SOURCE: Net Medical Xpress Solutions, Inc.

November 14, 2013 08:55 ET

Net Medical Xpress Q3 '13 Revenue Up 27% to $1.2M, Nine Month Revenue Rises 28% to $3.6M, Nine Month Net Income $66k

Profitability, Strengthened Balance Sheet Underscore Solid Revenue Growth

ALBUQUERQUE, NM--(Marketwired - Nov 14, 2013) - Net Medical Xpress Solutions, Inc. (OTCQB: NMXS), an emerging leader in the rapidly growing telemedicine industry, announced today third quarter 2013 revenues were $1,229,000, a 27.4% gain over $965,000 reported in the third quarter of 2013. Net income was $12,000 versus a loss of ($18,000) in the third quarter last year.

For the first nine months of 2013, revenue rose 28.4% to $3,656,000 from $2,847,000 compared to the first nine months of 2012. Net income was $66,000 compared with a loss of ($54,000) in the first nine months of 2012.

Company Results
Net Medical Xpress Services, the company's largest operating unit, which provides medical diagnostic radiology and cardiology reading services, reported revenue of $911,000, a 10.3% gain over the previous year. For the first nine months, division revenue was up 16.3% to $2,863,000.

The company benefited from initial results from the new staffing division that was acquired at the end of the second quarter. As anticipated, the addition of the unit was accretive, adding revenue in the third quarter of $101,000 and operating income of $25,000.

Revenue from the Net Medical Xpress Specialists segment rose 269% to $118,000. 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. For the first nine months, the division was up 397% to $348,000.

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 $99,000 versus $107,000 a year earlier. For the nine months, revenue was up 9% to $344,000.

Comments by CEO Dick Govatski
CEO Govatski said, "This was another quarter of solid progress for our company. Business was good in most of our operating segments with our Services Division the main driver but with ongoing improvement in our Specialists operation. We also benefited from the addition of our staffing company that we acquired at the end of the second quarter. These gains were further reflected in our strengthened balance sheet that showed strong improvements in cash, current assets and total assets. This also included a decrease in accounts receivable and a much improved cash position.

"I am pleased that although we have invested aggressively in new technology and services, we have remained profitable. The roll out of our new WebRTC (Real Time Communications) telemedicine conferencing tool is drawing strong interest from multiple sources and potential new customers. This bodes well for our future. Our new RTC Switch will greatly facilitate doctor-patient and hospital ER/ICU communications. The ability of healthcare providers to use the iPhone, iPad, Mac and PC for telemedicine is important because it will ultimately help millions of patients while trimming healthcare costs. This is a new version of the house call that will work well for patients and enable doctors to provide better care to more patients, an important issue in modern medicine. The receiver version is already available in the Apple App Store.

"In addition, the University of New Mexico has agreed to provide expanded neuro-specialist and neuro-surgery coverage in New Mexico using our technology. This arrangement will materially expand the usage of our telemedicine program in rural hospitals statewide in New Mexico. There are approximately 25 rural hospitals in New Mexico with limited specialist availability. This partnership will help alleviate that shortage. The University of New Mexico will provide additional physician services to help rural hospitals with optional educational training, stroke certification and quality assurance programs. Our hardware, software and services will be a key factor in the success of UNM's stroke intervention outreach.

"Clearly, our company has never been stronger. Not only are we financially stronger, but the pipeline of new business continues to expand, providing us with promising opportunities. We look forward to sharing those with you in the coming months," Govatski said.

On Tuesday, November 19th, the company will host a video conference call for investors at 10:00 mountain time. CEO Dick Govatski will be joined by the Net Medical board of directors to answer questions and review the company's third quarter results. The link to see the presentation is http://nmxs.adobeconnect.com/nmxs. Sign in as a guest. Type in your name and "Enter Room." To participate and ask questions during the Q&A portion of the meeting, dial 855-213-1099 from any phone.

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.

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 more investor-related questions contact

    Frank Hawkins
    Hawk Associates
    305-451-1888

    or

    Dick Govatski
    505-255-1999
    ceo@nmxs.com