PORTLAND, Ore., March 10, 2017 /PRNewswire/ -- Semler Scientific, Inc. (OTCQB: SMLR), an emerging growth company that provides technology and software solutions to improve the clinical effectiveness of healthcare providers, today reported financial results for the fourth quarter and year ended December 31, 2016.
"During the fourth quarter, we continued to increase the market penetration of our QuantaFlo product, which we believe is due to the clinical benefits associated with its use," said Doug Murphy-Chutorian, M.D., chief executive officer of Semler. "Our financial goal in 2017 is to generate cash from operating activities by growing revenue, controlling expenses while at the same time minimizing stockholder dilution," he added.
FINANCIAL RESULTS
For the three months ended December 31, 2016, compared to corresponding period of 2015, Semler had:
- Revenue of $2,316,000, a decrease of $618,000, compared to $2,934,000, primarily due to $1,444,000 less revenue from having de-emphasized sales of the lower margin WellChec service, which was partially offset by an increase of $826,000, or 55% growth, from concentrating on sales of the higher margin vascular testing products (e.g. QuantaFlo)
- Total operating expense, which includes cost of revenue, of $2,419,000, a decrease of $4,721,000, compared to $7,140,000 primarily due to a decrease of $1,978,000 in stock compensation expense and a decrease of $1,621,000 in WellChec expenses
- Cost of revenue of $525,000, a decrease of $1,435,000, compared to $1,960,000, primarily due to the change in product mix mentioned above
- Net loss of $220,000, or $0.04 per share, a decrease of $3,988,000, compared to a net loss of $4,208,000, or $0.84 per share
For the year ended December 31, 2016, compared to 2015, Semler had:
- Revenue of $7,434,000, an increase of $433,000, compared to $7,001,000, primarily due to an increase of $2,288,000 from our vascular testing products, partially offset by a decrease of $1,855,000 from de-emphasizing the lower margin WellChec service
- Total operating expense, which includes cost of revenue, of $9,593,000, a decrease of $5,827,000, compared to $15,420,000, primarily due to a decrease of $2,305,000 in stock compensation expense and a decrease of $1,499,000 in WellChec expenses
- Cost of revenue of $1,873,000, a decrease of $974,000, compared to $2,847,000 primarily due to the change in product mix mentioned above
- Net loss of $2,554,000, or $0.50 per share, a decrease of $5,947,000, compared to a net loss of $8,501,000, or $1.72 per share
For the three months ended December 31, 2016, compared to three months ended September 30, 2016, Semler had:
- Revenue of $2,316,000, an increase of $334,000, or 16.8%, compared to $1,982,000, during both of these three-month periods, revenue was solely from our vascular testing products
- Total operating expense, which includes cost of revenue, of $2,419,000, an increase of $182,000, compared to $2,237,000
- Cost of revenue of $525,000, an increase of $127,000, compared to $398,000
- Net loss of $220,000, or $0.04 per share, a decrease of $142,000, compared to a net loss of $362,000, or $0.07 per share
As of December 31, 2016 compared to December 31, 2015, Semler had:
- Cash of $622,000, an increase of $217,000, compared to $405,000
2016 Highlights
The major accomplishments of 2016 were as follows:
- Increased the established base of QuantaFlo installations
- Migrated customers to QuantaFlo from its lower-priced predecessor product
- Contracted with home risk assessment ("HRA") companies to use QuantaFlo in order to enhance their wellness services
In 2017, revenue from QuantaFlo is expected to continue to grow due to an increasing number of installations, higher average pricing as compared to its predecessor product, and the recurring revenue business model.
In 2017, as in the second half of 2016, Semler prefers to work as a secondary vendor to its HRA customers rather than be a primary vendor for its WellChec business. WellChec was responsible for both substantial revenue growth and associated start-up costs in 2015. By focusing on its QuantaFlo business and being a secondary vendor for wellness services, Semler intends to better leverage capital, have lower financial risk and require less operational expertise, while potentially having a higher margin business.
"We continue to grow QuantaFlo revenue and to reduce our net operating loss as we near profitability," said Dr. Murphy-Chutorian.
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