Craneware reports 23% increase in revenues in the fiscal year-end results

Sep 9 2009

Craneware, Inc. (AIM: CRW.L), a leader in sustainable financial improvement solutions for the U.S. healthcare market, is pleased to announce results for the year ended June 30, 2009.

Financial Highlights

• Record levels of contracted sales in the year totaling $43.2m (FY08: $25.7m), 68% up from the previous year, contributing to:
  • 23% increase in revenues to $23.0m (FY08: $18.7m)
  • 51% increase in future revenues under contract to $60.1m (FY08:$39.9m)
• Profit before share based payments, depreciation and amortization increased 29% to $5.8m (FY08: $4.5m)
• Profit before taxation increased by 40% to $5.9m (FY08: $4.2m)
• Cash position increased 24% to $26.1m (FY08 $21.1m)
• Basic EPS increased to $0.18 (FY08: $0.14) and diluted to $0.17 (FY08: $0.13)
• Final dividend proposed of 2.9p (4.77 cents) per share giving a total dividend for the year of 4.7p (7.43 cents) per share (FY08: 3.1p (4.96 cents) per share)

Operational Highlights

• New product lines contributed $10.1m (23%) to total contracted sales during the year
• Extended market reach through partnership deals with Premier, Amerinet and Perot
• Signed significant reseller agreement with McKesson Corporation post year-end
• Accelerated investment in sales and marketing activities
• Proposed U.S. Healthcare reforms trend toward increased regulation and new market opportunities

Keith Neilson, CEO of Craneware, commented, "The U.S. healthcare system is currently undergoing an unprecedented level of change and public scrutiny. This combined with the global economic downturn means healthcare organizations are experiencing extraordinary levels of fiscal and legislative pressure. Craneware continues to invest in the development and deployment of software to help manage these pressures and we believe that our market leading position and reputation within the industry, combined with our strong business fundamentals, leaves us well positioned to serve this growing demand.

"The signing of a significant value-added reseller agreement with McKesson Corporation, the world's largest healthcare services company, at the beginning of this new fiscal year has given us a strong start. The agreement sees McKesson integrate Craneware's Chargemster Toolkit(R) software with their next generation hospital information system (HIS), Horizon Enyterprise Revenue Management(TM) as part of their ongoing legacy system replacement and upgrading program. This new agreement, combined with a growing Craneware sales pipeline and the launch of further products by the end of the current year, gives us confidence we are on track to continue our history of significant growth in the year ahead."