Medical Transcription Billing Corp (NASDAQ:MTBC)
Shares of Medical Transcription Billing Corp (NASDAQ:MTBC) fell 24.56% after the provider of cloud-based healthcare IT solutions reported Q3 financial results that showed a net loss for the first nine months of the year. However, the company reported a 50% revenue increase for the same period.
According to the Chief Executive Officer, Mahmud Haq, revenue growth for the first nine months of the year set the company on course for record annual revenue. In additional to revenue growth, Medical Transcription Billing Corp (NASDAQ:MTBC)’s balance sheet received a boost in the quarter.
“Since our last earnings call, we fully repaid the balance of our $10 million credit facility with Opus Bank (“Opus”) two years prior to the original maturity date, paid Prudential the remaining $5 million plus interest owed for the MediGain acquisition, and raised capital in a way that didn’t dilute our common shareholders,” said Mr. Haq.
Medical Transcription Billing Corp (NASDAQ:MTBC) is still trading in an uptrend despite losing nearly a quarter of its total market value. For the full year, the stock is up by more than 200%. Monday’s sell-off could be a minor correction pending a major move on the upside.
For the Three months ended September 30, 2017, Medical Transcription Billing Corp generated revenues of $7.5 million, representing a 41% year-over-year increase. The company attributes the increase to the MediGain acquisition. Revenue for the first nine months came in at $23.5 million.
Net loss stood at (-$980,000) an improvement from a net loss of (-$1.7) million reported in the second quarter.
“The $714,000 improvement in our GAAP net loss from last quarter was due to a $780,000 reduction in amortization expense,” said Bill Korn, MTBC Chief Financial Officer. Net loss for the first nine months of the year increased to ($5.4) million from (-$4.8) million.
Medical Transcription Billing Corp (NASDAQ:MTBC) attributes the wider than expected net loss to non-cash amortization and depreciation expense of $3.6 million. The company also incurred restructuring charges in relation to the closing of offices in Poland and Bangalore, India and shifting of teams in Pakistan and Sri Lanka.
Medical Transcription Billing Corp (NASDAQ:MTBC) exited the third quarter with $2.8 million in cash and positive working capital, representing $5 million improvement.
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.