CINCINNATI, May 19 Streamline Health Solutions,Inc. (Nasdaq: STRM), today announced the financial results for the firstquarter of fiscal year 2008 ended April 30, 2008.
Revenues for the first quarter were $3.6 million, compared with $3.8million in the first quarter of fiscal year 2007. The Company reported a netloss of $814,662, or $(0.09) per fully diluted share, compared with a net lossof $443,312, or $(0.05) per fully diluted share in the first quarter of theprevious year.
Professional services revenues increased by 43% as we began to installseveral systems from our backlog. The Company expects professional servicesrevenues to continue to increase in the coming quarters. As expected, therewas one major system sale that closed during the first quarter of 2008;however, it did not impact revenues, as this transaction involves the futuredeliverable of multi-language capabilities. We anticipate an announcementregarding this major system sale sometime within our second quarter. As aresult of the deferral of the software license revenue for this transaction,software license sales were lower. The comparable quarter last year includedsoftware license revenue of approximately $300,000.
During the quarter the Company expanded its direct sales force and addedtwo new Account Executives in order to more fully develop our reach within thehospital information technology market and compliment the sales achievedthrough our two primary distribution partners. The hiring of these additionalpersonnel brings to nine (9) the numbers of sales professionals in theCompany's direct sales force, which is supported by an additional eight (8)sales support personnel. The Company also continues to pursue the expansion ofour solutions to address the document management and workflow requirements inother market segments such as state and local governments.
Brian Patsy, president and chief executive officer of Streamline Health,commented, "We are pleased with the results of the quarter as they were in-line with our expectations. Historically, the first two quarters of our fiscalyear are not the strongest quarters primarily because software licensepurchases traditionally tend to skew toward the end of the year, and theresults of this quarter certainly reflected that pattern."
"However, looking ahead, we are beginning to see indications, inconjunction with our distribution partners, that a number of system sales tonew customers will close during the second quarter and subsequently have abeneficial impact to our first half results. We continue to be very pleasedwith the relationships that we have with our primary distribution partners, GEHealthcare and Emergis. They are doing a great job at proposing andintegrating our workflow solutions into the systems they install for theircustomers. We could not have a better set of partners."
"As it relates to product development, we continue to invest in anarchitecture platform that enhances the capabilities of our solutions toseamlessly integrate into the healthcare enterprise," continued Mr. Patsy."The first version of our next generation architecture, which includes six keyarchitectural elements, has been completed, and we are currently buildingmultiple workflow solutions on this new architectural platform. The first ofthese workflow solutions, Financial Screening Workflow(TM), is complete and isin Beta testing with our Beta partner. Later in the year we expect tointroduce an upgraded version of our flagship "accessANYware(TM)" system thatwill provide greater functionality, and will eventually feature multi-languagecapabilities as early as fiscal year 2009. This will be critical in expandinginto international markets in the coming years."
Mr. Patsy concluded, "In addition to enabling the linkage of documentswith clinical, financial and administrative systems within the healthcareenterprise, we expe