QHR TECHNOLOGIES ANNOUNCES SIX MONTH FINANCIAL RESULTS
August 10, 2006 (QHR – TSX Venture Exchange) Mr. Al Hildebrandt, President and CEO of the Company, announces that the Company has released its interim financial statements for the six months ended June 30, 2006. The consolidated loss for the six months ended June 30, 2006 was $764,147 ($0.05 per share) compared to a loss of $268,620 ($0.02 per share) for the first six months of 2005.
New business including recurring annual support revenue secured during the six months ended June 30, 2006 reached $2,765,142 from marketing expenditures of $526,507 for the period. In accordance with the Canadian Generally Accepted Accounting Principles (“GAAP”) that applies to the Company for technology accounting, revenue recognized from customer transactions for the six months ended June 30, 2006 was $1,876,557 compared to $2,138,004 in 2005.
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 increased 55% to $2,493,720 by the quarter ended June 30, 2006 up $888,585 from $1,605,135 at December 31, 2005. 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 financial results reported by the Company.
Much of the loss is attributed to the costs of start up and continuing development of the Company’s Electronic Medical Record technology initiative that commenced in April 2004.
The Company spent $661,331 during the period to deliver its products to market compared to $660,637 in the first quarter of 2005. These expenditures are directly related to revenue volume for the first two quarters of 2006. Product development expenditures ran to $619,174 in the period compared to $569,803 in 2005 to provide key improvements and additional functions for Quadrant HR and Accuro. General and administration costs stabilized and increased slightly to $616,397 for the period compared to $591,803 in 2005.
For a more complete business and financial profile of the Company, management encourages interested parties to visit the Company’s website, www.QHRtechnologies.com.
On behalf of the Board of Directors
Al Hildebrandt, President & Chief Executive Officer
Legal Notice Regarding Forward Looking Statements
This news release contains “forward looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are indicated expectations or intentions. Forward-looking statements included in this news release include that all deferred revenue obligations can be met from current corporate resources and the expectation that when deferred revenue is recognized on the income statement it will provide a positive impact on future financial results reported by the Company. These statements are subject to risks that may cause the actual results to be materially different from those expressed or implied by such forward looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Further risk information on the Company is available at www.sedar.com.
