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

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.

J. Brian Patsy, chief executive officer of Streamline Health, commented, "We are pleased with the progress that we continue to make in managing our costs and right-sizing our company. We reached virtual breakeven for the quarter and the first half of the year as we are beginning to benefit from the leverage the we have built into our business model in the past 12 months. While capital procurement for information technology in the hospital segment continues to be constrained by spending moratoriums in individual institutions and hospital groups of all sizes throughout the country, we believe that a substantial pent-up demand is building up as the economy recovers and the federal stimulus package positively impacts healthcare software expenditures. That is a very positive scenario for Streamline Health going forward as we are now better positioned for improved operational and financial performance when the market begins to turn around."

"During the quarter," continued Mr. Patsy, "we secured a new hosting contract from a leading medical institution that will total approximately $1.0 million in revenues for one of our newest document workflow solutions. Our business process management (BPM) solutions will be instrumental in drivin
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SOURCE Streamline Health Solutions, Inc.
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