CINCINNATI, Aug. 26 Streamline Health Solutions,Inc. (Nasdaq: STRM), a leading provider of integrated document workflow andmanagement solutions, today announced its financial results for the secondquarter and first six months of fiscal year 2008 ended July 31, 2008.
For the second quarter revenues increased by 51% to $4.8 million comparedwith $3.2 million reported in the comparable quarter last year. The Companyreduced its net loss to $0.4 million, or ($0.05) per basic and diluted sharein the second quarter, compared with a net loss of $1.1 million, or ($0.12)per basic and diluted share in the second quarter of fiscal 2007.
During the second quarter Streamline Health announced four significant newcontracts with combined future revenues in excess of $5 million. Three ofthese new clients, Catholic Healthcare West, Marion General Hospital and theColumbus Public Health Vital Statistics Office are application-hostingservices agreements that are expected to start contributing monthly revenueslate in fiscal year 2008 or early in fiscal 2009. The fourth new client is theCompany's first international installation in Canada through its partnerEmergis Inc., a TELUS company, at the McGill University Health Center and theCentre hospitalier de l'Universite de Montreal. Backlog at the end of thequarter totaled $17.7 million compared to $15.3 million at April 30, 2008; a16% increase. The related products and services included in the backlog areexpected to be delivered over the next 12 to 36 months.
For the six-month period revenues increased by 21% to $8.4 millioncompared with $7.0 million reported in the comparable six months of last year.The Company reduced its net loss for the first six months to $1.2 million, or($0.13) per basic and diluted common share, compared with a net loss of $1.5million, or ($0.16) per basic and diluted common share in the first six monthsof last year.
Brian Patsy, president and chief executive officer of Streamline Health,commented, "We are pleased with the results of the quarter. The strongrevenue increases coupled with the significant improvement in our bottom-lineresults are in line with management's expectations. The addition of four newclients, two through our partners and two direct by our sales force, indicatewe are achieving significant traction with our sales and marketing initiativesso far this year. In addition, we are beginning to develop the type ofdistribution channel that will drive consistent sales growth in the comingmonths and years. In that regard, as we previously announced, Scott Boydenjoined Streamline Health in late June as Senior Vice President of Sales andMarketing with the responsibility of managing and directing all of our salesand marketing activities. We believe that under his leadership ourdistribution partners, as well as our in-house sales team, will become evenmore effective in penetrating the large and growing markets that our solutionscan address."
"We made significant progress," Mr. Patsy continued, "on advancing twoimportant strategic goals during the quarter: 1) to expand our operationsinternationally, and 2) to expand our market reach outside providerorganizations to the public health sector that have a need to manage andprocess documents that are fragmented across multiple locations. Our contractwith McGill University Health Center and the Centre hospitalier del'Universite de Montreal, through our distribution partner, Emergis, opens thedoor for future business in Canada, Europe, and Asia for our multi-languagedocument workflow solutions. Likewise, our contract with the Columbus (Ohio)Public Health Vital Statistics Office represents the first order in a largemarket segment that includes virtually all state, local and municipalgovernments throughout the U.S. We believe there are great opportunities aheadin both of these large markets."
Mr. Patsy concluded, "We