Semler revenue up 52% in third quarter 2014

Semler Scientific, Inc. (Nasdaq: SMLR; "Semler"), an emerging medical risk assessment company that develops patented products that assist healthcare providers in monitoring patients and evaluating chronic diseases, today reported financial results for the third quarter and nine months ended September 30, 2014.

"In the third quarter of 2014, Semler's performance accelerated," said Doug Murphy-Chutorian, M.D., chief executive officer of Semler. "We moved forward on executing our business model by initiating more relationships with insurance plans, moving pilot trials to completed orders, and expanding installations with established clients."

FINANCIAL RESULTS

In the three months ended September 30, 2014 compared to the corresponding period of 2013, Semler had:

• Revenue of $897,000, an increase of $308,000, or 52%, compared to $589,000
• Cost of revenue of $178,000, an increase of $45,000, or 34%, from $133,000
• Total operating expenses, which include cost of revenue, of $2,264,000, an increase of $1,178,000, or 108%, compared to $1,086,000
• Net loss of $1,466,000 or $0.31 per share, an increase of $943,000, or 180%, compared to a net loss of $523,000, or $0.66 per share
• Net cash of $5,973,000 as of September 30, 2014 compared to $6,554,000 as of June 30, 2014, for a net decrease of $581,000 in the three months ended September 30, 2014

In the nine months ended September 30, 2014 compared to the corresponding period of 2013, Semler had:

• Revenue of $2,580,000, an increase of $1,087,000, or 73%, compared to $1,493,000
• Cost of revenue of $504,000, an increase of $228,000, or 83%, from $276,000
• Total operating expenses, which include cost of revenue, of $5,745,000, an increase of $2,627,000, or 84%, compared to $3,118,000
• Net loss of $3,315,000, or $0.85 per share, an increase of $1,608,000, or 94%, compared to a net loss of $1,707,000, or $2.17 per share

THIRD QUARTER 2014 HIGHLIGHTS

In the third quarter 2014, Semler announced the appointment of healthcare risk management and business development expert, Aidan M. Collins, to its board of directors and as chairman of its Audit Committee. Semler also added hires in the third quarter to its sales and marketing team.

"Our primary focus for the third quarter and first nine months of 2014 has been to expand our base of clients who are insurance plans with Medicare Advantage patients," said Dr. Murphy-Chutorian. "During the third quarter, two insurance plans among the top-15 payors in the United States were converted from doing pilot trials to making orders for our product, and another top-15 payor insurance plan expanded the number of their orders of our product," he continued. Of note, the top 15 payors account for more than 70% of the entire Medicare Advantage market.