TeleRad Division Records Profitable Quarter, Growing Customer Base and Product Line
Company Website: http://www.nmxs.com/
ALBUQUERQUE, N.M. -- (Business Wire)
New Mexico Software, Inc. (OTCBB: NMXC) announced today the company s financial results for the third quarter of 2010.
Revenue for the third quarter ended September 30, 2010 was $913,000, an increase over $908,000 reported in the same quarter a year ago. Net income was $11,000 compared with a loss of ($64,000) in the third quarter of 2009.
For the first nine months of 2010, revenue was $2.596 million versus $2.719 million in the same period in 2009. Net loss for the first nine months of 2010 was ($34,000) versus a loss of ($124,000) in the comparable 2009 period.
New Mexico Software Dick Govatski said, The announcement of a profitable quarter is an important inflection point for our company. It appears our lawsuit with former customer Premier Medical is stopped because Premier Medical filed bankruptcy, cancelling our trial. We are exploring our options regarding this new development, including how to recover the money owed to us. Once this matter is finally concluded, it will significantly improve our cost structure with a diminution of legal fees.
In operations, we have seen steady growth in our TeleRad radiological services segment and we are continuing to find new ways to build this business. We began providing telecardiology services during the first quarter. We began providing nuclear scans in the past month. We completed programming for our Remote Dicom to Dicom server, which provides communications between dissimilar picture archiving systems and we expect to see initial revenue from this service in the fourth quarter. We expect to add Telemed video as well as services for orthopedics and ophthalmology in the next six months.
In addition, we previously announced that our XR-EXpress service is now available through iPhone!" and iPod touch!". This is our first medical Picture Archiving Communication System (PACS) compatible with Apple s Smart Phones and portable devices through the Apple App Store!" and can be quickly and easily downloaded without a charge. We expect to release an iPad!" application later this month.
We have signed over 22 new customer contracts for Telerad operations thus far in 2010, providing $1 million in recurring annual revenue. The gross profit of our radiology activities increased to 20% during the third quarter, providing a year to date gross profit of 19%. Overall gross profit increased to 25% in the quarter, up from 24% during the second quarter of 2010.
Going forward, we expect this progress and forward momentum to result in profitable quarters ahead. Our balance sheet is also steadily improving with receivables and cash of over $900,000. In sum, our company is in the strongest position in its history, with an expanding customer base, an expanding product line and an improving financial position, Govatski said.
About New Mexico Software, Inc.
New Mexico Software, Inc. and its subsidiary division, TeleRad Service, develops and provides medical IT services and solutions that enable improved and faster communication within the preventative, comprehensive and critical healthcare segments. New Mexico also provides software and hardware that streamlines administrative processes for a more efficient working environment. For more information, visit www.nmxc.net or www.nmxs.com or contact Dick Govatski, president and CEO, at 505-255-1999 or ceo@nmxs.com.
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 ceo@nmxs.com.
To subscribe to future releases via e-mail alert visit www.hawkassociates.com/about/alert/.
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.
Contacts:
New Mexico Software, Inc.
Dick Govatski, 505-255-1999
ceo@nmxs.com
or
Hawk Associates
Frank Hawkins, 305-451-1888
ceo@nmxs.com
Source: New Mexico Software, Inc.
