QHR Technologies Inc.

QHR Technologies Inc.

August 06, 2008 11:37 ET

QHR Announces Second Quarter Results

KELOWNA, BRITISH COLUMBIA--(Marketwire - Aug. 6, 2008) - QHR Technologies Inc. ("QHR" or the "Company") (TSX VENTURE:QHR) announced today the release of its interim financial statements for the three months ended June 30, 2008.


- Revenue for the second quarter ended June 30, 2008 was $1,515,677
compared to $1,321,813 for the corresponding quarter last year, an
increase of 15%.
- Year-to-date revenue was $3,187,110 compared to $2,611,764 last year, an
increase of 22%.
- Recurring revenue for the quarter was 66% of total revenue compared to 50%
for the corresponding quarter last year.
- EMR division revenue for the quarter increased 118% to $508,543 compared
to $233,298 in 2007.
- Earnings for the quarter were $11,032 compared to $21,333 last year.
- Year-to-date earnings were $138,020 compared to $38,796 last year.
- Cash on hand at June 30, 2008 was $1,357,053 compared to $493,405 at
December 31, 2007.
- Working capital before deferred revenue at June 30, 2008 was $2,166,706
compared to $1,073,336 at December 31, 2007.


2008 2007 2008 2007
Revenue 3 months 3 months % increase 6 months 6 months % increase
HR division $1,007,134 1,088,515 (7%) 2,168,765 2,162,607 0%
EMR division 508,543 233,298 118% 1,018,345 449,157 127%
revenue $1,515,677 1,321,813 15% 3,187,110 2,611,764 22%

Recurring 2008 2007 2008 2007
revenue 3 months 3 months % increase 6 months 6 months % increase
HR division $538,504 502,762 7% 1,029,731 989,031 4%
EMR division 463,366 156,908 195% 898,899 369,741 143%
revenue $1,001,870 659,670 52% 1,928,630 1,358,772 42%
% of total
revenue 66% 50% 61% 52%

Revenue of the HR division was $1,007,134 for the quarter, a decrease of 7% over the same quarter last year. Year-to-date revenue for the division was slightly ahead of last year. The Company has experienced some delays in buying decisions by health regions; for example, Alberta has recently announced a restructuring of its health regions and has temporarily frozen new IT purchases.

Revenue of the EMR division increased by 118% and was $508,543 for the quarter compared to $233,298 in 2007. The acquisition of National Medical Solutions Inc. ("National") in the third quarter of 2007 accounted for approximately 65% of the increase with the balance coming from organic growth.

Net earnings for the Company for the second quarter were $11,032 compared to $21,233 last year. The EMR division recorded net earnings before corporate expenses of $63,336 for the second quarter compared to a net loss of $97,142 last year. For the year-to-date, earnings of the Company were $138,020 compared to $38,796 last year, with the EMR division contributing $101,190 before corporate expenses, compared to a loss of $234,903 last year reflecting the beneficial impact of the National acquisition. Corporate expenses are the costs of the parent company that includes the costs of running a public company as well as senior management salaries.

QHR provides integrated human resource management, payroll and staff scheduling ("HR") software systems for the healthcare and social services sector, and electronic medical records ("EMR") applications for physicians' medical offices. For a more complete business and financial profile of the Company, management encourages interested parties to visit the Company's website, www.QHRtechnologies.com.

On behalf of the Board of Directors

Al Hildebrandt, President and CEO

Legal Notice Regarding Forward Looking Statements

This news release may contain "forward looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements are indicated expectations or intentions. Results from operations in any given period are not necessarily indicative of results to be expected in future periods. QHR is a technology business development enterprise where investment; various trends and factors in the marketplace; and product enhancements must be carefully managed to achieve long-term revenue growth and profitability. These statements are subject to risks that may cause the actual results to be materially different in future periods from those expressed or implied by such forward looking statements.

Further risk information on the Company is available at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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