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Five Million Contract Announcement Takes Micro-Cap to 52-Week Highs
By: AllPennyStocks.com News
January 11, 2012
Electronic Medical Records and Personal Health Records are still trying to grab a little more market traction, but they certainly should find a better grip in the near and mid-term. Government mandates are approaching as companies move to make the shift into electronic conveyance of crucial health data whether they want to or not. The fact is that they have to. The bottom line is that when EMR and PHR systems are completely mainstream over the next few years, the system will be far more efficient and offer better operability to all involved parties. A significant cost savings should also be beneficial to health care providers, which is an unparalleled component given the spotlight on waste that has shown bright over the past few years.
Offering services that benefit the healthcare industry, Auxilio, Inc. (OTCBB:AUXO), is a pioneer in the Managed Print Services (MPS) sector. MPS involves managing hardcopy device fleets (i.e. copiers, fax machines, medical devices) in a unified fashion. Clients seek MPS providers to streamline costs and increase efficiency. Headquartered in Mission Viejo, California, Auxilio works exclusively with hospitals and hospital systems throughout the United States as an independent vendor and provider of intelligent solutions offering a risk free program and guaranteed savings. Impressively, Auxilio has achieved 100 percent customer retention as the preferred MPS company at over 650 health care entities, including acute and specialty care hospitals and hospital systems, administrative and support offices, and other medical and clinical care facilities.
Auxilio will also be a natural fit for companies in the EMR age through its data management systems and full-time customer service and technical personnel on site.
A host of new clients helped drive revenue for Auxilio northward for the third quarter ended September 30, 2011. Filings show the company reported net revenue of $6.7 million, an increase of 68 percent as compared to $4.0 million in the same period of 2010. Gross profit for the third quarter of 2011 was $1.3 million, or 19% of sales, compared to $835,000, or 21% of sales, in the same period of 2010. On a nine-month basis net revenue was $16.2 million, an increase of 44% when compared to $11.3 million in the same period of 2010. On the downside, net loss for the first nine months of 2011 was $1.5 million, or $0.08 per share, compared to $526,000, or $0.03 per share, in the first nine months of 2010.
Today, the company released news of a new, five-year, $5 million agreement with Memorial Health System (MHS) in Colorado Springs, CO to implement its MPS program to cut costs and maximize efficiencies to the print infrastructure of the System’s three hospitals and affiliated clinical and support facilities. MHS has over 650 beds, 950 physicians and is one of the largest employers in Colorado Springs with over 4,100 employees.
As demand continues to expand in the EHR space and Auxilio’s footprint broadens, investors will be looking for Auxilio’s financial statements to show additional progress to operating at a profit. There is not a lot of downside to anticipated growth in the health care industry related to electronic medical records and with proper management Auxilio could be well-positioned for future growth. Proper due diligence is encouraged on this company whose share value pushed upward to a new 52-week high by touching $1.20 before retracing to close the day at $1.00.
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