Recurring Revenues Increased to $16.1 Million(1) DENVER, Nov. 13
/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,
today reported record revenues for the third quarter and nine
months ended September 30, 2008. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040226/GLOBALMEDLOGO) Third
quarter highlights: -- Recurring revenues reached $16.1 million as
a result of transformative acquisitions. (1) -- Exclusive of recent
acquisitions, bookings of software license and implementation fees
increased 21% over the comparable quarter in 2007 and were up 10%
year-to-date over the first nine months of 2007. (2) -- Generated
quarterly revenues of $6.9 million(3) -- Global Med's highest ever
reported. -- Completed the acquisition of eDonor. -- Released a
proven tissue and cellular therapy product. -- Backlog of
unrecognized license and implementation revenue increased to over
$7 million. (1) -- Business pipeline of all subsidiaries combined
reached $60 million. -- Continued positive cash flows from
operations. Global Med's revenues climbed 70% to $6.9 million(3)
for the three months ended September 30, 2008 from $4.1 million for
the comparable period in 2007, due to the acquisitions of Inlog and
eDonor on June 26 and August 1, 2008, respectively. Gross profit of
$4.2 million in the third quarter of 2008 increased 43% from $2.9
million in the third quarter of 2007, with the Inlog and eDonor
acquisitions contributing gross profit of $1.7 million in the 2008
quarter. For the three months ended September 30, 2008, the
Company's net loss was ($228) thousand, or ($0.01) per diluted
share, compared to net income of $552 thousand, or $0.01 per
diluted share, during the comparable period in 2007. The principal
reasons for the net loss during the period was increased
depreciation and amortization expense associated with the Inlog and
eDonor acquisitions of $285 thousand, approximately $90 thousand in
non-recurring legal and accounting expenses, as well as interest
expense of $180 thousand associated with the acquisitions. Global
Med's revenues for the nine months ended September 30, 2008(4) rose
$4.6 million, or 39%, to $16.4 million from $11.8 million for the
comparable period in 2007. Revenue from the Inlog and eDonor
acquisitions contributed $3.1 million for the period, while
revenues from the Company's Wyndgate division and PeopleMed
subsidiary increased $1.5 million, or 12%, for the nine month
period compared to last year. Gross profit for the nine months
ended September 30, 2008 and 2007 was $10.2 million and $8.2
million, respectively, with the Inlog and eDonor acquisitions
contributing approximately $1.8 million to the Company's gross
profit for the 2008 period. For the nine months ended September 30,
2008 and 2007, the Company's net income was $284 thousand, or $0.01
per diluted share, and $1.3 million, or $0.03 per diluted share,
respectively. The primary reasons for the decrease in net income
during the nine month period related to depreciation and
amortization expense of $297 thousand, and interest expense of
approximately $190 thousand associated with the Inlog and eDonor
acquisitions and an increase in income tax expense of $381
thousand. During the quarter, the Company's overall recurring
revenues reached an annualized rate of $14.6 million. Based on the
Company's backlog of customers as of September 30, 2008, the
Company's annual recurring revenues, when all contracted customer
sites are implemented, will be approximately $16.1 million. The
Company's backlog of unrecognized software license fees and
implementation fees increased to approximately $7.0 million. The
Company's gross profit margin for the third quarter of 2008 was
approximately 60% compared to 71% in the third quarter of 2007. The
Company's gross profit margins are impacted by revenue mix, with
software license revenues having the highest gross margins of the
Company's product line. In addition, the Inlog and eDonor entities
both had historically lower gross margins than the Company. A
decline in third quarter 2008 software license fees revenues at the
Company's Wyndgate division and the Inlog and eDonor acquisitions
contributed to the decline in gross profit margins. Mick Ruxin,
M.D., Chairman and CEO of Global Med Technologies, Inc., commenting
on the recent acquisitions and quarterly results, stated, "Our
third quarter revenues of $6.9 million represented the highest
reported quarterly revenues since Global Med's inception due to the
acquisitions of Inlog and eDonor. It is also important to note that
we had approximately $400 thousand in new systems sales that we had
to defer to future quarters due to revenue recognition
requirements, demonstrating the inherent lumpiness of our revenue
stream. While we did incur a net loss for the quarter of $228
thousand, it resulted primarily from amortization and financing
costs and non-recurring legal and accounting costs associated with
the acquisitions. Our third quarter and year-to-date new system
sales are up over last year, recurring revenues reached $16.1
million(1), and we believe that the recent acquisitions will
provide significant long-term benefits to the Company's
shareholders." Ruxin concluded, "Our pipeline of identified
business has soared to over $60 million for Global Med's products.
While it is taking longer for deals to close, the needs and
requests for our products continue to increase". Thomas F.
Marcinek, the Company's President and COO, stated, "The market's
interest in our expanding product line continues to grow as
evidenced by the activity level at the recent American Association
of Blood Banks meeting. This is our largest meeting of the year
with over 5,000 attendees. Our booth and product showcase suites
were exceptionally busy. Prospective customers looked to us for a
complete and solid product offering from donor contact management
to delivery of finished blood products to patients in need." Mr.
Marcinek continued, "The market's desire for a vendor to partner
with for a complete vein-to-vein(R) solution places us in an
enviable position. With the availability of new products through
our Inlog and eDonor acquisitions, we are now positioned to provide
a complete line of products and services to the markets we serve."
