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Semler Scientific Reports Second Quarter And First Half 2017 Financial Results

Published: Aug 02, 2017

PORTLAND, Ore., Aug. 2, 2017 /PRNewswire/ -- Semler Scientific, Inc. (OTCQB: SMLR), an emerging growth company that provides technology solutions to improve the clinical effectiveness and efficiency of healthcare providers, today reported financial results for the second quarter and six months ended June 30, 2017.

"Orders for QuantaFlo were robust as we believe customers recognize the value of our product, that is, to provide better clinical outcomes for their patients and better economics for their businesses," said Doug Murphy-Chutorian, M.D., chief executive officer of Semler. "We are looking forward to our best year ever in terms of revenue," he added.

FINANCIAL RESULTS

For the three months ended June 30, 2017, compared to corresponding period of 2016, Semler had:

  • Revenue of $2,578,000, an increase of $942,000, compared to $1,636,000
  • Cost of revenue of $592,000, an increase of $59,000, compared to $533,000
  • Total operating expenses, which includes cost of revenue, of $3,133,000, an increase of $627,000, compared to $2,506,000
  • Net loss of $850,000, or $0.16 per share, a decrease of $116,000, compared to a net loss of $966,000, or $0.19 per share

For the six months ended June 30, 2017, compared to the corresponding period of 2016, Semler had:

  • Revenue of $4,633,000, an increase of $1,497,000, compared to $3,136,000
  • Cost of revenue of $1,131,000, an increase of $181,000, compared to $950,000
  • Total operating expenses, which includes cost of revenue, of $5,937,000, an increase of $1,000,000, compared to $4,937,000
  • Net loss of $1,722,000, or $0.33 per share, a decrease of $250,000, compared to a net loss of $1,972,000, or $0.38 per share

For the three months ended June 30, 2017, compared to three months ended March 31, 2017, Semler had:

  • Revenue of $2,578,000, an increase of $523,000, compared to $2,055,000
  • Cost of revenue of $592,000, an increase of $52,000, compared to $540,000
  • Total operating expenses, which includes cost of revenue, of $3,133,000, an increase of $328,000, compared to $2,805,000
  • Net loss of $850,000, or $0.16 per share, a decrease of $21,000, compared to a net loss of $871,000, or $0.17 per share
  • Cash of $496,000, an increase of $337,000, compared to $159,000

SECOND QUARTER 2017 HIGHLIGHTS

The major accomplishments of the second quarter were to:

  1. Ship new and expanded orders for QuantaFlo, our vascular testing product, which resulted in quarterly revenue growth of 25% compared to the first quarter of 2017; and
  2. Make additional investments in research and development, technical and clinical services to support a larger and growing installed base of business.

We expect revenue from QuantaFlo to continue to grow due to an increasing number of installations resulting from new orders, higher average pricing as compared to its predecessor product and the recurring revenue business models that we employ.  A significant number of orders were installed near the end of the second quarter of 2017 and were billed beginning in July 2017, which we expect to result in continued quarterly revenue growth in the third quarter of this year.

We also expanded our infrastructure to support the volume of business.  Our research and development efforts continue to bring forth enhancements to our product's capabilities, which we believe will further drive customer orders.

In the second quarter and over the next several months, we expect cost of revenue to increase as we customize equipment and software for clients to meet their cybersecurity and data analysis needs.  It is still our intent to grow revenue at a faster rate than expenses and to achieve profitability.

"Our immediate objective is to become the standard of care for testing to identify patients at risk for heart attacks and strokes to enable better preventive medical care," said Dr. Murphy-Chutorian.  "The second quarter revenue performance was outstanding and propels us forward to an exciting full year of continued achievement," he concluded.

Notice of Conference Call

Semler will host a conference call at 11 a.m. ET, Wednesday, August 2, 2017.

To read full press release, please click here.

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