November 14, 2007
New Mexico 3rd Quarter ’07 Revenue Up 17.1%
ALBUQUERQUE, NM, November 14-- New Mexico Software, Inc. (OTC Bulletin Board: NMXC), www.nmxc.net, a leading provider of next-generation business and medical information software, announced today that revenues for the third quarter of 2007 increased 17.1% to $233,000 from $199,000 in the third quarter of 2006, primarily due to higher sales of XR-EXpress, the company’s teleradiology solution. Nine month revenue increased 15.1% to $740,000 from $644,000 in the comparable period last year. New Mexico noted that the third quarter of 2007 marks the fourth consecutive quarter of year-over-year growth for the company.
New Mexico also reported a reduction in net loss for the quarter and the first nine months of 2007 as a result of the company’s cost-reduction strategies. Net loss for the third quarter of 2007 was reduced to $177,000 or $0.00 per diluted share, from the $491,000 net loss in the comparable quarter last year. Net loss for the first nine months of 2007 was reduced by 70% to $422,000 from $1.4 million, or $0.02 per diluted share in the comparable period last year.
Third quarter 2007 financial highlights include:
50.6% gross margins, up from 46.2% reported in the comparable quarter last year
A decrease of $287,000 in operating expenses due to continued cost controls
Fourth consecutive quarter of year-over-year revenue growth
Year-to-date financial highlights include:
An increase of 15.1% in total revenue to $740,000 for the first nine months of 2007, as compared to $644,000 for the same period last year
A 44% increase in gross profits to $448,000 during 2007 as compared to $312,000 gross profit for the same period in 2006
A decrease of $824,000 in operational expenses due to reduced consulting, legal and advertising expenses
New Mexico Software CEO Dick Govatski said, “During the third quarter we met our goal of increasing our customer base on a monthly basis while reducing our liabilities and costs at the same time. The dramatic year-to-date and quarter-over-quarter cost reductions are due to our aggressive cost controls. New product introductions this year have enabled us to attract new customers and retain old ones in such a way that we have increased our customer base and built a recurring revenue stream.
“As we look into the next fiscal year, we expect to sustain the positive revenue trend of these last four quarters into 2008. As we have seen from results in the third quarter, sales of our XR-EXpress product have grown and we expect that our customer base there will continue to increase. The recently- introduced DFC3, with applications in the medical, brand management, marketing and print production fields, has generated interest and will help us attract new customers. We also believe that there is current evidence for a strong year in sales for our new dental product, DDS-Express."
About New Mexico Software
New Mexico Software, Inc. is a leading provider of information management solutions that significantly improve the interface between the paper world and the digital world, facilitating a true paperless environment. For more information, visit www.nmxc.net or www.nmxs.com, or contact Dick Govatski, president and CEO, at (505) 255-1999 or ceo@nmxs.com.
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