Medworxx Solutions Inc. Files Year End Financial Statements and Management Discussion and Analysis

    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

    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

    -   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.


    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

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