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GAAP Revenues for the second quarter of fiscal 2007 were $3,203,215compared with $4,582,706 reported in the second quarter of last year. Inaddition to using GAAP results in evaluating the business, management alsobelieves it is useful to evaluate results using non-GAAP measures. Using anon-GAAP measure, the Company reported non-GAAP revenue of $4,303,215, whichincludes approximately $1.1 million in software licensing revenues andexcludes approximately $1 million in services and 3rd party componentscontracted for in the second quarter. This software licensing revenue can notbe recognized until such time as the site specific integration of our standardsoftware required by the customer can be completed.
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The Company incurred a GAAP operating loss of ($1,054,213) in the secondquarter, compared with an operating profit of $240,957 in the second quarterof last year. On a non-GAAP basis, to include the software licensing revenuesnoted above, the operating income for the quarter was $45,787.
The Company incurred a GAAP net loss of ($1,071,304) or ($0.12) per basicand diluted share in the second quarter, compared with net earnings of$214,727, or $0.02 per basic and diluted share in the second quarter of lastyear. On a non-GAAP basis, to include the software licensing revenues notedabove, the net earnings were $28,696, or $0.00 per basic and diluted share.
GAAP Revenues for the first six months of fiscal 2007 were $6,982,615compared with $8,431,129 reported in the first six months of last year. TheGAAP operating loss for the first six months of was ($1,500,926) compared withan operating profit of $169,514 in the first six months of last year. TheGAAP net loss for the first six months was ($1,514,616), or ($0.16) per basicand diluted common share, compared with net income of $134,849, or $0.01 perbasic and diluted common share in the first six months of last year.
Using a non-GAAP measure, the Company reported a non-GAAP net loss of($414,616) or ($0.04) per basic and diluted share, for the first six months offiscal 2007, compared to GAAP net income of $134,849, or $0.01 per dilutedshare, for the comparable period last year.
See "DISCUSSION OF NON-GAAP FINANCIAL MEASURES" below for furtherinformation on the Company's non-GAAP measures.
Second Quarter Highlights include:
-- The signing of a $2.1 million site license agreement for software andservices for our enterprise suite of solutions to include Health InformationManagement, Patient Financial Services and Administrative Services workflows.As a result of the signing of this agreement, approximately $2.1 million wasadded to our current backlog during the second quarter. (See backlog detailsat the end of this press release.)
-- The announcement of the signing of a new strategic business partneragreement with HERAE, LLC. HERAE (Healthcare Electronic Remittance AdviceExchange) provides a fully automated reconciliation platform that acceptsElectronic Funds Transfers and Electronic Remittance Advice directly frompayers. Streamline Health will combine its revenue cycle workflow and OpticalCharacter Recognition (OCR) solutions with HERAE's remittance processingsolution to offer Remittance Process Management(TM) services to healthcareproviders thereby streamlining healthcare financial services businessprocesses.
-- The listing of Streamline Health on the Fortune Small BusinessMagazine's list of America's fastest growing small companies for 2007.
Brian Patsy, Streamline Health's Chairman and Chief Executive Officer,stated, "An anticipated large contract was signed in the second quarter afterinor
