Recurring Revenues Increased to $16.1 Million(1) Total Business Pipeline at Record $60 Million: Major Growth Driven by Transformative Acquisitions
DENVER, Nov. 13 /PRNewswire-FirstCall/ -- Global Med Technologies(R), Inc.
("Global Med" or the "Company") (OTC Bulletin Board: GLOB), an international
e-Health, medical information technology company, today reported record
revenues for the third quarter and nine months ended September 30, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040226/GLOBALMEDLOGO)
Third quarter highlights:
-- Recurring revenues reached $16.1 million as a result of transformative
acquisitions. (1)
-- Exclusive of recent acquisitions, bookings of software license and
implementation fees increased 21% over the comparable quarter in 2007
and were up 10% year-to-date over the first nine months of 2007. (2)
-- Generated quarterly revenues of $6.9 million(3) -- Global Med's highest
ever reported.
-- Completed the acquisition of eDonor.
-- Released a proven tissue and cellular therapy product.
-- Backlog of unrecognized license and implementation revenue increased to
over $7 million. (1)
-- Business pipeline of all subsidiaries combined reached $60 million.
-- Continued positive cash flows from operations.
Global Med's revenues climbed 70% to $6.9 million(3) for the three months
ended September 30, 2008 from $4.1 million for the comparable period in 2007,
due to the acquisitions of Inlog and eDonor on June 26 and August 1, 2008,
respectively. Gross profit of $4.2 million in the third quarter of 2008
increased 43% from $2.9 million in the third quarter of 2007, with the Inlog
and eDonor acquisitions contributing gross profit of $1.7 million in the 2008
quarter. For the three months ended September 30, 2008, the Company's net
loss was ($228) thousand, or ($0.01) per diluted share, compared to net income
of $552 thousand, or $0.01 per diluted share, during the comparable period in
2007. The principal reasons for the net loss during the period was increased
depreciation and amortization expense associated with the Inlog and eDonor
acquisitions of $285 thousand, approximately $90 thousand in non-recurring
legal and accounting expenses, as well as interest expense of $180 thousand
associated with the acquisitions.
Global Med's revenues for the nine months ended September 30, 2008(4) rose
$4.6 million, or 39%, to $16.4 million from $11.8 million for the comparable
period in 2007. Revenue from the Inlog and eDonor acquisitions contributed
$3.1 million for the period, while revenues from the Company's Wyndgate
division and PeopleMed subsidiary increased $1.5 million, or 12%, for the nine
month period compared to last year. Gross profit for the nine months ended
September 30, 2008 and 2007 was $10.2 million and $8.2 million, respectively,
with the Inlog and eDonor acquisitions contributing approximately $1.8 million
to the Company's gross profit for the 2008 period. For the nine months ended
September 30, 2008 and 2007, the Company's net income was $284 thousand, or
$0.01 per diluted share, and $1.3 million, or $0.03 per diluted share,
respectively. The primary reasons for the decrease in net income during the
nine month period related to depreciation and amortization expense of
$297 thousand, and interest expense of approximately $190 thousand associated
with the Inlog and eDonor acquisitions and an increase in income tax expense
of $381 thousand.
During the quarter, the Company's overall recurring revenues reached an
annualized rate of $14.6 million. Based on the Company's backlog of customers
as of September 30, 2008, the Company's annual recurring revenues, when all
contracted customer sites are implemented, will be approximately
$16.1 million. The Company's backlog of unrecognized software license fees
and implementation fees increased to approximately $7.0 million.
The Company's gross profit margin for the third quarter of 2008 was
approximately 60% compared to 71% in the third quarter of 2007. The Company's
gross profit margins are impacted by revenue mix, with software license
revenues having the highest gross margins of the Company's product line. In
addition, the Inlog and eDonor entities both had historically lower gross
margins than the Company. A decline in third quarter 2008 software license
fees revenues at the Company's Wyndgate division and the Inlog and eDonor
acquisitions contributed to the decline in gross profit margins.
Mick Ruxin, M.D., Chairman and CEO of Global Med Technologies, Inc.,
commenting on the recent acquisitions and quarterly results, stated, "Our
third quarter revenues of $6.9 million represented the highest reported
quarterly revenues since Global Med's inception due to the acquisitions of
Inlog and eDonor. It is also important to note that we had approximately
$400 thousand in new systems sales that we had to defer to future quarters due
to revenue recognition requirements, demonstrating the inherent lumpiness of
our revenue stream. While we did incur a net loss for the quarter of
$228 thousand, it resulted primarily from amortization and financing costs and
non-recurring legal and accounting costs associated with the acquisitions.
Our third quarter and year-to-date new system sales are up over last year,
recurring revenues reached $16.1 million(1), and we believe that the recent
acquisitions will provide significant long-term benefits to the Company's
shareholders." Ruxin concluded, "Our pipeline of identified business has
soared to over $60 million for Global Med's products. While it is taking
longer for deals to close, the needs and requests for our products continue to
increase".
Thomas F. Marcinek, the Company's President and COO, stated, "The market's
interest in our expanding product line continues to grow as evidenced by the
activity level at the recent American Association of Blood Banks meeting.
This is our largest meeting of the year with over 5,000 attendees. Our booth
and product showcase suites were exceptionally busy. Prospective customers
looked to us for a complete and solid product offering from donor contact
management to delivery of finished blood products to patients in need." Mr.
