Orion Health Group, the healthcare management software developer, posted a 7 per cent increase in annual operating revenue as growth in the Asia Pacific, Europe and Middle East regions made up for a slowdown in North America.
Operating revenue increased to $164 million in the year ended March 31, from $153 million a year earlier, the Auckland-based company said in a statement. That's ahead of the $161 million in annual revenue expected in a Reuters poll of analysts. Shares in the company rose 3 per cent to $4.50.
Orion stock is the second-worst performer on the bench NZX 50 Index this year after the company said on January 30 that delays in settling contracts and paying bills in North America would weigh on its revenue in the second half of its financial year. The company said North American sales were also dented as it moved customers to subscription contracts from perpetual licences.
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"All regions experienced growth for the year except for North America," the company said today. "As expected and previously noted, revenue in this region was constrained by the execution of our strategy to transition from perpetual licences to subscription revenue and a delay in contract closures."
The company said there is strong interest in North America for its Healthier Populations solutions and in the fourth quarter it secured a contract with an integrated clinical network.
"We are now seeing market procurement activity returning to historical levels, consistent with our expectations," it said. "Specific opportunities with payers continue to progress and we anticipate additional contractual closures in FY16."
Orion said annualised recurring revenue, its preferred measure of performance, rose 43 per cent to $63 million.
The company, which listed on the New Zealand bourse in November, is foregoing profits and dividends to fund expansion. It is also listed on the ASX. It will release its annual result on May 26.
In a quarterly cash-flow statement released today, Orion said it had cash and short-term deposits of $95 million at its March 31 balance date. Cash receipts from customers in the fourth quarter improved to $53 million, from $30 million in the third quarter, it said.
"Significant quarterly variances in cash receipts are typical for Orion Health due to lumpiness of contract revenues and seasonal factors and quarterly fluctuations are expected to be ongoing," it said.