AUXILIO first quarter net revenue increases 40% to $6.5 million

AUXILIO, Inc. (OTCBB: AUXO), the nation's pioneer and leading Managed Print Services (MPS) company for health care, announced its financial results for the quarter ended March 31, 2012.    

"We delivered strong revenue growth of 40% in the first quarter of 2012, driven by the significant increase in contracts over the same quarter of last year," stated Joseph J. Flynn, president and CEO of AUXILIO, Inc. "During the quarter, we began implementing our MPS program for Catholic Health East (CHE), a multi-institutional health system, which represents the largest contract signed in our history. As a result, our highly effective, risk-free MPS offering is now gaining awareness among large-scale health care systems across the country. In addition, given the number of recent consolidations of care organizations nationwide, we are well positioned to benefit as large, multi-hospital systems are looking to drive down costs and streamline operations."

Financial Results

For the three months ended March 31, 2012, the company reported net revenue of $6.5 million, an increase of 40% when compared to $4.7 million in the same period of 2011. Gross profit for the first quarter of 2012 was $350,000, or 5.3% of sales, compared to $340,000, or 7% of sales in the first quarter of 2011. Operating expenses were $1.6 million for the first quarter of 2012, or 24% of sales, compared to $1.2 million, or 26% of sales, in the same quarter of 2011. Net loss for the quarter was $1.6 million, or $0.08 per share, compared to a net loss of $860,000, or $0.04 per share, in the first quarter of 2011.

Paul Anthony, CFO of AUXILIO, stated: "Our first quarter 2012 results demonstrate the momentum we are gaining as we continue to build our pipeline with multi-hospital health care systems. As expected, all accounts signed since the fourth quarter of 2010 moved toward profitability in the first quarter. This was offset by the increased costs related to the implementation of our new contract with CHE, which are reflected in our gross margin for the quarter. We expect to continue incurring upfront costs associated with bringing on board new contracts, which is symptomatic of a services business model. Additionally, we recently secured a $2 million line of credit with Avidbank that provides us with the flexibly to fund our accelerated growth."