LEWISVILLE, Texas--(BUSINESS WIRE)--CareView Communications, Inc. ("CareView" or the "Company") (OTCQB:CRVW), an informational technology provider to the healthcare industry, announced its second quarter financial results for the period ended June 30, 2015.
Second quarter and recent corporate developments
- Net revenue increased to approximately $1,266,000 for the quarter ended June 30, 2015 as compared with approximately $698,000 for the quarter ended June 30, 2014.
- Billable unit count at June 30, 2015 was approximately 7,300 as compared to approximately 4,300 at June 30, 2014. As of the same dates, installed unit count was approximately 8,535 and approximately 7,400, respectively.
- On June 26, 2015, we entered into a Credit Agreement with PDL BioPharma, Inc., as administrative agent and lender ("PDL") (the "PDL Credit Agreement"). Under the PDL Credit Agreement, PDL made available to us up to $40 million in two tranches of $20 million each. In the event that a milestone relating to the placement of 9,000 billable units occurs on or before October 31, 2015, PDL will fund us $20 million ("Tranche One"). In the event that additional milestones relating (i) the placement of 27,750 billable units and (ii) we record earnings before interest, tax, depreciation, and amortization (EBITDA) of not less than $7 million on an annualized basis for the three calendar month period prior to the funding (on or before June 30, 2017), PDL will fund us an additional $20 million ("Tranche Two"). Outstanding borrowings under Tranche One will bear interest at the rate of 13.5% per annum. Outstanding borrowings under Tranche Two will bear interest at the rate of 13.0% per annum.
"We are very excited about the developments at CareView during 2015, and are enthusiastic about our future prospects," said CareView President and CEO Steven Johnson. "With the recently signed debt facility, we are now positioned to expand our sales efforts and grow our installation base without further dilution to our shareholders. We have also expanded operations to support a much greater number of hospitals in anticipation of our projected growth. With our current installed base of 8,538 units, CareView is positioned for significant growth. We have over a 93% success rate with our pilot program and regularly experience growth from within an existing healthcare network once the hospitals use and embrace our technology. With 46,279 potential new billable units available under existing contracts and pilot contracts, we believe that we will see substantial increased revenue from within our current customer base. We are making great progress toward our goal to make the CareView System the standard of care in the modern hospital."
Summary of second quarter financial results
Revenue increased approximately $568,000 for the second quarter of 2015 as compared to the same period in 2014. This increase is a direct result in the number of hospitals with billable units improving from 81 on June 30, 2014 to 85 on June 30, 2015. Billable units (RCPs and Nurse Stations) increased by 1,486 units during the second quarter of 2015 (5,411 at March 31, 2015 to 6,897 at June 30, 2015) as compared to 881 units during the second quarter of 2014 (3,446 at March 31, 2014 to 4,327 at June 30, 2014).
Operating expenses included network operations, general and administration, selling, and research and development expenses. Operating expense increased approximately $799,000 during the second quarter of 2015 compared to the same period in 2014. The majority of the increase came from network operations expense which totaled approximately $1,305,000 for the second quarter of 2015 compared to approximately $811,000 for the same period in 2014, reflecting costs associated with the increase in billable and installed units.
Other non-operating income and expense decreased by approximately $6,000 for the second quarter of 2015 in comparison to the same period in 2014, primarily a result of the change in fair value of warrant liability related to warrants sold in conjunction with our April 2013 private placement totaling approximately $169,000, partially offset by an increase in interest expense related to the HealthCor funding transactions.
Net loss attributable to CareView for the second quarter of 2015 was approximately $3,918,000 compared to approximately $3,693,000 for the same period in 2014, or net loss per share of $0.03 per basic and diluted share for both periods.
At June 30, 2015, CareView had cash on hand of approximately $5,246,000 compared to approximately $2,546,000 at December 31, 2014.
About CareView Communications, Inc.
CareView's mission is to be the leading provider of products and on-demand application services for the healthcare industry by specializing in bedside video monitoring, archiving and patient care documentation systems and patient entertainment services. Through the use of telecommunications technology and the Internet, our products and on-demand services will greatly increase the access to quality medical care and education for both consumers and healthcare professionals. We offer the next generation of patient care through our unique data and patient monitoring system that connects patients, families and healthcare professionals (the "CareView System®"). Our proprietary, high-speed data network system may be deployed throughout a healthcare facility to provide the facility with recurring revenue and infrastructure for future applications. Real-time bedside and point-of-care video monitoring and recording improve efficiency while limiting liability, and entertainment packages and patient education enhance the patient's quality of stay. Through continued investment in patient care technology, we are helping hospitals and assisted living facilities build a safe, high quality healthcare delivery system that best serves the patient, while striving for the highest level of patient satisfaction and comfort. CareView is dedicated to working with all types of hospitals, nursing homes, adult living centers and selected outpatient care facilities domestically and internationally. Corporate offices are located at 405 State Highway 121 Bypass, Suite B-240, Lewisville, TX 75067. More information about the Company is available on the Company’s website at www.care-view.com.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy securities of CareView Communications, Inc. Certain statements in this release are “forward-looking statements” within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward-looking statements are subject to a number of risks and uncertainties including market acceptance of the Company’s services and projects and the Company’s continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.