Annual Financials 2002
May 20, 2003 (QHR – TSX) Mr. Al Hildebrandt, President and CEO of the Company, is pleased to announce that the year end report and the audited financial statements recording the results of operations and financial position for the year ending December 31, 2002 have been released.
Revenues reached a record $2,565,417 in 2002 compared to $1,351,050 in 2001, an increase of $1,214,367 or 90% over the prior year. New business contracts and commitments for the year reached $3,035,771. A portion of this amount is recorded as deferred revenue (defined as cash received in advance of services rendered) on the balance sheet. Deferred revenue grew to $845,378 in 2002 from $375,024 in 2001, an increase of 125% from the previous year.
During the year, the Company successfully completed its transition from a product development enterprise to a marketing and sales operation. The results for the year have been a confirmation of the viability of the business model of QHR and a key milestone in its long-term business plans.
The Company recorded earnings of $279,634 at December 31, 2002 compared to a loss of $1,087,080 for the prior year, a positive improvement of $1,366,714. Earnings improved to $.02 per share for the year compared to a loss of $.09 per share in the prior year.
Product development costs have reached approximately $3,750,000 since inception in 1997. These costs are not reflected on the Balance Sheet of the Company as an asset as Generally Accepted Accounting Principles require the write-off of software development costs during the year. Management believes that all expenditures made on the development of Quadrant HR did in fact create a valuable asset of the Company that now generates profitable revenues for the Company.
Sales momentum continues. The Company has over 40 clients who use various Quadrant HR software modules in healthcare, aviation and forestry industries. There are approximately 85,000 employees currently being serviced by the Company’s payroll, staff scheduling and HR software products.
The year-end report and financial statements are available from SEDAR. Management encourages interested parties to visit the Company’s website, QHRsoftware.com, for a more complete profile of the Company.
On behalf of the Board of Directors
Al Hildebrandt President & Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
