TORONTO, Aug. 31 /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 and six month periods ended June 30, 2009. These documents may be viewed under the Company's profile at www.sedar.com.
Medworxx posts quarterly results with record revenue, surpassing $1 Million in quarterly revenue for the first time. Highlights include:
- Revenue for the quarter ended June 30, 2009 was $1,055,893, a significant milestone for the Company as it is the first quarter with revenue greater than $1 million. Revenue for the second quarter represents a 10% increase over revenue of $957,175 in the previous quarter and a 17% increase over revenue of $903,909 in the same quarter last year. - Total expenses for the quarter ended June 30, 2009 before gain on foreign exchange, SR&ED expense, and interest on long-term debt were $1,247,468, representing an increase of 4% from expenses of $1,198,585 in the prior quarter and a nominal decrease from expenses of $1,241,858 in the same quarter last year. The slight increase is due to higher than normal non-cash expense related to stock options. Overall these numbers reflect Management's planned control in expenses as Medworxx drives to profitability. - Deferred revenue at June 30, 2009 was $1,515,452 as compared to $1,784,114 at March 31, 2009, representing a 15% decrease. This decrease is attributable to timing of contract renewals. Management accordingly expects to see deferred revenue increase in the upcoming quarters. 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 June 30, 2009 with existing customers was $2,874,900 as compared to $2,756,000 at March 31, 2009, representing a 4% increase over the prior quarter. This represents a 35% increase over contract value of recurring revenue of $2,127,839 at June 30, 2008. 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. - The Company incurred losses of $196,784 on revenue of $1,055,893 for the quarter ended March 31, 2009 vs. losses of $332,993 incurred for the same quarter in the prior year on revenue of $903,909, representing a 41% decrease in quarterly loss. In the prior quarter, the Company incurred losses of $260,866 on revenue of $957,175. 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 in September of 2007. - EBITDA, defined as Earnings before Interest, Depreciation, and Amortization, for the quarter was ($163,673) as compared to EBITDA in the prior quarter of ($226,840) an improvement of 28% and as compared to EBITDA of ($305,041) in the same quarter last year, an improvement of 46%. Adjusted EBITDA, defined as Earnings before Interest, Depreciation, Amortization, and Stock Option Expense, for the quarter was ($81,600) as compared to ($178,182) in the prior quarter, an improvement of 54%, and as compared to adjusted EBITDA of ($256,329) in the same quarter last year, an improvement of 68%. EBITDA and Adjusted EBITDA are non-GAAP measures. - A record number of software license transactions closed in the second quarter of 2009. The Company signed contracts with 9 new customers as well as additional business with 3 existing customers. The success in the second quarter was represented across multiple products and geographies. At the end of the quarter, Medworxx had customers in 9 provinces and 17 states. - The Company surpassed the 100 customer mark, representing 290 hospitals in North America including hospitals throughout Canada and 17 states in the USA. This represents a significant milestone in the Company's growth.
"Reaching one million dollars in quarterly revenue is an important milestone for Medworxx. We continue on the path to profitability, as evidenced by our Adjusted EBITDA for the quarter of $(81,600), a 68% improvement in Adjusted EBITDA from the same quarter last year", 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 100 healthcare organizations representing more than 3000 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.
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Cautionary Note Regarding Forward-Looking Statements
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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