Craneware sees lower than expected full year earnings

US healthcare software developer Craneware said adjusted EBITDA will be below current market expectations for the year.

The board expects to report revenue for the year in the region of $41m compared to $38.1m the year before. Adjusted EBITDA rose 15% from the previous year's figure of $10.1m. This is below current consensus of market expectations for the year, the group said.

Craneware's performance has been impacted by an unexpectedly high percentage of healthcare providers focusing on Electronic Health Records, it explained.

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As a result, sales cycles extended for all the group's products in the first half of the year. However, increased month on month activity and sales levels in the second half of this year support the board's expectation that sales cycles are returning to normal lengths, it added.

The company said it continues to make positive progress with a number of large opportunities, however no further large deals have closed in the financial year.

CEO Keith Neilson noted it had a mixed trading year for the group. "However we are in a stronger position than we have ever been. Our sales and opportunity pipeline continues to build, supported by a market that is refocusing on the problems our products can help solve."

"This combined with the acknowledged quality of our product suite and our balance sheet strength, means we are well placed to help our customers deal with their increasing fiscal and regulatory pressures and as a result we continue to be confident in the future growth of the group."

CJ