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Streamline Health Solutions, Inc. (STRM)
Q1 2017 Earnings Conference Call
June 13, 2017, 09:00 ET
Randy Salisbury - SVP & Chief Marketing Officer
David Sides - President & CEO
Nick Meeks - SVP & CFO
Matt Hewitt - Craig-Hallum Capital Group
Frank Sparacino - First Analysis
Kyle Davis - CG Capital
Previous Statements by STRM
» Streamline Health Solutions' (STRM) CEO David Sides on Q4 2016 Results - Earnings Call Transcript
» Streamline Health Solutions' (STRM) CEO David Sides on Q3 2016 Results - Earnings Call Transcript
» Streamline Health Solutions' (STRM) CEO David Sides on Q2 2016 Results - Earnings Call Transcript
At this time, I would like to turn the conference over to Randy Salisbury. Please go ahead, sir.
Thank you for joining us to review the financial results of Streamline Health Solutions for the first quarter of fiscal year 2017, which ended April 30, 2017. As the conference call operator indicated, my name is Randy Salisbury. I'm the Senior Vice President and Chief Marketing Officer here at Streamline Health; I manage all communications including Investor Relations.
Joining me on the call today are David Sides, our President and Chief Executive Officer; and Nick Meeks, our Senior Vice President and Chief Financial Officer. At the conclusion of today's prepared remarks, we will open the call for a question-and-answer session. If anyone participating on today's call does not have a full text copy of the release announcing these results, you can retrieve it from the company's website at streamlinehealth.net or at numerous financial websites.
Before we begin with prepared remarks, we want to be sure we are clear for everyone on the record of certain information which maybe provided today as with all of our earnings calls, should be viewed. We therefore submit for the record the following statement. First, statements made on this conference call that are not historical facts are considered to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These are subject to risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from those we may discuss. Please refer to the company's press releases and filings made with the U.S. Securities and Exchange Commission, including our most recent Form 10-K Annual Report for more information about these risks, uncertainties and assumptions and other factors.
As always, we are presenting management's current analysis of these items as of today. Our participants on this call should take into account these risks when evaluating the topics we will discuss. Please note, Streamline Health is not undertaking any commitment or obligation to publicly revise any such forward-looking statements made today.
Second, we will discuss non-GAAP financial measures such as adjusted EBITDA. Management uses these measures to help provide better insight into our financial performance. However, certain items of income and expense are not included in these measures, so these calculations may differ from those which another entity may reach using their own non-GAAP measures. To help you compare these amounts on consistent terms, please refer to our website at streamlinehealth.net and our earnings release for a reconciliation of such non-GAAP measures to the most comparable GAAP measures.
With that said, let me turn the call over to David Sides, President and Chief Executive Officer. David?
Thank you, Randy, and good morning everyone. This earnings call marks the change in our approach to communicating with our shareholders and we hope that you find it more convenient for you.
Since our fiscal quarters are one month later than the norm, we felt moving our calls to mornings following the publication of our financial results the night before might be a better methodology. Further, we've added some visual representation to our presentation today and we plan to continue this in future quarters if you find this helpful. Please let us know what you think of this change in our earnings release process by contacting Randy Salisbury directly.
This morning, I want to comment on our first quarter performance, take a look at our second quarter performance to-date, and comment a bit on what we anticipate seeing for the remainder of our fiscal year. As released yesterday afternoon, for the first quarter of fiscal 2017, we generated revenues of approximately $5.9 million, a decline of approximately 7% from last quarter. We projected a decline in our Q1 2017 revenue and our Q4 earnings call several weeks ago as a result of the impact of last year's client attrition and continued challenges in predicting timing and perpetual license contract execution through some of our channel partner relationships.
In addition, we had an expected revenue reduction in the trade from selling our scheduling solutions versus adding new code auditing services. With these adjustments from Q4 to Q1 behind us, we believe we have arrested the downward revenue trends, and in a few minutes I will discuss why this will be the case. Recurring revenues were 83% of total revenue for the first quarter, about the same as last quarter.
Turning our attention now to professional services; revenues were approximately $420,000 in the first quarter, a decrease of approximately 20% over the last quarter. This was primarily due to the completion of a number of upgrades to our ECM solution at the end of Q3 and deferred recognition of implementation work for several other implementation efforts in play. Our bookings for the first quarter of 2017 consisted primarily of smaller coding audit services contracts with a notable exception, a very large hospital system signing on to use our Streamline Health CORE, our coding opportunity report engine auditing [ph] technology. This contract was smaller as well but has the potential to grow and more importantly, to sell our eValuator solution into their system.