QHR Technologies Inc.

QHR Technologies Inc.

May 13, 2009 08:00 ET

QHR Announces Record First Quarter Results

KELOWNA, BRITISH COLUMBIA--(Marketwire - May 13, 2009) - 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, 2009.

In announcing the results CEO Al Hildebrandt said, "In the first quarter of 2009 the Company achieved record earnings of $753,849 and record revenue of $3,446,603. The reason for such encouraging results was, primarily, the success of our EMS Software division that recently signed two large, three year provincial government contracts. These two contracts accounted for $1,273,000 of revenue for the quarter and it is expected that they will contribute to revenue and earnings growth over the next three years."

The Company has entered a new phase of growth. Although quarterly results may vary because of the long sales and implementation cycles of our products, we have had a good start to achieving our goal of $10,000,000 revenue for the year.


- Revenue for the first quarter ended March 31, 2009 was $3,446,603, the largest in the Company's history and it compared to $1,671,433 for the corresponding quarter last year, an increase of 106%.

- Net earnings for the quarter were $753,849 compared to $126,988 for the same quarter last year.

- Earnings before amortization and interest were $1,127,217 compared to $186,243 last year.

- On January 19, 2009 the Company announced the acquisition of the Financial Software division ("Financials Division") of Momentum Healthware Inc.

- February 23, 2009 the Company signed two contracts with a provincial government resulting in $1,273,000 revenue in the first quarter.


Revenue for the three months ended
March 31, 2009 2008 % increase
EMS division $ 2,721,730 1,161,631 134%
EMR division 724,873 509,802 42%
Total revenue $ 3,446,603 1,671,433 106%

Revenue of the Enterprise Management Software ("EMS") division was $2,721,730, an increase of 134% over the same quarter last year. The two provincial government contracts contributed $1,273,000 of this increased revenue, and the acquisition of the Financials Division contributed revenue of $375,000.

Revenue of the Electronic Medical Records ("EMR") division increased by 42% and was $724,873 for the quarter compared to $509,802 in 2008. The acquisition of Clinicvault Inc. in September 2008 was the major reason for the increase.


Record net earnings of $753,849 were after charging amortization of $229,258 and interest of $145,980. Amortization was $229,258 for the first quarter, compared to $58,291 last year, reflecting the amortization of assets acquired with the Financials Division. Interest expense increased from $2,269 last year to $145,980 because of the increased borrowings to finance the acquisition of the Financials Division.

2009 2008
Revenue $ 3,446,603 1,671,433
Operating expenses 2,319,386 1,485,190
Earnings before the following items 1,127,217 186,243

Amortization 229,258 58,291
Interest expense 145,980 2,269
Gain on foreign exchange (1,870) (1,305)
Net earnings $ 753,849 126,988

On behalf of the Board of Directors

Al Hildebrandt, President and CEO

Legal Notice Regarding Forward Looking Statements

This news release may contain "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, two provincial government contracts are expected to contribute to revenue and earnings growth over the next three year; that the Company has entered a new phase of growth, and that, we have had a good start to achieving our goal of $10,000,000 revenue for the year. Results from operations in any given period are not necessarily indicative of results to be expected in future periods. QHR is a technology business 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. Factors which may delay or prevent these forward looking statements from coming to fruition include our possible inability to complete our contracted services, possible disputes with customers, customer implementation delays or payment delays. In addition, competitors may provide better products or services and our market may decline. The Company's policy is not to update Forward Looking Statements.

Further risk information on the Company is available at www.sedar.com.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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