SOURCE: OPTIMIZERx

OptimizeRx

November 12, 2015 16:00 ET

OptimizeRx Corporation Reports Record Third Quarter 2015 Results

Strategic Investment by WPP and Expanded Partnership With Allscripts Supports Continued Growth and Profitability Into 2016

ROCHESTER, MI--(Marketwired - November 12, 2015) - OptimizeRx Corp. (OTCQB: OPRX), a software company whose premier content-delivery platform enables pharmaceutical companies to provide on-demand patient-care services, reported results for the third quarter ended September 30, 2015.

Q3 2015 Highlights

  • Record quarterly net revenue of $2.0 million, up 10% vs. year-ago quarter.
  • Achieved profitability, with net income of $88,000, as opposed to a loss of $295,000 in the year-ago quarter.
  • WPP, the largest marketing services company in the world, acquired a minority interest in OptimizeRx for $4.7 million. WPP will assist OptimizeRx in acquiring more brands by leveraging its expansive network of pharmaceutical clients it provides marketing services to. In addition, WPP and OptimizeRx will co-develop new platforms to deliver vital information to physicians and patients, and help expand the electronic health record (EHR) network.
  • Expanded exclusive partnership with Allscripts Healthcare Solutions, a global leader in healthcare information technology solutions, to automate voucher and copay savings support within its Touchworks® EHR platform.
  • Grey Healthcare Group, a subsidiary of WPP, CEO Lynn Vos joined OptimizeRx's board as a director and is leading the relationship between OptimizeRx and WPP, the largest marketing services company in the world with 3,000 offices and 170,000 associates.

Q3 2015 Financial Summary
Net revenue in the third quarter of 2015 increased 10% to a record $2.0 million from $1.8 million in the same year-ago quarter. The increase was due to both increased promotion of pharmaceutical brands and expanded distribution channels.

Operating expenses were $0.9 million in the third quarter of 2015, as compared to $1.2 million in the same year-ago quarter.

Net income was $88,000, as compared to a loss of $295,000 in the same year-ago quarter.

Cash and cash equivalents totaled $8.2 million as of September 30, 2015, as compared to $3.4 million as of December 31, 2014, and the company continues to operate debt-free. The increase in cash and equivalents was primarily due to the strategic investment of $4.7 million by WPP, and the company also generated positive cash flow from operations of approximately $0.5 million.

First Nine Months 2015 Financial Summary
Net revenue in the first nine months of 2015 increased 15% to a record $5.2 million from $4.5 million in the same year-ago period.

Operating expenses decreased to $2.7 million as compared to $3.5 million in the same year-ago period. The decrease was primarily due to a $400,000 legal settlement that occurred in the year-ago period, as well as the reduction in stock-based compensation.

Net loss totaled $180,000 or $(0.01) per share, as compared to a loss of $1.3 million or $(0.05) per basic share in the same year-ago period.

Management Commentary
"During the third quarter, we achieved record revenue and attained profitability through continued progress in both segments of our business," said David Harrell, CEO of OptimizeRx. "This included adding new brands to our channel and expanding agreements with pharmaceutical companies who are looking for new ways to market their products and reach doctors and patients at 'point-of-prescribe.'

"We expanded our networks with Allscripts to work with us exclusively to manage their patient savings across all of their EHR platforms, including their largest platform, Touchworks, which will be integrated in 2016," continued Harrell. "With Allscripts, we now are the exclusive delivery platform for more than 200 EHRs, with this exclusivity representing about two thirds of our network. This will insure our leadership as innovators in the space and provide key competitive barriers to entry.

"OptimizeRx has now created the largest network of its kind, with promotional programs incorporated into more than 350 leading EHRs and engaging more healthcare providers at 'point-of-prescribe' than any other network. This broad market reach and exclusivity provides a substantial competitive barrier to entry.

"We anticipate our deeper relationship with GHG/WPP and their investment to help expand our point-of-care EHR promotional network and service offerings, increase the number of participating brands, as well as enhance our management and infrastructure. Through this relationship, we now have access to virtually every pharmaceutical company in the world. As announced today, we appointed David Smith as VP of Client Services to leverage this relationship and focus on monetization strategies. In all, we see this key partnership supporting our continued growth and profitability in the current quarter and beyond."

Conference Call
OptimizeRX will host a conference call today to discuss the third quarter of 2015, followed by a question and answer period.

Date: Thursday, November 12, 2015
Time: 4:30 p.m. Eastern time (2:30 p.m. Mountain time)
Toll-free dial-in number: +1 (888) 539-3612
Toll dial-in number: +1 (719) 457-2664
Conference ID: 568874

A replay of the call will be available through December 3, 2015.

Replay number: +1 (719) 457-0820
Replay ID: 568874

The company expects to file its quarterly report on Form 10Q today.

