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Streamline Health Solutions, Inc. (STRM)
Q2 2018 Earnings Conference Call
September 12, 2018 9:00 AM ET
David Sides - President and Chief Executive Officer
Tom Gibson - Senior Vice President and Chief Financial Officer
Matthew Hewitt - Craig-Hallum Capital Group LLC
Frank Sparacino - First Analysis
Previous Statements by STRM
» Streamline Health Solutions, Inc. (STRM) CEO David Sides on Q1 2018 Results - Earnings Call Transcript
» Streamline Health Solutions' (STRM) CEO David Sides on Q4 2017 Results - Earnings Call Transcript
» Streamline Health Solutions' (STRM) CEO, David Sides on Q3 2017 Results - Earnings Call Transcript
At this time, I would like to turn the conference over to Mr. David Sides, President and Chief Executive Officer of Streamline Health. Please good, sir.
Thank you for joining us to review the financial results of Streamline Health Solutions for the second quarter and first-half of fiscal year 2018, which ended July 31, 2018. As the conference call operator indicated, I’m David Sides, President and CEO of Streamline Health. Randy Salisbury, our Senior Vice President and Chief Marketing Officer, who usually begins our earnings call is on PTO this week. So I’m handling his duties today. Joining me on the call today is Tom Gibson, our new Senior Vice President and Chief Financial Officer.
At the conclusion of today’s prepared remarks, we’ll open the call for question-and-answer session. If anyone participating on today’s call does not have a full-text copy of our press release announcing these results, you can retrieve it from the company’s website at www.streamlinehealth.net or 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 may be 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’re 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 www.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 get on with my prepared remarks. First, I want to comment on our second quarter and first-half of fiscal year 2018 performance. Then, as usual, I want to look at our third quarter performance to date and comment on what we anticipate seeing for the remainder of our fiscal year.
Before I do, I want to say that I think our second quarter performance was particularly productive in many operational areas of our business, which we will touch upon this morning.
That said, with regard to our financial performance, as released yesterday afternoon, for the second quarter of fiscal 2018, we generated revenues of approximately $5.3 million, a decline sequentially from the first quarter of this fiscal year of approximately $1 million. The main driver of which was a large perpetual license contract with an existing client, which we discussed in our Q1 earnings call.
[Excluding] [ph] that perpetual revenue in Q1, which I will remind everyone as non-recurring revenue, our revenues were flat quarter-to-quarter and down approximately 12% as compared to the same period a year ago. The first six months of fiscal 2018, revenues were approximately $11.5 million, down about 3%, compared to approximately $11.8 million in the first six months of last year.
Recurring revenues were approximately 83% of total revenue for the second quarter, about the same as Q2 a year ago, but up substantially sequentially from the previous quarter, primarily due to the aforementioned perpetual revenue of $1.1 million in Q1 2018.
Our bookings for the second quarter of 2018 were $1.9 million. We continue to feel confident that we will produce between $2 million and $3 million in bookings each quarter for the remainder of this year. We’re off to a good start in the first month of our third quarter, as one of our contracts we had worked hard to close in Q2 signed on the first day of August, one day too late to becoming in the second quarter, but such is the nature of our business. The bookings in Q2 consisted primarily of two new eValuator clients and our first Allscripts Abstracting client.
Today, our pipeline includes more Abstracting opportunities with Allscripts clients, which we’re pursuing vigorously in partnership with the team from Allscripts, and we believe will add more deals in the second-half of this year and into 2019. The two new eValuator clients are both very good additions to our client roster, as one is the leading educational facility on the West Coast and the other is Hunt Regional outside of Dallas, Texas.