LENEXA, Kan., Sept. 5 Mediware InformationSystems, Inc. (Nasdaq: MEDW) reported total revenue for the fiscal year endedJune 30, 2007 of $41.2 million compared to $37.9 million for fiscal 2006.Operating income was $2.5 million versus 3.0 million for the prior year. Netincome for the year just ended was unchanged from the previous year at $2.3million, or 28 cents per fully diluted share.
The Company recorded record revenue in 2007, due largely to salesassociated with the sunset of its two legacy blood bank products and themigration of clients to the Company's new blood management platform, HCLLTransfusion. While the blood management systems sales were strong, sales ofthe medication management suite of products were slower than anticipated.Despite the strong revenues, increased expenses limited the Company'searnings.
Commenting on the year, Chief Financial Officer Mark Williams said: "Theyear just ended is a high water mark for Mediware, with record revenue andsignificant achievements for our business. While increased expenses impactedour overall earnings, the recently announced consolidation of our threedivisions into a single business unit should streamline operations and improveour overall position."
The Company expects the consolidation to lower operational costs andimprove efficiencies permitting more investment in the blood and medicationmanagement product lines and to accelerate the growth of the Company's 'closedloop' strategy. Mediware's vision for closed loop clinical systems addressesseveral critical issues by providing clinicians a single data environment forall information relating to the prescribing, preparation, and administrationof drug or blood therapies. The Company's two primary product lines manageeach step of these therapeutic processes, from the ordering to thefulfillment, administration and documentation, providing care providers a"closed loop" process environment for blood and medication therapies. TheCompany believes this combination of clinical process support and technologysignificantly differentiates it from the industry's catalog and "best ofbreed" vendors.
"The fact is that a high percentage of all adverse drug and blood eventsthat occur in hospitals are rooted in activities performed outside of the fourwalls of the pharmacy and blood bank," said John Damgaard, Mediware's chiefoperating officer. "Our process-centric, integrated data environmentsseamlessly extend the discipline and controls of the pharmacy and blood bankto patient units, operating room suites, and other venues where adverse eventsoccur."
Following the close of the year, the Company announced several keydevelopments, including the resignation of CEO James Burgess and consolidationof divisions into a single operating structure. The consolidation, whichincluded the cessation of further investment into the perioperative market,will provide cost and efficiency benefits that will be realized in futurequarters in fiscal year 2008. On September 4, Mediware announced that Thomas(Kelly) Mann would become Chief Executive Officer.
A conference call to discuss fiscal year 2007 results and future plans isscheduled for today, Wednesday, September 5, 2007 at 10:00 am Eastern DaylightTime, 9:00 am Central Daylight Time. To participate in the teleconference,please call 800.896.8445 (International 785.830.1916) five minutes before thescheduled start in order to register for the call. A replay of the call willbe available for 10 days at 800.723.0607 (International 402.220.2658).
Mediware delivers powerful software solutions that encapsulate patientcare instructions, reinforce patient safety practices and improve efficienciesto lower costs. For blood medication management, Mediware offers specializedsolutions proven to improve operational effectiveness and clinical outcomes.Mediware customers include presti