LENEXA, Kan., Nov. 6 Mediware InformationSystems, Inc. (Nasdaq: MEDW), a provider of ClosedLoop(TM) clinical systemsfor blood and medication management, reported total revenue for the firstquarter of fiscal year 2008 of $10,744,000 compared to $8,475,000 in thecomparable quarter in fiscal year 2007, an increase of $2,269,000, or 26.8percent. Operating income for the quarter ended was $832,000 versus $36,000for the prior year's quarter. Net income for the quarter was $463,000, or fivecents per fully diluted share, compared to net income of $164,000, or twocents per fully diluted share in the comparable quarter of fiscal year 2007.
"The quarter demonstrates continuing acceptance of Mediware's products andstrategies in the markets we serve," said Kelly Mann, Mediware's president andchief executive officer. "Our strong performance illustrates solid productadoption both with existing customers as well as at new facilities. We arepleased with the progress."
"We are very pleased with our contract with the State of Texas to licenseMediMAR for 11 of its behavioral health facilities," said Mann. "Thisdevelopment illustrates the product's capabilities in assisting largeenvironments to address their patient safety goals. It also demonstrates theincreasing market acceptance of our computerized bedside administration anddocumentation tools and the applicability of our ClosedLoop(TM) medicationmanagement strategy for behavioral health facilities."
The behavioral health or specialty care segment represents a large andgrowing market for Mediware's medication management systems. Behavioral healthhas the same medication safety pressures found in acute care facilities andcan benefit from Mediware's medication management product suite. Mediware'sapproach provides more tailored functionality and faster implementation thanmonolithic catalog solutions. Mann noted that, with Texas, more than half ofthe facilities licensed to use MediMAR provide behavioral health or specialtycare.
"A further positive development of the quarter is the large number of newcustomers that have adopted HCLL as their transfusion management platformfollowing the completion of our blood management sunset program on June 30,2007," Mann continued. "With 13 new facilities signed in the quarter, we areconfident in our ability to compete and win in the top tier of the market."
During the first quarter, Mediware also announced a consolidation ofbusiness operations to promote efficiencies and to focus the company onproviding 'ClosedLoop' solution suites that provide clinicians with one dataenvironment for the information relating to the prescribing, preparation, andadministration of drug and/or blood therapies. The process-centric integrateddata environments provided by Mediware's blood and medication managementsolutions seamlessly extend the discipline and controls of the pharmacy andblood bank to patient units, operating room suites, and other venues whereadverse events may occur.
Following the close of the quarter, on October 31, 2007, Mediwarecompleted the acquisition of substantially all of the assets of IntegratedMarketing Solutions, a Baltimore, MD-based provider of software products andservices that enable blood and plasma donation centers to improve donorrelationship management with powerful web-based tools. In the transaction thatwas announced, Mediware's purchase agreement includes a cash payment ofapproximately $5.5M with an additional earn-out opportunity based onoperational performance.
The IMS software and services address the competitive nature of the bloodsupply market by enabling blood and plasma collection facilities withautomated and online software to better manage relationships with donors,staff and hospitals.
"The addition of IMS extends Mediware's vision for delivering ClosedLoopmanagement of the blood supply by adding key donor relat