Edinburgh-based Craneware, a provider of software for the US healthcare market, said on Monday its revenue increased 110% to $80 million in the six months ended December 31, 2021, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 75% to over $23 million.
However Craneware said the recent wave of Omicron and reduced staffing levels “have added to the pressure on hospitals and has recently been more pronounced, leading to the group witnessing a slight elongation of the sales cycle and delays in professional services, impacted by shortages of available staff on site at hospitals.”
Craneware said this led to a reduced amount of professional services revenues being recognised in the period.
It said this trend tempered the overall organic growth during the period. Craneware shares fell about 4%.
“The company is pleased to announce the first interim update for the enlarged Craneware Group, following the acquisition of Sentry Data Systems Inc on 12 July 2021,” said the Edinburgh firm.
“Group revenues in the period have increased 110% to approximately $80m with an adjusted EBITDA increase of 75% to over $23m.
“The results include approximately a 5 month contribution from Sentry and are in line with management’s expectations.
“Annual Recurring Revenue has grown ahead of management’s expectations in the period to a new milestone of approximately $165m (30 June 2021: $64.5m), demonstrating the resilience of our business and our vital role in transforming the business of healthcare.
“A contributor to this ARR has been modest organic license revenue growth.
“However, the recent wave of Omicron and reduced staffing levels have added to the pressure on hospitals and has recently been more pronounced, leading to the group witnessing a slight elongation of the sales cycle and delays in professional services, impacted by shortages of available staff on site at hospitals.
“This means there is a reduced amount of professional services revenues being recognised in the period.
“This trend has tempered the overall organic growth during the period, but we expect this to correct as the current pandemic-driven challenges ease.”
Craneware CEO Keith Neilson said: “Our customers continue to be at the front-line in the evolving pandemic.
“With a peak of Omicron cases thought to be appearing in the US, the pressure on them through this human tragedy has only increased, with resource and staffing constraints creating new daily challenges.
“Craneware continues to be in awe of the bravery and dedication we see from all our customers as their absolute focus on selflessly serving their communities.
“As the new Craneware Group our aim is to transform the business of U.S. healthcare.
“The global pandemic has highlighted the importance of usable financial and operational data and it is expected this realisation will drive future investment by hospitals.
“Through our increased scale and data sets, we are even better placed toprovide innovative new ways to measurably impact operational and financial performance and are increasingly confident and energised by the opportunity ahead.”