OHE
15/07/2015 08:43
GENERAL
PRICE SENSITIVE
REL: 0843 HRS Orion Health Group Limited
GENERAL: OHE: Orion Health Q1 FY16 Business Update
Q1 FY16 BUSINESS UPDATE ANNOUNCEMENT:
Orion Health Group Limited (OHE)
15 July 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 15 July
2015. This
conference call will include an update on cash flow and key business events
in the past quarter. A
full financial update will be provided in the release of interim results in
November.
The Q1 FY16 business update will cover:
1. Q1 FY16 Cash Flow
Orion Health today released a cash flow report for the quarter ending 30 June
2015 (Q1 FY16) in
accordance with ASX listing rules. As at 30 June 2015 Orion Health had cash
and short-term
deposits of $96 million. Operating cash flow in Q1 was $0.2 million. This
follows Q4 FY15 positive
cash flow of $0.8 million resulting in Orion Health being $1.0 million cash
positive over the last six
months.
This is a pleasing result and ahead of internal forecasts.
It should be noted, however, that the company is in investment mode,
particularly in Research and
Development and in building our Software as a Service business. We anticipate
negative cash flow
in the short to medium term as we continue to grow capability.
2. Business Performance
We are pleased with our performance in the first quarter of FY16 as the
business is performing in
line with management's expectations. There are a number of opportunities in
the pipeline globally
which are contributing to a positive outlook for the rest of the financial
year.
New opportunities are arising within our core target markets, as well as in
ancillary sectors that
align with our strategy. The size of our opportunities continues to increase.
In some instances we
are working with customers that are bigger than the entire New Zealand Health
System. This puts
us in a strong position for future growth.
We have also continued to increase our investment in Research and Development
and we are
pleased with ongoing enhancements to our software solutions in meeting
emerging customer
needs.
3. Currency
Over this past quarter, we have benefited from a foreign exchange
appreciation against the NZ
Dollar in the basket of currencies that comprise Orion Health's business.
4. Key events in Q1 FY16
North America
In North America, Orion Health secured a number of notable contracts in the
last quarter. We
formed a strategic partnership with eHealth Technologies to enable North
Dakota Health
Information Network (NDHIN) to provide healthcare providers across the entire
state of North
Dakota with access to medical images as a part of the state wide Health
Information Exchange (HIE).
In addition, we renegotiated with a key customer to expand our existing
relationship by
providing increased levels of service. This represents one of our most
significant customer
engagements in the United States.
We continued to work with Cal INDEX to provide further software and agree the
onboarding
program for new health insurance and provider groups in California in support
of Cal INDEX's goal
to provide an aggregated Health Information Exchange for the entire state of
California.
From an industry perspective, the recent U.S. Supreme Court ruling in King v
Burwell that upheld
insurance subsidies provided under Obamacare is significant. It upholds a
principle that is a key
tenet of Obamacare to increase access to health insurance for all U.S.
citizens and extends the
current transformation of the U.S. healthcare system. This new level of
certainty is a positive
outcome for Orion Health as we continue to serve major U.S. customers as they
invest in new
models of care.
EMEA
Orion Health's growth in the United Kingdom continues. We recently secured a
contract to support
a large care coordination project in Cambridgeshire. This program is focused
on the care of the
elderly, and acts as a single coordination point to improve healthcare
experiences and reduce
costs.
Orion Health was proud to win the 2015 HealthInvestor award for UK Technology
Provider of the
Year for groundbreaking partnerships that deliver better healthcare services.
This award
recognised the impact that Orion Health is having in delivering a shared care
record for major
healthcare providers who coordinate care across communities.
In Spain, Orion Health won a procurement to deploy our Open Platform for a
public healthcare
provider to more than 2.5 million people. This is a big and complex
organisation with around 30,000
employees managing a clinical network of 14 hospitals and more than 3,500
primary care facilities.
This is the first deployment in Europe of this new technology solution.
Asia Pacific
In Vietnam Orion Health was chosen to provide a complete in-hospital solution
to the Vinmec
International group of hospitals, a premium healthcare provider headquartered
in Hanoi. The Orion
Health solution will be initially deployed in five of Vinmec's sites,
expanding to a further six facilities.
Vinmec serves a growing medical tourism industry seeking premium healthcare
services.
In Australia, the Federal Government announced A$485 million of additional
funding for the
personal My Health Record, which uses Orion Health software. This is positive
for Orion Health as
the Australian Government also signaled a transition from the current "opt
in" system to an "opt out"
system to drive universal adoption of the service.
5. Outlook
The healthcare industry continues to offer significant opportunity for growth
as it continues to adopt
new technology. Orion Health is well positioned to take advantage of this
growth as we execute our
strategy to become a leading provider of healthcare software and services
globally.
Conference Call and Webcast Details
To join the call, please use the dial in details below. Please note that it
may take 5-10 minutes for
the moderator to take your details and place you into the call.
Conference ID: 8095 6754
Toll Free Number NZ: 0800 452 782
Toll Free Number AU: 1800 123 296
If calling from outside New Zealand or Australia +64 9 887 6907
Webcast URL:
http://www.openbriefing.com/OB/1853.aspx
Contact:
Bridget Snelling
Investor Relations Manager
[email protected]
021414214
End CA:00267011 For:OHE Type:GENERAL Time:2015-07-15 08:43:30
