Navigation Links
Streamline Health(R) Solutions Reports First Quarter Results

CINCINNATI, June 9 /PRNewswire-FirstCall/ -- Streamline Health Solutions, Inc. (Nasdaq: STRM) today announced financial results for the first quarter, ended April 30, 2009.

Highlights for the quarter included:

  • Company wins new multi-facility Canadian health institution contract;
  • Total Operating Expenses declined by 16%;
  • Year-over-Year Backlog up 59%;
  • Net income: $16,000 vs net loss of $0.8 million in Q1 2008;
  • EPS: $0.00 vs. $(0.09) in comparable quarter last year.

Revenues for the first quarter of 2009 were $3.8 million compared to $3.6 million in the first quarter in 2008. Net earnings for the quarter were $16,000, or $0.00 per fully diluted share, compared to a net loss of $815,000, or $(0.09) per fully diluted share, in the first quarter of 2008.

Systems sales increased 12% to $347,000 in the first quarter of 2009 when compared with the first quarter of 2008. The increase in system sales for the quarter was attributed to increases in software license sales.

Services, maintenance and support revenues for the first quarter totaled $2.7 million, reflecting a 12% increase over the $2.4 million of services, maintenance and support revenues in the first quarter of 2008. Revenue growth was principally driven by a $195,000 increase in maintenance revenues and an $89,000 increase in professional services revenues.

J. Brian Patsy, Chief Executive Officer of Streamline Health, commented, "During the quarter we operated more efficiently and consequently profitably, as revenues increased over the prior comparable quarter. We continue to make progress in moving this business forward to the point of becoming consistently profitable; that is our main strategic goal. While we are pleased with the small profit that was earned during the quarter, we know we have much more to accomplish, but we are off to a good start in fiscal 2009, and ahead of our internal plan."

"We are pleased to have secured a new contract during the first quarter in excess of $1.0 million for our document workflow solutions to be integrated into the electronic medical records solution for multiple facilities within another leading Canadian healthcare region," continued Mr. Patsy. "This is the second large Canadian contract won within the past year. These two contracts cover 18 healthcare facilities. As a result, pending the general availability status for our multi-lingual product release, we expect to recognize approximately $1.6 million in software licensing revenues plus additional implementation services in the fourth fiscal quarter. Additionally, we expect our backlog will increase several million dollars as a result of anticipated installation and maintenance services fees over the term of the agreements. We look forward to a solid long-term relationship with this new client."

Application-hosting services revenues declined by approximately $204,000, or 23%, in the first quarter of fiscal 2009 primarily due to the previously announced loss of a large customer in July 2008. New application-hosting contracts signed throughout fiscal 2008 will begin to generate new revenues in the coming quarters. When the new application-hosting services are totally implemented, these new customers are expected to generate revenues to approximate 85% of the revenues attributed to the loss of the large customer in July 2008. Development of new application-hosting customers going forward will drive future growth.

Total operating expenses declined by more than $700,000 to $3.7 million for the first quarter of 2009 from $4.4 million for the comparable period in 2008. This was primarily a result of company-wide cost reductions initiated in the third quarter of 2008 in response to the market shift toward SaaS (Software as a Service)-based hosting contracts. During the just completed quarter, Selling, General and Administrative expenses decreased by $384,000 and Product Research and Development expenses decreased by $373,000.

The operating profit for the first quarter of fiscal 2009 was $28,000 compared with an operating loss of $813,000 in the first quarter of fiscal 2008. This $841,000 improvement in earnings is the result of increased systems sales, increased professional services, increased maintenance services, and improved cost management.

Total backlog at the end of the quarter was $24.3 million, representing an increase of 59% over the comparable backlog of a year ago. Growth in the backlog was primarily driven by a large increase in SaaS-based hosting services contracts won throughout 2008. Backlog declined by about 7% since the end of January 2009 reflective of the Company recognizing revenues from sales made in 2008 and the suspension of one small hosting client during the quarter due to economic factors.

Conference Call Information

The Company will conduct a conference call and web cast to review the results of the first quarter of fiscal 2009 later today, June 9, 2009 at 4:30 p.m. ET.

