Medical Transcription Billing eyes return to profit

Shares in Medical Transcription Billing Corp (NASDAQ:MTBC) soared on Wednesday as the healthcare information technology company reported strong top-line growth.

Revenue of US$8.2mln in the first quarter was up 61% on the year before, and although the company remains loss-making, underlying losses (LBITDA) of US$313,000 was down 62% quarter-on-quarter.

“Our direct operating costs were reduced by $901,000 or 15% quarter-over-quarter, largely by eliminating expensive subcontractors and moving work to high-quality, cost-effective offshore employees, and our general & administrative expenses were reduced by $1.3 million or 30% quarter-over-quarter due to reduced transaction costs and stock-based compensation expenses, and by closing expensive offices, ” said Bill Korn, MTBC’s chief financial officer.

“In addition to these expense reductions, which will continue in future periods, there were additional savings achieved during the first quarter of 2017 which will be fully reflected in our second quarter 2017 results,” he added.

The company recently acquired MediGain, which dampened performance in the last two quarters, but management is confident it can wring out sufficient costs to turn the acquired business around and make it profitable.

“We anticipate a return to positive adjusted EBITDA starting next quarter, and since our business now has a higher scale, we anticipate the ability to spread our fixed expenses over a larger revenue base and generate larger adjusted EBITDA than we ever have before,” declared Korn. 

Story by ProactiveInvestors