Kuno van der Post
OmniComm Systems, Inc.
Fort Lauderdale, FL - OmniComm Systems, Inc. (OmniComm) (OTCQX: OMCM), a global leading provider of clinical data management technology, today announced financial results for the three- and six-month periods ending June 30, 2018.
For the six-month period ending June 30, 2018, OmniComm reported revenue of $13.49 million, as compared to revenue of $13.46 million for the six-month period ending June 30, 2017. Gross margin improved by $0.53 million to $11.18 million, a 5% increase. Operating expenses increased by $1.31 million to $10.09 million. Year-to-date operating income is $1.09 million, as compared to operating income of $1.88 million for the six months ending June 30, 2017. EBITDA, a non-GAAP financial measure that OmniComm uses as an additional financial measure, was $1.41 million for the six months ending June 30, 2018, as compared to EBITDA of $2.05 million for the six months ending June 30, 2017.
“The financial results through the first half of the year do not tell the entire story,” said Stephen Johnson, chief executive officer and president of OmniComm. “In actuality, it’s been a year of record contracts, backlog growth and major milestones, despite the fact that OmniComm has shifted its business model away from perpetual license deals and toward subscription or term license deals.”
Last year through July, 52% of the contracts signed were perpetual, compared to only 1.5% through July of this year. OmniComm also experienced significant contract growth, with $26 million in contracts through July of 2018, compared to $31 million for all of last year. OmniComm also increased backlog to $50 million through July of this year, exceeded the 6,000 clinical trial mark, released two new products, (IRTMaster™ and AutoEncoder), and acquired a market-leading business intelligence platform, Acuity® for data analytics.
“As expected, this shift in our licensing model, the increase in R&D spending and the recent Acuity acquisition have had a short-term impact on our financial results for the first half of the year,” Mr. Johnson said. “However, these events have set us up for greater visibility and predictablity into future revenue and profitability for the second half of this year and going forward into next year.”
During the first half of this year, OmniComm significantly increased its product development and expanded its portfolio of eClinical solutions to include the new mobile-friendly version of TrialMaster® EDC, the updated release of TrialOne®, and the introduction of AutoEncoder, Acuity Analytics and IRTMaster. OmniComm has also experienced significant contract growth internationally, especially in China and Japan.
OmniComm provides EBITDA, a non-GAAP financial measure as additional information to its financial results. Non-GAAP EBITDA excludes the impact of depreciation and amortization expenses that are included in operating income. Non-GAAP EBITDA is not an alternative or substitute for the financial measure prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) of operating income. The non-GAAP EBITDA financial measure presented may differ from similarly titled non-GAAP financial measures presented by other companies, and other companies may not define this non-GAAP financial measure in the same way. OmniComm’s management uses non-GAAP EBITDA as a measure of operational efficiency and as a goal for incentive compensation. Management believes non-GAAP EBITDA is a useful measure investors may use as an additional factor in their analysis of OmniComm’s performance. Please review the below reconciliation of the non-GAAP financial measure EBITDA to the GAAP financial measure operating income, as well as OmniComm’s financial statements as filed with the Securities and Exchange Commission.
Statements contained in this press release that are not historical facts are "forward-looking statements." These statements can often be identified by the use of forward-looking terminology such as "estimate," "project," "believe," "expect," "may," "will," "should," "intends," or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. We wish to caution the reader that these forward-looking statements regarding matters that are not historical facts are only predictions and are based on information available at the time and/or management's good faith belief with respect to future events. No assurance can be given that plans for the future will be consummated or that the future results indicated, whether expressed or implied, will be achieved. While sometimes presented with numerical specificity, these plans and projections and other forward-looking statements are based upon a variety of assumptions, which we consider reasonable, but which nevertheless may not be realized. Because of the number and range of the assumptions underlying our projections and forward-looking statements, many of which are subject to significant uncertainties and contingencies that are beyond our reasonable control, some of the assumptions inevitably will not materialize, and unanticipated events and circumstances may occur subsequent to the date of this press release. Therefore, our actual experience and results achieved during the period covered by any particular projections or forward-looking statements may differ substantially from those projected. Consequently, the inclusion of projections and other forward-looking statements should not be regarded as a representation by us or any other person that these plans will be consummated or that estimates and projections will be realized, and actual results may vary materially. There can be no assurance that any of these expectations will be realized or that any of the forward-looking statements contained herein will prove to be accurate. Forward-looking statements speak only as of the date the statement was made. OmniComm does not undertake any obligation to update or revise any forward-looking statement made by it or on its behalf, whether as a result of new information, future events or otherwise.
About OmniComm Systems, Inc
OmniComm Systems, Inc. is a leading strategic software solutions provider to the life sciences industry. OmniComm is dedicated to helping the world’s pharmaceutical, biotechnology, contract research organizations, diagnostic and device firms, and academic medical centers maximize the value of their clinical research investments. Through the use of innovative and progressive technologies, these organizations drive efficiency in clinical development, better manage their risks, ensure regulatory compliance and manage their clinical operations performance. With an extensive global experience from more than 6,000 clinical trials, OmniComm provides comprehensive solutions for clinical research. Please visit www.omnicomm.com for more information.
OmniComm, TrialMaster, TrialOne, IRTMaster and Promasys are registered trademarks of OmniComm Systems, Inc. Other names may be trademarks of their respective owners.
OmniComm Systems, Inc.