Enterprise management software microcap QHR Technologies (TSX-V:QHR) reported robust second quarter results this morning, thanks to a combination of good organic growth and the December 2009 acquisition of Clinicare.
The workforce management and medical records software provider chalked up record second quarter earnings of $5.1 million, up 90% from the corresponding quarter in 2009. The boost in revenues helped the company reported a seven fold increase in EBITDA (earnings before interest, tax, depreciation and amortisation) to $0.935 million, or 3 cents per share, and a second quarter EPS (earnings per share) of 1 cent ($0.308 million).
QHR also managed to cut total liabilities to $4.5 million from $7.6 million at the end of December, 2009, and additional reported that its current accounts receivables were $3.6 million – a record high for the company.
"2010 continues to be an impressive year of revenue growth for QHR. Q1 2010 was the first time QHR crossed the $4 million mark with quarterly revenue of $4.7 million. Now, one quarter later we've exceeded the $5 million mark with a record $5.1M. We are most pleased by the balance of organic growth from our core Accuro EMR product line and the revenue increase from the December 2009 Clinicare acquisition." stated Hildebrandt.
The company`s Electronic Medical Records ("EMR") division, which offers computer-based medical records for physicians, medical specialists and surgeons in Canada, represented approximately 67% of the second quarter revenue growth.
Not surprisingly, the substantial increase in revenues also accompanied higher costs. Selling and administrative expenses doubled in the second quarter to $1.43 million compared to the second quarter of 2009, but were actually $0.4 million lower than the first quarter of 2010, which were “unusually high”.
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