QHR ANNOUNCES Q3 2010 REVENUE OF $4.65 MILLION
KELOWNA, BC– (TSX-V: QHR) QHR Technologies Inc. (“QHR” or the “Company”) a leader in the Canadian Healthcare Information Technology sector, reports third quarter results for the three and nine months ended September 30, 2010.
HIGHLIGHTS
• $4.65 million revenue in Q3 2010, an increase of $896 thousand or 23.9% over same quarter, prior year.
• EMR division revenue up 151% compared to same quarter prior year ($2.3 million Q3 2010 compared to $907 thousand in Q3 2009). Of the $1.4 million quarterly revenue increase, $543 thousand came from organic growth and $850 thousand from the Clinicare acquisition.
• Year-to-date revenue increase of 49.5% representing an increase of $4.8 million over the same period prior year, moving from $9.6 million to $14.4 million.
• EBITDA for 2010 Q3 is $517 thousand, and the year-to-date EBITDA is $1.7 million.
• EMR division grows with dominant EMR position in Saskatchewan and Manitoba.
• EMR division hosts 215 client staff at the 2nd Annual User Conference in Kelowna, B.C.
Q3 RESULTS
Revenue for the third quarter of fiscal 2010 was $4.65 million, down 9.6% from $5.09 million in the previous record quarter and up 23.9% from $2.3 million in the same quarter of last year. Of the $440 thousand reduction in revenues from the previous and all time high quarter of Q2 2010, $330 thousand relate to seasonal variations during summer months, where delivery tends to slow due to client staff vacation schedules. This slow down and subsequent reduction in revenue is typical for the company during the third quarter. The revenue breakdown for the quarter was approximately 51% within the EMS division and 49% within the EMR division.
The Company’s net loss for the quarter was $91.8 thousand, or ($0.00) per share, compared with net income of $655.8 thousand, or $0.03 per share in the same quarter prior year, which included approximately $1 million in software licenses in the EMS division recognized in that prior year quarter. Net loss for the 9 month year-to-date period was $118.4 thousand, or ($0.00) per share, compared with net income of $1.02 million, or $0.04 per share in the same period prior year. More detailed financial information can be viewed below.
“I believe 2010 to be the company’s breakout year, where we have shown a strong ability to grow our top line organically and to make intelligent acquisitions that further increase our client base, revenues, and earnings”, said Al Hildebrandt, President and CEO. “Although encouraged by the strong top-line results in 2010, we need to monitor our costs of raising capital while continuing our investment in optimizing the Company’s three recent acquisitions, building for the future through investments in the company’s IT infrastructure, product development, processes and people, while focusing and actively managing to strong earnings.”
Conference Call Details: Al Hildebrandt, CEO & President and Charles LaFleche, Chief Financial Officer, will host a conference call at 8:00 a.m. EST (5am PST) Thursday November 25, 2010 to discuss the results of the Company for the third quarter of 2010. To listen to the conference call, please dial 647-427-7450 (Toronto) or 778-371-9827 (Vancouver).
On a November 23, 2010 News Release the Company announced the filing of the Short Form Prospectus regarding the Offering as being led by Paradigm Capital Inc. and including a syndicate of agents comprised of Versant Partners Inc. and MGI Securities Inc. (collectively, the “Agents”) as properly disclosed in the Prospectus. MGI Financials Inc. was incorrectly disclosed in the News Release.
ABOUT QHR TECHNOLOGIES INC.
QHR operates two business units in distinct markets:
The Electronic Medical Records (“EMR”) division offers a suite of medical software modules that provides computer-based medical records for family physicians, medical specialists, and surgeons, as well as administrative modules for billing and patient scheduling, that is a key component of the move throughout Canada to provide electronic healthcare records for all Canadians. The EMR division also provides on-site and off-site (ASP) hosting capabilities.
The Enterprise Management Software (“EMS”) division specializes in workforce management software, which consists of integrated payroll, staff scheduling and human resource software, and in customized financial management software built on the Microsoft Dynamics GP platform. These products are targeted at complex healthcare, social services and public safety environments.
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 and CEO
- 30 -
Legal Notice Regarding Forward Looking Statements
This news release may contain “forward looking statements” within the meaning of applicable Canadian securities legislation. These statements are subject to risks that may cause the actual results to be materially different in future periods from those expressed or implied by such forward looking statement. Forward looking statements in this press release may include that profitability of the Company should continue to improve; that we can add new revenues at low marginal costs; that the Company’s industry will grow in coming years; that spending in the industry are stable; that trends of the medical industry include interoperable systems and cost control, and the Company is well situated to assist in these endeavours; Risks that may prevent or delay the forward looking statements from coming to fruition include that we may not offer products that are acceptable to industry regulators or customers; competitors may offer better or cheaper products; we may not be able to raise sufficient capital to improve products to remain competitive; changing regulatory requirements may prevent our products from being sold as expected; we may not be able to attract or retain key personnel; our technology may become obsolete; and market factors may increase our costs more than expected. QHR is a technology business development enterprise where investment and product enhancements must be carefully managed to achieve long-term revenue growth and profitability. It is our policy not to update forward looking statements. Further information on the Company is available at www.sedar.com.
For a more complete business and financial profile of the Company, management encourages interested parties to visit the Company’s website, www.QHRtechnologies.com.
For further information, please contact:
Al Hildebrandt
(250) 979-1701
ahildebrandt@QHRtechnologies.com
Investor Relations
Tangent Mgmt. 1-866-345-0115
info@tangentmanagementcorp.com
