Quarterly ReportStill strong results. The stock is still el cheapo!!
Montreal, QUEBEC, August 29, 2017 – On August 29, 2017, DMD Digital Health Connections Group Inc. (“DMD” or the “Company”) (NEX: DMG.H), a leader in digital intelligence for the health industry filed its financial statements and MD&A reporting a profit of $2.7 million on revenues of $24.4 million for the sixmonth period ended June 30, 2017. During the quarter ended June 30, 2017, the Company reported a profit of $1.3 million on revenues of $12.1 million while for the same period in 2016, the Company had generated a profit of $0.6 million on revenues of $8.7 million. For the six-month period ended June 30, 2017, gross margin increased by $5.0 million to $15.4 million compared to the same period in 2016. For the quarter ended June 30, 2017, gross margin increased by $2.5 million to $7.4 million compared to the quarter ended June 30, 2016. In addition to having a larger client base and a wider geographical market penetration, the Company has been able to maintain its product mix whereby the Company’s higher margin products and services continue to provide strong gross margins. For the six-month period ended June 30, 2017 operating expenses were $12.0 million compared to $8.0 million during the same period in 2016. During the quarter ended June 30, 2017, operating expenses were $6.3 million compared to $3.8 million for the quarter ended June 30, 2016. The Company has reached a level of sales that requires a more robust selling and administration infrastructure to meet the increasing volume which explains the higher level of operating expenses. For the six-month period ended June 30, 2017, the Company reported on operating profit of $3.4 million compared to $2.4 million for the same period in 2016. For the quarter ended June 30, 2016, the Company reported an operating profit of $1.0 million compared to $1.1 million for the same period in 2016.