TORONTO, Nov. 27 /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 nine month periods ended September 30, 2009. These documents may be viewed under the Company's profile at www.sedar.com.
Highlights of the third quarter results include:
- Revenue for the quarter ended September 30, 2009 was $943,973,
representing an 11% decrease from revenue of $1,055,893 in the prior
quarter and an increase of 35% over revenue of $697,315 in the same
quarter last year. We refer readers most notably to the year over
year change, as the Q3 summer months are seasonally slow and
therefore generally less comparable to the prior quarter. Year to
date revenue for the 9 months ended September 30, 2009 was
$2,957,041, representing a 21% increase over revenue of $2,443,874
for the same period last year.
- Total expenses for the quarter ended September 30, 2009 before
loss/gain on foreign exchange, SR&ED expense, and interest on long-
term debt were $1,066,571, representing a decrease of 15% from
expenses of $1,247,468 in the prior quarter and a decrease of 4% from
expenses of $1,112,865 in the same quarter last year. These numbers
reflect Management's planned control in expenses as Medworxx drives
to profitability. Year to date expenses for the 9 months ended
September 30, 2009 was $3,506,492, representing a 6% decrease from
expenses of $3,736,842 for the same period last year.
- Deferred revenue at September 30, 2009 was $2,067,480 as compared to
$1,515,452 at June 30, 2009, representing a 36% increase. This
increase is partly due to timing of contract renewals and was
expected after the decrease noted last quarter. In addition, there is
a contract in place with a customer where Medworxx has not yet been
able to recognize revenue due to the terms of the contract. 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 September 30, 2009 with
existing customers was $2,923,800 as compared to $2,874,900 at June
30, 2009, representing a 2% increase over the prior quarter. This
represents a 13% increase over contract value of recurring revenue of
$2,592,000 at September 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 measure.
- The Company incurred losses of $164,180 on revenue of $943,973 for
the quarter ended September 30, 2009 vs. losses of $407,557 incurred
for the same quarter in the prior year on revenue of $697,315,
representing a 60% decrease in quarterly loss. In the prior quarter,
the Company incurred losses of $196,784 on revenue of $1,055,893.
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. Year
to date loss for the 9 months ended September 30, 2009 was $621,830,
representing a 51% improvement over losses of $1,270,941 for the same
period last year.
- EBITDA, defined as Earnings before Interest, Depreciation, and
Amortization, for the quarter was ($124,906) as compared to EBITDA in
the prior quarter of ($163,673) an improvement of 24%, and as
compared to EBITDA of ($379,239) in the same quarter last year, an
improvement of 67%. Adjusted EBITDA, defined as Earnings before
Interest, Depreciation, Amortization, and Stock Option Expense, for
the quarter was ($48,383) as compared to ($81,600) in the prior
quarter, an improvement of 41%, and as compared to adjusted EBITDA of
($340,008) in the same quarter last year, an improvement of 86%. On a
year to date basis, for the nine months ended September 30, 2009,
EBITDA improved 56% and Adjusted EBITDA improved 71% over the same
period last year. EBITDA and Adjusted EBITDA are non-GAAP measures.
- St. Thomas Elgin Hospital (STEGH) went live with the Medworxx Bed
Optimization System. They are the first hospital to roll out this
product which is a new addition to the Medworxx Patient Flow
"We are happy with our results for this quarter, traditionally the slowest revenue quarter for Medworxx. Revenue has increased, expenses have decreased, and our losses have been reduced to $164,180, the lowest quarterly loss since we became a publicly traded company", 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 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 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: firstname.lastname@example.org; or Medworxx Solutions Inc., Domenic Crudo, Chief Financial Officer, (416) 642-1278, Email: email@example.com