Orion Health

[Lola]

Thanks for that, I will keep my eyes and ears on full alert ready for a timley escape if the tide turns no more Wynyards for this little bull

No need to worry or is there?
The Guru Lee from Kapiti on his own admission has many thousands of OHE coz he knows the CEO (just like he was such a good friend of Jock Hobbs etc and sponged on his Box at Westpac Stadium) .
The Big Guru is in WYN too ( at least 199,000) but couldn't see the train coming with that one either.
No doubt someone else's fault.

OHE cud be in classic dead cat bounce.

[RupertBear]

This hound has learned not to play with fire, almost always get your fur burned. No if's and not butts, buy no mutts ! There's investment and then there's gambling...

I must have a pyromaniac tendency Roger as I seem to have quite a few mutts! That being said my so called defensive shares are burning a nasty hole in my portfolio at the moment as well! Need to grow some of Coutas b***s

[Marilyn Munroe]

The failure of the "make America great again" president and has party in Congress to pass the Obamacare repeal bill must mean Orion's push into the US is into a climate of fear uncertainty and doubt amongst their prospective customers.

Boop boop de do
Marilyn

[Kay]

The failure of the "make America great again" president and has party in Congress to pass the Obamacare repeal bill must mean Orion's push into the US is into a climate of fear uncertainty and doubt amongst their prospective customers.

Boop boop de do
Marilyn

Mr trump brings uncertainty...as does the quiet nature of ohe!

I have taken to monitoring their recruitment website.Typically 30-40 vacancies ongoing for the last few months in a fair few locations. But not very many in the USA. Maybe not overly significant.

The share price has been loitering consistently at 200 for long enough to start to bore me. Wouldn't say no to a snippet of info if ohe have any to donate!

[winner69]

Suppose a disappointing announcement - even a downgrade?

Orion Health FY2017 Update

Orion Health has this morning provided an update on revenue, earnings and cash for the FY2017 financial year. The Company remains committed to reaching profitability during FY2018. The update is as follows:

• A number of contracts that were expected to close before the end of FY2017 did not do so but remain in progress. Forecast FY2017 Operating Revenue is now between $194 million and $200*million. Although FY2017 revenue is now forecast to be a decrease on FY2016 in GAAP terms, we still expect to see year on year revenue growth in constant currency terms, albeit modest.

• The full year Net Loss before Income Tax is expected to be between $32 million and $38 million, an improvement of approximately $20 million from FY2016. The Company has carefully managed costs to ensure the impact on the bottom line is minimised. The ongoing management of costs allows Orion Health to continue to target a move into profitability during FY2018.

• The closing cash position is now expected to be $2 million to $6 million.

The Company is undertaking a strategic review that focuses on maximising shareholder value. As part of this process the Company has been in discussions with a number of parties over the past quarter that may result in a partnership or minority investment in the Company. These discussions are preliminary and non-conclusive at this stage. Orion*Health will update investors of any material developments.

CEO Ian McCrae says, “as the majority shareholder I am directly aligned with all shareholders and this is not the outturn we had targeted. We have been taking, and continue to take, direct measures to right size our costs with our revenue growth and despite the slippage, we remain on track with our profitability objective. The Board and I remain focused on long term shareholder value and will evaluate the merits of any partnerships or minority investments to help Orion Health achieve its potential.”

Questions and Answers

Why is revenue lower than we expected until recently?
Management takes full responsibility for not executing as efficiently on the sales pipeline as had been forecast. The Company’s pipeline remains strong but as contract values move into higher dollar brackets we are finding contracting periods have extended. The delay in the finalisation of contracts is not attributable to a specific factor as every potential customer situation is unique. Improved sales processes and forecasting are core areas of focus.

Despite the disappointing performance in FY2017, the Company has continued to make progress across all regions including the recent signing of a US based network of more than 1,000 independent health care providers and a UK based integrated electronic health and social care record solution to cover a population of over 750,000 people.

Is it a timing only issue, or have you lost customers?
The lower revenue is not due to the loss of customers. A number of the opportunites are still in progress and if finalised will contribute to FY2018.

How will this impact the FY2018 outlook?
The Company has previously provided guidance to the market that it expects to reach break even during FY2018. This guidance remains unchanged.
The Company will issue further FY2018 guidance at the appropriate time.

How has the Company managed costs?
Management has been working to improve margins throughout the business. Going forward, we expect to see an improved contribution from the regions as a result of improving margins. The Company will continue to manage and in certain areas reduce costs in a manner that adequately reflects its financial profile and outlook.

What implications does this have for your R&D programme?
The Company will continue to run the appropriate R&D programme to ensure we are producing innovative and market leading products. The business case supporting our R&D programme focuses on better market positioning and leveraging our large install base. The Company remains confident that its R&D programme has a payoff that merits the investment.

Is the debt facility still available?
Our working capital facilities remain in place with ASB Bank who remain committed to Orion Health.
What parties are you talking to as part of the additional investors?
Current discussions with additional investors are confidential. We will update the market at the appropriate time.

What form will the investment take?
The Company has a number of options available that it will continue to evaluate.
About Orion Health

Orion Health (NZX:OHE) is a health technology company that provides solutions which enable healthcare to over 110*million patients globally. Its open technology platform Orion Health Amadeus seamlessly integrates all forms of relevant data to enable population and personalised healthcare around the world. The Company employs over 1200*people around the world and is*committed*to continual innovation, investing substantially in*research*and development to cement its position at the forefront of precision medicine. For more information visit www.orionhealth.com*
For Investor Relations enquiries:
Graeme Wilson
Chief Operating Officer
+64 21 101 3631
graeme.wilson@orionhealth.com
Brent Matuschka
Investor Relations Manager
+64 21 819 348
brent.matuschka@orionhealth.com
For media enquiries:
Sarah Putt
Corporate Marketing Manager
+64 21 610 592
sarah.putt@orionhealth.com

[mondograss]

Meanwhile one of their biggest competitors in the UK and ANZ just got a whole lot bigger:
http://www.csc.com/newsroom/press_re...ger_completion

[babymonster]

an downgrade.. this is the 2nd one? usually come in three, right?

