HATBORO, Pa., Aug. 26 /PRNewswire-FirstCall/ -- InfoLogix, Inc.
(Nasdaq: IFLG), a leading technology provider of enterprise
mobility solutions for the healthcare and commercial industries,
today announced its strategic plans for the second half of
2010.
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David T. Gulian, president and
chief executive officer of InfoLogix, said, "We are taking
definitive actions with the goal of transitioning InfoLogix to a
full solutions provider, and our higher margin consulting and
professional services, such as those for Electronic Medical Records
implementations, SAP® Supply Chain Execution implementations, and
mobilization services are now at their greatest proportion of our
revenue mix in company history. As a result of this change in
revenue mix of our products and services, as well as our ongoing
cost cutting measures, we were able to achieve modest positive
adjusted EBITDA for the quarterly period ended June 30, 2010. We define adjusted EBITDA
as net earnings before net interest income (expense), income taxes,
depreciation, amortization and non-cash expenditures for
stock-based compensation."
"We are continuing to work towards a stable financial foundation
in other ways as well," said Mr. Gulian. "For instance, as
disclosed in our recent Quarterly Report on Form 10-Q for the
quarterly period ended June 30, 2010,
during the second quarter we sold one of our nineteen patents, and
realized a gain of $1.9 million on
the sale. With the sale of the patent, we reached positive net
income during the quarter. Additionally, our senior lender,
Hercules Technology Growth Capital, Inc. (Nasdaq: HTGC) recently
converted $5 million of aggregate
principal amount of our debt into shares of our common stock.
The debt conversion will reduce our interest expense and is
expected to help us improve our liquidity position."
Mr. Gulian continued, "In our view, 2010 is shaping up to be a
critical turning point for our company, even in the face of
challenging economic conditions, our strained liquidity, and the
regulatory transition in the healthcare industry that is causing
delays of projects with some of our key customers. Despite the
challenges we have faced and we continue to face, we have recently
won new business opportunities with major healthcare and enterprise
customers nationwide and internationally. For example, on the
enterprise side, we have recently started professional services
engagements with a major retailer in Mexico and a leading consumer packaged goods
client in Kentucky. On the
healthcare side, we recently won contracts to provide a full-scale
MEDITECH 6.0 EMR integration solution including WaaS
wireless–as-a-service for Hilo Medical Center in Hawaii, and a major implementation at
Rochester General Hospital in New
York. We believe that these recent customer engagements are
in many ways the prototypical new business wins for InfoLogix, in
part because each of these new service engagements may helps us win
multiple additional opportunities with the client going forward.
We also continue to believe that healthcare reform will drive
widespread adoption of Electronic Medical Records in the near
future, and InfoLogix's professional services and managed services
solutions are well-positioned to be an important player in this
market."
"It is our intention to continue to control our costs and to
grow our business," said Mr. Gulian. "Our growth plan involves
securing additional funding and restructuring certain of our
indebtedness to meet our working capital needs and debt payment
obligations, while also permitting our expansion geographically to
markets outside of the United
States and vertically to adjacent healthcare and other
complementary emerging commercial markets. We currently have
ongoing projects in Canada and
Mexico, and we are working on SAP®
Supply Chain Execution opportunities in Europe. We believe that our industry's
highly-fragmented competitive landscape provides us with
opportunities to capitalize on our strengths and broaden the
footprint of our business."
InfoLogix's strategic plan for 2010 is to continue to:
- Reposition the company around Electronic Medical Records, SAP®
Supply Chain Execution, and Mobility solutions, three sectors of
the market where we see new business opportunities.
- Carefully manage expenses, selectively reduce them wherever
possible, and secure additional funding and restructure certain of
our current indebtedness to meet our working capital and debt
payment obligations.
- Transition our healthcare infrastructure business from a
reseller model to the sale of proprietary InfoLogix-branded
services and products.
In commenting on the strategic plan, Mr. Gulian said, "In early
2010, as we expected, our healthcare infrastructure business was
negatively impacted, not only by weak economic conditions
generally, but also by the transition of our business model, as our
legacy reseller business runs off and the production and sale of
InfoLogix branded product ramps up. However, we also believe that
this transition will drive improved margins, improved brand
recognition, and stronger customer relationships over time.
We expect increased demand for our Electronic Medical Records
and mobility solutions to accelerate in the healthcare industry.
We also expect strong growth in our SAP Supply Chain
Execution and Mobility business. If we continue to respond to these
challenging times by continuing to control our costs, securing
additional funding and restructuring certain of our indebtedness,
as well as managing our liquidity needs, we believe that our focus
on growth, execution, and driving strong financial performance can
allow us to build on our modest second quarter net income and
position ourselves for future success."
"Notwithstanding our strategic plan, as we previously announced,
in May 2010 our board of directors
formed a special committee of the independent directors to work
with financial advisors in reviewing strategic alternatives to
address various financial and operational challenges facing the
company, including such alternatives as securing additional
financing, further restructuring our debt and effecting one or more
strategic transactions," said Mr. Gulian.
About InfoLogix, Inc.
InfoLogix is a leading provider of enterprise mobility solutions
for the healthcare and commercial industries. InfoLogix uses
the industry's most advanced technologies to increase the
efficiency, accuracy, and transparency of complex business and
clinical processes. With 19 issued patents, InfoLogix
provides mobile managed solutions, on-demand software applications,
mobile infrastructure products, and strategic consulting services
to over 2,000 clients in North
America including Kraft Foods, Merck and Company, General
Electric, Kaiser Permanente, MultiCare Health System and Stanford
School of Medicine. InfoLogix is a publicly-traded company
(NASDAQ: IFLG). For more information visit
www.infologix.com.
Safe Harbor
InfoLogix makes forward-looking statements in this press release
which represent our expectations or beliefs about future events and
financial performance. Forward-looking statements are identifiable
by words such as "believe," "anticipate," "expect," "intend,"
"plan," "will," "may" and other similar expressions. In addition,
any statements that refer to expectations, projections or other
characterizations of future events or circumstances are
forward-looking statements. Forward-looking statements are subject
to known and unknown risks and uncertainties, including the risks
described in our Annual Report on Form 10-K for the period ended
December 31, 2009, the quarterly
report on Form 10-Q for the period ended March 31, 2010, the quarterly report on Form 10-Q
for the period ended June 30, 2010,
and other filings we make with the Securities and Exchange
Commission. In addition, actual results could differ materially
from those suggested by the forward-looking statements, and
therefore you should not place undue reliance on the
forward-looking statements. We do not make any commitment to revise
or update any forward-looking statements to reflect events or
circumstances occurring or existing after the date of any
forward-looking statement is made.
Contact:
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John A. Roberts
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Chief Financial
Officer
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215-604-0691 x1102
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SOURCE InfoLogix, Inc.
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