Streamline Health Solutions (STRM)
Q1 2011 Earnings Call
June 07, 2011 4:30 pm ET
Robert Watson - Chief Executive Officer and President
Robert Blum - Lytham Partners
Gary Winzenread - Senior Vice President of Product Development & Strategy
Stephen Murdock - Chief Financial Officer
Joseph Mondillo - Sidoti & Company, LLC
Sam Rebotsky - SER Asset Management
Previous Statements by STRM
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Good afternoon, and welcome to the Streamline Health Solutions Reports First Quarter 2011 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mr. Robert Blum. Mr. Blum, please go ahead.
Thank you, Amy. And thank you for joining us today to review the financial results of Streamline Health Solutions for the first quarter of fiscal year 2011, which ended April 30, 2011. As the conference call operator indicated, my name is Robert Blum. I am with Lytham Partners. We are the investor relations consulting firm for Streamline Health. With us on the call representing the company today are Bob Watson, President and Chief Executive Officer; Steve Murdock, Chief Financial Officer; Gary Winzenread, Senior Vice President and Chief Operating Officer; and Rick Leach, Senior Vice President and Chief Marketing Officer.
At the conclusion of today’s prepared remarks, we will open the call for a question-and-answer session. If anyone participating on today’s call does not have a full text copy of the release, you can retrieve it from the company’s website at www.streamlinehealth.net or numerous financial websites.
Before we begin with prepared remarks, we submit, for the record, the following statement. Statements made by the management team of Streamline Health Solutions during the course of this conference call that are not historical facts are considered to be forward-looking statements subject to risks and uncertainties. The Private Securities Litigation Reform Act of 1995 provides a Safe Harbor for such forward-looking statements. The words believe, expect, anticipate, estimate, will and other similar statements of expectation identify forward-looking statements. The forward-looking statements contained herein are subject to certain risks, uncertainties and important factors that could cause actual results to differ materially from those reflected in the forward-looking statements included herein. These risks and uncertainties include, but are not limited to, the impact of competitive products and pricing; product demand and market acceptance; new product development; key strategic alliances with vendors that resell the company's products; the ability of the company to control costs; availability of products produced from third-party vendors; the healthcare regulatory environment; healthcare information systems budgets; availability of healthcare information systems trained personnel for implementation of new systems, as well as maintenance of legacy systems; fluctuations in operating results; and other risks detailed from time to time in the Streamline Health Solutions' filings with the U.S. Securities and Exchange Commission. Participants on this call are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The company undertakes no obligation to publicly release the results of any revision to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
With that said, let me turn the call over to Bob Watson, President and Chief Executive Officer of Streamline Health Solutions. Bob?
Thank you, Robert, and good afternoon to all of you participating in today's call. Thank you for your time today and for your continued interest and support of the company.
I indicated to you, on the previous quarter's call, that immediately upon joining Streamline Health, I engaged in a thorough review of the solutions, the operations and the personnel of the company. With the benefit of an entire quarter under my belt, I am fully convinced that Streamline Health has a solid portfolio of solutions and services that will support healthcare organizations in driving operational and financial efficiencies and that our solutions assist healthcare organizations in meeting the requirements of meaningful use. As we discussed before, meeting these requirements helps to make our clients eligible for significant incentive payments as outlined in the HITECH Act.
After visiting or talking with many of our clients, I've discovered they share my beliefs that Streamline Health offers a strong value proposition that provides significant cost efficiencies, given our deep and meaningful integration with EMR vendors such as GE, Cerner, Allscripts, MediTech and Epic. From a solutions positioning standpoint, we have a clear and leverageable advantage in the marketplace, given the depth of our integration work. I've also discovered that our clients highly value the operational and technical support that our associates provide, and many of them have come to view us as a true partner who works to see them be successful. Our legacy as a Health Information Management-oriented company has successfully differentiated us from other vendors who went through the healthcare vertical from another industry focus. The importance of this legacy became evident last quarter when we saw 2 clients resist internal IT department pressure to change to a new document management system that was bundled into the deployment of a new electronic medical record system within their respective facilities. These clients stayed with Streamline Health's best-of-breed solution set rather than settling for a single-source IT product that had fewer capabilities and less functionality.
In the just-concluded quarter, we have taken the necessary steps to optimize our sales results and right-size the infrastructure of the company to reflect the current revenue profile of the business and to give us the flexibility to adapt as the business grows. As you can see from today's press release, meaningful progress has been achieved, but this is a process that will take us several quarters to fully realize the benefits. We believe that, in the coming quarters, our more efficient operating cost structure will play out in meaningful reductions in our spend patterns that will have a positive impact on our bottom line results.