Global Med Technologies(R), Inc. Reports Record Fourth Quarter and Fiscal Year 2006 Results
February 26 2007 - 9:00AM
PR Newswire (US)
DENVER, Feb. 26 /PRNewswire-FirstCall/ -- Global Med
Technologies(R), Inc. ("Global Med" or the "Company") (OTC:GLOB)
(BULLETIN BOARD: GLOB) an international e-Health, medical
information technology company, reported its financial results for
the fourth quarter and year ended December 31, 2006. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040226/GLOBALMEDLOGO ) Q-4,
2006 Summary Global Med reported record revenues of $3.678 million
for the fourth quarter, an increase of $563 thousand or 18.1% over
the prior year's quarter. The Company's net income for this period
was $364 thousand or $0.02 per share. The Company also had record
contract sales for the fourth quarter of $3.5 million. As a result
of these contracts, the Company's backlog of unrecognized software
license and implementation fees increased by over $2 million for
the period from September 30, 2006 to December 31, 2006. In
addition, as a result of these new contracts, the Company's backlog
of unrecognized software license and implementation fees reached
record levels of over $5.7 million as of December 31, 2006. The
fourth quarter's results marked the tenth consecutive quarter of
comparable quarter to quarter revenue growth for the Company. 2006
Summary Revenues for the year were $12.362 million, an increase of
$1.158 million or 10.3% over the prior year. For 2006, the
Company's net income was $1.381 million or $0.06 per share. In
addition, the Company achieved record sales contracts of $6.5
million. The Company's cash flows from operations were a record
$1.224 million for the year. Recurring annual maintenance revenues
are expected to increase by over $1.1 million over the next one to
two years as a result of the new contracts that occurred during the
year. As of December 31, 2006, the Company's annual recurring
revenues, once all of the existing customer sites are implemented,
will be approximately $6.9 million. 2006 Achievement Summary The
following occurred between December 31, 2005 and 2006: Record
revenues of $12.362 million resulted in substantial strengthening
of the Company's financial position. - First full year of
profitability in Company history with net income of $1.381 million
- Shareholders' equity reached $379 thousand versus a shareholders'
deficit of $25.833 million for FY 2005, an improvement of $26.212
million - Cash flows from operations were $1.224 million - Cash
balance increased to $2.554 million from $1.368 million in FY 2005
- Strong backlog of $5.7 million with a strong pipeline of
potential business for 2007 Business Developments - Surpassed
milestone of 500 customer sites: 102 new sites with the continuing
trend expected in 2007 - The Company has made substantial progress
in the development of its intended new product suite, to be
brand-named ElDorado(TM), which is being finalized for submission
to the United States Food and Drug Administration ("FDA"). The
product is currently not for sale in the U.S. The new product
offering is being demonstrated to the international market in
anticipation of its availability later this year. - The Company
expanded its distribution network with the addition of two new
channel partners during 2006. It now has 15 channel partners
marketing its products. These channel partners are typically
Laboratory Information System vendors that require the Company's
products to complete their offering to the hospital market. - The
Company created an Educational Services Department focused on the
educational needs of its clients by providing new services such as
Web-based education, end-user education and industry based seminars
using enhanced adult learning styles and techniques. These
educational programs are accredited for Continuing Education Units
("CEU"), providing added value to customers that require CEU's to
maintain their professional credentials. The Company continued to
expand and enhance its Service 360(TM) branded service offering,
developed to ensure that the Company's service levels improve as it
grows. Through the branding of its services, the Company
established a high standard for service and communicated these
standards to its customers and educated its employees in the
delivery of Service 360. The Company measures operational
performance to these standards and publishes the results to its
customers. Michael I. Ruxin, M.D., Chairman and CEO of Global Med
Technologies, Inc., commenting on the quarterly and annual results,
stated, "The Company's revenues and profits reflect our steady
progress and achievements as a leader in medical information
technology. Global Med recognized record revenues for 2006, and the
Company achieved its first full year of profitability. Our
achievements have positioned us to become a world leader in the
Blood Bank Information Management Solutions market. To this end, we
are actively exploring complementary business acquisitions that
will further this mission. We continue to set new standards for
technology, regulatory compliance and service." Dr. Ruxin
continued, "This year is shaping up nicely. The Company anticipates
continued revenue growth, profitability, and positive cash flows
from operations for 2007, and into the foreseeable future. Based on
the Company's future outlook, the Company has also hired the PMH
Group for its investor relations." Thomas F. Marcinek, the
Company's President and COO, stated, "Global Med had a good year.
The Company has been profitable in eight of the last nine quarters.
