Navigation Links
Streamline Health Solutions, Inc. Reports Fourth Quarter Results

CINCINNATI, Ohio, April 9 /PRNewswire-FirstCall/ -- Streamline Health Solutions, Inc. (Nasdaq: STRM) today announced financial results for the fourth quarter and the fiscal year 2008, ended January 31, 2009.

Reflective of the Company's shift to the Software as a Service (SaaS) recurring revenue model, highlights of the fiscal year 2008 included:

  • SaaS-based hosting backlog increased to $13 million compared to $3 million at the end of the previous year; a 330% increase;

  • Total Company backlog increased 64% to $26.2 million;

  • The Company expects approximately 50% of the total backlog to be recognized as revenue in fiscal 2009;

  • The Company was awarded 10 new contracts during fiscal 2008 that added approximately $17 million to revenue and backlog over the life of those contracts, compared to 4 new contracts in fiscal 2007; 8 of the 10 new contracts were hosting contracts;

  • Recent cost reduction initiatives are generating in excess of $700 thousand in quarterly savings, exclusive of variable cost of sale expenses, capitalized software amortization and minor increases in headcount and operating expenses planned in fiscal 2009; and

  • The Company was cash flow positive for the fiscal year.

Revenues for the fourth quarter of 2008 were $3.4 million compared to $5.7 million in the fourth quarter in 2007, which benefited from a large system sale of nearly $1.9 million through one of the Company's remarketing partners. Net loss for the fourth quarter of 2008 was $146,000, or $(0.02) per fully diluted share, compared to net income of $776,000, or $0.08 per fully diluted share, in the fourth quarter of 2007.

During the fourth quarter of 2008, two new hosting contracts were signed and one existing application-hosting contract was renewed. These contracts expand the Company's backlog by approximately $1.1 million in future hosting revenues.

J. Brian Patsy, Chief Executive Officer of Streamline Health, commented, "We continue to make progress in strategically shifting our business toward our SaaS-based hosted model and the recurring revenue benefit that it will provide. During fiscal year 2008, we increased our backlog by 64 percent to $26.2 million. Based on all our contracts in place as of today, our anticipated recurring revenue, backlog fulfillment and scheduled professional services revenue for fiscal 2009 is in the $16 million to $17 million range, exclusive of any generated new business. We believe that the stage is now set for consistently improving operational and financial performance going forward. The trade-off in focusing on SaaS-based hosted model is giving up short-term revenue recognition in return for achieving long-term revenue visibility. While the challenges endured in 2007 and 2008 were significant and sometimes painful, as we executed this strategic shift, we believe that the more predictable nature of our business going forward justifies confronting those challenges.

"Furthermore," Mr. Patsy added, "we have signed another major new international contract, within the past 30 days, to implement our next generation workflow solutions at another large public sector health network in Canada. This is the second major contract obtained through our partnership with Telus Health - backed by Emergis. We are very excited about our expanding international opportunities through our Telus Health relationship, and we hope to announce specific details concerning this impressive win in the very near future.

"Looking ahead," Mr. Patsy continued, "the Obama Administration has prioritized the further development and rapid adoption of electronic health records (EHR) by hospitals and physician practices in order for those organizations to operate more effectively while cutting healthcare costs. The recently passed Stimulus Bill has earmarked up to $19 billion to dramatically increase health information technology investments throughout the entire healthcare industry. This bodes well for our business going forward as we anticipate greater demand and additional federally initiated sources of funding for health information technology investments by our clients and prospective clients. Our solutions are complementary to hospital organizations' plans for EHR adoption."

System sales for the fourth quarter of fiscal 2008 were $311,000, compared to $2.1 million in the fourth quarter of fiscal 2007. This decrease was primarily the result of a large system sale of nearly $1.9 million through one of the Company's remarketing partners being recognized during the fourth quarter of fiscal 2007. Due to recessionary pressures, a similar large system sale which was expected to occur during the fourth quarter of 2008 was postponed indefinitely by our potential new customer. For the full year, system sales increased to $3.2 million versus $3.0 million the previous year.

Services, maintenance and support revenues for the fourth quarter of 2008 were $2.5 million versus $2.7 million in last year's fourth quarter, a decrease of approximately $209,000, primarily as a result of delays in project management revenues. For the full year, services, maintenance and support revenues remained consistent at $10.1 million.