Interested parties can access the call by dialing (800) 860-2442 or (412) 858-4600, or can listen via a live Internet web cast, which can be found at A replay of the call will be available by visiting for 30 days or by calling (877) 344-7529 or (412) 317-0088, access code 431236, through June 12, 2009 at 5:00 p.m. ET.

About Streamline Health

Streamline Health is a leading supplier of document workflow and document management tools, applications and services that assist strategic business partners and healthcare organizations to improve operational efficiencies through business process optimization. The Company provides integrated tools and technologies for automating document-intensive environments, including document workflow, document management, e-forms, connectivity, optical character recognition (OCR) and business process integration.

The Company's workflow-based services offer solutions to inefficient and labor-intensive healthcare business processes throughout the revenue cycle, such as chart coding, abstracting and completion, remote physician referral order processing, pre-admission registration scanning and signature capture, financial screening, perioperative processing, Recovery Audit Contractor (RAC) mitigation processing, secondary billing services, explanation of benefits processing and release of information processing. The Company's solutions also address the document workflow needs of the Human Resource and Supply Chain Management processes of the healthcare enterprise. All solutions are available through a Software as a Service (SaaS) model of delivery via the Company's Remote Hosting Center that better matches customers' capital or operating budget needs, or via a locally installed software licensing model.

Streamline Health's solutions create a permanent document-based repository of historical health information that is complementary and can be seamlessly integrated with existing disparate clinical, financial and administrative information systems, providing convenient electronic access to all forms of patient information from any location, including secure web-based access. These integrated solutions allow providers and administrators to link existing systems with documents, which can dramatically improve the availability of patient information while decreasing direct costs associated with document retrieval, work-in-process, chart processing, document retention, and archiving. For additional information please visit our website at

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995

Statements made by Streamline Health Solutions, Inc. that are not historical facts are forward-looking statements that are subject to risks and uncertainties. The forward looking statements contained herein are subject to certain risks, uncertainties and important factors that could cause actual results to differ materially from those reflected in the forward-looking statements, included herein. These risks and uncertainties include, but are not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, key strategic alliances with vendors that resell the Company products, the ability of the Company to control costs, availability of products produced from third party vendors, the healthcare regulatory environment, potential changes in legislation, regulation and government funding affecting the healthcare industry, healthcare information systems budgets, availability of healthcare information systems trained personnel for implementation of new systems, as well as maintenance of legacy systems, fluctuations in operating results, effects of critical accounting policies and judgments, changes in accounting policies or procedures as may be required by the Financial Accountings Standards Board or other similar entities, changes in economic, business and market conditions impacting the healthcare industry, the markets in which the Company operates, and the Company's ability to maintain compliance with the terms of its credit facilities, and other risks detailed from time to time in the Streamline Health Solutions, Inc. filings with the U. S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly release the results of any revision to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

    J. Brian Patsy                   Joe Diaz, Robert Blum or Joe Dorame
    Chief Executive Officer          Lytham Partners, LLC
    (513) 794-7100                   (602) 889-9700

                        Financial Tables on Following Pages

                         STREAMLINE HEALTH SOLUTIONS, INC.

                            Three Months Ended April 30,


                                                   2009         2008
        Systems sales                            $347,044     $309,490
        Services, maintenance and support       2,716,241    2,433,135
        Application-hosting services              687,514      891,493
            Total revenues                      3,750,799    3,634,118

    Operating expenses:
        Cost of systems sales                     665,660      750,971
        Cost of services, maintenance and
         support                                1,064,130    1,089,516
        Cost of application-hosting services      431,805      288,191
        Selling, general and administrative     1,214,970    1,599,423
        Product research and development          346,247      719,255
            Total operating expenses            3,722,812    4,447,356
    Operating income (loss)                        27,987     (813,238)
    Other income (expense):
        Interest income                                 -        5,554
        Interest expense                           (7,466)        (438)
        Other income (expense)                      2,820            -
    Earnings (Loss) before taxes                   23,341     (808,122)
        Income taxes                               (7,000)      (6,500)
    Net earnings (loss)                           $16,341    $(814,622)

    Basic net earnings (loss) per common
     share                                          $0.00       $(0.09)

    Diluted net (loss) per common share             $0.00       $(0.09)
    Number of shares used in per common
     share computations:
        Basic                                   9,354,782    9,260,320
        Diluted                                 9,404,364    9,260,320

                          STREAMLINE HEALTH SOLUTIONS, INC.


