Healthscreen Solutions Inc.
TSX VENTURE : MDU

Healthscreen Solutions Inc.

January 14, 2008 08:50 ET

Healthscreen Announces FYE and Fourth Quarter 2007 Results

TORONTO, ONTARIO--(Marketwire - Jan. 14, 2008) - Healthscreen Solutions Inc. (TSX VENTURE:MDU) ("Healthscreen" or the "Company") a premier supplier of electronic medical record (EMR) software and practice enhancing services, is pleased to announce its fiscal year 2007 and fourth quarter results for the period ending September 30, 2007.

For the 2007 fiscal year, Healthscreen's consolidated revenues increased 82% to $2.9 million when compared with $1.6 million for the corresponding period ending September 30, 2006. Of the increase, approximately 29% represents organic growth from the Software segment, while the remaining 53% increase is attributed to the Services segment, which is a direct result of the May 2007 acquisition of Medical Telecom Corporation ("MTC").

Expenses for the year ended September 30, 2007 were $4.5 million, compared to $1.8 million in the prior year. This represents a significant increase of 152%, which is predominantly due to the acquisitions of MTC and the MD-4000 software suite, as well as the integration costs associated with these acquisitions.

The bottom line result for the fiscal year was a net loss of $1.7 million, which includes a net loss of $0.243 million from discontinued operations, resulting from the divestiture and closure of the Company's walk-in clinics. While this represents a significant decline over the result posted for the comparative 2006 period which showed a loss of $0.407 million ($0.224 million from discontinued operations), the decline is due to acquisition and integration costs, and the additional expenses incurred in order to prepare for further growth.

In the fourth quarter (the first full quarter since the MTC acquisition), revenues were $1.41 million, compared to $0.350 million in the same quarter of 2006. The Corporation reported a net loss of $0.731 million in the quarter, or $0.013 per share, compared to $0.350 million, or $0.017 per share in the same quarter of 2006.

"Fiscal Year 2007 will be remembered as a pivotal year in Healthscreen's history, as a number of steps were taken to develop a comprehensive suite of practice enhancing services - a value proposition unmatched by our competitors in the EMR industry.," said Justin Belobaba, President and CEO of Healthscreen. "In only five months of applying our services up-sell strategy, we drove Average Annualized Revenue per Doctor from $533 in September 2006 to $2,025 in September 2007, while launching new products and services that have allowed physicians to provide a higher quality of care to hundreds of thousands of Ontarians."

Mr. Belobaba continued, "In 2008, our team will maintain its commitment to developing more "practice enhancing" services, while strengthening our ties within the medical community. While organic growth will remain the key driver for Healthscreen, we will also continue to seek strategic acquisitions to grow our customer base across Canada."

A copy of the complete financial results is posted on SEDAR at www.sedar.com.

About Healthscreen Solutions Inc.

Healthscreen Solutions (www.healthscreen.com) offers a comprehensive suite of practice enhancing products and services designed to increase physician revenues, reduce costs and improve patient care. The Company's robust OHIP billing and patient scheduling software is used by over 4,000 full-time physicians and handles more than $1.5 billion in healthcare transactions a year.

Healthscreen's Electronic Medical Record (EMR) software supports digitalization and network connectivity for community specialists and family physicians plus a growing list of research groups. The Company's broader goal of Continuous Practice Enhancement is being further realized with a growing list of revenue-generating services such as CallerMD, which assists doctors in managing a range of uninsured medical services and PrevCareMD which allows doctors to maximize government-funded preventive care bonuses.

Disclaimer:

Statements in this release that are forward looking involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to be materially different from any future performance that may be suggested in this release. The company assumes no obligation to update any forward-looking statements contained in this release. Trading in the securities of Healthscreen should be considered highly speculative.

The TSX Venture Exchange has in no way approved nor disapproved the contents of this new release.

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