Full Press Release Details
Semler Reports Record Third Quarter and
Year-to-Date 2020 Financial Results
2020 Q3 HIGHLIGHTS compared to Q2 2020:
Santa Clara, CA- November 5, 2020 - Semler
Scientific, Inc. (OTCQB: SMLR), a company that provides technology solutions to improve the
clinical effectiveness and efficiency of healthcare providers, today reported financial results for the three and nine months
ended September 30, 2020.
"In the third quarter of 2020, the financial performance
of the company rebounded from the effects of the COVID-19 pandemic," said Doug Murphy-Chutorian, M.D., chief executive officer
of Semler Scientific.
For the quarter ended September 30, 2020, compared to the corresponding
period of 2019, Semler Scientific reported:
For the nine months ended September 30, 2020, compared to the
corresponding period of 2019, Semler Scientific reported:
THIRD QUARTER 2020 MAJOR ACCOMPLISHMENTS
Among the achievements during the third quarter of 2020 were:
Early in the fourth quarter, the company made an investment
in the equity securities of the second private company referred to above and another investment in a different private company
working in a third new product area.
Management may discuss these agreements and companies in
further detail in the future if they become material to Semler Scientific's business. These
arrangements have no material effect on the third quarter 2020 financial results, other than the commitment to purchase
product inventory ($1,200,000) and the bridge loan ($500,000). In the fourth quarter of 2020, the company used 40,922 shares
of its common stock to make the investment in equity securities, while the investment (both debt and equity) in the third
company was for cash amounting to approximately $1,808,000.
The company's two largest customers comprised 39.2% and
29.8%, respectively, of quarterly revenues. Revenues from fixed-fee software license arrangements were approximately $6,307,000,
variable-fee software license arrangements were approximately $4,088,000 and equipment sales were $332,000.
Although the company does not provide formal guidance, Semler
Scientific expects continued profitability and generation of cash from operating activities, as well as increased spending to support
anticipated growth in its business for the remainder of 2020 and in 2021.
It is the company's intent to grow revenues at a faster
rate than expenses and to remain profitable. However, there remains some uncertainty as to state and local governments continuing
to revise restrictions related to COVID-19. Semler Scientific intends to manage its expenses and other costs in line with changes
in revenues and cash position during these uncertain times.
"Semler is actively trying to improve services and economics
to the medical community," said Dr. Murphy-Chutorian. "The objectives may be to encourage healthier lifestyles, ameliorate
risk factors, diminish morbidity and decrease mortality by synergistic products that aid appropriate care for our customers'
Notice of Conference Call
Semler Scientific will host a conference call today at 3:00
p.m. ET. The call will address results of the third quarter and year-to-date 2020 as well as provide a business update on the company's
market outlook and strategies for the near-term future.
Participants are encouraged to pre-register for the conference
call using the following link. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access
to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.
To pre-register, go to: https://dpregister.com/sreg/10149275/db8f27cceb.
Those without internet access or who are unable to pre-register
may dial in by calling:
Domestic callers: (866) 777-2509
International callers: (412) 317-5413
Please specify to the operator that
you would like to join the "Semler Scientific Call." The conference call will be archived
on Semler's website at www.semlerscientific.com.
Semler Scientific, Inc.
