Mediware® Increases Revenue and Earnings in Strong Third Quarter
New military health contracts and an acquisition add to growing backlog; conference call scheduled for today at 10:00 a.m. EDT, 9:00 a.m. CDT
LENEXA, KS May 3, 2011 - Mediware Information Systems, Inc. (Nasdaq: MEDW), a provider of comprehensive healthcare software solutions for blood, medication and performance management, reported total revenue of $13.8 million for the third quarter of FY 2011, an eight percent increase over the $12.8 million reported in the comparable quarter in fiscal 2010. Net income for the quarter increased to $1.4 million, a 57 percent increase from the $0.9 million reported in the comparable quarter of fiscal 2010.
Commenting on the quarter, Mediware president and chief executive officer, Thomas Mann, said: “New sales for our blood management product line drove very solid results for the quarter and I’m pleased with our overall performance. I believe we have the right mix of revenue, expense and investment to have a solid finish to the year.
“During the quarter we disclosed several new initiatives that will support our business in the future. These include multiple blood management contracts to support the Military Health System which we expect to combine for more than $10 million in software and services over the next two years. We also announced an additional acquisition to expand our Alternate Care Solutions product line and customer base. Together these actions represent momentum for our business and are expected to support revenue and earnings in future quarters.” Save
Among the quarter’s financial highlights:
• Total revenue of $13.8 million set a new quarterly revenue record.
• Operating income increased to $2.2 million compared to $1.3 in the year ago quarter.
• Earnings per share increased to $0.17 from the $0.11 reported in the year ago quarter.
• Cash increased to $30.1 million.
Other highlights announced during the quarter included:
• An October contract award to supply the Military Health System LifeTrak software and services for $4.3 million.
• A March contract award to supply the Military Health System HCLL Transfusion software for $5.8 million.
• The acquisition of the assets of CareCentric National, LLC for $3.0 million.
“An exciting component of our new military health contracts is the extent of the capabilities included in the contracts,” continued Mr. Mann. “In addition to licensing our core LifeTrak donor management system and HCLL Transfusion systems, the MHS will deploy our InSight performance management system as well as the KnowledgeTrak e-learning and compliance management system. Both of these products are the result of previous acquisitions and demonstrate the customer’s recognition of the importance of a broader blood management solution.”
The Company will host a teleconference at 10:00 am Eastern Time (9:00 am Central Time) that day to present the results. There will be a question-and-answer session directly following the presentation. To access the conference call discussing the company’s results, please call (866) 601-3860 (internationally use 706-643-4553). The conference ID for the call is 59010635.
A replay of the call will be available after the call’s completion for 5 days at 800-642-1687 (direct dial 706-645-9291). The conference ID required for accessing the playback is 59010635. After 5 days, the replay will be available in the investor relations section of the company’s website: www.mediware.com.
|Third Quarter Fiscal 2011
Operating Statement Highlights
(in thousands) (unaudited):
|Three Months Ended
|Nine Months Ended
|System Sales||$ 3,360||$ 2,525||$ 9,594||$ 7,739|
|Services||$ 10,414||$ 10,281||$ 29,953||$ 26,627|
|Total Revenue||$ 13,774||$ 12,806||$ 39,547||$ 34,366|
|Expenses||$ 11,546||$ 11,537||$ 33,573||$ 31,361|
|Operating Income||$ 2,228||$ 1,269||$ 5,974||$ 3,005|
|Net Income||$ 1,403||$ 891||$ 4,190||$ 2,293|
|Earnings Per Share - Diluted||$ 0.17||$ 0.11||$ 0.51||$ 0.29|
|Condensed Balance Sheet Highlights
(in thousands) (unaudited):
March 31, 2010
June 30, 2010
|Cash and Cash Equivalents||$ 30,101||$ 23,340|
|Working Capital||$ 24,632||$ 18,726|
|Stockholders’ Equity||$ 52,043||$ 46,700|
Mediware delivers interoperable best-of-breed software systems that integrate with electronic medical records to improve efficiencies and address safety concerns enabling healthcare organizations to improve care processes while decreasing costs. Core Mediware solutions include blood management technologies for hospitals and blood centers; medication management solutions for hospitals, behavioral health facilities, infusion and specialty pharmacy providers; and business intelligence-based performance management solutions for clinical, regulatory and financial aspects of the broader healthcare market. For more information about Mediware products and services, visit our web site at www.mediware.com.