Sales up, profits down for QuadraMed in Q2

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QuadraMed reported a 10.5 percent increase in revenue, despite a decline in net profit in its financial results for the 2008 second quarter, which ended June 30.

For the quarter, the Reston, Va.-based company booked a net income of $1.8 million before preferred stock accretion, compared to $2.2 million for the same period in 2007.

In addition, included in the quarter net income results was a $1.1 million loss on the sale of the company’s Australia-based lab and radiology assets, as well as severance costs of $200,000.

Revenue for the quarter was $38 million, compared to $34.4 million for the same period last year. The company said that revenue growth was primarily driven by the integration of the Computerized Patient Record business assets, which QuadraMed acquired in the fourth quarter of 2007 and is now called QCPR.

“The QCPR acquisition, especially in terms of sales bookings, is meeting my expectations, and the cumulative total contract value of our signed QCPR contracts now exceeds the $33 million we paid for that business just 10 months ago,” said Keith Hagen, QuadraMed’s president and CEO.

QuadraMed said it expects 2008 revenue to reach $146 million to $152 million, which would represent a 6 to10 percent increase over 2007 revenue of $137.4 million.

On Friday, David L. Piazza, chief financial officer (CFO), executive vice president, corporate secretary and treasurer, provided notice of his resignation, effective August 29. Piazza has accepted a position as chief operating officer of a private software company in Northern Virginia, the company said.

Lora Zalewski, vice president of finance, will serve as interim CFO beginning Sept.1.