred losses of $356,720 on revenue of
$904,968. This improvement in results of operations is due to the
Company's ability to grow revenue while maintaining expenses at a
fairly consistent level. This is the lowest quarterly loss for the
Company since becoming a publicly traded company May of 2007.
- Deferred revenue at March 31, 2009 was $1,784,114 as compared to
$1,706,658 at December 31, 2008, representing a 5% increase. All
annual renewable license software agreements are sold with a 12
month maintenance contract. The Company defers and amortizes the
revenue over the next 12 months. Deferred revenue is defined as
advance billings or payments received for customer contracts where
the Company does not have vendor-specific objective evidence of
fair market value of each contract element necessary to recognize
the revenue; payments received in advance of delivery of services;
or advance payments received for post contract support
(maintenance) services.
- Contract value of recurring revenue at March 31, 2009 with
existing customers was $2,756,000 as compared to $2,656,000 at
December 31, 2008, representing a 4% increase over the prior
quarter. The Company defines contract value of recurring revenue
as the contract value or agreement amount for the annual renewable
agreements which at the end of a reporting period management
believes there to be a high probability of renewal. As the full
value of such contracts is recognized as revenue over 12 months,
the growth in this value is an important metric for the Company.
This is a non-GAAP measure.
- Consulting services revenue for the quarter was $263,062,
representing a 123% increase over revenue of $118,196 for the
prior quarter and a 55% increase over revenue of $169,449 for the
same quarter last year. This increase is attributable to growth in
the customer base, and more of a focus on services work, best
practices consulting, and custom development for hospitals as
Medworxx delivers its software. The increase is also due to the
fact that the Company is building relationships with customers
which increases revenue in Consulting Services, as Medworxx
customers engage the Company to do ongoing work and additional
projects.
- The Company completed a $410,000 aggregate principal amount
private placement of 14% convertible debentures maturing on
February 20, 2011. The convertible debentures are convertible at
the option of the holder into units at a conversion price of $0.10
per unit, each unit consisting of one common share of Medworxx and
one-half of one warrant, each full warrant entitling the holder to
purchase one common share at a price of $0.12 prior to the
maturity date.
"Our recurring revenue continues to grow on a quarter over quarter basis. Medworxx continue to control costs, grow revenue, and drive towards profitability", said Dan Matlow, President & CEO, Medworxx.
ABOUT MEDWORXX
Medworxx is a Toronto-based software company focused exclusively on solutions for the North American healthcare marketplace. Medworxx provides healthcare solutions for decision support, compliance and education. Its software comprises an integrated suite of solutions, including content management, learning management, policies and procedures, utilization management, bed optimization, single sign on, portal, and emergency readiness solutions.
Medworxx started business in May 2004 in Ontario with 3 employees and has since grown to over 35 employees. Medworxx' executive team consists of experienced sales, marketing, software development, healthcare, and finance personnel. Medworxx currently has a customer base of approximately 95 healthcare organizations representing more than 280 hospitals and 500,000 end users who are distributed approximately 70% in Canada and 30% in the United States. Medworxx' customers use its software platform to increase competency, reduce redundancy, reduce costs, and simplify distribution of knowledge to staff and patients, creating a net effect of increased efficiency and improved patient safety and care.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Cautionary Note Regarding Forward-Looking Statements ----------------------------------------------------
This press release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, such as competition, technological changes, the changing needs of hospitals, the financial condition of the Company's current and potential customers, foreign currency exchange rates, as well as general economic conditions, which may cause the actual results, performance or achievements of the Corporation and Medworxx to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
%SEDAR: 00024567E