Company reports fourth consecutive quarter of positive EBITDA
Nightingale Informatix Corporation ("Nightingale" or the "Company") (TSX-V: NGH), an application service provider (ASP) of electronic medical record (EMR) software and related services announces its financial results for the quarter and nine months ended December 31, 2009. All results are reported in Canadian dollars unless otherwise stated.
Q3 and Year to Date Highlights
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- The Company achieved its fourth consecutive quarter of positive
EBITDA for the quarter ended December 31, 2009. This is the Company's
fifth consecutive quarter of EBITDA improvement. EBITDA was a
positive $0.6 million for the quarter ended December 31, 2009
compared to a positive $0.2 million for the previous quarter and
compared to negative EBITDA of $0.03 million for the quarter ended
December 31, 2008. EBITDA was a positive $0.8 million for the nine
months ended December 31, 2009 compared to a negative $0.7 million
for the nine months ended December 31, 2008.
- Revenues for the quarter ended December 31, 2009 were $4.4 million
compared to $3.9 million for the previous quarter and compared to
$4.6 million for the quarter ended December 31, 2008. Revenues were
$12.4 million for the nine months ended December 31, 2009 compared to
$13.7 million for the nine months ended December 31, 2008. Recurring
revenues decreased 17% in the quarterly year over year periods and
decreased 5% in the nine month periods largely the result of
attrition in the transcription business and the impact of the US
dollar relative to the value of the Canadian dollar. Non-Recurring
revenues increased 97% in the quarterly periods and decreased 27% in
the nine month periods.
- Loss and comprehensive loss decreased to $0.3 million from $0.9
million in the quarterly periods and decreased to $1.9 million from
$3.6 million for the nine months ended December 31, 2009.
- Expenses for the fiscal quarter ended December 31, 2009 decreased
$0.6 million, or 18%, from the quarter ended December 31, 2008 and
decreased $2.6 million, or 24%, during the nine month periods.
- In December 2009, the Company entered into an exclusive licensing and
distribution agreement with a third party that will offer health
related services to Canadian patients, through doctors using
electronic medical records in their practices. Using Nightingale's
innovative patient-centric technology and secure web-based patient
portal, physicians will be offered a patient services platform
seamlessly integrated with Nightingale On Demand, the Company's EMR.
"We are pleased to report our fourth consecutive quarter of positive EBITDA. This demonstrates our commitment to appropriately scale expenses as we strive to achieve our financial goals," said Sam Chebib, President and CEO of Nightingale. "As we approach the end of fiscal 2010 we are focused on profitable growth."
"We are also happy to report that our sales pipelines have increased significantly as a result of the October 2009 $236 million EMR funding announcement by the Ontario Medical Association and we expect to see some movement through this pipeline in the coming quarters. To address the opportunity in Ontario and more generally in North America, we have increased our spending, particularly on sales and marketing initiatives, as we continue to focus on increasing the number of practitioners on our platform."
Q3 and Year to Date Fiscal 2010 Financial Review
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For the three and nine months ended December 31, 2009, revenue was $4.4 million and $12.4 million, respectively. This compares to $4.6 million and $13.7 million for the three and nine months ended December 31, 2008, representing a 4% and 10% decrease over these respective periods. The decrease in the year over year quarterly periods was primarily related to a decrease in revenues from transcription services which was partially offset by an increase in software license revenue related to the Company's licensing of its online patient portal application. In the nine month periods, the decrease was primarily related to a decrease in software revenues as the Company recognized $1 million of license revenue related to a Canadian government agency in the first quarter of last fiscal year.
Recurring Revenue for the three and nine months ended December 31, 2009 was $3.3 million and $10.2 million. This compares to $4 million and $10.8 million for the same periods ended December 31, 2008, representing decreases of 17% and 5%, respectively. In both cases, the decrease in Recurring Revenue was largely the result of lower data management and transcription revenues and the negative impact of foreign exchange.
Non-Recurring Revenue for the three and nine months ended December 31, 2009 was $1 million and $2.2 million. This compares to $0.5 million and $3 million for the three and nine months ended December 31, 2008, representing a 97% increase and a 27% decrease over these respective periods. The increase in Non-Recurring Revenue over the three month periods is primarily the result of the Company's licensing of its online patient portal software in December 2009 as well as an increase in revenues from custom development projects.
Over the three months ended December 31, 2009, the Company generated 65% of its revenue from the US market. With the decrease in the value of the US dollar relative to the Canadian dollar during the year over year three month periods, the Company estimates that revenue was negatively impacted by approximately 9%, or $0.4 million. With the increase in the value of the US dollar relative to the Canadian dollar during the year to date periods, the Company estimates that revenue was positively affected by 1%, or $0.2 million.