                                            (Unaudited)     (Audited)
                                             April 30,      January 31,
                                               2009            2009
    Current assets:
        Cash and cash equivalents           $1,108,671     $3,128,801
        Accounts receivable, net of
         allowance for doubtful
         accounts of $100,000                1,390,879      1,328,508
        Contract receivables                   715,430        502,373
        Prepaid hardware and third party
         software for future delivery          630,904        681,540
        Prepaid other, including prepaid
         customer maintenance contracts      1,130,422        802,951
        Deferred income taxes                  247,000        247,000
            Total current assets             5,223,306      6,691,173

    Property and equipment:
        Computer equipment                   2,574,780      2,475,928
        Computer software                    1,495,949      1,405,407
        Office furniture, fixtures and
         equipment                             737,344        737,344
        Leasehold improvements                 574,257        574,257
                                             5,382,330      5,192,936
        Accumulated depreciation and
         amortization                       (3,818,046)    (3,625,408)
                                             1,564,284      1,567,528

    Contract receivables, less current
     portion                                         -        321,500
    Capitalized software development
     costs, net of accumulated
     amortization of $8,743,869 and
     $8,311,760, respectively                6,998,251      6,481,360
    Other, including deferred income
     taxes of $1,628,000                     1,659,111      1,670,891
                                           $15,444,952    $16,732,452

                          STREAMLINE HEALTH SOLUTIONS, INC.

                         Liabilities and Stockholders' Equity

                                                  (Unaudited)     (Audited)
                                                   April 30,      January 31,
                                                     2009            2009

      Accounts payable                            $1,151,759       $759,577
      Accrued compensation                           381,192        299,000
      Accrued other expenses                         304,097        472,113
      Deferred revenues                            4,508,916      5,941,837
          Total current liabilities                6,345,964      7,472,527

    Deferred revenues, less current portion        1,094,981      1,313,977
    Line of Credit                                   800,000        800,000
    Other                                             24,421         48,842
        Total liabilities                          8,265,366      9,635,346

    Stockholders' equity:
      Convertible redeemable preferred stock,
       $.01 par value per share 5,000,000
       shares authorized, no shares issued                 -              -
      Common stock, $.01 par value per share,
       25,000,000 shares authorized, 9,354,782
       shares issued, respectively                    93,548         93,548
      Additional paid in capital                  35,886,556     35,820,417
      Accumulated (deficit)                      (28,800,518)   (28,816,859)
      Total stockholders' equity                   7,179,586      7,097,106
                                                 $15,444,952    $16,732,452

                           STREAMLINE HEALTH SOLUTIONS, INC.

                              Three Months Ended April 30,

                                                         2009        2008
    Operating activities:
    Net earnings (loss)                                $16,341   $(814,622)
    Adjustments to reconcile net earnings (loss)
     to net cash (used in) provided by operating
        Depreciation and amortization                  624,747     689,609
        Share-based compensation expense                66,139      40,054

    Changes in assets and liabilities:
        Accounts and contract receivables               46,072   1,446,450
        Other current assets                          (276,835)   (263,537)
        Accounts payable and accrued expenses          306,358    (519,091)
        Deferred revenues                           (1,651,917)   (332,982)
    Net cash (used in) provided by operating
     activities                                       (869,095)    245,881

    Investing activities:
    Purchases of property and equipment               (189,394)   (254,002)
    Capitalization of software development costs      (949,000)   (900,000)
    Other                                              (12,641)    (34,738)
    Net cash (used in) investing activities         (1,151,035) (1,188,740)

    Financing activities:
    Net cash provided by (used in) financing
     activities                                              -           -

    Decrease in cash and cash equivalents           (2,020,130)   (942,859)
    Cash and cash equivalents at
     beginning of period                             3,128,801   2,189,010
    Cash and cash equivalents
     at end of period                               $1,108,671  $1,246,151

    Supplemental cash flow disclosures:
      Interest paid                                     $7,444      $8,740
      Income taxes paid                                 $9,686        $438