Application-hosting services revenues were $596,000 compared with $878,000 in the comparable quarter last year. This reduction in revenue was primarily due to the loss of a large hosted customer that built its own locally-installed solution and commenced operations in July 2008. For the full year, application-hosting service revenues were $2.9 million versus $3.5 million the previous year. Revenue from hosted customers signed in recent quarters will commence over the next few quarters and the Company expects that approximately 85% of the quarterly revenue attributable to that lost client will be replaced by the hosting contracts entered into in fiscal year 2008.

Revenues for fiscal year 2008 were $16.3 million, compared to $16.7 million last year; a decrease of 2%. The Company reported a net loss for the year of $1.4 million, or $(0.15) per fully diluted share, compared with a loss of $736,000, or $(0.08) per fully diluted share last year. During the year the Company was awarded 10 new contracts, eight of which were application-hosting contracts that added approximately $17.0 million to revenue and backlog over the life of those contracts. That compares with four new contracts, one of which was an application-hosting contract, won in fiscal 2007 that generated $6.8 million in combined revenue and backlog.

Throughout the year the Company aggressively managed operating expenses as it executed its shift away from license software transactions to SaaS-based hosted contracts. Additionally, during the third quarter of fiscal 2008 the Company further reduced expenses in order to offset some of the effects of the slower revenue ramp-up and up-front cash needs of the application-hosting model. These actions are expected to lower the Company's cost structure in fiscal 2009 in excess of $700 thousand per quarter exclusive of variable cost of sale expenses, capitalized software amortization, and planned minor increases in headcount and operating expenses planned in fiscal 2009.

Total backlog at the end of the year increased to $26.2 million, primarily as a result of the large increase in SaaS-based hosting services contracts throughout the year. This represents an increase in backlog of 64% or $10.2 million compared to the backlog at the end of fiscal year 2007 of $16.0 million.

Conference Call Information

The Company will conduct a conference call and web cast to review the results on Thursday, April 9 at 4:30 p.m. ET. Interested parties can access the call by dialing (877) 356-5706 or (706) 679-3820, 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 (800) 642-1687 or (706) 645-9291, access code 90553790, through April 11, 2009.

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 nationally, 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

                        STREAMLINE HEALTH SOLUTIONS, INC.

                                Three Months Ended       Fiscal Year Ended
                                   January 31,              January 31,
                                 2009       2008         2009         2008

       Systems sales         $311,139 $2,111,003   $3,249,270   $3,016,095
        and support         2,469,215  2,678,009   10,124,829   10,125,485
        services              595,856    877,967    2,911,559    3,543,067
          Total revenues    3,376,210  5,666,979   16,285,658   16,684,647

    Operating expenses:
       Cost of
        systems sales         705,459  1,097,288    3,327,944    2,904,077
       Cost of services,
        maintenance and
       Support                986,649  1,040,509    4,329,026    4,220,093
       Cost of application-
        hosting services      323,880    264,766    1,207,590    1,083,141
       Selling, general
        and administrative  1,322,142  1,717,199    6,503,465    6,048,214
       Product research
        and development       169,961    766,354    2,264,332    3,132,809
          Total operating
           expenses         3,508,091  4,886,116   17,632,357   17,388,334
    Operating profit (loss)  (131,881)   780,863   (1,346,699)    (703,687)
    Other income expense:
        Interest income            39      4,697        7,865       22,256
        Interest expense      (15,893)    (2,373)     (24,436)     (26,221)
        Other expense               -     (4,964)           -      (16,510)
    Earnings (Loss)
     before taxes            (147,735)   778,223   (1,363,270)    (724,162)
        Tax (provision)
         benefit                1,800     (2,400)     (11,700)     (11,400)
    Net earnings (loss)     $(145,935)  $775,823  $(1,374,970)   $(735,562)

    Basic net earnings
     (loss) per common share   $(0.02)     $0.08       $(0.15)      $(0.08)
    Diluted net earnings
     (loss) per common share   $(0.02)     $0.08       $(0.15)      $(0.08)

    Number of shares
     used in per common
      Share computation -
       basic                9,305,869  9,254,450    9,286,261    9,234,313
    Number of shares
     used in per common
      Share computation -
       diluted              9,305,869  9,334,038    9,286,261    9,234,313

                          STREAMLINE HEALTH SOLUTIONS, INC.


