Medworxx Solutions Inc. Files Second Quarter Financial Statements and Management Discussion and Analysis; Announces Quarterly Revenue of Greater than $1 Million for the first time

    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
    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)

    -  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

    -  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.


    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
    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.

    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: or Medworxx
Inc., Domenic Crudo, Chief Financial Officer, (416) 642-1278, Email:

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890