Q2 – 2004 Results
August 30, 2004 (QHR – TSX Venture Exchange) Mr. Al Hildebrandt, President and CEO of the Company, reports that the Company has released its financial results for the six months ended June 30, 2004.
The Company recorded a loss of $159,350 or $.01 per share against revenues of $1,722.049 for the first six months of fiscal 2004 compared to earnings of $116,150 or $.01 per share on revenues of $1,699,289 for the same period of 2003. Although earnings declined $275,500 from the same period a year ago, they are still well within management’s expectations and business development plans.
Contributing to the decrease in earnings were expenses of $164,348 for the start up of its wholly-owned subsidiary Optimed Software Corporation and the development of its AccuroTM software; $47,228 for stock-based compensation for vesting stock options to directors; and $49,038 attributable to the amortization of intangible assets; recent upgrades in equipment and leaseholds in the new office premises.
Results at June 30, 2004 do not indicate any significant downturn in business prospects nor do they indicate any immediate jeopardy to the Company’s financial health. The Company had working capital of $158,030 at June 30, 2004, an improvement of $322,156 from December 31, 2003.
Working capital at June 30, 2004 includes $1,567,560 in deferred revenue that will be satisfied through the delivery of products and services in future periods. Deferred revenue will be recognized as revenue in the financial statements when the contractual obligations with the customer are met in accordance with the Company’s accounting policy. Also, included in working capital is cash on hand of $1,267,020, an increase of $844,948 from December 31, 2003. Cash flows of the Company remain predictable and management is able to meet its financial obligations from internal sources.
Technology accounting under Canadian Generally Accepted Accounting Principles (“GAAP”) continues to be a challenging issue due to product development requirements, marketing and implementation timing issues and complex contractual arrangements inherent to the Company’s product lines. GAAP, as currently applicable to the Company, requires that all product development costs be expensed as incurred. Hence, there is no asset value of the Company’s software carried on the balance sheet. The Company invested $439,556 in product development during the period compared to $418,549 for the same period of 2003. Continuing investment ensures that AccuroTM and Quadrant HRTM offer its customers the functionality and flexibility they require.
A key indicator of overall performance for the Company has been the growth of total assets to $2,832,155 at June 30, 2004 from $1,692,551 at December 31, 2003. Shareholders’ equity increased to $690,487 at June 30, 2004 from $52,609 at December 31, 2003. The Company has noted no negative or unusual changes in customer opinion or barriers to the adoption of the Company’s products or consumers’ purchasing patterns during the six months ending June 30, 2004. No changes have been required nor anticipated to the current business model due to the introduction of new technologies or competitive products.
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.
