Healthscreen Solutions Inc.
TSX VENTURE : MDU

Healthscreen Solutions Inc.

January 31, 2006 18:47 ET

Healthscreen Announces 2005 Year End Results, Revenues Up 23%

ST. CATHARINES, ONTARIO--(CCNMatthews - Jan. 31, 2006) - Healthscreen Solutions Inc. (TSX VENTURE:MDU), a premier supplier of Electronic Health Records (EHR), announced today its fiscal results for the year ending September 30, 2005.

Consolidated revenues for 2005 grew by approximately 23% at $3,742,487 compared to $3,035,680 in the same period ending September 30, 2004. Revenue growth was attributable to an increase in the number of new clinics the Company operates and a higher number of patients treated at the facilities.

The Company generated positive operating cash flow of $233,802 which compares to $86,957 generated during the 2004 fiscal year, an increase of 169%. Net earnings for the period ending September 30, 2005 were ($246,074) or ($0.012) per share compared to ($185,554) or ($0.009) per share in fiscal 2004. Expenses increased to accommodate a rapidly growing business and higher payouts were implemented to attract and retain top physicians for the Company's family clinic divisions.

During the fiscal year 2005, Healthscreen embarked on an internal reorganization aimed at better positioning the company to take advantage of opportunities in the market place. The Company also revamped its sales and marketing processes to make them more responsive to the needs of the customer. For 2006, the Company believes developments in the industry, entry into new markets as well as the rationalization of clinic operations will have a positive impact on both revenues and bottom line results.

"We continue to watch developments in the market place particularly the establishment of new family health clinics and develop strategies to ensure that these groups view HS Practice™ as the product of choice for their respective practices," said Bruce Rosenberg, Healthscreen's CEO. "In order to facilitate this, we are continuously upgrading and differentiating product offerings from those of our competitors."

Over the years, Healthscreen has pursued a successful strategy of aggressive growth by acquisition in a highly fragmented market place. Consequently, the Company is a leading Canadian consolidator of physician software companies, a process promoted by virtue of its state of the art software. Currently Healthscreen is installed in over 1600 sites representing in excess of 5,000 physicians across Ontario.

The Company also announces the retirement of Jim French from the Board of Directors effective November 10, 2005. Jim served as a member of the board since October 31, 2000 and as an officer of the company as Vice President of Sales from 1998 to August 2005.

Jim's successor as VP of Sales is Wes Stonos who assumed the role in August 2005. Wes holds more than 15 years experience in the Information Technology sector at the executive level, specializing in sales and marketing of software solutions for both private and public companies.

Healthscreen has experienced five year revenue growth of 426% from 2000 to 2004 and an increase in sales of approximately 200% since mid 2005. The Company was recently recognized as one of the fastest growing technology companies in Canada making the Deloitte and Touche Technology Fast 500 list last November.

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

About Healthscreen Solutions Inc.

Healthscreen Solutions (www.healthscreen.com) was among the first Electronic Health Records (EHR) providers to create leading edge software that support digitalization and network connectivity solutions for a growing list of research groups and community physicians. The Company serves thousands of physicians and handles more than $1.5 billion in healthcare transactions a year. Healthscreen also operates 5 full service medical clinics that act as turn-key operations maximizing returns for physicians while enhancing patient care.

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.

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

Contact Information

  • Healthscreen Solutions Inc.
    Bruce Rosenberg
    President and CEO
    Toll Free: 1-800-567-5017
    or
    Healthscreen Solutions Inc.
    Wes Stonos
    Vice President of Sales
    Toll Free: 1-800-567-5017
    info@healthscreen.com
    www.healthscreen.com