SOURCE: Net Medical Xpress Solutions, Inc.

May 16, 2014 08:45 ET

Net Medical Xpress Announces Q1 Revenue of $1.27 Million; Net Loss of $9K Attributable to Increased Compliance Costs

ALBUQUERQUE, NM--(Marketwired - May 16, 2014) - Net Medical Xpress Solutions, Inc. (OTCQB: NMXS) announced today revenue of $1,271,000 vs. revenue of $1,221,000 in the first quarter of 2013. The Company reported a net loss of $9,000 or $0.00 per share versus net income of $53,000 a year earlier.

CEO Dick Govatski said, "Our year is off to a slower start than we originally anticipated as a result of compliance costs related to upgrading our own quality systems based on the Federal Drug Administration's Title 21, the Code of Federal Regulations. Fortunately much of this effort is behind us and we are hopeful costs associated with this effort will recede in the coming quarters.

"Net Medical Xpress Services, our largest operating segment, recorded a small revenue gain to $981,000 and operating income of $130,000. We experienced a net gain in image reads for cardiological services and a small decrease in reads for radiological customers.

"Specialist segment revenues were up on an increased volume of neurological customers offset by a decrease in hardware sales in this segment. Although we were disappointed in this result, we anticipate increases in revenue from this division during the year.

"Our Solutions segment revenues were down slightly but we expect results through the end of the year to be essentially flat against 2013 results. Our Staffing segment, acquired in the third quarter of 2013, produced revenue of $67,000 for the quarter versus no revenue a year ago."

About Net Medical Xpress Solutions, Inc:
Net Medical Xpress is a multi-faceted, FDA-regulated company with four operating segments, over 400 physicians under contract, 400,000 cases completed in 2013 and offices in three cities in the U.S. The company provides telemedicine programs for diagnostic and clinical medical services to mobile companies, urgent cares, hospitals, trauma centers, imaging centers, jails, nursing homes, corporate health departments and outpatient medical facilities. The company's proprietary, web-based XR-Express 510K FDA-cleared PACS is Net Medical Xpress foundation software, which enables medical providers to make real-time assessments of patients' conditions and treatment needs.

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