ALBUQUERQUE, N.M., May 15, 2013 /PRNewswire/ -- Net Medical Xpress Solutions, Inc., (OTCQB: NMXS), an emerging leader in the rapidly growing telemedicine software and services industry, announced today first quarter 2013 revenue was $1,221,000, a 32% gain over $923,000 reported in the first quarter of 2012. Net income was $53,000 versus a loss of $23,000 in the same quarter last year.
Net Medical Xpress CEO Dick Govatski said, "Although we are still a small company, we are moving rapidly and profitably into the very large telemedicine universe with outstanding upside prospects. Our business model and our own open source technology give us major commercial advantages and, as a result, we expect continuing strong growth as we build a valuable telemedicine company that will operate on a national and possibly international basis."
Strong gains were reported in the company's largest division, Net Medical Xpress Services, which provides medical diagnostic radiology and cardiology reading services. The division recorded approximately 81% of the company's revenue, or $979,000, with a gross margin of 22.2%, or $217,000, up from 20.5% a year earlier. Cardiology reading services gained 125% to $27,000.
Revenue from the Net Medical Xpress Specialists program rose 611% to $64,000. This division provides telemedicine services to hospitals and other medical service providers and employs credentialed specialists the fields of neurology, cardiology, psychiatry, critical care, pulmonology and intensivists . The program facilitates accurate and rapid real-time stroke and related patient assessments through a video conferencing examination supported by the company's proprietary software. The division generated a gross margin of 10.6% in the quarter versus 22.2% a year earlier when the program began, reflecting investments made in this new business segment. Approximately 30% of the unit's expenses consist of relatively fixed costs. It is anticipated these costs will remain stable as revenues grow going forward and that gross margins will improve.
Net Medical Xpress Solutions, which derives revenue from the development and marketing of proprietary Internet technology-based software, primarily in the medical services field, was up 31.6% to $129,000 with a 58.9% gross margin percentage. This segment is expected to remain relatively constant in 2013 as the company's focus shifts more intensely to telemedicine activities.
Further Comments by CEO Dick Govatski
CEO Govatski said, "We strongly believe we have a disruptive business model that will enable hospitals and others in the medical field to operate more efficiently in today's rapidly changing health care environment. More than ever, cost control is a key issue for hospitals and other providers. Our technology and methodology are already proving to be invaluable in helping to hold down costs while actually improving patient care.
"Every indication is that 2013 is going to be a very strong year for us. Interest in our services is high and widespread. We are in serious discussions with a variety of health care providers who see our services as an important part of the solution for their cost and care problems. We look forward to reporting more information about this as events unfold," Govatski said.
The company will hold a conference call with CEO Dick Govatski to discuss financial results, business highlights and outlook on Thursday, May 16 at 11:00 a.m. Eastern time. In addition, the company will answer questions concerning business and financial developments and trends, and other business and financial matters affecting the company, some of the responses to which may contain information that has not been previously announced.
To participate in the call, dial 1-877-941-2068 any time after 10:50 a.m. Eastern on Thursday, May 16th. International and local callers should dial 1-480-629-9712. Participants should ask for the Net Medical Xpress First Quarter 2013 Financial Results Conference Call/Conference ID 4618960. A live and archived webcast of the call will be available at http://www.hawkassociates.com/profile/nmxs.cfm or http://public.viavid.com/index.php?id=104717. This call will be archived for approximately 90 days.
About Net Medical Xpress
Net Medical Express is a medical services company that provides clinical and diagnostic programs using advanced telemedicine solutions for hospitals. The company also develops FDA 510k-cleared and all-inclusive PACS products within the preventative, comprehensive, and critical healthcare segments. For more information, visit www.netmedical.com or www.nmxs.com or contact Dick Govatski, president and CEO, at 505-255-1999 or [email protected].
An investment profile on New Mexico Software may be found at http://www.hawkassociates.com/profile/nmxc.cfm. To receive future releases in e-mail alerts, sign up at http://www.hawkassociates.com/about/alert.
For more investor-related questions contact Frank Hawkins, Hawk Associates, at 305-451-1888 or Dick Govatski at 505-255-1999 ([email protected]).
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the company's Forms 10-K and 10-Q filed with the SEC.
SOURCE Net Medical Xpress Solutions, Inc.