Q2 Revenue exceeds $1 millionMedworxx Solutions Inc. Files Second Quarter Financial Statementsand Management Discussion and Analysis; Announces Quarterly Revenue ofGreater than $1 Million for the first time
TORONTO, Aug. 31 /CNW/ - Medworxx Solutions Inc (the "Company") (TSX
VENTURE:MWX) announced today it has filed with the Canadian securities
authorities its interim consolidated financial statements and management
discussion & analysis report for the three and six month periods ended June
30, 2009. These documents may be viewed under the Company's profile at
www.sedar.com.
Medworxx posts quarterly results with record revenue, surpassing $1
Million in quarterly revenue for the first time. Highlights include:
- Revenue for the quarter ended June 30, 2009 was $1,055,893, a
significant milestone for the Company as it is the first quarter with
revenue greater than $1 million. Revenue for the second quarter
represents a 10% increase over revenue of $957,175 in the previous
quarter and a 17% increase over revenue of $903,909 in the same
quarter last year.
- Total expenses for the quarter ended June 30, 2009 before gain on
foreign exchange, SR&ED expense, and interest on long-term debt were
$1,247,468, representing an increase of 4% from expenses of $1,198,585
in the prior quarter and a nominal decrease from expenses of
$1,241,858 in the same quarter last year. The slight increase is due
to higher than normal non-cash expense related to stock options.
Overall these numbers reflect Management's planned control in expenses
as Medworxx drives to profitability.
- Deferred revenue at June 30, 2009 was $1,515,452 as compared to
$1,784,114 at March 31, 2009, representing a 15% decrease. This
decrease is attributable to timing of contract renewals. Management
accordingly expects to see deferred revenue increase in the upcoming
quarters. All annual renewable license software agreements are sold
with a 12 month maintenance contract. The Company defers and amortizes
the revenue over the next 12 months. Deferred revenue is defined as
advance billings or payments received for customer contracts where the
Company does not have vendor-specific objective evidence of fair
market value of each contract element necessary to recognize the
revenue; payments received in advance of delivery of services; or
advance payments received for post contract support (maintenance)
services.
- Contract value of recurring revenue at June 30, 2009 with existing
customers was $2,874,900 as compared to $2,756,000 at March 31, 2009,
representing a 4% increase over the prior quarter. This represents a
35% increase over contract value of recurring revenue of $2,127,839 at
June 30, 2008. The Company defines contract value of recurring revenue
as the contract value or agreement amount for the annual renewable
agreements which at the end of a reporting period management believes
there to be a high probability of renewal. As the full value of such
contracts is recognized as revenue over 12 months, the growth in this
value is an important metric for the Company. This is a non-GAAP
measure.
- The Company incurred losses of $196,784 on revenue of $1,055,893 for
the quarter ended March 31, 2009 vs. losses of $332,993 incurred for
the same quarter in the prior year on revenue of $903,909,
representing a 41% decrease in quarterly loss. In the prior quarter,
the Company incurred losses of $260,866 on revenue of $957,175. This
improvement in results of operations is due to the Company's ability
to grow revenue while maintaining expenses at a fairly consistent
level. This is the lowest quarterly loss for the Company since
becoming a publicly traded company in September of 2007.
- EBITDA, defined as Earnings before Interest, Depreciation, and
Amortization, for the quarter was ($163,673) as compared to EBITDA in
the prior quarter of ($226,840) an improvement of 28% and as compared
to EBITDA of ($305,041) in the same quarter last year, an improvement
of 46%. Adjusted EBITDA, defined as Earnings before Interest,
Depreciation, Amortization, and Stock Option Expense, for the quarter
was ($81,600) as compared to ($178,182) in the prior quarter, an
improvement of 54%, and as compared to adjusted EBITDA of ($256,329)
in the same quarter last year, an improvement of 68%. EBITDA and
Adjusted EBITDA are non-GAAP measures.
- A record number of software license transactions closed in the second
quarter of 2009. The Company signed contracts with 9 new customers as
well as additional business with 3 existing customers. The success in
the second quarter was represented across multiple products and
geographies. At the end of the quarter, Medworxx had customers in 9
provinces and 17 states.
- The Company surpassed the 100 customer mark, representing 290
hospitals in North America including hospitals throughout Canada and
17 states in the USA. This represents a significant milestone in the
Company's growth.
"Reaching one million dollars in quarterly revenue is an important
milestone for Medworxx. We continue on the path to profitability, as evidenced
by our Adjusted EBITDA for the quarter of $(81,600), a 68% improvement in
Adjusted EBITDA from the same quarter last year", said Dan Matlow, President &
CEO, Medworxx.