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QHR Announces Continued Growth and Profitability

Monday, April 21, 2008

Kelowna, BC, April 21, 2008 - QHR Technologies Inc. ("QHR" or the "Company") (TSX-Venture: QHR) announced today the release of its interim financial statements for the three months ended March 31, 2008. QHR provides integrated human resource management, payroll and staff scheduling ("HR") software systems for the healthcare and social services sector, and electronic medical records ("EMR") applications for physicians' medical offices.

Highlights

• Revenue for the first quarter ended March 31, 2008 was $1,671,433 compared to $1,289,951 for the corresponding quarter last year, an increase of 30%.


• EMR division revenue for the quarter increased 136% to $509,802 compared to $215,860 in 2007.


• Earnings for the quarter were $126,988 compared to a profit of $17,563 last year.


• EBITDA for the quarter was $186,243 compared to $130,475 for the previous year.


• Cash on hand at March 31, 2008 was $1,307,734 compared to $493,405 at December 31, 2007.


• Working capital before deferred revenue at March 31, 2008 was $2,015,817 compared to $1,073,336 at December 31, 2007.


• Shareholders' equity at March 31, 2008 was $1,578,844 compared to $1,451,856 at December 31, 2007.

Operating Results

Revenue of the HR division was $1,161,631 for the quarter, an increase of 8% over 2007 reflecting the continued, steady growth of the HR division. Revenue of the division also included $28,442 received during the first quarter as part of an IRAP grant towards the costs of researching technologies for future software development.

Revenue of the EMR division increased by 136% and was $509,802 for the quarter compared to $215,860 in 2007. The company showed strong sales growth in Alberta, B.C. and Saskatchewan. The acquisition of National Medical Solutions Inc. ("National") in the third quarter of 2007 accounted for approximately 75% of the increase with the balance coming from organic growth.

Net earnings for the first quarter were $126,988 compared to $17,563 last year, an increase of $109,425. The increase reflects the continued strong growth in the contribution from the EMR division as well as modest growth in the HR division. The EMR division recorded net earnings before corporate expenses of $56,032 for the first quarter compared to a net loss of $137,761 last year. Corporate expenses are the costs of the parent company that includes the costs of running a public company as well as senior management salaries.

View full News Release here

© 2008, QHR Technologies Inc.

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QHR Announces Increased Revenue and Earnings for 2007

Tuesday, March 25, 2008

QHR Technologies Inc. ("QHR" or the "Company") (TSXVenture:QHR) announced today the release of its annual audited financial statements for the year ended December 31, 2007. QHR provides integrated human resource management, payroll and staff scheduling ("HR") software systems for the healthcare and social services sector, and
electronic medical records ("EMR") applications for physicians' medical offices.

HIGHLIGHTS
- Company recorded its highest annual revenue in 2007. Revenue for the year ended December 31, 2007 increased 25% to $5,893,684 compared to $4,721,439 for the previous year.
- Recurring revenue increased 58% to $3,800,000 at year end compared to $2,400,000 last year.
- EMR division revenue for 2007 increased 158% to $1,440,397 compared to $558,705 in 2006.
- Earnings for 2007 were $212,555 compared to a loss of 520,646 in 2006, a turnaround of $733,201.
- Revenue of $1,772,000 for the fourth quarter 2007 was a new record. The Company has
achieved net earnings in each of the last six quarters.
- EBITDA was $530,316 for 2007 compared to a loss of $118,670 for the previous year.
- Cash at December 31, 2007 was $493,405 compared to $48,182 in 2006.
- Working capital before deferred revenue at year-end was $1,073,336 compared to $250,416 the previous year.
- Shareholders' equity at year-end was $1,451,856 compared to a deficit of $260,854 for 2006.
- Private placement of 3,500,000 shares was successfully completed for net proceeds of $960,000.
- Acquisition of National Medical Solutions ("National") on August 1, 2007 added $454,000 to 2007 revenues.

OPERATING RESULTS
Revenue increased $1,172,245 in 2007, representing an increase of 25% compared to the previous year. Approximately 61% of this increase in revenue was attributable to organic growth in both of the Company's divisions, with the remaining 39% being attributable to the acquisition of National. A key part of the Company's strategy is to build recurring revenues and these had reached approximately $3,800,000 at year-end, including $600,000 attributable to the acquisition of National. Recurring revenue was equal to 64% of 2007 revenues and sets the foundation for future
revenue growth.