                                                              January 31,
                                                           2009         2008
                                                           ----         ----
    Current assets:
      Cash                                           $3,128,801   $2,189,010
      Accounts receivable, net of allowance for
       doubtful accounts of $100,000                  1,328,508    2,832,852
      Contract receivables                              502,373    1,833,842
      Prepaid hardware and third party software for
       future delivery                                  681,540      484,247
      Prepaid other, including prepaid customer
       maintenance contracts                            802,951      501,803
      Deferred taxes                                    247,000      185,000
            Total current assets                      6,691,173    8,026,754

    Property and equipment:
      Computer equipment                              2,475,928    2,235,104
      Computer software                               1,405,407    1,086,691
      Office furniture, fixtures and equipment          737,344      731,346
      Leasehold improvements                            574,257      574,257
                                                      5,192,936    4,627,398
      Accumulated depreciation and amortization      (3,625,408)  (3,153,675)
                                                      1,567,528    1,473,723
    Contract receivables                                321,500            -
    Capitalized software development costs, net of
     accumulated amortization of $8,311,760
     and $6,643,235, respectively                     6,481,360    4,878,694
    Other, including deferred taxes of $1,628,000
     and $1,690,000, respectively                     1,670,891    1,720,114
                                                    $16,732,452  $16,099,285

                      Liabilities and Stockholders' Equity

    Current liabilities:
      Accounts payable                                 $759,577   $1,518,682
      Accrued compensation                              299,000      536,599
      Accrued other expenses                            472,113      521,210
      Deferred revenues                               5,941,837    5,183,333
            Total current liabilities                 7,472,527    7,759,824

    Deferred revenues                                 1,313,977            -
    Line of credit                                      800,000            -
    Other                                                48,842      146,525
    Total liabilities                                 9,635,346    7,906,349

    Stockholders' equity:
      Convertible redeemable preferred stock,
       $.01 par value per share,
       authorized, 8,500 shares issued and
       outstanding (see above) 5,000,000
       shares authorized, no shares issued                    -            -
      Common stock, $.01 par value per share,
       25,000,000 shares authorized,
       9,354,782 and 9,260,320 shares issued,
       respectively                                      93,548       92,603
      Additional paid in capital                     35,820,417   35,542,222
      Accumulated (deficit)                         (28,816,859) (27,441,889)
            Total stockholders' equity                7,097,106    8,192,936
                                                    $16,732,452  $16,099,285

                         STREAMLINE HEALTH SOLUTIONS, INC.
                                                     Fiscal Year
                                                         2008         2007
                                                         ----         ----
    Operating activities:
      Net loss                                      $(1,374,970)   $(735,562)
      Adjustments to reconcile net loss to net
       cash provided by operating activities:
        Depreciation and amortization                 2,369,670    2,189,981
        Impairment loss on capitalized software
         development costs                              408,809            -
        Loss on sale of fixed assets                          -       16,510
        Share-based compensation expense                158,747      142,642
        Change in allowance for doubtful accounts             -     (100,000)
      Change in assets and liabilities:
        Accounts, contract and installment
         receivables                                  2,514,313     (373,060)
        Other assets                                   (498,441)    (440,620)
        Accounts payable                               (759,105)     899,320
        Accrued expenses                               (286,697)     111,555
        Deferred revenues                             2,072,481    1,489,665
      Net cash provided by operating activities       4,604,807    3,200,431

    Investing activities:
      Purchases of property and equipment              (794,950)    (715,053)
      Proceeds from disposal of property and
       equipment                                              -      138,775
      Capitalization of software development
       costs                                         (3,680,000)  (2,652,000)
      Other                                            (110,459)     (66,537)
      Net cash used in investing activities          (4,585,409)  (3,294,815)

    Financing activities:
      Proceeds from revolving credit facility         2,000,000            -
      Repayment of long-term debt and revolving
       credit facility                               (1,200,000)  (1,000,000)
      Payment of capitalized leases                           -     (147,051)
      Proceeds from exercise of stock options
       and stock purchase plan                          120,393      113,831
      Net cash provided by (used in) financing
       activities                                       920,393   (1,033,220)
      Increase (Decrease) in cash and cash
       equivalents                                      939,791   (1,127,604)
    Cash and cash equivalents at beginning of
     year                                             2,189,010    3,316,614
    Cash and cash equivalents at end of year         $3,128,801   $2,189,010
    Supplemental cash flow disclosures:
      Interest paid                                     $23,883      $27,832
      Income taxes paid (refund)                        $(3,278)      $9,202

