Streamline Health Solutions (STRM)

Q1 2013 Earnings Call

June 07, 2012 11:00 am ET


Landon Barretto

Robert E. Watson - Chief Executive Officer, President, Director and Member of Strategy Committee

Stephen H. Murdock - Chief Financial Officer, Principal Accounting Officer, Senior Vice President, Corporate Secretary and Treasurer


Matthew Hewitt - Craig-Hallum Capital Group LLC, Research Division

Joseph Mondillo - Sidoti & Company, LLC

Frank Sparacino - First Analysis Securities Corporation, Research Division

Sam Rebotsky

Scott Ferguson



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Greetings, and welcome to Streamline Health Solutions First Quarter Fiscal Year 2012 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Landon Barretto. Thank you, Mr. Barretto. You may begin.

Landon Barretto

Thank you, Claudia. I thank all of you for joining us to review the financial results of Streamline Health Solutions for the first quarter of fiscal year 2012, which ended April 30, 2012. As the conference call operator indicated, my name is Landon Barretto with Barretto Pacific Corporation, we're the Investor Relations firm that represents Streamline Health. With us on the call representing the company today are Bob Watson, the President and Chief Executive Officer; Steve Murdock, Senior Vice President and Chief Financial Officer; and Gary Winzenread, Senior Vice President and Chief Operating 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 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 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 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?

Robert E. Watson

Thank you, Landon, and good morning to all of you participating on today's call. Thank you for your time today and for your continued interest and support of our company.

We are very pleased with the financial performance for the quarter, and as noted in our press release earlier this morning, our first quarter performance was very strong from many vantage points. Steve Murdock, our Chief Financial Officer, will discuss some of the more pertinent financial performance numbers with you in a few minutes. However, at this point in our presentation, I wanted to take the opportunity to give you my thoughts on some of our recent accomplishments.

I believe it is clear that we are continuing to make meaningful progress against our strategic initiatives, and to a great extent, are accelerating at a pace that exceeds our own projections. Forward momentum on the process of heightening our focus as a results-driven enterprise is well underway. During the first quarter, we made significant gains on each of our 4 strategic goals for this fiscal year. First, we are well into the process of investing in our human capital, but some hiring has lagged. Our operational and sales teams performed exceptionally well in the quarter despite being significantly understaffed. Our plan is to build for growth so that we may provide world-class healthcare information technology solutions to our growing list of clients. That being said, we are also seeing increased cross-sell opportunities within our current client base, as well as net new client acquisition opportunities. Therefore, we have increased the headcount in our sales team during and subsequent to the end of the first quarter.

Additionally, we have several internal, technical and administrative projects in process that, when completed, will position us to better address the growth we see being generated from the sales organization. Second, we have expanded our sales footprint to capture a greater share of net new sales opportunities. Our relationship with FTI Consulting, announced in January of this year, while in its early stages, is adding significantly to our sales pipeline opportunities. Since the inception of that agreement, we have closed 3 transactions with their participation.

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