QHR TECHNOLOGIES REPORTS FINANCIAL RESULTS FOR 2005
April 26, 2006 (QHR – TSX Venture Exchange) Mr. Al Hildebrandt, President and CEO of the Company, announces that the Company has released its audited financial statements for the year ended December 31, 2005. The consolidated loss for the year ended December 31, 2005 was $973,213 ($0.06 per share) against revenue of $4,288,705 compared to a loss of $386,907 ($0.03 per share) against revenue of $3,663,845 for the prior year.
In 2005 the Company continued the development of AccuroTM EMR software through Optimed Software Corporation, a wholly owned subsidiary. Optimed added $380,050 to revenue against $922,801 in expenditures and $189,041 in amortization and depreciation charges. This investment accounts for $731,792 of the overall loss. Management continues to make the investment in Optimed to secure reliable profitability in future periods based on a recurring annual revenue model. During the year the Company through its subsidiary Logician Technologies Inc. invested $202,437 into research and development of new market opportunities. These costs are consolidated in the overall loss for the year. Non-cash expense items include amortization expenses of $362,101 reflecting the regular write off of capital and intangible assets. Also included are stock-based compensation expenses of $32,970.
The Company secured new business during the year in the amount of $4,476,097 from customers through marketing efforts for which QHR expended $903,676. However, in accordance with Canadian Generally Accepted Accounting Principles (“GAAP”) that applies to the Company, recognized revenue from customer transactions for the year ended December 31, 2005 was $4,288,705 compared to $3,663,845 for the prior year.
As required by GAAP, contracts received by the Company must be recorded as deferred revenue until the contractual obligations of the contract are met. Deferred revenue was $1,605,135 at the year ended December 31, 2005 compared to $1,792,527 at the end of 2004. Deferred revenue changes are dependant on the timing differences between the receipt of new contracts and the delivery of the products and services contracted. All deferred revenue obligations can be met from current corporate resources. As deferred revenue is recognized on the income statement it will provide a positive impact on future earnings of the Company.
The Company spent $1,278,396 in 2005 to deliver its products to clients compared to $1,084,582 in 2004. This increase is directly related to revenue growth. Product development expenditures ran to $1,399,058 in 2005 compared to $938,923 in 2004 to provide ongoing improvements and additional functions for Quadrant HRTM and AccuroTM as well as new market investigations. General and administration costs rose to $1,289,368 in 2005 compared to $1,001,973 but include non-recurring reorganization severance costs of $150,000.
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
