Annual Financials 2003
April 19, 2004 (QHR – TSX Venture Exchange) Mr. Al Hildebrandt, President and CEO of the Company, announces that the Company has released its audited financial results for the year ended December 31, 2003. QHR successfully continued to advance its business plans and enhance its line of software products on behalf of its customers, employees and shareholders.
Revenues rose 46% to $3,751,711 for 2003 up from $2,565,417 for 2002. Earnings from operations were over 11% of revenue at $427,107 or $.03 per share for the year compared to $279,634 or $.02 per share for 2002. Shareholder equity improved to $52,609 at December 31, 2003 compared to a deficiency of $626,498 at December 31, 2002.
QHR exceeded its primary corporate objectives of 30% annual growth in revenue, profit and corporate value in 2003. The Company generated a 46% gain in revenues with a 54% increase in earnings during 2003 and a 150% increase in the corporate value of the Company.
Sales momentum continued to grow during the year ending December 31, 2003. Deferred revenue grew to $1,101,547 at December 31, 2003 from $845,378 at December 31, 2002. The Company grew its operations to manage over 50 clients who use various Quadrant HR payroll, staff scheduling and HR software modules in healthcare, aviation and forestry organizations covering over 90,000 employees.
The Company invested $837,863 in product development and $546,161 in sales and marketing during the year to release a new integrated Version 2.0 of Quadrant HR in September 2003. A milestone, Version 2.0 now offers its customers new power, functionality and flexibility. A key feature allows individual HR modules to be purchased separately and integrated later when it suits the client’s objectives and budget or the clients can buy the complete suite of integrated products.
Management believes that all expenditures made in the development of Quadrant HR have created a valuable long term asset of the Company. Continued development is expected to generate profitable revenue for the Company on behalf of its shareholders for years to come. Product development costs are over $4,800,000 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 continues its transformation from a product development enterprise to a marketing and sales business operation. The results for 2003 continue to validate the business model of QHR and its long-term business plans.
Management encourages interested parties to visit the Company’s web site, QHRsoftware.com, for the Year-End Report and a complete profile of the Company.
On behalf of the Board of Directors
Al Hildebrandt President and Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
