Semler Scientific's revenue up 74% in third quarter 2015

Semler Scientific, Inc.Oct 30 2015

Semler Scientific, Inc. (Nasdaq: SMLR), a company that provides diagnostic and testing services to healthcare insurers and physician groups, today reported financial results for the third quarter ended September 30, 2015.

"In the third quarter of 2015, Semler reported continued progress with year over year revenue growth of 74% and quarter over quarter revenue growth of 20%" said Doug Murphy-Chutorian, M.D., chief executive officer of Semler. "During this period, we booked new orders expected to generate additional revenues in the fourth quarter from WellChec™, our new multi-test service offering, and we launched QuantaFlo™, our next generation testing system for vascular disease."

FINANCIAL RESULTS

In the three months ended September 30, 2015, compared to the corresponding period of 2014, Semler had:

• Revenue of $1,562,000, an increase of $665,000, or 74%, compared to $897,000
• Cost of revenue of $385,000, an increase of $207,000, or 117%, compared to $178,000
• Total operating expenses, which include cost of revenue, of $3,114,000, an increase of $850,000, or 37%, compared to $2,264,000
• Net loss of $1,580,000, or $0.32 per share, an increase of $114,000, or 8%, compared to a net loss of $1,466,000, or $0.31 per share

In the nine months ended September 30, 2015, compared to the corresponding period of 2014, Semler had:

• Revenue of $4,067,000, an increase of $1,487,000, or 58%, compared to $2,580,000
• Cost of revenue of $887,000, an increase of $383,000, or 76%, from $504,000
• Total operating expenses, which include cost of revenue, of $8,281,000, an increase of $2,536,000, or 44%, compared to $5,745,000
• Net loss of $4,293,000, or $0.87 per share, an increase of $978,000, or 30%, compared to a net loss of $3,315,000, or $0.85 per share
• During the nine months of 2015, we issued and sold an aggregate of 260,500 shares of our common stock for an aggregate cash purchase price of $999,100

In the three months ended September 30, 2015, compared to the three months ended June 30, 2015, Semler had:

• Revenue of $1,562,000, an increase of $259,000, or 20%, compared to $1,303,000
• Cost of revenue of $385,000, an increase of $141,000, or 58%, from $244,000
• Total operating expenses, which include cost of revenue, of $3,114,000, an increase of $498,000, or 19%, compared to $2,616,000
• Net loss of $1,580,000, or $0.32 per share, an increase of $239,000, or 18%, compared to a net loss of $1,341,000, or $0.27 per share
• Unrestricted cash of $1,925,000, a decrease of $415,000 compared to $2,340,000

Third Quarter 2015 Highlights

The third quarter of 2015 for Semler resulted in continued revenue expansion. Other highlights included:

• The launch of QuantaFlo™, the next generation product for testing for vascular disease. Semler believes that customers will be attracted to its enhanced performance features and expanded marketing labeling.
• The initiation of our second contract this year for WellChec™, our new multi-test service offering.
• Obtaining several new orders for WellChec™, which if successfully fulfilled would significantly impact revenue in the fourth quarter of 2015.

"We had our best quarter in dollar terms of sequential quarterly growth and added new larger clients contracting for our WellChec™ service," said Dr. Murphy-Chutorian. "We are furthering our goal to aid physicians and insurance plans to evaluate their patients earlier and more comprehensibly, which may in turn lead to more prevention and lower healthcare costs," he added.