SOURCE: Net Medical Xpress Solutions, Inc.

August 12, 2014 08:45 ET

Net Medical Xpress First Six Months Revenue $2.45 Million; Company Focused on Building Telemedicine Infrastructure

ALBUQUERQUE, NM--(Marketwired - Aug 12, 2014) - Net Medical Xpress Solutions, Inc. (OTCQB: NMXS) announced today revenue for the first six months of 2014 of $2,445,000 vs. revenue of $2,427,000 in the first six months of 2013. The company reported a net loss of ($76,000) or $0.00 per share versus net income of $54,000 or $0.00 per share in the first six months of last year.

For the second quarter of 2014, the company reported revenue of $1,174,000 versus revenue of $1,206,000 in the second quarter of 2013. Net loss for the quarter was ($67,000) versus a gain of $1,000 in the second quarter of 2013.

CEO Dick Govatski said, "For the first six months of 2014, we recorded good growth in our Specialist division with revenue from Neurological Services up 63%. Cardiological services revenue in our Services Division rose 103% for the first six months but that gain was offset by slippage in our radiological services due to a decreased number of reads. Our largest slippage, however, was in our Staffing Division, which lost a major customer causing a significant fall off in revenue for that segment, which strongly affected our overall results.

"While it was disappointing to lose the account, we remain optimistic and upbeat about opportunities in the staffing area. We recorded new revenues in the Staffing Division in July and we are working to close additional new business there, which we intend to report in our third quarter results.

"We regard our Staffing segment as an important building block to our strategy for growth. The global telemedicine market grew from $9.8 billion in 2010 to $11.6 billion in 2011 and is forecast to almost triple to $27.3 billion by 2016, a compound growth rate of 18.6% over the next five years.

"Partially fueling this is more states are enacting laws allowing insurance reimbursement for various forms of telehealth. This reflects the increasing emphasis placed on reducing costs in an increasingly uncertain time in American healthcare and the important role that telemedicine is already playing. 

"Another contributing factor is the projected shortage of doctors in the U.S. in the coming years. An estimate by the Association of American Medical Colleges (AAMC) says the United States faces a shortage of 130,600 physicians by 2025. Telemedicine is key to making the most efficient use of physicians.

"Net Medical's Staffing division has recruited a sizable pool of physicians over the past two years. We have the qualifications and expertise to leverage this expertise. The market need is clearly there but our effort requires competent staffers recruiting on a full time basis. Building out this infrastructure is a serious investment for us, but I am confident it will pay off for this division and for Net Medical," Govatski said.

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 out patient 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.

For more information, visit or or contact Dick Govatski, president and CEO, at 505-255-1999 or

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This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the company's Forms 10-K and 10-Q filed with the SEC.

Contact Information

  • For investor-related questions contact
    Frank Hawkins
    Hawk Associates

    Dick Govatski