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Streamline Health Solutions, Inc. Reports Third Quarter Results
Date:12/15/2008

th the intent of consistently increasing our base of recurring revenue in order to provide an enhanced level of predictability and visibility to our business. Year-to-date we have generated eight total new contracts, six of which are application-hosting contracts and two are license purchase transactions. We will begin to feel the recurring revenue benefit of those contracts in the next couple of quarters. I believe that all of our stakeholders - investors, customers and employees - will benefit from knowing that we will start each year, and each quarter, with a substantial base level of revenue that we expect to build upon."

Mr. Patsy continued, "We have also taken aggressive steps to right-size the Company for the shift to a more applications-hosted model. We have reconfigured our sales force and made quarterly cost reductions of approximately $800,000 going forward. Additionally, our recent contract win at Massena Memorial Hospital in upstate New York is an important development. We believe that the opportunity to integrate our hosted solution into the MEDITECH MAGIC Health Information System of Massena Memorial is of strategic importance as we continue to expand our efforts to serve the small- to medium-sized hospital market place with affordable, hosted solutions that create value. We are pleased with the progress that was achieved during the third quarter, and throughout the fiscal year to this point."

System sales for the quarter were $1.3 million, compared to $41,000 in the comparable quarter of last year. This increase was primarily the result of a large system sale of nearly $1 million, including software and third party component software, through one of the Company's remarketing partners.

Services, maintenance and support revenues for the quarter were $2.5 million versus $3.0 million in the comparable period last year, primarily as a result of delays in project management revenues this year,
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SOURCE Streamline Health Solutions, Inc.
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