TORONTO, May 28 /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, 2010. These documents may be viewed under the Company's profile at www.sedar.com.
Highlights of the first quarter results include:
- Revenue for the quarter ended March 31, 2010 was $1,099,246,
representing a 3% decrease from revenue of $1,131,584 in the prior
quarter and an increase of 15% over revenue of $957,175 in the same
quarter last year. The slight decrease from the prior quarter is due
to a decrease in consulting revenue. Consulting revenue has decreased
due to custom development projects not having reached completion.
- Total expenses before loss/gain on foreign exchange, SR&ED expense,
and interest on long-term debt for the quarter ended March 31, 2010
were $1,186,847, representing an increase of 2% over expenses of
$1,160,595 in the prior quarter and a decrease of 1% from expenses of
$1,198,585 in the same quarter last year. These numbers reflect
Management's planned control of expenses as Medworxx drives to
- Contract value of recurring revenue at March 31, 2010 with existing
customers was $3,221,290 as compared to $3,199,000 at December 31,
2009, a nominal increase over the prior quarter. Contract value of
recurring revenue increased 17% over contract value of recurring
revenue of $2,756,000 at March 31, 2009. 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.
- EBITDA, defined as Earnings before Interest, Depreciation, and
Amortization, for the quarter was ($46,336) as compared to EBITDA in
the prior quarter of $25,565 a change of $71,901, and as compared to
EBITDA of ($214,742) in the same quarter last year, a change of
$168,406. Adjusted EBITDA, defined as Earnings before Interest,
Depreciation, Amortization, Loss on Foreign Exchange and Stock Option
Expense, for the quarter was $3,598 as compared to $91,068 in the
prior quarter, a change of $87,470, and as compared to adjusted
EBITDA of ($166,030) in the same quarter last year, a change of
- The Company incurred losses of $98,657 vs. losses of $260,866 for the
same quarter in the prior year and $29,012 in the prior quarter. This
improvement in results of operations over the prior year is due to
the Company's focus on getting to profitability, growing revenue and
tightly controlling expenses. The increase in losses versus the prior
quarter is due to a decrease in consulting revenue combined with
increased expenses in the quarter due to higher payroll costs
associated with employer source deductions at the beginning of the
year which abate throughout the year, as well as a large trade show
that the Company attended in the first quarter.
- The Nova Scotia Department of Health added additional licenses for
the Medworxx Learning Management System (LMS) and Policy Document
Management System (PDMS). Both of these applications are now licensed
for all healthcare workers across the province. This is the first
capture of an entire provincial workforce, and demonstrates the
potential and scalability of the Medworxx solutions.
"We are pleased with our year over year growth, and to have positive adjusted EBITDA for the second consecutive quarter," said Dan Matlow, President & CEO, Medworxx. "The Medworxx team continues to focus on execution of our business plan."
Medworxx is a Toronto-based software company focused exclusively on solutions for the North American healthcare marketplace. Medworxx provides healthcare solutions for patient flow, 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 40 employees. Medworxx' executive team consists of experienced sales, marketing, software development, healthcare, and finance personnel. Medworxx currently has a customer base of over 100 healthcare organizations representing more than 300 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.
SOURCE MEDWORXX INC.
For further information: For further information: Medworxx Solutions Inc., Dan Matlow, President & Chief Executive Officer, (416) 642-1278, Email: email@example.com; or Medworxx Solutions Inc., Domenic Crudo, Chief Financial Officer, (416) 642-1278, Email: firstname.lastname@example.org