Streamline Health Solutions Inc. (NASDAQ:STRM)
Shares of Streamline Health Solutions Inc. (NASDAQ:STRM) gained 75.82% after the provider of integrated solutions announced the sale of its cloud-based technology, eValuator. According to the Chief Executive Officer, David Sides, the sale builds on a strong relationship with a west-coast based audit service client that began in 2016.
Streamline Health Solutions Inc. (NASDAQ:STRM) is currently trading at all-time highs following the 75% gain. The stock is up by more than 80% for the year.
EValuator is designed to help improve healthcare provider’s financial performance, by moving mid-to late revenue cycle interventions upstream. It also optimizes coding accuracy for every patient encounter, prior to submission. Improvement in coding accuracy allows providers to reduce revenue leakage, mitigate overbill risk and reduce denials and days in A/R
“It’s great to work with innovative healthcare providers that are truly committed to the health of the communities they serve and constantly looking for ways to improve overall financial performance as it funds their mission. With eValuator, our code auditing technology can help them further improve their financial performance by reviewing all coded patient records before they are billed,” said Mr. Sides.
Q2 Financial Results
Separately, Streamline Health Solutions Inc. (NASDAQ:STRM) reported revenues of $5.9 million for the three months ended July 31, 2017, representing a 20% decrease from $7.4 million reported in Q2 2016. Revenue for the first six months of the year was down 9% compared to the corresponding period last year.
Net loss for the quarter stood at (-$1.1) million compared to a net loss of (-$0.7) million reported last year. Net loss for the first six months of the year widened to (-$3.1) million compared to (-$2.2) million reported last year.
The sale of eValuator follows the sale of auditing services to four new clients during the second quarter. While the new contracts are small in terms of initial revenue contribution, Streamline Health Solutions Inc. (NASDAQ:STRM) should be able to grow its business ties with the clients.
“Our pipeline for our new Streamline Health eValuator™ remains robust. We closed a new client after the second quarter ended which we believe will be one of many throughout the second half of our fiscal year,” said Mr. Sides.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.