Craneware expects unchanged $71m revenue

Edinburgh-based Craneware, a software firm that specializes in the US healthcare market, said on Wednesday it expects to report that revenue for the year will be unchanged at $71.4 million despite the disruption caused by the coronavirus lockdown.

In a trading update for the year ended June 30, 2020, Craneware said: “With 40% of the company’s workforce normally being home-based, the successful transition to homeworking of the remainder of the teams in the US and UK prior to lockdown was achieved swiftly and with no material disruption to either customer service or employee productivity.”

Craneware added: “In spite of the disruption caused by COVID-19, the board expects to report total revenue for the year of approximately $71.4m (FY19: $71.4m) and adj. EBITDA of approximately $24.5m (FY19: $24.0m).

“Trading in the first 9 months of the year, prior to the outbreak, had been strong, with total sales tracking over 30% above the prior year.

“The travel restrictions and lockdowns imposed as a result of the outbreak impacted both sales, professional services, project delivery, the completion of renewals and the associated up-sales in the final quarter, resulting in total sales for the year being only marginally ahead of the prior year at approximately $65m (FY19: $63.1m).

“Customer churn in the year remained below 10%, in line with our historic norms.

“Throughout the year we have retained our focus on cost control, whilst making sensible investments to deliver on the long-term opportunities available to us.

“Since the outbreak, the company has utilised no material support from either the UK or US governments, instead retaining and re-enforcing this rigour on cost-control.”

Craneware CEO Keith Neilson said: “Many areas of the US through the last three months have faced a rising death toll.

“Our customers have had their business operations repurposed and completely disrupted to maximise capacity to deal with anticipated demand for emergency services.

“In addition to the clinical challenges, they have had to meet the reality of declining hospital revenues due to the deferral of elective procedures through the period which is only now starting to show signs of recovery towards normal run rates. 

“This pandemic has had a personal toll on many within the healthcare industry and the wider community, however we have been inspired during this period as we have seen the best of human nature and are proud of our team’s effort to support our customers; strengthening the relationship between hospital provider organisations and Craneware on both an individual and corporate level.

“We believe the Trisus platform differentiates us from other healthcare solutions vendors, providing substantial benefits for our customers with the ability to meaningfully impact their healthcare operations.

“This, as we have demonstrated, can deliver substantial improvements to the financial effectiveness of US hospitals and provides an opportunity for significant future growth for Craneware.

“As we close our financial year, we continue to look to the future with high levels of optimism in the resilience of the company, our team and that of our customer base.”

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.