[alistar_mid]

every time I drive past there I feel like going in and slapping those jabroni's round the head lol

[whatsup]

Suppose a disappointing announcement - even a downgrade?

Orion Health FY2017 Update

Orion Health has this morning provided an update on revenue, earnings and cash for the FY2017 financial year. The Company remains committed to reaching profitability during FY2018. The update is as follows:

• A number of contracts that were expected to close before the end of FY2017 did not do so but remain in progress. Forecast FY2017 Operating Revenue is now between $194 million and $200*million. Although FY2017 revenue is now forecast to be a decrease on FY2016 in GAAP terms, we still expect to see year on year revenue growth in constant currency terms, albeit modest.

• The full year Net Loss before Income Tax is expected to be between $32 million and $38 million, an improvement of approximately $20 million from FY2016. The Company has carefully managed costs to ensure the impact on the bottom line is minimised. The ongoing management of costs allows Orion Health to continue to target a move into profitability during FY2018.

• The closing cash position is now expected to be $2 million to $6 million.

The Company is undertaking a strategic review that focuses on maximising shareholder value. As part of this process the Company has been in discussions with a number of parties over the past quarter that may result in a partnership or minority investment in the Company. These discussions are preliminary and non-conclusive at this stage. Orion*Health will update investors of any material developments.

CEO Ian McCrae says, “as the majority shareholder I am directly aligned with all shareholders and this is not the outturn we had targeted. We have been taking, and continue to take, direct measures to right size our costs with our revenue growth and despite the slippage, we remain on track with our profitability objective. The Board and I remain focused on long term shareholder value and will evaluate the merits of any partnerships or minority investments to help Orion Health achieve its potential.”

Questions and Answers

Why is revenue lower than we expected until recently?
Management takes full responsibility for not executing as efficiently on the sales pipeline as had been forecast. The Company’s pipeline remains strong but as contract values move into higher dollar brackets we are finding contracting periods have extended. The delay in the finalisation of contracts is not attributable to a specific factor as every potential customer situation is unique. Improved sales processes and forecasting are core areas of focus.

Despite the disappointing performance in FY2017, the Company has continued to make progress across all regions including the recent signing of a US based network of more than 1,000 independent health care providers and a UK based integrated electronic health and social care record solution to cover a population of over 750,000 people.

Is it a timing only issue, or have you lost customers?
The lower revenue is not due to the loss of customers. A number of the opportunites are still in progress and if finalised will contribute to FY2018.

How will this impact the FY2018 outlook?
The Company has previously provided guidance to the market that it expects to reach break even during FY2018. This guidance remains unchanged.
The Company will issue further FY2018 guidance at the appropriate time.

How has the Company managed costs?
Management has been working to improve margins throughout the business. Going forward, we expect to see an improved contribution from the regions as a result of improving margins. The Company will continue to manage and in certain areas reduce costs in a manner that adequately reflects its financial profile and outlook.

What implications does this have for your R&D programme?
The Company will continue to run the appropriate R&D programme to ensure we are producing innovative and market leading products. The business case supporting our R&D programme focuses on better market positioning and leveraging our large install base. The Company remains confident that its R&D programme has a payoff that merits the investment.

Is the debt facility still available?
Our working capital facilities remain in place with ASB Bank who remain committed to Orion Health.
What parties are you talking to as part of the additional investors?
Current discussions with additional investors are confidential. We will update the market at the appropriate time.

What form will the investment take?
The Company has a number of options available that it will continue to evaluate.
About Orion Health

Orion Health (NZX:OHE) is a health technology company that provides solutions which enable healthcare to over 110*million patients globally. Its open technology platform Orion Health Amadeus seamlessly integrates all forms of relevant data to enable population and personalised healthcare around the world. The Company employs over 1200*people around the world and is*committed*to continual innovation, investing substantially in*research*and development to cement its position at the forefront of precision medicine. For more information visit www.orionhealth.com*
For Investor Relations enquiries:
Graeme Wilson
Chief Operating Officer
+64 21 101 3631
graeme.wilson@orionhealth.com
Brent Matuschka
Investor Relations Manager
+64 21 819 348
brent.matuschka@orionhealth.com
For media enquiries:
Sarah Putt
Corporate Marketing Manager
+64 21 610 592
sarah.putt@orionhealth.com

With cash of between 2 and 6 million $ ( a very wide call , I would hope that the chief financial office would know to the dollar they had in the bank ) will they be going to the market for more cash and taking into consideration their track record to date,what will be the price , sub $ 1.00 ?

[BlackPeter]

With cash of between 2 and 6 million $ ( a very wide call , I would hope that the chief financial office would know to the dollar they had in the bank ) will they be going to the market for more cash and taking into consideration their track record to date,what will be the price , sub $ 1.00 ?

You are right ... the cash position is shocking. How long will 2 to 6 million dollars keep them going, even if they manage to reduce their losses this year to only say $16 to $19 million (assuming half of last years losses with an aspirational breakeven in 2018)?

So - is he really saying the company runs in 1 to 3 months out of cash?

WYN - mark 2 anybody?