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Open EC Technologies, Inc. Reports Fiscal Quarter Ended March 31, 2012 Results With 432% Increase in Revenue(May 29, 2012)
NORTH VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/29/12 -- Open EC Technologies, Inc. ("Open EC" or the "Company") (TSX VENTURE:OCE) reported today the financial and operating results for the quarter ended March 31, 2012.
Highlights for the Quarter Ended March 31, 2012
Highlights of the financial performance during the quarter ended March 31, 2012 (Q3 2012) as compared to last year Q3 2011 quarter ended March 31, 2011 are as follows:
-- The Company increased Q3 revenues 73% to $597,482 for the quarter as compared to Q3 2011 revenues of $344,936. -- The EBITDA was ($142,700) for the quarter, compared to the EBITDA of ($44,905) last year Q3 2011. -- The Q3 2012 EBITDA ($142,700) improved by 55% over Q2 2012 EBITDA of ($222,213) -- Of the total revenue, 88% was Recurring Revenue, an increase of 716% over last year. -- The total Q3 recurring revenue increased 6% to $527,668 over Q2 recurring revenue of $498,084 -- Of the total revenue, $3,591 was Software License revenue, a decrease of $191,280 over last year. -- Of the total revenue 11% was Professional Services revenue, a decrease of 22% over last year. -- Contracts invoiced but not yet earned by the Company as at March 31, 2012 in the amount of $81,247 were not included in revenue. -- Gross Profit increased to $383,903 compared to last year of $191,512, an increase of $192,391. -- The company's assets decreased by 22% to $1,841,963 compared to last year end of $2,366,050 -- The Company continued to develop its business in the US health-care sector by increasing its HealthCare recurring revenue to approximately 77% of total revenue in the quarter.
Martyn Armstrong, CEO of Open EC States, "We are pleased with our overall Q3 Financial Results and in particular our strong growth of 716% in recurring subscription revenue contribution from our HealthCare business, the improving EBITDA measurement over Q2 2012, and reaching a quarterly record of 88% of Total Revenue that was recurring. The Company's Software Licencing Revenue reductions in the quarter are partly based on the increased focus on developing new products, Recurring Revenue contracts, and channel revenue partners. With the addition of several new HealthCare Software Partners, Billing Service customers, and with the execution of several strategic partner projects, we expect to continue to see strong growth in our recurring revenue business going forward. We are continuing to see an increase in new business opportunities driven by the US Government HealthCare reform mandate for industry adoption of the new HIPAA 5010 EDI Standards and ICD10 Medical Billing Coding standards. We are looking forward to more positive financial results in the US HealthCare sector as we continue to execute our aggressive business expansion strategy".
The revenues for the quarter were $597,482 with an EBITDA of ($142,700) as compared with revenues of $344,936, an increase of 73%, and an EBITDA of ($44,905) last year.
The reported net loss for the quarter ended March 31, 2012 was $276,097, compared to $67,494 last year, an increase of 309%. The increase in loss was primarily due to amortization of intangible assets and interest costs as a result of financing the purchase of i-Plexus and increase in general and administrative expenses.
The year to date revenues for the nine months ended March 31, 2012 were $1,860,596 with an EBITDA of ($441,604) as compared with revenues of $652,320, an increase of 185%, and an EBITDA of ($338,858) last year.
The company's available cash at March 31, 2012 was $50,754, a decrease of $396,631 from the June 30, 2011 balance of $447,385. The company's accounts receivable of $346,242 as at March 31, 2012 was up from $307,765 at June 30, 2011. The company's total liabilities decreased to $1,493,515 as at March 31, 2012 from $1,554,154 at June 30, 2011. Total working capital (total current assets less total current liabilities) as at March 31, 2012 decreased by 72% to ($488,415) from ($283,983) as at June 30, 2011.
The Company continued to develop its business in the US health-care sector and is rapidly increasing its recurring revenue. The Company has over 5,500 US Medical Physician and Billing Service customers under subscription revenue agreements which has increased Open EC's share of the HealthCare EDI and Revenue Cycle Management market in the United States.
The comparative financial statements for the quarter ended March 31, 2012, along with other information, may be obtained through the Company's website at www.openec.com or on SEDAR at www.sedar.com.
About Open EC Technologies, Inc.
Open EC Technologies is an e-Business Information Technology company with our corporate head office, marketing and development in Vancouver, BC, main HealthCare IT Solutions Operations office in San Antonio, Texas and Medical Practise Billing Operations office in Spring Hill, Florida. The company has software development and data center hosting operations in Maine, with Sales and Executive Management staff in Atlanta Georgia.
The Company's focus is to provide software solutions and transaction processing services to assist Physicians, Hospitals, Health Plans, Insurance Brokers and State Governments to exchange information for HIPAA EDI Health Plan Enrolment, Health Insurance Eligibility, Health Insurance Claims, Claim Payments and HealthCare Provider Collaboration of supporting patient referral and industry compliance/reporting documentation.
Additional product and solution information is available on the web at www.SoftCareHealthcare.com, www.iPlexus.net and www.softcare.com and additional public company information is available on the web at www.openec.com. The Company's common shares trade on the TSX Venture Exchange under the symbol: OCE.
ON BEHALF OF THE BOARD
Martyn A. Armstrong, President and CEO
Further information about the Company can be found on SEDAR (www.sedar.com) or by contacting Mr. Martyn A. Armstrong, President & CEO of the Company
This news release may contain forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Open EC Technologies, Inc.
Martyn A. Armstrong
President & CEO
(604) 983-8056 (FAX)
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