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Streamline Health(R) Solutions Reports First Quarter Results
Date:6/9/2009

oal. 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 r
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SOURCE Streamline Health Solutions, Inc.
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