Q1 – 2004 Results
May 28, 2004 (QHR – TSX Venture Exchange) Mr. Al Hildebrandt, President and CEO of the Company, announces that the Company has released its financial results for its first quarter ended March 31, 2004. QHR reports that it has successfully continued to advance its business plans and enhance its line of software products on behalf of its customers, employees and shareholders.
The Company earned $12,959 during the quarter compared to $85,412 in the first quarter of 2003. Technology accounting under Canadian Generally Accepted Accounting Principles (“GAAP”) is difficult due to timing issues and complex contractual arrangements inherent to the Company’s product line. Although earnings were down $72,453 from the previous year, they are consistent with management’s expectations and budgets. They do not indicate any downturn in business prospects nor do they indicate potential jeopardy to the Company’s financial health.
Revenues for the quarter reached $802,031 compared to $864,882 for 2003. The decrease is primarily due to the lack of purchase commitments by healthcare organizations in Canada in the first quarter which is an annual characteristic of the marketplace. Consequently, software license revenues declined by $217,496 to $184,982 down from $402,478 a year ago. On the other hand, software services revenue increased $197,566 to $593,417 up from $395,851 a year ago as contractual obligations with customers were met and recognized as revenue.
Cash resources grew to $1,018,364 at March 31, 2004 up $596,292 from $422,072 at December 31, 2003. Cash flows of the Company are predictable and management is able to meet its cash requirements from a healthy combination of internal and externalfunds. A private placement of $750,000 was received during the quarter and subsequently approved.
Sales momentum continued during the quarter. Deferred revenue grew to $1,332,767 at March 31, 2004 from $1,101,547 at December 31, 2003. The growth is a direct result of the Company’s on-going marketing initiatives. The Company invested $146,349 in sales and marketing during the quarter compared to $116,597 a year ago.
The Company invested $173,886 in product development during the quarter compared to $219,550 for the first quarter of 2003. This investment is made to ensure Quadrant HR™ offers its customers new power, functionality and flexibility. A key development is that individual HR modules can be purchased separately and integrated later when it suits the client’s objectives.
Management believes that all expenditures made in the development of Quadrant HR™ have created a valuable long term asset of the Company. Continued research and development is expected to generate profitable revenue growth for years to come. Product development costs are nearing $5,000,000 since inception in 1997. These costs are not identified on the Balance Sheet of the Company as an asset as GAAP require the write off of software development costs as incurred.
Management encourages interested parties to visit the Company’s Web site, QHRtechnologies.com, for a more 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.