Marcinek continued, "The market's desire for a vendor to partner with for a
complete vein-to-vein(R) solution places us in an enviable position. With the
availability of new products through our Inlog and eDonor acquisitions, we are
now positioned to provide a complete line of products and services to the
markets we serve."
Global Med Technologies, Inc. (OTC Bulletin Board: GLOB.OB)
Selected Results
Three Months Ended September 30,
In (000s) Except Per Share Information
(Unaudited)
2008(3) 2007
Revenues $6,940 $4,094
Cost of revenues 2,759 1,172
Operating expenses 4,299 2,375
Income (loss)from operations(118) 547
Other income, (expenses) and (taxes)(110) 5
Net income (loss) $(228) $552
Income (loss) per share
Basic $(0.01) $0.02
Diluted $(0.01) $0.01
Weighted average shares outstanding
Basic 30,754 25,600
Diluted(5) 30,754 44,469
Cash flows provided by
operations $227 $692
Selected Results
Nine Months Ended September 30,
In (000s) Except Per Share Information
(Unaudited)
2008(4) 2007
Revenues $16,378$11,782
Cost of revenues 6,177 3,566
Operating expenses 9,361 7,027
Income from operations 840 1,189
Other income, (expenses) and (taxes)(556) 109
Net income $284 $1,298
Income per share
Basic$0.01 $0.05
Diluted $0.01 $0.03
Weighted average shares
outstanding
Basic 28,546 24,035
Diluted 46,898 41,052
Cash flows provided by Operations(6) $1,114 $3,371
The Company will host a conference call today at 9:00 a.m. EST. Mick
Ruxin, M.D., Chief Executive Officer, Tom Marcinek, President and Chief
Operating Officer, and Darren Craig, Acting CFO, will discuss the third
quarter financial results and will be available to answer questions.
Interested parties are welcome to call the following telephone numbers five
minutes prior to the start of the conference call. Callers within the U.S.
should call: 1-866-789-9224. Callers that are outside of the U.S. should
call: 1-706-679-9621. Callers should reference "Global Med Third Quarter
Financial Results" to the conference call operator. The conference call ID
number will be: 71180318.
An automated replay of the conference call will be available from
November 13, 2008 at 11:30 a.m. EST until November 15, 2008 at 11:59 p.m. EST.
To access the replay, callers within the U.S. should call: 1-800-642-1687.
Callers outside of the U.S. should call: 1-706-645-9291 and enter Global
Med's access code of 58996634. The replay of the conference call will be
available beginning November 15, 2008 at Global Med's website at
http://www.globalmedtech.com.
About Global Med Technologies, Inc.
Global Med Technologies(R), Inc. is an international medical software
company which develops regulated and non-regulated software products and
services for the healthcare industry. As a leading provider of blood and
laboratory software applications and services, Global Med's products are
deployed in 20 countries and serve over 1,600 transfusion centers, blood banks
and laboratories.
Global Med's U.S. division, Wyndgate Technologies(R), provides
Vein-to-Vein(R) tracking through its Donor Doc(TM), SafeTrace(R), SafeTrace
Tx(R) and ElDorado Donor(TM) software products. Each year, Wyndgate's
products and services manage more than eight million blood components,
representing over 27% of the U.S. blood supply.
Global Med's European subsidiary, Inlog, SA, is a leading provider of
donor center and transfusion management systems as well as cellular therapy
software, laboratory information systems and quality assurance medical
software systems internationally. Inlog's products include EdgeBlood(7),
EdgeTrack(7), EdgeCell, EdgeLab and SAPA.
Global Med's U.S. division, eDonor(R), provides a web-based donor
relationship management system that integrates recruitment, scheduling,
retention and fulfillment for national as well as local community blood
centers and hospitals. eDonor's products and services are designed to
complement Global Med's strong line of international blood management and
laboratory information software and service solutions.
Global Med's U.S. subsidiary, PeopleMed(R), Inc., provides cost-effective
customized software validation, consulting and compliance solutions to
hospitals and donor centers.
For more information about Global Med's products and services, please call
800-996-3428 or visit http://www.globalmedtech.com, http://www.peoplemed.com,
http://www.inlog.com and http://www.wyndgate.com.
(1) Represents the value of recurring revenues once all current customers
begin paying for maintenance, including Inlog and eDonor.
(2) Excludes Inlog and eDonor new system sales bookings. Due to software
license revenue recognition rules, the Company was required to defer
certain license fees which were material during the 2008 quarter.
(3) Includes Inlog's results of operations for the three months ended
September 30, 2008 and eDonor's results of operations from August 1,
2008 through September 30, 2008.
(4) Includes Inlog's results of operations for the period from June 26,
2008 through September 30, 2008 and eDonor's results of operations
from August 1, 2008 through September 30, 2008.
(5) Weighted average shares outstanding used in the calculation of diluted
net loss per share are the same as basic weighted averages shares
outstanding due to the Company's net loss for the three months ended
September 30, 2008.
(6) During the nine months ended September 30, 2007, the Company
recognized approximately $80 thousand in accrued interest related to
the return of a deposit in escrow of $1.004 million which increased
the Company's cash flows from operations by $1.084 million.
(7) FDA 510(k) clearance required prior to sales in the U.S.
This news release may include statements that constitute forward-looking
statements, usually containing the words "believe," "estimate," "project,"
"expects" or similar expressions. These statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements inherently involve risks and uncertainties
that could cause actual results to differ materially from the forward-looking
statements. By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions or changes
after the date of this news release.
SOURCE Global Med Technologies, Inc.
