Mr. Martyn Armstrong reports
OPEN EC TECHNOLOGIES, INC. REPORTS Q3/2011 RESULTS WITH 265% INCREASE IN REVENUE
Open EC Technologies Inc. has released its financial and operating results for the third quarter ended March 31, 2011.
Highlights for the quarter ended March 31, 2011
Highlights of the performance during the quarter ended March 31, 2011 (third quarter 2011), as compared with last year's third quarter ended March 31, 2010, are as follows:
- The company increased third quarter revenues 265 per cent to $671,628 for the quarter as compared with third quarter 2010 revenues of $184,180.
- The EBITDA was $28,540 for the quarter, compared with the EBITDA of negative $337,860 over third quarter 2010.
- Of the total revenue, 58 per cent was recurring revenue, an increase of 506 per cent over last year.
- Of the total revenue, 29 per cent was software licence revenue, an increase of 969 per cent over last year.
- Of the total revenue, 13 per cent was professional services revenue, a decrease of 16 per cent over last year.
- Gross profit increased 368 per cent to $417,531, compared with $89,190 last year.
- The company's assets increased 192 per cent to $2,745,686, compared with $939,298 last year.
- The company continued to develop its business in the United States health care sector by increasing its health care recurring revenue to approximately 50 per cent of total revenue in the quarter.
- The company completed its acquisition of i-Plexus Solution adding over 5,500 U.S. medical physician and billing service customers, which has materially increased its market share of the health care EDI and revenue cycle management market in the United States.
- As a subsequent event, the company completed approximately $492,000 in financing and repaid $300,000 of its debt.
Martyn Armstrong, chief executive officer of Open EC, states: "We are very pleased with our overall Q3 financial results and in particular our strong growth in recurring subscription revenue contribution from our health care EDI claims processing business. With the addition of recently announced subscription revenue development agreements with Gen4 Solutions, Frontstream and several new health care billing service customers, we expect to continue to see strong growth in our recurring revenue business going forward. In addition we have experienced a marked increase in business development driven by the U.S. government health care reform mandate for industry adoption of the new HIPAA 5010 EDI standards and ICD10 medical billing coding standards. We are looking forward to more positive financial results in the U.S. health care sector as we continue to execute our aggressive business expansion strategy."
The reported net loss for the quarter ended March 31, 2011, was $86,561, compared with a net loss of $364,101 last year. EBITDA for the quarter was $28,540 compared with the EBITDA of negative $337,860 over last year.
There is an additional $177,849 of contracts invoiced but not yet earned by the company and thus not yet included in accounts receivable nor in revenue for third quarter 2011.
The company's available cash, cash equivalents and short-term investments at March 31, 2011, was $258,226. The company's accounts receivable increased to $293,231 at March 31, 2011, from $88,362 at June 30, 2010. The company's assets increased 192 per cent to $2,745,686 compared with last year of $939,298. The company's current liabilities increased to $858,761 at March 31, 2011, from $264,250 at June 30, 2010.
The comparative financial statements for the quarter ended March 31, 2011, along with other information, may be obtained through the company's website or on the SEDAR website.
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