RECURRING REVENUE FOR QHR SOFTWARE INC. GROWS TO $1,750,000 IN 2006
February 7, 2006 (QHR – TSX Venture Exchange) Mr. Al Hildebrandt, President and CEO of the Company, is pleased to report that the Company’s wholly owned subsidiary, QHR Software Inc. (QHRS) has increased its annual support revenue in 2006 to approximately $1,750,000.
Product support revenue recurs annually and forms a reliable flow for the financial health and growth of QHRS. A key factor for QHRS is that clients who use Quadrant HR will tend to use the products for many years once implemented. Based on current market activities these support fees continue to increase as QHRS branches out into new industry segments such as the public safety sector.
Support revenue for 2006 has grown by 25% from 2005 and represents the fifth consecutive year with growth in this revenue area. Many support revenue contracts have escalation clauses for the amount of fees charged each year. Growth is also being fuelled by the addition of new clients and the adoption of additional HR modules by existing clients. The contribution to the annual financial results of QHR can be demonstrated as follows:
2006
2005
2004
2003
2002
Support Revenue
$1,750,000
$1,400,000
$1,000,000
$750,000
$500,000
Annual Growth Rate
25%
40%
33%
50%
N/A
Portion of Revenue
N/A
35% (est.)
28%
20%
20%
For a more complete business and financial profile of the Company, management encourages interested parties to visit the Company’s website, www.QHRtechnologies.com.
This news release may contain opinions and forward-looking statements that reflect the Company’s current expectations, forecasts and assumptions. These may involve risks and uncertainties that could cause actual future results to be materially different. Investors are cautioned against placing undue reliance on forward-looking statements. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
On behalf of the Board of Directors
Al Hildebrandt
President & Chief Executive Officer