Our cash flows from operations continue to be robust with $215
thousand generated for the quarter and $1.224 million provided for
the year ended December 31, 2006. In addition, the Company is
planning to bring additional products to market during 2007. We
believe the introduction of these new products will help fuel and
accelerate revenue growth." The following table provides
information related to the Company's operations for the three
months and year ended December 31, 2006 and 2005: Global Med
Technologies, Inc. (OTC:GLOB) (BULLETIN BOARD: GLOB) Selected
Results Three Months Ended December 31, In (000s) Except Per Share
Information (Unaudited) 2006 2005 Revenues $3,678 $3,115 Cost of
revenues and operating expenses * $3,165 $4,482 Income (loss) from
Operations $513 $(1,367) Other income (expenses) ** $4 $(9,925)
Income tax $(153) -- Net (loss) income $364 $(11,292) Preferred
dividends -- $(183) Deemed dividend, issuance of Series A
Convertible Preferred Stock -- $(10,235) Net income (loss)
available to common shareholders $364 $(21,710) Income per share
Basic $0.02 $(0.80) Diluted $0.01 $(0.80) Weighted average shares
outstanding Basic 23,212 26,970 Diluted 37,869 26,970 Cash flows
provided by (used) in operations $215 $(1,298) Selected Results
Year Ended December 31, In (000s) Except Per Share Information
(Unaudited) 2006 2005 Revenues $12,362 $11,204 Cost of revenues and
operating expenses * $11,554 $12,074 Income (loss) from Operations
$808 $(870) Other income (expenses) *** $726 $(9,949) Income tax
$(153) -- Net (loss) income $1,381 $(10,819) Preferred dividends,
related party -- $(698) Deemed dividend, issuance of Series A
Convertible Preferred Stock -- $(10,235) Net income (loss)
available to common shareholders $1,381 $(21,752) Income per share
Basic $0.06 $(0.79) Diluted $0.04 $(0.79) Weighted average shares
outstanding Basic 23,167 27,528 Diluted 39,128 27,528 Cash flows
provided by (used) in operations $1,224 $(984) About Global Med
Technologies, Inc. Global Med Technologies, Inc. is an
international e-Health, medical information technology company,
providing information management software products and services to
the healthcare industry. Its Wyndgate Technologies division is a
leading supplier of information management systems to U.S. and
international blood centers and hospital transfusion centers. Each
year, Wyndgate's products and services manage more than eight
million blood components, representing over 27% of the U.S. blood
supply. Wyndgate's products are being used in Canada and
sub-Saharan Africa, and are being implemented in the Caribbean.
Together, the SafeTrace Tx(R) **** advanced transfusion management
system and the SafeTrace(R) donor management system provide
Vein-to-Vein(R) tracking from donor collection to patient
transfusion. For more information about Global Med's products and
services, please call 800-WYNDGATE or visit
http://www.globalmedtech.com/, http://www.peoplemed.com/ and
http://www.wyndgate.com/. Statements in this press release that are
not strictly historical are "forward-looking" statements within the
meaning of the Safe Harbor provisions of the federal securities
laws. Forward-looking statements involve risks and uncertainties,
including, but not limited to, continued acceptance of the
Company's products and services in the marketplace, regulatory and
competitive factors, new products and technological changes, the
Company's dependence upon third-party suppliers, and other risks
detailed from time to time in the Company's Form 10-KSB and other
regularly filed reports. The results of operations for the quarter
or year ended December 31, 2006 are not necessarily indicative of
the results that may be expected for any other future period. *
During 2005, the company incurred certain charges such as a $1.004
million charge for a summary judgment and a $521 thousand charge
related to accelerated stock option vesting. ** During the three
months ended December 31, 2005, the company recognized certain
charges related to certain features of the refinancing of the
Series A Convertible Preferred Stock ("Series A") financing that
occurred in December 2005. Certain features of the Series A were
deemed to be derivative instruments. On March 29, 2006, certain
terms of the Series A were renegotiated and as a result the
features that were deemed to be derivatives were removed. ***
During 2006, the Company recognized approximately $724 thousand in
gains associated with certain features of the Series A until March
29, 2006, the date that such features were removed. During 2005,
the Company recognized net charges of approximately $9.340 million
related to embedded derivatives associated with the Series A. ****
Patent Pending
http://www.newscom.com/cgi-bin/prnh/20040226/GLOBALMEDLOGO
http://photoarchive.ap.org/ DATASOURCE: Global Med Technologies,
Inc. CONTACT: Michael I. Ruxin, M.D., Chairman and CEO of Global
Med Technologies, Inc., +1-303-238-2000; or Investors, Paul M.
Holm, +1-212-496-7238, , for Global Med Technologies, Inc. Web
site: http://www.globalmedtech.com/
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