Medworxx Solutions Inc. Files First Quarter Financial Statements and Management Discussion and Analysis; Announces Record Quarter



    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




For further information:

For further information: Medworxx Inc., Dan Matlow, President & Chief
Executive Officer, (416) 642-1278, Email: dmatlow@medworxx.com; or, Medworxx
Inc., Domenic Crudo, Chief Financial Officer, (416) 642-1278, Email:
dcrudo@medworxx.com

Organization Profile

MEDWORXX INC.

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