Streamline Health Solutions (STRM)
Q3 2012 Earnings Call
December 07, 2011 11:00 am ET
Landon Barretto -
Stephen H. Murdock - Chief Financial Officer
Robert Watson - Chief Executive Officer, President and Director
Joseph Mondillo - Sidoti & Company, LLC
Previous Statements by STRM
» Streamline Health Solutions's CEO Discusses Q2 2011 Results - Earnings Call Transcript
» Streamline Health Solutions' CEO Discusses Q1 2011 Results - Earnings Call Transcript
» Streamline Health Solutions' CEO Discusses Q4 2010 Results - Earnings Call Transcript
Greetings and welcome to the Streamline Health Solutions Third Quarter Earnings Teleconference. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Landon Barretto. Thank you, sir. You may begin.
Good morning. Thank you for joining us to review the financial results of Streamline Health Solutions for the third quarter of fiscal year 2011, which ended October 31, 2011. As the conference call operator indicated, my name is Landon Barretto, of Barretto Pacific Corporation. We're the Investor Relations agency 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'll 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 the prepared remarks, we submit for the record the following statements: 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 the 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 IT system 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. Bob?
Thank you, Landon, and good morning to all of you participating on today's call. We thank you for your time today and for your continued interest and support in the company.
First of all, I'd like to highlight the increasing momentum that we have gained. Over 3 full quarters, it has become apparent that we have made meaningful achievements against our 5 key strategic initiatives, including the very important financial one, which we outlined earlier this year. I will go into more detail on this later in the call.
Before I turn the call over to Steve Murdock to review our Q3 financial performance, I'd like to briefly comment on the announcement we made earlier today related to the acquisition of Interpoint Partners. As outlined in the press release this morning, we have signed a definitive asset purchase agreement with Interpoint, which is scheduled to close shortly, subject to the satisfaction of standard closing conditions. Interpoint delivers information technology solutions that have been shown to positively impact their clients' ability to accelerate cash flow, improve accounts receivable levels and manage payment denials and audits. The acquisition will deepen our product offering in the business intelligence and revenue cycle space. This acquisition also advances Streamline Health forward in its goal of becoming a world-class healthcare information technology company. I will provide more detail about this transaction later in the call.
At this point, I'd like to turn the call over to Steve Murdock, our Chief Financial Officer, for a summary of our financial results for the quarter. At the conclusion of Steve's remarks, I'll provide additional perspective on the results of the quarter, and then we'll open the call for your questions. Steve?
Stephen H. Murdock
Thanks, Bob. I'd like to highlight the more significant aspects of the financial results for the third quarter ended October 31, 2011.
Total revenues for the 3 months ended October 31, 2011 were $4.3 million compared to $4.5 million in the comparable quarter of 2010, a decrease of 4%. On a year-to-date basis, total revenues for the 9 months ended October 31, 2011 were $12.6 million compared to $12.7 million for the comparable prior-year period. Professional services revenue decreased 15% over the comparable third quarter, while on a year-to-date basis, professional services revenue increased 6% over the prior-year comparable 9-month period, primarily as a result of meeting milestones on systems implementations and services sold in prior quarters. Recurring revenue for maintenance contracts increased $270,000 or 13% over the prior comparable third quarter as a result of revenue recognized from backlog and from commencement of maintenance period subsequent to the third quarter of 2010.