Medworxx Solutions Inc (the "Company")(TSX VENTURE:MWX) announced today it has filed with the Canadian securities authorities its interim consolidated financial statements and management discussion & analysis report for the three and nine month periods ended September 30, 2009. These documents may be viewed under the Company's profile at www.sedar.com.
Highlights of the third quarter results include:
- Revenue for the quarter ended September 30, 2009 was $943,973, representing an 11% decrease from revenue of $1,055,893 in the prior quarter and an increase of 35% over revenue of $697,315 in the same quarter last year. We refer readers most notably to the year over year change, as the Q3 summer months are seasonally slow and therefore generally less comparable to the prior quarter.
Year to date revenue for the 9 months ended September 30, 2009 was $2,957,041, representing a 21% increase over revenue of $2,443,874 for the same period last year. - Total expenses for the quarter ended September 30, 2009 before loss/gain on foreign exchange, SR&ED expense, and interest on long- term debt were $1,066,571, representing a decrease of 15% from expenses of $1,247,468 in the prior quarter and a decrease of 4% from expenses of $1,112,865 in the same quarter last year. These numbers reflect Management's planned control in expenses as Medworxx drives to profitability. Year to date expenses for the 9 months ended September 30, 2009 was $3,506,492, representing a 6% decrease from expenses of $3,736,842 for the same period last year. - Deferred revenue at September 30, 2009 was $2,067,480 as compared to $1,515,452 at June 30, 2009, representing a 36% increase. This increase is partly due to timing of contract renewals and was expected after the decrease noted last quarter. In addition, there is a contract in place with a customer where Medworxx has not yet been able to recognize revenue due to the terms of the contract. All annual renewable license software agreements are sold with a 12 month maintenance contract.
The Company defers and amortizes the revenue over the next 12 months. 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 September 30, 2009 with existing customers was $2,923,800 as compared to $2,874,900 at June 30, 2009, representing a 2% increase over the prior quarter. This represents a 13% increase over contract value of recurring revenue of $2,592,000 at September 30, 2008. 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-GAAP measure. - The Company incurred losses of $164,180 on revenue of $943,973 for the quarter ended September 30, 2009 vs. losses of $407,557 incurred for the same quarter in the prior year on revenue of $697,315, representing a 60% decrease in quarterly loss. In the prior quarter, the Company incurred losses of $196,784 on revenue of $1,055,893.