At January 31, 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 $26,179,296 compared with $22,843,684, $17,691,139 and $15,315,390 at the end of the third, second and first quarter as follows:

                            January 31,  October 31,    July 31,     April 30,
                                  2009         2008        2008          2008
    Streamline Health
     Software Licenses      $1,027,454     $924,678   $1,980,874   $1,988,165
    Custom Software            278,416      322,584      348,584      335,250
    Hardware and Third
     Party Software            561,941      765,080    1,227,122    1,408,891
    Professional Services    4,691,309    4,964,910    5,295,629    5,189,164
    Application Hosting
     Services               13,042,472   12,895,837    4,604,815    2,355,997
    Recurring Maintenance    6,577,704    2,970,595    4,234,115    4,037,923
    TOTAL                  $26,179,296  $22,843,684  $17,691,139  $15,315,390

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

Related medicine news :

1. Leveraging Cloud Computing is the Latest Offering by ICG Consulting to Streamline Costs While Delivering Robust Business Process Solutions
2. Soarian Device Connect v2.0 Helps Streamline Vital Signs Collection Workflow at Greenwood Leflore Hospital
3. iMedica Launches Transition™, a New, Streamlined EHR That Breaks Down the Barriers to Physician Adoption and Use
4. Streamline Health to Announce Q4 and Fiscal Year 2008 Financial Results on Thursday, April 9, 2009
5. Spains Junta De Castilla y Leon Streamlines Benefits Delivery for Dependent Care With IBM ILOG JRules
6. Streamline Health to Deliver Hosted Document Workflow Solution to Leading West Coast University-Affiliated Surgery Department
7. Streamline Health Appoints Jay D. Miller to Board of Directors
8. Greenway Medical Technologies and Navicure Form Partnership to Streamline Claims Management Process
9. Covidien Canada Streamlines Integration and Processing of Fax-based Orders With GHX G-Fax(TM) Fax Conversion Service
10. AVG Anti-Virus and Walling Data Streamline Network Security for National Medical Supply Company
11. Michigan CardioVascular Institute Selects Sage Intergy EHR to Streamline Clinical, Workflow and Reporting Efficiencies
Post Your Comments:
(Date:10/13/2017)... ... ... Global Healthcare Management’s 4th Annual Kids Fun Run brought out many kids this ... by Global Healthcare Management’s CEO, Jon Letko, is aimed at getting kids excited about ... ages; it is a non-competitive, non-timed event, which is all about having fun and ...
(Date:10/13/2017)... ... 13, 2017 , ... Coveros, a leader in agile coaching ... contract by the Center for Medicare and Medicaid Services (CMS). The Enterprise Agile ... of Agile methodologies in a consistent and high value manner across CMS programs. ...
(Date:10/12/2017)... WILMINGTON, Del. (PRWEB) , ... October 12, 2017 ... ... technology and advisory services for healthcare compliance program management, will showcase a range ... and National Association for Assisted Living (NCAL) Convention and Expo to be held ...
(Date:10/12/2017)... WAUSAU, Wis. (PRWEB) , ... October 12, 2017 ... ... formulated standard products to meet the demand of today’s consumer and regulatory authorities ... team of probiotic experts and tested to meet the highest standard. , ...
(Date:10/12/2017)... ... ... Asante, a nationally recognized health system in southern Oregon, ... health joint venture through an agreement, effective October 1, 2017, to create AccentCare ... company with Asante, delivering clinically integrated care, for the past eight years. This ...
Breaking Medicine News(10 mins):
(Date:9/27/2017)... , Sept. 27, 2017  DarioHealth Corp. (NASDAQ: DRIO), a leading ... announced that its MyDario product is expected to appear on The Dr. ... The Dr. Oz Show airs in your area: ... The nine-time Emmy award-winning, The Dr. Oz Show ... The segment ...
(Date:9/23/2017)... Pa. , Sept. 22, 2017 Janssen ... a complete response letter from the U.S. Food and ... seeking approval of sirukumab for the treatment of moderately ... letter indicates additional clinical data are needed to further ... moderately to severely active RA. ...
(Date:9/19/2017)... HistoSonics, Inc., a venture-backed medical device company developing a non-invasive, robotically assisted, platform therapy that ... developments today:   ... ... Tom Tefft ... Veteran medical device executive Josh Stopek , PhD, who has led R&D and ...
Breaking Medicine Technology: