SOURCE: Net Medical Xpress Solutions, Inc.

August 08, 2013 08:30 ET

Net Medical Xpress Q2 '13 Revenue up 26% to $1.2M; Six Month Revenue Rises 28.9% to $2.4M; Six Month Net Income $54k

Company Remains Profitable in a Strong Quarter of Innovation and New Telemedicine Initiatives

ALBUQUERQUE, NM--(Marketwired - Aug 8, 2013) - Net Medical Xpress Solutions, Inc., (OTCQB: NMXS), an emerging leader in the rapidly growing telemedicine industry, announced today second quarter 2013 revenue was $1,206,000, a 25.6% gain over $960,000 reported in the second quarter of 2013. Net income was $1,000 or $0.00 per share versus a loss of ($12,000) in the second quarter last year.

For the first six months of 2013, revenue rose 28.9% to $2,427,000 from $1,883,000 compared to the first six months of 2012. Net income was $54,000 or $0.00 per share compared with a loss of ($35,000) in the first half of 2012.

Company Results
Solid gains were reported in the company's largest division, Net Medical Xpress Services, which provides medical diagnostic radiology and cardiology reading services. The division recorded approximately 81% of the company's revenue, or $973,000. Cardiology reading services gained 57.1% to $33,000.

Revenue from the Net Medical Xpress Specialists program rose 611% to $81,000. This division provides telemedicine services to hospitals and other medical service providers and employs credentialed specialists in the fields of neurology, cardiology, psychiatry, critical care, pulmonology and intensive care. The program facilitates accurate and rapid patient assessments through a video conferencing examination supported by the company's XR-EXpress, an FDA 510k cleared telemedicine management system.

Net Medical Xpress Solutions, which derives revenue from the development and marketing of proprietary Internet technology-based infrastructure, primarily in the medical services field, was up 3.5% to $116,000. This segment is expected to remain relatively constant in 2013 as the company's focus shifts more intensely to in-house purchasing of services from this business unit.

During the second quarter, the company:

  • Announced its Gold Seal program for mobile medical providers to offer hospitals a solution for minimizing patient re-admissions.

  • Formed a technology users group.

  • Acquired MedTel Solutions, a medical staffing company based in Huntsville, Al.

  • Launched home telemedicine services through a new incubator company in Albuquerque, Infinity Home Healthcare.

  • Signed an agreement with the University of New Mexico under which the University will provide expanded neuro-specialist and neuro-surgery coverage in New Mexico using Net Medical's emerging technology.

  • CEO Dick Govatski joined the Board of Doctors On Call Services (DOCS) Nigeria Ltd, opening the way for the company to expand its operations outside of the U.S. in the future.

  • Added multiple new hospitals and expanded modalities and other services provided by the company.

Comments by CEO Dick Govatski
CEO Govatski said, "What an amazing time for our company. This was an extraordinarily active quarter for Net Medical Xpress, with innovation in several telemedicine segments. Even while remaining profitable, we rolled out a number of important initiatives that should propel us forward into multiple areas of the rapidly growing telemedicine universe. We are fortunate that we have a strong proprietary technology platform that enables us to operate in a variety of telemedicine environments. The July 1 acquisition of MedTel was immediately cash flow positive and earnings accretive. We will see the benefit in our third quarter numbers.

"We recorded substantial gains in key areas of our company in the quarter with continuing growth in our Net Medical Xpress Services division serving the radiology and cardiology segments. We are pleased with the excellent early traction in our telemedicine cardiological services segment due to increased volume of reads. We are also pleased with the strong positive feedback we are getting from the doctors who are making great use of this new facility.

"The second half of 2013 is extremely promising with ongoing growth in both old and new segments. Our pipeline of new business continues to strengthen as awareness of the value of telemedicine and the ability of Net Medical to provide state-of-the-art services that significantly enhance the ability of physicians to help their patients from a distance. We believe the telemedicine opportunities for our company matched with our capabilities will provide us with profitable growth for years to come," Govatski said.

About Net Medical Xpress 
Net Medical Xpress is a medical services company that provides clinical and diagnostic programs using advanced telemedicine solutions for hospitals. The company has developed an FDA 510k-cleared and all-inclusive telemedicine management system with immediate applications for the preventative, comprehensive and critical healthcare segments. For more information, visit www.netmedical.com or www.nmxs.com or contact Dick Govatski, president and CEO, at 505-255-1999 or ceo@nmxs.com.

An investment profile on Net Medical Xpress may be found at http://www.hawkassociates.com/profile/nmxc.cfm. To receive future releases in e-mail alerts, sign up at http://www.hawkassociates.com/about/alert.

For more investor-related questions contact Frank Hawkins, Hawk Associates, at 305-451-1888 or Dick Govatski at 505-255-1999 (ceo@nmxs.com).

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.

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