Greenway Medical Technologies (NYSE:GWAY) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Greenway Medical Technologies Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 87.5% to $0.01 in the quarter versus EPS of $0.08 in the year-earlier quarter.
Revenue: Rose 2.83% to $33.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Greenway Medical Technologies reported adjusted EPS income of $0.01 per share. By that measure, the company missed the mean analyst estimate of $0.04. It missed the average revenue estimate of $35.5 million.
Quoting Management: “Our efforts to shift the adoption of our PrimeSUITE platform from license sales to cloud-based services has accelerated the shift in our revenue streams to recurring sources during the fiscal 2013 third quarter,” said Tee Green, president and chief executive officer of Greenway®. “This has reduced our revenue from one-time systems sales and training, but moved us faster than anticipated to a business model that is recurring in nature and more predictable than we have experienced with non-recurring revenue. We’re managing through this transition in our business, continuing to add providers to our platform, growing our backlog, and increasing the percentage of our backlog and revenue that is comprised of revenue from recurring sources.”
Key Stats (on next page)…