Second-quarter fiscal 2009 results announced by Streamline Health Solutions

Streamline Health Solutions, Inc. (Nasdaq: STRM) today announced financial results for the second quarter and six months, ended July 31, 2009.

Highlights for the quarter included:

• Company wins new hosting contract totaling nearly $1.0 million.
• Total Operating Expenses declined by 23%;
• Year-over-Year Backlog up 32%;
• Net loss of $(18,000) vs net loss of $(429,000) in Q2 2008;
• EPS: $(0.00) vs. $(0.05) in comparable quarter last year;
• Year-to-date operating income improves by $1.2 million;
• Achieve a significant milestone with delivery of our 5th generation architecture and multi-language capabilities to Canadian customer.

Revenues for the second quarter of 2009 were $4.1 million compared to $4.9 million in the second quarter in 2008. Net loss for the quarter was $(18,000), or $(0.00) per share, compared to a net loss of $(429,000), or $(0.05) per share, in the second quarter of 2009. The quarter-over-quarter decrease in revenues was a result of a decrease of approximately $845,000 in systems sales, and a $79,000 decrease in application hosting revenues. Declines in these revenue categories were offset by an increase of approximately $126,000 in services and maintenance and support revenues.

A hosting contract for a newly developed workflow solution with a total value of nearly $1.0 million was signed with an existing customer in this recent second quarter. This continues to validate recent customer trends and preferences towards the hosting services software delivery model.

Total operating expenses declined by more than $1.2 million to $4.1 million for the second quarter of 2009 from $5.3 million for the comparable period in 2008. This was primarily a result of company-wide cost reductions initiated in the third quarter of 2008 and increased capitalization of software development costs for our 5th generation flagship product and related workflows.

The operating loss for the second quarter of fiscal 2009 was $(17,000) compared with an operating loss of $(427,000) in the second quarter of fiscal 2008. An operating profit of $11,000 was generated for the six months ended July 31, 2009 compared with a $(1.2 million) operating loss for the comparable six months of 2008. This represents a significant improvement in operating income of over $1.2 million.