Global Med Technologies, Inc. (OTC:GLOB.OB) (BULLETIN BOARD:
GLOB.OB) Selected Results Three Months Ended September 30, In
(000s) Except Per Share Information (Unaudited) 2008(3) 2007
Revenues $6,940 $4,094 Cost of revenues 2,759 1,172 Operating
expenses 4,299 2,375 Income (loss)from operations (118) 547 Other
income, (expenses) and (taxes) (110) 5 Net income (loss) $(228)
$552 Income (loss) per share Basic $(0.01) $0.02 Diluted $(0.01)
$0.01 Weighted average shares outstanding Basic 30,754 25,600
Diluted(5) 30,754 44,469 Cash flows provided by operations $227
$692 Selected Results Nine Months Ended September 30, In (000s)
Except Per Share Information (Unaudited) 2008(4) 2007 Revenues
$16,378 $11,782 Cost of revenues 6,177 3,566 Operating expenses
9,361 7,027 Income from operations 840 1,189 Other income,
(expenses) and (taxes) (556) 109 Net income $284 $1,298 Income per
share Basic $0.01 $0.05 Diluted $0.01 $0.03 Weighted average shares
outstanding Basic 28,546 24,035 Diluted 46,898 41,052 Cash flows
provided by Operations(6) $1,114 $3,371 The Company will host a
conference call today at 9:00 a.m. EST. Mick Ruxin, M.D., Chief
Executive Officer, Tom Marcinek, President and Chief Operating
Officer, and Darren Craig, Acting CFO, will discuss the third
quarter financial results and will be available to answer
questions. Interested parties are welcome to call the following
telephone numbers five minutes prior to the start of the conference
call. Callers within the U.S. should call: 1-866-789-9224. Callers
that are outside of the U.S. should call: 1-706-679-9621. Callers
should reference "Global Med Third Quarter Financial Results" to
the conference call operator. The conference call ID number will
be: 71180318. An automated replay of the conference call will be
available from November 13, 2008 at 11:30 a.m. EST until November
15, 2008 at 11:59 p.m. EST. To access the replay, callers within
the U.S. should call: 1-800-642-1687. Callers outside of the U.S.
should call: 1-706-645-9291 and enter Global Med's access code of
58996634. The replay of the conference call will be available
beginning November 15, 2008 at Global Med's website at
http://www.globalmedtech.com/. About Global Med Technologies, Inc.
Global Med Technologies(R), Inc. is an international medical
software company which develops regulated and non-regulated
software products and services for the healthcare industry. As a
leading provider of blood and laboratory software applications and
services, Global Med's products are deployed in 20 countries and
serve over 1,600 transfusion centers, blood banks and laboratories.
Global Med's U.S. division, Wyndgate Technologies(R), provides
Vein-to-Vein(R) tracking through its Donor Doc(TM), SafeTrace(R),
SafeTrace Tx(R) and ElDorado Donor(TM) software products. Each
year, Wyndgate's products and services manage more than eight
million blood components, representing over 27% of the U.S. blood
supply. Global Med's European subsidiary, Inlog, SA, is a leading
provider of donor center and transfusion management systems as well
as cellular therapy software, laboratory information systems and
quality assurance medical software systems internationally. Inlog's
products include EdgeBlood(7), EdgeTrack(7), EdgeCell, EdgeLab and
SAPA. Global Med's U.S. division, eDonor(R), provides a web-based
donor relationship management system that integrates recruitment,
scheduling, retention and fulfillment for national as well as local
community blood centers and hospitals. eDonor's products and
services are designed to complement Global Med's strong line of
international blood management and laboratory information software
and service solutions. Global Med's U.S. subsidiary, PeopleMed(R),
Inc., provides cost-effective customized software validation,
consulting and compliance solutions to hospitals and donor centers.
For more information about Global Med's products and services,
please call 800-996-3428 or visit http://www.globalmedtech.com/,
http://www.peoplemed.com/, http://www.inlog.com/ and
http://www.wyndgate.com/. (1) Represents the value of recurring
revenues once all current customers begin paying for maintenance,
including Inlog and eDonor. (2) Excludes Inlog and eDonor new
system sales bookings. Due to software license revenue recognition
rules, the Company was required to defer certain license fees which
were material during the 2008 quarter. (3) Includes Inlog's results
of operations for the three months ended September 30, 2008 and
eDonor's results of operations from August 1, 2008 through
September 30, 2008. (4) Includes Inlog's results of operations for
the period from June 26, 2008 through September 30, 2008 and
eDonor's results of operations from August 1, 2008 through
September 30, 2008. (5) Weighted average shares outstanding used in
the calculation of diluted net loss per share are the same as basic
weighted averages shares outstanding due to the Company's net loss
for the three months ended September 30, 2008. (6) During the nine
months ended September 30, 2007, the Company recognized
approximately $80 thousand in accrued interest related to the
return of a deposit in escrow of $1.004 million which increased the
Company's cash flows from operations by $1.084 million. (7) FDA
510(k) clearance required prior to sales in the U.S. This news
release may include statements that constitute forward-looking
statements, usually containing the words "believe," "estimate,"
"project," "expects" or similar expressions. These statements are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements inherently involve risks and uncertainties that could
cause actual results to differ materially from the forward-looking
statements. By making these forward-looking statements, the Company
undertakes no obligation to update these statements for revisions
or changes after the date of this news release.
http://www.newscom.com/cgi-bin/prnh/20040226/GLOBALMEDLOGO
http://photoarchive.ap.org/ DATASOURCE: Global Med Technologies,
Inc. CONTACT: company contact, Michael I. Ruxin, M.D. of Global Med
Technologies, Inc., +1-303-238-2000, ; or investor contact, Paul
Holm, President of portfolio pr, +1-212-888-4570, , for Global Med
Technologies, Inc. Web site: http://www.globalmedtech.com/
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