I’d like to share some positive company news with the WellPoint Systems family.
WellPoint Systems announced this week strong results for the quarter and six months ending June 30, 2009. Despite a small drop in revenue, from the second quarter of 2008 to the same period in 2009, gross profit was up and we generated a $2.6 million improvement in adjusted EBITDA. This improvement in profitability was primarily driven by a shift in the Company’s revenue mix to higher-margin areas such as its License and Maintenance segments as opposed to the lower-margin Professional Services segment. The Company was also successful in achieving significant savings from certain cost optimization programs implemented in late 2008.
WellPoint Systems can point to numerous milestones during the second quarter, including delivering USD$1 million of the announced license sale to QMENA, the Company’s new Middle Eastern channel partner, growing its customer base by 10 new companies, sales of licenses to an additional 18 customers, holding WellPoint Users regional conferences in Denver and Houston, achieving the Independent Software Vendor competency certification in the Microsoft Partner Program, releases of the AX EAM 5.0, WellPoint Intelligent Dashboard for BOLO and IDEAS 5.0.
Some more positive news — WellPoint Systems received confirmation on August 24 that it will receive a minimum of US$3.3 million from Export Development Canada (“EDC”) under an accounts receivable insurance policy. The policy was taken by the Company to manage the risks associated with a customer contract in South America. The announcement underscores the importance of WellPoint’s risk management strategies as the Company continues its push into international markets. The Company will recognize the payment as revenue in accordance with Canadian generally accepted accounting principles and the proceeds will be used by WellPoint in executing its 2009 business plan.
I would like to thank the entire WellPoint Systems team for all their hard work and I would like to thank our customers. Much of our success is due to you and we thank each one of you for your continued support. We will continue to update you on news as it occurs.
Please feel free to drop me a line.
Rick Slack
