Tuesday, 15 May 2007

LMS Preliminary Q4 Results Show Business Momentum

Today LMS (TSX: LMZ, AMEX: LMZ) reported its preliminary results for Q4 2007 ended March 31, 2007.

We are pleased the company is now showing the start of significant traction as indicated by the Q4 revenue increase of 575% to $1.5 million from $262 thousand in Q4 2006. Comparatively Q4 revenues increased 167% over Q3 revenues of $506 thousand.

Of interest, an additional $900,000 in orders were signed during the quarter but the revenue was not yet recognized due to matching. This indicated that Q4 sales were closer to $2.4 million and that Q1 F2008 is already booking 60% of Q4 revenues.

The backlog of signed and recurring contracts now stands at $4.4 million - an increase of 26% reported in Q3 and a 120% increase or $2.4 million from the $2.0 million reported in Q1 2007. The backlog provides a good metric to gauge the sucess the company has had over the past year in signing new contracts.

LMS has also given guidance to the market and believes it is well positioned for continued growth due to following factors:

LMS’ growing presence in the marketplace is the result of sales efforts with several hospital groups, the continued success of which should drive further additional revenue opportunities.

• Significant increases in revenues related to CALM Clinical Information Systems and the risk management tools are anticipated pending the release of interoperability components for a private branded product developed in conjunction with McKesson. Commercial availability of this product is scheduled for this summer.

• Additional revenues are expected from the release of CALM Patterns this year.

• Expanding pipeline of additional new products and business alliances are being pursued to open additional market opportunities and extend the reach of LMS existing line of software and risk management tools.

• As a result of increased system sales and the growing client base, revenues from maintenance and technical support service agreements are also expected to increase commensurate with the growth of the installed base.

To read the full release please click here.