25 Nov 2015

Orion Health records net loss but higher revenues

11:34 am on 25 November 2015

Health software provider Orion Health has made a first half net loss of $27 million, though revenues are higher than the year earlier.

Chief executive Ian McCrae said the net loss was in line with expectations as the company focused on expansion and spending on research and development.

"We are continuing to invest in R&D to maximise the huge opportunity we have identified for Orion Health."

The company's revenues rose 26 percent to $102m in the six months ended in September, while recurring annualised revenue grew 65 percent to $86m.

Recurring revenues account for 41 percent of Orion's revenue, and are considered a key measure of the company's growth. It hopes they will eventually account for half of all revenue.

Mr McCrae said Orion had seen strong growth in all markets, although there was a slight decline in revenue in the Asia Pacific region compared to the previous year which included an unusual one-time gain in New Zealand, while the Australian market was flat.

He said the company was focused on reinvigorating the Australian market, and saw growth prospects in New Zealand as well.

Forsyth Barr analyst Blair Galpin said the result was ahead of its forecast, but had failed to excite in the absence of any guidance from Orion on revenue and profit growth.

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