OHE
28/04/2015 09:24
GENERAL
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REL: 0924 HRS Orion Health Group Limited
GENERAL: OHE: Orion Health Q4 FY15 Business Update
Q4 FY15 BUSINESS UPDATE ANNOUNCEMENT: Orion Health Group Limited (OHE)
28 April 2015, Auckland
Orion Health Group Limited (Orion Health), a global leader in healthcare
software and services, will have a business update conference call for
investors at 11am NZST on 28 April 2015.
This business update will cover:
1. FY15 Unaudited Operating Revenue
Orion Health today announces its unaudited operating revenue for the year
ended 31 March 2015 (FY15). Unaudited FY15 operating revenue was $164 million
up 7% from $153 million in FY14.
All regions experienced growth for the year except for North America. As
expected and previously noted, revenue in this region was constrained by the
execution of our strategy to transition from perpetual licences to
subscription revenue and a delay in contract closures.
Full details will be provided in the annual results announcement on 26 May
2015.
2. March 2015 Annualised Recurring Revenue
The transition to increased levels of recurring revenue is a key driver of
our business model.
As at 31 March 2015 our Annualised Recurring Revenue was $63 million compared
to $44 million at 31 March 2014, an increase of 43%.
3. Q4 Cash Flow
Orion Health today released a cash flow report for the quarter ending 31
March 2015 (Q4 FY15) in accordance with ASX listing rules. As at 31 March
2015 Orion Health had cash and short-term deposits of $95 million. Net
operating cash flow in Q4 FY15 was $0.8 million. Cash receipts from customers
in Q4 were $53 million, an improvement from $30 million in Q3 FY15.
Significant quarterly variances in cash receipts are typical for Orion Health
due to lumpiness of contract revenues and seasonal factors and quarterly
fluctuations are expected to be ongoing.
4. Significant Software Release at HIMSS 2015
In April 2015, Orion Health publicly launched and demonstrated its Amadeus
Big Data Engine together with a range of new products and new versions of its
software solutions at the largest global healthcare IT conference (HIMSS) in
Chicago.
Of particular note were:
a) Open Platform - The evolution of our platform outlined in the IPO
documentation, the Open Platform (powered by our Amadeus Big Data Engine)
integrates large volumes of payer (claims), provider, and other health data
and is attracting a great deal of attention from the payer market. Our
research indicates that this is one of the first population health big data
solutions in the market, and the first with a major implementation.
b) Clinical Workflow Suite, part of Orion Health Coordinate - One of the
first vendors to release a comprehensive clinical workflow suite, with
several support workflow types, including healthcare pathways and referrals.
c) Amadeus Analytics - An evolution of our Analytics offering outlined in the
IPO documentation, Amadeus Analytics integrates in real time with our Amadeus
Big Data Engine.
d) Allegro - A new application providing secure messaging and chat between
patients, doctors and other healthcare providers.
These and other Orion Health products generated substantial interest at the
HIMSS conference. Analyst and industry feedback has been that the Amadeus
Big Data Engine appeared to be unique and industry leading.
5. North American Performance
Q4 was a challenging period for Orion Health's North American Operating
Revenue, as we continued the transition from a perpetual licence model to a
subscription model. There is strong interest in Orion Health's Healthier
Populations solutions from North American Payer (insurance) and healthcare
provider organisations. In Q4 we executed a contract with a prestigious
Integrated Clinical Network to deploy our Healthier Populations solution and
we are now seeing market procurement activity returning to historical levels,
consistent with our expectations. Specific opportunities with Payers continue
to progress and we anticipate additional contractual closures in FY16.
Specific detail of material engagements will be released as the contracts are
finalised.
There is emerging opportunity created by the recently announced Centers for
Medicare and Medicaid Services (CMS) Chronic Care Management (CCM)
Reimbursement programme, which Orion Health is pursuing in collaboration with
Qualcomm.
6. Rest of World Performance
Orion Health's Asia Pacific and Europe & Middle East regions have continued
to perform well in the past quarter. In particular, the United Kingdom
business has enjoyed a strong run of contracting activity with National
Health Service Trusts and Clinical Commissioning Groups.
7. Business Improvement Initiatives
Orion Health has commenced a number of ongoing initiatives to increase
service capacity and reduce overhead costs. One of the key initiatives is
investment in Implementation Services and Managed Services execution
capability, which includes global standardisation of the company's approach
to its Software as a Service (SaaS) delivery model.
Conference Call Details:
Toll Free Number: 0800 452 782
If calling from outside New Zealand: +64 9 887 6907
Conference ID: 2995 6622
Please note that it may take five to ten minutes for the moderator to take
your details and place you into the call.
Webcast Details:
http://www.openbriefing.com/OB/1779.aspx
Audience members may arrive 15 minutes prior to the event start time.
Please note that you will not be able to ask questions via the webcast
Contact:
Bridget Snelling
Investor Relations Manager
[email protected]
End CA:00263588 For:OHE Type:GENERAL Time:2015-04-28 09:24:29
