Medworxx Solutions Inc. Files Year End Financial Statements and Management Discussion & Analysis
TORONTO, ON – April 29, 2009 – Medworxx Solutions Inc (the "Company")(TSX VENTURE:MWX) announced today it has filed with the Canadian securities authorities its year end consolidated financial statements and management discussion & analysis report for year ended December 31, 2008. These documents may be viewed under the Company's profile at www.sedar.com.
Q4 and Fiscal 2008 Highlights:
- Revenue for the year ended December 31, 2008 was $3,348,842 as compared to 2,862,146 for the previous year, a 17% increase for the year.
- Expenses before gain on foreign exchange, SR&ED, and interest on long-term debt for 2008 were $5,036,968, representing a 0.4% increase in expenses over the prior year. This moderate increase reflects the planned cost stabilization as Medworxx drives to profitability.
- Deferred revenue at December 31, 2008 was $1,706,658 as compared to $1,278,868 at December 31, 2007, representing a 33% increase. All annual renewable license software agreements are sold with a 12 month maintenance contract. The Company defers and amortizes the revenue over the 12 months commencing at the annual renewal date of the contract. 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 December 31, 2008 with existing customers was $2.656 million as compared to $2.000 million at December 31, 2007, representing a 33% increase year over year. 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-Generally Accepted Accounting Principle (GAAP) measure.
- Revenue from consulting services increased 35% to $558,148 in 2008 from $410,196 in 2007. This increase is attributable to growth in the customer base, and more of a focus on services work and custom development for hospitals.
- Three agreements were completed for the Medworxx Learning Management System that management believes are significant to the Company. An agreement was signed with Western Health, Newfoundland; the Company’s first customer in that province. This should build a foundation for expansion in Newfoundland. An agreement was also signed with Sunnybrook Health Sciences Centre, one of Canada’s premier academic health sciences centres. In the 4th quarter, an agreement was signed with a Toronto Hospital that is expected to bring $400,000 in revenue to Medworxx in 2009. Once the rollout is complete, this hospital is expected to be a premier reference site for Medworxx.
- The Company announced the general availability of the Medworxx Emergency Readiness System (ERS), which was conceived in 2007. The product was implemented at a strategic group of hospitals, health centers, and emergency management regions in Canada and the United States. The Company had 7 ERS customers at December 31, 2008.
- The Company signed a strategic partnership agreement to deliver an advanced incident command solution for hospitals with Everbridge (formerly 3n - National Notification Network), the leading global mass notification system provider. The combination of the Everbridge mass notification system and the Medworxx ERS provides hospitals with the ability to manage emergency plans from inception through planning, training and execution in real-world environments in one integrated system.
- The Company announced that the Mississauga Halton Local Health Integration Network (LHIN) will roll out the Medworxx Utilization Management System. The implementation is being done with Canadian Healthcare Management, a strategic partner of the Company. The contracts with Halton Healthcare Services Corporation, The Credit Valley Hospital, and Trillium Health Centre are expected to bring over $1 Million in revenue to Medworxx over a 5 year period.
- Customer updates include St. Michael’s Hospital licensing the Medworxx Bed Optimization System, the newest addition to the Medworxx product suite; Medworxx successfully completing the implementation and rollout of its Policy & Procedure Management System to two prestigious U.S. healthcare organizations, one a 600 bed facility and one with over 2,000 beds; and the Medworxx Utilization Management System now managing over 10,000 acute care beds across Canada, a significant milestone.
About Medworxx
Medworxx is a Toronto-based software company focused exclusively on solutions for the North American healthcare marketplace. Its software comprises an integrated suite of solutions, including content management, learning management, policies and procedures, utilization management, bed optimization, single sign on, portal, and emergency readiness solutions.
Medworxx started business in May 2004 in Ontario with 3 employees and has since grown to over 35 employees. Medworxx' executive team consists of experienced sales, marketing, software development, healthcare, and finance personnel. Medworxx currently has a customer base of approximately 95 healthcare organizations representing more than 280 hospitals and 500,000 end users who are distributed approximately 70% in Canada and 30% in the United States. Medworxx' customers use its software platform to increase competency, reduce redundancy, reduce costs, and simplify distribution of knowledge to staff and patients, creating a net effect of increased efficiency and improved patient safety and care.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
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 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.
Contact:
Dan Matlow, President & Chief Executive Officer
Medworxx inc.
416-642-1278
dmatlow@medworxx.com
Domenic Crudo, Chief Financial Officer
Medworxx Inc.nbsp;
416-642-1278
dcrudo@medworxx.com