The nation’s pioneer and leading Managed Print Services (MPS) company for health care, announced its financial results for the quarter ended June 30, 2012. The company will host its second quarter 2012 financial results conference call today at 1:30 p.m. PDT / 4:30 p.m. EDT, the details for which follow.
“Our second quarter 2012 results reflect the traction we are gaining with our Managed Print Services solutions, with revenue more than doubling from the same quarter last year,” stated Joseph J. Flynn, president and CEO of CynergisTek, Inc. “By adding new and expanding existing accounts and driving contracts toward profitability, we have made significant progress on our growth objectives. We now operate on-site in 22 states throughout the nation representing more than 26,000 patient beds in over 80 hospitals. CynergisTek’s MPS offerings continue to be in high demand as health care systems and hospitals increasingly search for solutions to reduce costs and enhance efficiencies.”
For the three months ended June 30, 2012, CynergisTek reported net revenue of $10.7 million, an increase of 123% when compared to net revenue of $4.8 million in the same period of 2011. The company recorded $3.1 million in equipment revenue during the quarter, compared to $80,000 for the same period in the year prior. Cost of revenues was $9.3 million for the second quarter of 2012, compared to $4.0 million in the same period of 2011. Gross profit for the second quarter of 2011 was $1.4 million or 13% of sales, compared to $784,665 or 16% of sales, in the same period of 2011. Operating expenses for the second quarter of 2012 were $1.5 million, compared to $1.4 million in the same period of 2011. Net loss for the second quarter of 2012 was $26,818, or $0.00 per share, compared to a net loss of $569,696 or $0.03 per share, in the same period of 2011.
For the six months ended June 30, 2012, the company reported net revenue of $17.3 million, an increase of 82% when compared to $9.5 million in the same period of 2011. The company recorded $3.7 million in equipment revenue during the six months, compared to $200,000 for the same period in the year prior. Gross profit for the first six months of 2012 was $1.7 million or 10% of sales, compared to $1.1 million or 12% of sales, for the first six months of 2011. Operating expenses for the first six months of 2012 were $3.1 million, compared to $2.6 million in the prior year period. Net loss for the first six months of 2012 was $1.6 million, or $0.08 per share, compared to $1.4 million, or $0.07 per share, in the first six months of 2011.
Paul Anthony, CFO of CynergisTek, Inc., stated: “The substantial increase in revenue this quarter is due to the contribution from the four new accounts signed during the July 2011 to April 2012 period and the high equipment revenue related to the fleet refresh. The steps we have taken to focus and streamline our training and on-boarding capabilities have enabled more effective implementation of new contracts, which we believe will result in positive cash flow occurring earlier in the contract term. The upfront costs associated with bringing on new accounts will continue, but we expect to partially offset those costs with accelerated growth and quicker ramp up of new accounts.”
Conference Call Information
The company will host its second quarter 2012 financial results conference call today at 1:30 p.m. PDT / 4:30 p.m. ET, the details for which follow. To access the call in the U.S. please dial 1-877-941-4775 and for international calls dial 1-480-629-9665 approximately 10 minutes prior to the start of the conference. The conference ID is 4558830. The conference call will also be broadcast live over the Internet and available for replay for 15 days at https://cynergistek.com. In addition, a replay of the call will be available via telephone for two business days, beginning two hours after the call. To listen to the replay, in the U.S., please dial 1-877-870-5176 and internationally, 1-858-384-5517. Enter access code 4558830.
About CynergisTek, Inc.
CynergisTek, Inc. is the pioneer of managed print services for the health care industry, working exclusively with hospitals and hospital systems throughout the United States. We are vendor independent and provide intelligent solutions, a risk free program and guaranteed savings. CynergisTek assumes all costs related to print business environments through customized, streamlined and seamless integration of services at predictable fixed rates that are unmatched in the industry. We work collaboratively to assist our health care-partners in the delivery of quality patient care. The service and solutions provided by our on-site Centers of Excellence professional print strategy consultants deliver unparalleled customer service across the industry. For more information about CynergisTek, visit https://cynergistek.com.
Forward Looking Statements
This release contains certain forward-looking statements relating to the business of CynergisTek, Inc. that can be identified by the use of forward-looking terminology such as “believes,” “expects,” “anticipates,” “may” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product/services development, long and uncertain sales cycles, the ability to obtain or maintain patent or other proprietary intellectual property protection, market acceptance, future capital requirements, competition from other providers, the ability of our vendors to continue supplying the company with equipment, parts, supplies and services at comparable terms and prices and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our Form 10-K and Form 10-Q filings with the Securities and Exchange Commission, which are available at http://www.sec.gov. CynergisTek, Inc. is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.