TORONTO, April 29 /CNW/ - Medworxx Solutions Inc (the "Company")(TSX VENTURE:MWX) announced today it has filed with the Canadian securities authorities its year end consolidated financial statements and management discussion & analysis report for year ended December 31, 2008. These documents may be viewed under the Company's profile at www.sedar.com.
Q4 and Fiscal 2008 Highlights:
- Revenue for the year ended December 31, 2008 was $3,348,842 as
compared to 2,862,146 for the previous year, a 17% increase for the
year
- Expenses before gain on foreign exchange, SR&ED, and interest on
long-term debt for 2008 were $5,036,968, representing a 0.4% increase
in expenses over the prior year. This moderate increase reflects the
planned cost stabilization as Medworxx drives to profitability.
- Deferred revenue at December 31, 2008 was $1,706,658 as compared to
$1,278,868 at December 31, 2007, representing a 33% increase. All
annual renewable license software agreements are sold with a 12 month
maintenance contract. The Company defers and amortizes the revenue
over the 12 months commencing at the annual renewal date of the
contract. 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 December 31, 2008 with
existing customers was $2.656 million as compared to $2.000 million
at December 31, 2007, representing a 33% increase year over year. 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-Generally Accepted
Accounting Principle (GAAP) measure.
- Revenue from consulting services increased 35% to $558,148 in 2008
from $410,196 in 2007. This increase is attributable to growth in the
customer base, and more of a focus on services work and custom
development for hospitals.
- Three agreements were completed for the Medworxx Learning Management
System that management believes are significant to the Company. An
agreement was signed with Western Health, Newfoundland; the Company's
first customer in that province. This should build a foundation for
expansion in Newfoundland. An agreement was also signed with
Sunnybrook Health Sciences Centre, one of Canada's premier academic
health sciences centres. In the 4th quarter, an agreement was signed
with a Toronto Hospital that is expected to bring $400,000 in revenue
to Medworxx in 2009. Once the rollout is complete, this hospital is
expected to be a premier reference site for Medworxx.
- The Company announced the general availability of the Medworxx
Emergency Readiness System (ERS), which was conceived in 2007. The
product was implemented at a strategic group of hospitals, health
centers, and emergency management regions in Canada and the United
States. The Company had 7 ERS customers at December 31, 2008.
- The Company signed a strategic partnership agreement to deliver an
advanced incident command solution for hospitals with Everbridge
(formerly 3n - National Notification Network), the leading global
mass notification system provider. The combination of the Everbridge
mass notification system and the Medworxx ERS provides hospitals with
the ability to manage emergency plans from inception through
planning, training and execution in real-world environments in one
integrated system.
- The Company announced that the Mississauga Halton Local Health
Integration Network (LHIN) will roll out the Medworxx Utilization
Management System. The implementation is being done with Canadian
Healthcare Management, a strategic partner of the Company. The
contracts with Halton Healthcare Services Corporation, The Credit
Valley Hospital, and Trillium Health Centre are expected to bring
over $1 Million in revenue to Medworxx over a 5 year period.
- Customer updates include St. Michael's Hospital licensing the
Medworxx Bed Optimization System, the newest addition to the Medworxx
product suite; Medworxx successfully completing the implementation
and rollout of its Policy & Procedure Management System to two
prestigious U.S. healthcare organizations, one a 600 bed facility and
one with over 2,000 beds; and the Medworxx Utilization Management
System now managing over 10,000 acute care beds across Canada, a
significant milestone.
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, 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