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Medworxx Solutions Inc. Files Third Quarter 2013 Financial Statements and Management's Discussion and Analysis

C.RGX

Medworxx Solutions Inc. (“Medworxx”) (TSXV:MWX), a leader in clinical patient flow, and compliance and education solutions, announced today it has filed with the Canadian securities authorities its Consolidated Financial Statements and Management’s Discussion and Analysis report for the three and nine month interim periods ended September 30, 2013. These documents may be viewed under the Company’s profile at www.sedar.com.

Highlights of the results for the period ended September 30, 2013 include:

  • The Annualized Contract Value of recurring revenue at September 30, 2013 with existing clients was $4,748,587 as compared to $4,387,215 at September 30, 2012, an increase of 8.2%.
  • Revenue from the Patient Flow Platform for the nine months ended September 30, 2013 increased to $3,004,162 from revenues of $2,558,804 for the nine months ended September 30, 2012, an increase of $445,358 representing growth of 17.4%.
  • Revenue from the Compliance and Education Platform for the nine months ended September 30, 2013 decreased to $1,315,166 from revenues of $2,079,682 for the nine months ended September 30, 2012, a decrease of $764,516 representing decline of 36.8% (mostly due to a USD $800,000 sale of a worldwide, non‐exclusive, non‐transferrable license of the Policy and Document Management Software to a major US software company in Q3 2012).
  • Revenue for the nine months ended September 30, 2013 was $4,377,982, representing a decrease of 7.9% over revenues of $4,754,676 in the same period last year. The decrease is attributable primarily to a 36.8% decrease in the Compliance and Education platform, and offset by the growth in the Patient Flow Platform of 17.4%. Excluding the one-time USD $800k sale, the Compliance and Education Platform decreased by 0.6% over the same period last year.
  • Continuing with our success in the UK market, Medworxx announced the agreement with Greater East Midlands Commissioning Support Unit (GEM) to license Medworxx Patient Flow for their annual reviews delivered within their region covering a 4.5 million population and 13,000 beds in acute or community-based hospitals, or non-hospital environments. GEM will have access to the Medworxx Appropriate Length of Stay Audit Program capability in undertaking their reviews.
  • In the quarter, Medworxx also signed an agreement with a large healthcare CPOE (Computerized Physician Order Entry) vendor to market the Medworxx Patient Flow Platform. The CPOE vendor has a significant footprint; it is used by about 40,000 clinical and healthcare professionals in Canada, primarily in the Quebec and Ottawa regions, as well as the US and Australia. Medworxx Patient Flow is a natural integration point with CPOE; Medworxx will bring value to their customers through the synergistic technology.
  • Nova Scotia Department of Health, NS, Canada purchased additional Medworxx Patient Flow module of Forms and Assessments for the entire province of Nova Scotia.
  • Two contracts were signed in the quarter for the Medworxx Compliance and Education platform with Woodstock General Hospital ON, Canada and Almonte General Hospital ON, Canada.
  • In the quarter, Medworxx was listed as one of the Top 10 Companies $10M and Under on the 2013 Software 500.

“Medworxx’ Patient Flow business in Canada and the UK continues to increase as illustrated by our 17.4% growth in revenue for the nine month period ending September 30, 2013. Our sales and marketing expansion initiatives in other geographies are progressing as anticipated,” said Dan Matlow, President and CEO, Medworxx. “We continue to be optimistic with respect to our growth strategy, and are seeing increased pipeline activity.”

About Medworxx

Medworxx delivers health information solutions to over 350 hospitals internationally; including Canada, United States and United Kingdom. Medworxx helps hospitals meet patient flow challenges, and requirements in compliance and education. Medworxx Clinical Criteria – flagship of Medworxx Patient Flow that includes electronic bed board and independent assessment components – currently serves over 35% of the acute care beds in Canada. Founded in 2004, Medworxx is based in Toronto, ON, and publicly traded on the TSX Venture Exchange: MWX.

Visit: www.medworxx.com

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Disclaimer

This press release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or “recurring” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, such as competition, technological changes, the changing needs of hospitals, the financial condition of the Company’s current and potential customers, foreign currency exchange rates, as well as general economic conditions, which may cause the actual results, performance or achievements of the Corporation and Medworxx to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.



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