About OptimizeRx Corp
OptimizeRx Corporation (OTCQB: OPRX) provides unique consumer and physician platforms to help patients better afford and comply with their medicines and healthcare products, while offering pharmaceutical and healthcare companies effective ways to expand awareness, access and adherence to their medications.

Our core product, SampleMD, replaces drug samples with electronic trial vouchers and copay coupon savings that are electronically added to an e-Prescription and sent electronically to the pharmacy and is integrated within leading Electronic Health Record (EHR) platforms in the country, including Allscripts, Quest Diagnostics, Practice Fusion and over 350 other EHRs to reach over 250,000 healthcare providers. In turn, we promote patient savings and support from the world's largest pharmaceutical companies, including Pfizer, Lilly, Novartis, AstraZeneca and many others. For more information, please go to www.optimizerxcorp.com.

Important Cautions Regarding Forward Looking Statements
This press release contains forward-looking statements within the definition of Section 27A of the Securities Act of 1933, as amended and such section 21E of the Securities Act of 1934, amended. These forward-looking statements should not be used to make an investment decision. The words 'estimate,' 'possible' and 'seeking' and similar expressions identify forward-looking statements, which speak only as to the date the statement was made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks.

  
  
OPTIMIZERx CORPORATION 
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) 
AS OF SEPTEMBER 30, 2015 AND DECEMBER 31, 2014 
          
   September 30, 2015   December 31, 2014  
ASSETS         
Current Assets           
 Cash and cash equivalents  $8,174,409   $3,446,973  
 Accounts receivable   2,740,104    2,100,381  
 Prepaid expenses   86,796    28,093  
Total Current Assets   11,001,309    5,575,447  
Property and equipment, net   10,104    12,813  
Other Assets           
 Patent rights, net   889,184    930,854  
 Web development costs, net   414,066    504,643  
 Security deposit   5,049    5,049  
Total Other Assets   1,308,299    1,440,546  
TOTAL ASSETS  $12,319,712   $7,028,806  
            
LIABILITIES AND STOCKHOLDERS' EQUITY           
Current Liabilities           
 Accounts payable - trade  $174,924   $200,372  
 Accounts payable - related party   570,000    570,000  
 Accrued expenses   45,005    25,459  
 Revenue share payable   1,996,969    1,502,761  
 Deferred revenue   293,112    120,130  
 Total Liabilities   3,080,010    2,418,722  
Stockholders' Equity           
 Common stock, $.001 par value, 500,000,000 shares authorized, 29,018,425 and 22,867,319 shares issued and outstanding, respectively   29,018    22,867  
 Preferred stock, $.001 par value, 10,000,000 shares authorized, no shares issued and outstanding   -    -  
 Stock warrants   2,342,645    2,153,295  
 Additional paid-in-capital   32,075,631    27,595,609  
 Stock payable   1,132,148    963,063  
 Deferred stock compensation   (34,500 )  -  
 Accumulated deficit   (26,305,240 )  (26,124,750 )
Total Stockholders' Equity   9,239,702    4,610,084  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $12,319,712   $7,028,806  
  
  
  
OPTIMIZERx CORPORATION 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) 
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2015 AND 2014 
  
   For the Three Months Ended   For the Nine Months Ended  
September 30   September 30  
   2015  Restated 2014   2015   Restated 2014  
                 
NET REVENUE  $2,007,409  $1,819,421   $5,200,419   $4,535,657  
                     
COST OF SALES   1,044,415   958,334    2,683,183    2,249,885  
                     
 GROSS MARGIN   962,994   861,087    2,517,236    2,285,772  
                     
OPERATING EXPENSES   875,425   1,155,933    2,698,694    3,542,680  
                     
 INCOME (LOSS) FROM OPERATIONS   87,569   (294,846 )  (181,458 )  (1,256,908 )
                     
OTHER INCOME (EXPENSE)                    
 Interest income   368   303    968    632  
                     
 TOTAL OTHER INCOME (EXPENSE)   368   303    968    632  
                     
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES   87,937   (294,543 )  (180,490 )  (1,256,276 )
                     
PROVISION FOR INCOME TAXES   -   -    -    -  
                     
NET INCOME (LOSS)  $87,937  $(294,543 ) $(180,490 ) $(1,256,276 )
                     
WEIGHTED AVERGE NUMBER OF SHARES OUTSTANDING                  
                   
 BASIC   23,259,837   23,362,377    23,060,787    21,089,514  
 DILUTED   24,348,551   N/A    N/A    N/A  
                     
NET INCOME (LOSS) PER SHARE                    
                     
 BASIC  $0.00  $(0.01 ) $(0.01 ) $(0.05 )
 DILUTED   0.00  $N/A    N/A    N/A  
                     

Contact Information

  • Company Contact:
    OptimizeRx
    Doug Baker
    Email contact248-651-6568 x807

    Investor Relations Contact:
    Liolios Group
    Ron Both
    Senior Managing Director
    Email contact949-574-3860