Operating expenses in 2007 were $5,363,368 compared to $4,840,109 in 2006, an increase of 11%. Sales and marketing expenses were $1,205,828 for 2007, an increase of 10% over last year. The increase was the result of the acquisition of National. These additional expenses had been eliminated by year-end with the integration of National operations into QHR. Service and delivery expenses were $1,786,271 for 2007, an increase of 21% over last year. The increase was the result of expanded operations in the EMR division necessary to support the revenue growth and the costs assumed with the acquisition of National. Most of the National costs had been eliminated by year-end. Administrative expenses were $1,279,131 for 2007, an increase of 16% over last year. Approximately $80,000 of the increase was related to the increasing costs of running a public company; approximately $60,000 was related to the acquisition of National and the balance the result of expanded operations in the EMR division. Again, by year-end the National costs had been eliminated. Product development expenses were $1,092,138 for 2007, a decrease of 7%. The increase in costs associated with the acquisition of National was more than offset by the capitalization of development costs. For 2007 the Company capitalized $226,057 of new product development expenses compared to nil for 2006.

Net earnings
Net earnings for the year ended December 31, 2007 were $212,555 compared to a loss of $520,646 for 2006. The increase in net earnings is the result of the continued success in the HR division and the rapid increase in revenue from the EMR division resulting in the division achieving profitability for the first time during the fourth quarter of 2007.

OUTLOOK FOR 2008
The Company continues to execute its business model based on recurring revenues. The Company commences 2008 with a base of $3,800,000 recurring revenue equal to 64% of 2007 revenue. The Company operates in two business segments with growth potential. However, the growth of the Company's EMR division depends heavily on the actions of provincial governments and their funding policies. Delays in implementing funding models in each province could restrict revenue growth. Also, sales in the HR division are subject to the long procurement processes of public institutions and this could result in significant variations in quarterly revenues, depending on when
new sales are closed. Provided QHR meets its targets for revenue growth, the profitability of the Company should continue to improve because it has the capacity to add new revenues at low marginal costs.

© 2008, QHR Technologies Inc.

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QHR Announces Support Revenue of $2,150,000 for 2008

Friday, January 25, 2008

(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. has increased its support and recurring revenue for 2008 to approximately $2,150,000.

Annual support services billings for 2008 is up $100,000 from 2007 and represents the sixth consecutive year with growth in this important revenue area. The growth of annually recurring support service revenue is being fuelled by the addition of new clients and the adoption of additional HR functionality by existing clients. The progress of the financial contribution of support agreements to the ongoing financial health of QHR can be demonstrated as follows:

Support
Revenue
2008 2007 2006 2005 2004 2003
$2,150,000 $2,050,000 $1,750,000 $1,400,000 $1,000,000 $750,000

Support revenue provides a reliable annual source of capital for the operations of the Company. The combination of recurring revenue from HR software and its Electronic Medical Record software now exceeds $3,850,000 annually.

© 2008, QHR Technologies Inc.

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QHR Third Quarter Profitable Results

Tuesday, November 27, 2007

(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 nine months ended September 30, 2007. The Company reports that revenues reached $4,121,580 for the nine months ended September 30, 2007 with earnings of $99,684 compared to revenues of $3,380,536 and a loss of $537,080 for the same period in 2006.

This is the fifth consecutive quarter that earnings have been achieved and is the result of the Company's longterm plan of developing annual recurring revenue from new and existing clientele through acquisitions and sales initiatives.

View full News Release here

© 2008, QHR Technologies Inc.

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QHR Completes Private Placement of $1,050,000

Monday, November 26, 2007

(QHR - TSX Venture Exchange) Mr. Al Hildebrandt, President and CEO of the Company, announced that the Company has completed the brokered private placement of 3,500,000 units at $0.30 per unit as previously announced on August 31, 2007 and November 16, 2007. The Company engaged Global Maxfin Capital Inc. ("Global") as its Agent in connection with a brokered private placement of 3,500,000 units of the Company at a price of $0.30 per unit for total gross proceeds of $1,050,000.

Each unit will consist of one common share of the Company and one-half warrant entitling the holder to acquire one additional common share for a period of nine months at the exercise price of $0.40 per share.

View full News Release here

© 2008, QHR Technologies Inc.

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