Q1 – 2003 – Financial Results
June 2, 2003 (QHR – TSX) Mr. Al Hildebrandt, President and CEO of the Company, is pleased to announce that for the three month period ending March 31, 2003 revenues grew to a first quarter record of $864,882 compared to $418,700 for the first quarter of 2002, an increase of 107%. Earnings from operations grew to $85,412 compared to a loss of $68,522 for the first quarter of the previous year, a positive improvement of $153,934. Earnings improved to $0.01 per share for the first quarter from a loss of $0.01 per share for the first quarter of 2002.
Sales momentum continued during the first quarter. New business contracts and commitments for the first quarter reached $1,005,989. 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 $986,485 at March 31, 2003 from $845,378 at December 31, 2002. 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.
Product development costs have now reached $4,000,000 since inception in 1997. These costs are not identified on the Balance Sheet of the Company as an asset as Generally Accepted Accounting Principles require the write off of software development costs as they are incurred. The Company invested $219,550 in product development during the first quarter of 2003. Management believes that all expenditures made on the development of Quadrant HR are a valuable asset of the Company and this investment generates the profitable revenues currently being enjoyed by the Company and its shareholders. Product development investments to complete an integrated HR, Payroll and Staff Scheduling solution are proving to be a significant competitive advantage.
QHR continues to successfully implement its transition from a product development enterprise to a marketing and sales operation. The Company has been successful in delivering its services and implementing its products on time and on budget. The results for the first quarter continue to confirm the viability of the business model of QHR and its long-term business plans.
The quarterly report including management discussions and financial statements are available from SEDAR. For a more complete profile of the company, management encourages interested parties to visit the Company’s web site at QHRsoftware.com.
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.