At April 30, 2009, Streamline Health has master agreements, purchase orders or royalty reports from remarketing partners for systems and related services which have not been delivered, installed and accepted which, if fully performed, will generate future revenues of $24,305,000 compared with $26,179,000 and $15,215,000 at the end of the fourth and first quarter of 2008, respectively, as follows:

                                    April 30,     January 31,   April 30,
                                      2009           2009         2008
    Streamline Health Software
     Licenses                      $2,022,000     $1,027,000   $1,988,000
    Custom Software                   138,000        278,000      335,000
    Hardware and Third Party
     Software                         524,000        562,000    1,409,000
    Professional Services           4,170,000      4,691,000    5,189,000
    Application Hosting Services   11,890,000     13,043,000    2,256,000
    Recurring Maintenance           5,561,000      6,578,000    4,038,000
    TOTAL                         $24,305,000    $26,179,000  $15,215,000

SOURCE Streamline Health Solutions, Inc.
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Coalition America Renews Relationship with Musketeer to Offer Streamlined Claims Repricing and Adjudication Solution for Benefit Administrators
2. Streamline Health Announces Executive Management Changes
3. Vendormate VISION 4.0(TM) Streamlines Healthcare Security and Compliance Efforts
4. PharmaMeal Launches New Business to Streamline and Personalize Support by Pharmaceutical Companies for Medical Professionals
5. HealthTek Software Solutions Licenses First DataBanks OrderView Med Knowledge Base(TM) to Streamline Medication Selection, Management and Reconciliation
6. Vonage Selects Halogen Software - New Solution to Streamline Employee Performance and Talent Management Across Organization
7. Acclamation Systems, Inc. Renews Partnership with Coalition America to Offer Streamlined Repricing and Adjudication Solution
8. Streamline Health Solutions, Inc. Reports Third Quarter Results
9. Boosting Pharma Sales Force Effectiveness through Streamlined Internal Communications
10. Wheelchair Professionals Selects Authentidates Inscrybe Healthcare Platform to Streamline Mobility Order Processing
11. Streamline Health Solutions, Inc. Reports Fourth Quarter and Fiscal Year 2007 Results
Post Your Comments:
(Date:10/13/2017)... ... , ... As health professionals work to improve their approach to healthcare, there ... more than filling out a survey; in many cases health professionals and patients are ... care and research on the importance of active engagement with patients and members of ...
(Date:10/13/2017)... Pekin, IL (PRWEB) , ... October 13, 2017 ... ... Foundation, which established the certification process to promote standards of excellence for the ... iaedp™ Symposium, scheduled for March 22 – 25, 2018 in Orlando, Florida at ...
(Date:10/13/2017)... , ... October 13, 2017 , ... Lori R. Somekh, ... member of ElderCounsel, a national organization of elder law and special needs planning attorneys. ... and rules. It also provides a forum to network with elder law attorneys nationwide,” ...
(Date:10/13/2017)... (PRWEB) , ... October 13, 2017 , ... The Visiting ... Day Market. Featuring a collection of specialty vendors and unique items from across the ... and quality-focused health and wellness services offered by the VNA. The boutique will ...
(Date:10/13/2017)... ... October 13, 2017 , ... Yisrayl Hawkins, Pastor and ... explains one of the most popular and least understood books in the Holy Scriptures, ... puzzling descriptions that have baffled scholars for centuries. Many have tossed it off as ...
Breaking Medicine News(10 mins):
(Date:10/12/2017)... West Pharmaceutical Services, Inc. (NYSE: ... drug administration, today announced that it will release third-quarter ... October 26, 2017, and will follow with a conference ... 9:00 a.m. Eastern Time. To participate on the call, ... ID is 94093362. ...
(Date:10/10/2017)... 2017  NDS received FDA 510(k) clearance in May 2017 for ... stand specifically designed for endoscopy environments. An innovative secondary monitor solution, ... solution to support the improvement of patient outcomes, procedural efficiency, and ... ... ...
(Date:10/4/2017)... to the Centers for Disease Control and Prevention (CDC), influenza vaccination ... is helping communities across Massachusetts , Connecticut ... flu shots through the end of the month. *Some exclusions ... ... shot is by the end of October, according to the Centers for ...
Breaking Medicine Technology: