FOR: CARDIOCOMM SOLUTIONS, INC.
TSX VENTURE SYMBOL: EKG
August 30, 2017
TORONTO, ONTARIO - CardioComm Solutions, Inc. (TSX VENTURE:EKG) (“CardioComm Solutions” or the “Company”)a leading global medical provider of consumer heart monitoring and medical electrocardiogram ("ECG") software solutions, released its second quarter 2017 financials demonstrating continued sales growth, a profitable 2017 year to date, and a net profitable position over the past four fiscal quarters.
The Q2 numbers are the result of management's continued focus on expense control coupled with new revenue generation opportunities. A summary of the SEDAR posted financials shows Q2 2017 revenue versus 2016 Q2 revenue increased 31%. Operationally, the Company has been cash flow positive over the last four fiscal quarters.
The Company reports profits of $24,345 generated over the past four quarters versus reported losses of $381,367 for the twelve months ending June 30 2016, an increase of $405,712. Revenue growth has been realized through increased licensing contracts involving multi-year annual software licensing contracts that generate recurring revenue streams, as well as a growing market interest from device and telemedicine groups in seeking customized engineering contracts. Revenue associated with hardware sales dropped again this quarter from 25% of overall revenue in Q2 2016 vs to 23% in Q2 2017 while all software related revenues increased by 8% in Q2 2017 vs Q2 2016, in line with the company's shift towards a strong software focus and 3rd party hardware device integration. Software licensing revenue was the big winner posting an increase of 23% this quarter and an 11% increase over the six months ending June 30 versus similar reporting periods in 2016. The stronger software revenue stream speaks to the Company’s recognized core competency and growing strategic market position as an innovator in ECG device communications, ECG data management solutions and ECG review and interpretation solutions and as a preferred “software as a medical device” provider to the medical industry.
The Company’s financial statements accommodate a reported non-operational cash loss of $113,325 related to a fraudulent banking transaction. The Company has disputed the transaction with its banking institution and is seeking a return of its funds. While the bank investigation continues into the dispute, the Company has elected to report the loss. Without this singular event, the Company would have been in a position to report a profitable Q2 with net earnings of $100,416 and a year to date 2017 profit of $123,326.
The Company continues to emphasize maintaining its leadership as a software innovator while confirming plans to introduce multiple biometric and vital signs monitoring capabilities to its software offerings. The Company believes access to new and innovative devices will lead the way for further software sales growth as device manufacturers look to provide consumer and medical markets with access to novel technologies that can provide medically credible results.
CardioComm has earned the ISO 13485 certification, is HPB approved, HIPAA compliant and holds clearances for the sale of its HeartCheck™ technologies from the European Union (CE Mark), the USA (FDA), China (CFDA) and Canada (Health Canada). To learn more about the CardioComm Solutions’ products, please see the Company’s websites www.theheartcheck.com and www.cardiocommsolutions.com.
CardioComm Solution’ patented and proprietary technology is used in a variety of solutions for recording, viewing, analyzing and storing electrocardiograms for the diagnosis and management of cardiac patients. Products are sold worldwide through a combination of an external distribution network and a North American-based sales team. CardioComm Solutions is headquartered in Toronto, Ontario, Canada.
INFORMATION PLEASE CONTACT:
Etienne Grima, Chief Executive Officer
This release may contain certain forward-looking statements and forward looking information with respect to the financial condition, results of operations and business of CardioComm Solutions and certain of the plans and objectives of CardioComm Solutions with respect to these items. Such statements and information reflect management’s current beliefs and are based on information currently available to management. By their nature, forward-looking statements and forward-looking information involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements and forward-looking information.
In evaluating these statements, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not assume any obligation to update the forward-looking statements and forward-looking information contained in this release other than as required by applicable laws, including without limitation, Section 5.8(2) of National Instrument 51-102 (Continuous Disclosure Obligations).
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.