TORONTO, Dec. 1 /CNW/ - Medworxx Solutions Inc ("Medworxx", or 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 nine month periods ended September 30, 2008. These documents may be viewed under the Company's profile at www.sedar.com.
Medworxx posts quarterly results with strong growth in new transactions and new recurring revenue growth. Highlights include:
- Deferred revenue at September 30, 2008 was $1,608,975 as compared to
$1,190,410 at June 30, 2008, an increase of 35%. This is due to
contracts being closed in the quarter, but not yet recognized as
revenue, and reflects strong sales performance in the quarter. All
annual renewable license software agreements are sold with a 12 month
maintenance contract. The Company defers and amortizes all revenue
associated with annual agreements over 12 months.
- Contract value of recurring revenue at September 30, 2008 increased
to $2,592,000 from $2,127,839 at June 30, 2008, representing a 22%
increase. This represents contracts of a recurring nature which
management believes will renew in the next 12 months.
- Revenue for the quarter ended September 30, 2008 was $697,315 as
compared to $903,909 in the previous quarter and $682,810 in the same
quarter last year. Historically, the third quarter is the weakest
revenue quarter for the Company. Recurring revenue comprised more
than 75% of total revenue for the quarter; this is the highest
percentage of recurring revenue to date for the Company, and reflects
the Company's continued successful drive to a recurring revenue and
ultimately a "Software as a Service" model.
- The Company has been successful with a planned reduction in expenses.
Expenses for the quarter ended September 30, 2008 were $1,112,865,
representing a 10% decrease in expenses as compared to the prior
quarter and a 16% decrease in expenses from the same quarter last
year.
- The Company generated positive cash flow from operations of $97,752
in the quarter, despite this historically being the slowest revenue
quarter of the year. The continued increase in recurring billings as
well as the Company's focus on reducing expenses and tight cash
management contributed to the increase in cash flow for the period.
- The Company announced strategic contracts in the quarter with the
Mississauga Halton Local Health Integration Network (LHIN), St.
Michael's Hospital, and the University of Virginia Health System.
"Traditionally the third quarter is the slowest revenue quarter for Medworxx, and the decrease in consulting revenue from the prior quarter demonstrates this. However, Medworxx saw a large increase in new transactions that will generate recurring revenue. This increase is reflected in the increase in deferred revenue as opposed to increased actual revenue results," said Dan Matlow, President & CEO, Medworxx. "In addition, Medworxx became cash flow positive due to the increase in these transactions, as well as a focus on reduced expenses. This increase in deferred revenue puts Medworxx in a good position on the path to profitability."
ABOUT MEDWORXX
Medworxx is a Toronto-based software company focused exclusively on solutions for the North American healthcare marketplace. Its software comprises an integrated suite of solutions, including content management, learning management, policies and procedures, utilization management, 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 75 healthcare organizations representing more than 250 hospitals and 400,000 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