The Net Profit Margin has improved to 13.61% for the quarter ended December 2007, against 11.74% on a Trailing Twelve Months basis. Sales have declined by almost 7% during the Most Recent Quarter compared to a year ago. The Payout Ratio has been a staggering 120.33% over the last four quarters against less than 20 for the Business Services industry. It is apparent that the management is focused on improving profitability and on rewarding investors. The stock crossed $23 on February 20 2008 against a 52-week high of $33.65.
The company provides the healthcare industry with Information Technology solutions. Physicians and community hospitals may take time to decide on software investments infrequently, which is why business in this industry can vary between quarters. However, modern patient management is impossible without computer support. Hence, the long term prospects for this company are excellent.
The company has a range of products and services that are especially suited for relatively small medical institutions. It allows the medical fraternity to outsource activities outside their domains of expertise, manages both financial and clinical data, and integrates information from various branches for state-of-the-art patient management.
After sales service and customer integration are particular strengths of the company. It provides clients with appropriate hardware, maintenance contracts, and user training. Support is available around the clock keeping the nature of healthcare services in mind. Software improvements have been developed on the basis of customer feedback. This work culture protects the stock from value erosion to competitors.
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