reamline Health Records $21.1M In Sales Bookings For Its Looking Glass Solutions In The Third Quarter 2014

Streamline Health Solutions, Inc.

, a leading provider of transformational data-driven solutions to help healthcare providers reduce exposure to risk, enhance clinical, financial, and operational performance, today announced it recorded $21.1 million in new contract bookings for the third quarter of its fiscal year 2014, setting a new record for bookings in a single quarter. The record amount includes the $7.5 million contract previously announced in Q3. Through the first three quarters of this fiscal year the company has closed $23.6 million in new contract bookings, exceeding the total bookings for all of fiscal 2013. Streamline Health Solutions, Inc.

is a healthcare industry leader in capturing, aggregating, and translating enterprise data into knowledge - actionable insights that reduce exposure to risk, enhance operational performance, and improve patient care. Through our Looking Glass(TM) Platform we provide clients with meaningful, intelligent SaaS-based solutions from patient engagement to reimbursement. We share a common calling and commitment to advance the quality of life… "We are very pleased with the increase in new contract bookings volume in the third quarter of this year, including a new contract for our Looking Glass® Clinical Analytics solution," stated Robert E. Watson, President and CEO of Streamline Health. "In addition, I am pleased to report that our sales organization was able to convert and close all third quarter contracts as recurring revenue versus perpetual license-based revenue. We believe, as we have stated previously, that SaaS-based or term license contracts are better arrangements for our company and our clients. These contracts normalize revenue recognition. We will continue to push for these agreements whenever possible. "We continue to focus our internal efforts on implementation in order to accelerate revenue recognition, but there is no easy remedy for this challenge because we must rely on our clients to effect meaningful change here. As of the end of our fiscal third quarter, our quarterly unimplemented, contracted recurring revenue increased to approximately $1.3 million, taking into consideration that there are larger contracts in this group of new bookings that are both longer in terms of years and back-end loaded. Our backlog as of the end of the third quarter now exceeds $82 million." "Fiscal 2014 revenues will be negatively affected because we had originally forecast approximately $5 to $6 million of these Q3 bookings to be perpetual license agreements based on initial client direction during the sales process," Watson added. "When combined with a projected shortfall in our professional services revenue in excess of $1 million, we expect no less than $28 million in total fiscal 2014 revenues. We continue to make progress on transitioning our Company to a recurring revenue model, both in dollar volume, with approximately $25 million in recurring revenues projected this year, up from $22 million in FY 2013, and in percentage of total revenues, up to 90% this year from 78% last year. We will provide additional commentary on our third quarter performance during our earnings call scheduled for December 9, 2014."