Streamline Health Solutions, Inc., a provider of knowledge management solutions for healthcare providers, announced financial results for the second quarter of fiscal year 2013, which ended July 31.
In a release on September 9, the Company reported that Revenues increased 74 percent for the three-month period ended July 31, to $8.8 million, as compared to $5.0 million in the second quarter of fiscal 2012. The quarterly increase was attributable to significant new sales in the Collabra suite, which includes computer assisted coding and clinical documentation improvement solutions acquired from Meta Health Technology in Q3 2012, increases in SaaS-based revenue primarily in the Company's business analytics suite, OpportunityAnyWare and recurring maintenance in the AccessAnyWare and Collabra suites.
Adjusted EBITDA increased 81 percent in the quarter to $2.7 million, as compared to $1.5 million in the second quarter of fiscal 2012. Cash on the balance sheet also increased appreciably to $5.4 million.
"We continue to grow with our clients," said Robert E. Watson, President and Chief Executive Officer of Streamline Health. "Our clients are telling us what they need to be successful in this rapidly changing industry, and we believe our solutions help them meet those needs as witnessed by our first eCAC solution sale in the second quarter. Our plan is to leverage our many relationships to cross sell incremental solutions, with particular emphasis on our business analytics and our coding solutions as the deadline for ICD- 10 nears."
Highlights for the quarter included: - Revenue for the second quarter 2013 was $8.8 million, an increase of 74 percent over the comparable period in 2012; - Software as a Service (SaaS) revenues for second quarter 2013 was $1.9 million, an increase of 9 percent over Q2 2012; - Maintenance and support revenues for the second quarter 2013 was $3.6 million, a 58 percent increase over the comparable period in 2012 primarily attributable to the contracts acquired as part of the Meta Health Technologies acquisition in August 2012; - New sales bookings for the quarter were $5.3 million; - Backlog at the end of the quarter was $51.9 million.
Operating expenses for the three-month period ending July 31, were $7.8 million, compared to $5.1 million in the comparable prior year period; an increase of $2.7 million, or 54 percent, over the prior year comparable period.
Backlog at July 31, was $51.9 million, compared with $51.0 million at January 31, and $32.2 million at July 31, 2012. The fiscal second quarter backlog decline of approximately $1.3 million as compared to the fiscal first quarter is primarily attributable to recognized revenue in this quarter being drawn from backlog as expected.
Streamline Health reports its financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). Streamline Health's management also evaluates and makes operating decisions using various other measures. One such measure is adjusted EBITDA, which is a non-GAAP financial measure. Streamline Health's management believes that these measures provide useful supplemental information regarding the performance of Streamline Health's business operations.
Streamline Health defines "non-GAAP adjusted net earnings (loss)" as GAAP net earnings (loss), plus losses on conversion of convertible notes, transaction related expenses, and non-recurring operational costs.
Streamline Health defines "adjusted EBITDA" as net earnings (loss) plus interest expense, tax expense, depreciation and amortization expense of tangible and intangible assets, stock-based compensation expense, significant non-recurring operating expenses, and transactional related expenses including: gains and losses on debt and equity conversions, associate severances and related restructuring expenses, associate inducements, and professional and advisory fees, and internal direct costs incurred to complete transactions.
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