QHR Technologies Inc.

QHR Technologies Inc.

April 21, 2008 10:26 ET

QHR Announces Continued Growth and Profitability

KELOWNA, BRITISH COLUMBIA--(Marketwire - April 21, 2008) - QHR Technologies Inc. ("QHR" or the "Company") (TSX VENTURE:QHR) announced today the release of its interim financial statements for the three months ended March 31, 2008. QHR provides integrated human resource management, payroll and staff scheduling ("HR") software systems for the healthcare and social services sector, and electronic medical records ("EMR") applications for physicians' medical offices.


- Revenue for the first quarter ended March 31, 2008 was $1,671,433 compared to $1,289,951 for the corresponding quarter last year, an increase of 30%.

- EMR division revenue for the quarter increased 136% to $509,802 compared to $215,860 in 2007.

- Earnings for the quarter were $126,988 compared to a profit of $17,563 last year.

- EBITDA for the quarter was $186,243 compared to $130,475 for the previous year.

- Cash on hand at March 31, 2008 was $1,307,734 compared to $493,405 at December 31, 2007.

- Working capital before deferred revenue at March 31, 2008 was $2,015,817 compared to $1,073,336 at December 31, 2007.

- Shareholders' equity at March 31, 2008 was $1,578,844 compared to $1,451,856 at December 31, 2007.

Operating Results

Revenue for the three months ended March 31 2008 2007 % increase
HR division $1,161,631 1,074,091 8%
EMR division 509,802 215,860 136%
Total revenue $1,671,433 1,289,951 30%

Revenue of the HR division was $1,161,631 for the quarter, an increase of 8% over 2007 reflecting the continued, steady growth of the HR division. Revenue of the division also included $28,442 received during the first quarter as part of an IRAP grant towards the costs of researching technologies for future software development.

Revenue of the EMR division increased by 136% and was $509,802 for the quarter compared to $215,860 in 2007. The company showed strong sales growth in Alberta, B.C. and Saskatchewan. The acquisition of National Medical Solutions Inc. ("National") in the third quarter of 2007 accounted for approximately 75% of the increase with the balance coming from organic growth.

Net earnings for the first quarter were $126,988 compared to $17,563 last year, an increase of $109,425. The increase reflects the continued strong growth in the contribution from the EMR division as well as modest growth in the HR division. The EMR division recorded net earnings before corporate expenses of $56,032 for the first quarter compared to a net loss of $137,761 last year. Corporate expenses are the costs of the parent company that includes the costs of running a public company as well as senior management salaries.

For a more complete business and financial profile of the Company, management encourages interested parties to visit the Company's website, www.QHRtechnologies.com.

On behalf of the Board of Directors

Al Hildebrandt, President and Chief Executive Officer

Legal Notice Regarding Forward Looking Statements

This news release contains "forward looking statements" within the meaning of applicable Canadian securities legislation. Forward-looking statements are indicated expectations or intentions. Forward-looking statements included in this news release include that "Provided QHR meets its targets for revenue growth, the profitability of the Company should continue to improve because it has the capacity to add new revenues at low marginal cost". Results from operations in any given period are not necessarily indicative of results to be expected in future periods. QHR is a technology business development enterprise where investment, various trends and factors in the marketplace, and product enhancements must be carefully managed to achieve long-term revenue growth and profitability. These statements are subject to risks that may cause the actual results to be materially different in future periods from those expressed or implied by such forward looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Further risk information on the Company is available at www.sedar.com.

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