Entire Amount of Record Bookings Signed as Recurring Revenue
ATLANTA, Nov. 17, 2014 /PRNewswire/ -- Streamline Health Solutions, Inc. STRM, 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.
"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."
About Streamline Health
Streamline Health Solutions, Inc. STRM 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® 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 and the quality of healthcare – for society, our industry, our clients, the communities they serve, and the individual patient. For more information, please visit our website at www.streamlinehealth.net.
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995
Statements made by Streamline Health Solutions, Inc. that are not historical facts are forward-looking statements that are subject to risks and uncertainties and are no guarantee of future performance. The forward looking statements contained herein are subject to certain risks, uncertainties and important factors that could cause actual results to differ materially from those reflected in the forward-looking statements, included herein. Forward-looking statements contained in this press release include, without limitation, statements regarding the Company's expectations of future revenue (sometimes referred to as "bookings"), backlog and related expectations and assumptions. These risks and uncertainties include, but are not limited to, the timing of contract negotiations and execution of contracts and the related timing of the revenue recognition related thereto, the potential cancellation of existing contracts or clients not completing projects included in the backlog, the impact of competitive solutions and pricing, solution demand and market acceptance, including from customers of the Company's channel partners, new solution development, key strategic alliances with vendors that resell the Company's solutions, the ability of the Company to control costs, availability of solutions from third party vendors, the healthcare regulatory environment, potential changes in legislation, regulation and government funding affecting the healthcare industry, healthcare information systems budgets, availability of healthcare information systems trained personnel for implementation of new systems, as well as maintenance of legacy systems, fluctuations in operating results, effects of critical accounting policies and judgments, changes in accounting policies or procedures as may be required by the Financial Accountings Standards Board or other similar entities, changes in economic, business and market conditions impacting the healthcare industry generally and the markets in which the Company operates and nationally, and the Company's ability to maintain compliance with the terms of its credit facilities, and other risks detailed from time to time in the Streamline Health Solutions, Inc. filings with the U. S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly release the results of any revision to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Streamline Health Company Contact:
Randy Salisbury
SVP, Chief Marketing Officer
(404)-229-4242
randy.salisbury@streamlinehealth.net
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SOURCE Streamline Health Solutions, Inc.
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