Shares of New Mexico Software Inc. (OTCBB: NMXC) were trading up 2 cents (52 percent) to 5 cents per share on volume of 479,820. The company announced that it is experiencing improving business conditions, particularly an improving balance sheet and a tighter cost structure as recurring revenues continue to rise.
“Our old liabilities are steadily decreasing, and at the same time, our revenue picture continues to brighten due to the sales growth of XR-EXpress, our web-based Teleradiology/PACS System,” said Dick Govatski – CEO of NMXC – in a press release.
At the end of 2006, over half of the company’s total liabilities varied in age from six months to several years. Several of those old liabilities have been finalized during the first half of 2007. By September 30, 2007, NMXC anticipates that its total liabilities will be reduced by approximately 50 percent, and the balance will consist of current operating liabilities.
“Our first quarter costs were the lowest they’ve been in two years. During the second quarter we have lowered costs even further,” continued Govatski. “In addition, our bottom line has been reduced by adjustments in the fourth quarter of each of the last three years as a result of long-term consulting contracts, advertising agreements and extraordinary legal fees. Based on our current projections, we do not expect any major adjustments this year.”
In the company’s latest 10-Q, NMXC reported revenues of $240,000, up 21 percent from the previous year’s quarterly results of $199,000.
Due to the combination of increased sales, reduced costs and liberating existing cash flow from dealing with old obligations, NMXC looks forward to generating positive cash flow during the second half of 2007.
NMXC 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.