Condensed Statements of Income
(In thousands of U.S. Dollars, except for
share and per share data)
| For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenues | $ | 10,727 | $ | 8,902 | $ | 26,530 | $ | 23,616 | ||||||||
| Operating expenses: | ||||||||||||||||
| Cost of revenues | 820 | 974 | 2,370 | 2,755 | ||||||||||||
| Engineering and product development | 672 | 617 | 2,277 | 1,777 | ||||||||||||
| Sales and marketing | 2,116 | 2,345 | 7,283 | 6,626 | ||||||||||||
| General and administrative | 1,564 | 1,855 | 4,634 | 4,798 | ||||||||||||
| Total operating expenses | 5,172 | 5,791 | 16,564 | 15,956 | ||||||||||||
| Income from operations | 5,555 | 3,111 | 9,966 | 7,660 | ||||||||||||
| Interest income (expense) | 2 | (2 | ) | 5 | - | |||||||||||
| Other income (expense) | 38 | (1 | ) | 64 | (3 | ) | ||||||||||
| Other expense | 40 | (3 | ) | 69 | (3 | ) | ||||||||||
| Pre-tax net income | $ | 5,595 | $ | 3,108 | $ | 10,035 | $ | 7,657 | ||||||||
| Income tax provision (benefit) | $ | 729 | $ | (4,671 | ) | $ | 1,421 | $ | (4,594 | ) | ||||||
| Net income | $ | 4,866 | $ | 7,779 | $ | 8,614 | $ | 12,251 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.74 | $ | 1.20 | $ | 1.31 | $ | 1.91 | ||||||||
| Diluted | $ | 0.61 | $ | 0.96 | $ | 1.07 | $ | 1.51 | ||||||||
| Weighted average number of shares used in | ||||||||||||||||
| computing income per share: | ||||||||||||||||
| Basic | 6,578,808 | 6,492,501 | 6,553,522 | 6,410,588 | ||||||||||||
| Diluted | 8,038,513 | 8,108,053 | 8,046,759 | 8,121,996 |
Semler Scientific, Inc.
Condensed Balance Sheets
(In thousands of U.S. Dollars)
| At September 30, | At December 31, | |||||||
| 2020 | 2019 | |||||||
| (Unaudited) | ||||||||
| Cash | $ | 16,793 | $ | 7,741 | ||||
| Other current assets | 4,985 | 3,702 | ||||||
| Noncurrent assets | 6,269 | 6,844 | ||||||
| Total assets | 28,047 | 18,287 | ||||||
| Current liabilities | 5,651 | 5,207 | ||||||
| Noncurrent liabilities | 345 | 7 | ||||||
| Stockholders' equity | 22,051 | 13,073 | ||||||
| Total liabilities and stockholders' equity | $ | 28,047 | $ | 18,287 |
About Semler Scientific, Inc.:
Semler Scientific, Inc. is a
company that provides technology solutions to improve the clinical effectiveness and efficiency of healthcare providers. Semler
Scientific's mission is to develop, manufacture and market innovative proprietary products and services that assist its customers
in evaluating and treating chronic diseases. Semler Scientific commercially launched its first patented and U.S. Food and
Drug Administration, or FDA, cleared product in 2011, and received FDA 510(k) clearance for QuantaFlo , the next generation
version of this product, in 2015. QuantaFlo is a rapid point-of-care test that measures arterial blood flow in the extremities
to aid in the diagnosis of peripheral arterial disease. QuantaFlo is used by Semler Scientific's customers to more comprehensively
evaluate their patients for risk of heart attacks and strokes. Semler Scientific believes it
is positioned to provide valuable information to its insurance company and physician customers, which in turn permits them to better
guide patient care. Additional information about Semler Scientific can be found at semlerscientific.com.
Forward-Looking Statements
This press release contains "forward-looking" statements.
Such statements can be identified by, among other things, the use of forward-looking language such as the words "may,"
"will," "intend," "expect," "anticipate," "estimate," "project,"
"would," "could" or words with similar meaning or the negatives of these terms or by the discussion of
strategy or intentions. The forward-looking statements in this release include statements regarding expected continued profitability,
generation of cash from operating activities and operating expense increases, intent to manage expenses and other costs and preserve
cash, as well as statements regarding the effects of COVID-19. Such forward-looking statements are subject to a number of risks
and uncertainties that could cause Semler Scientific's actual results to differ materially from those discussed here, such
as whether or not insurance plans and other customers will continue to license its cardiovascular testing products, and its ability
to continue to control expenses and preserve cash, as well as uncertainty created by COVID-19, along with those risk factors detailed
in Semler Scientific's SEC filings. These forward-looking statements involve assumptions, estimates, and uncertainties that
reflect current internal projections, expectations or beliefs. There can be no assurance that such statements will prove to be
accurate, and actual results and future events could differ materially from those anticipated in such statements. All forward-looking
statements contained in this press release are qualified in their entirety by these cautionary statements and the risk factors
described above. Furthermore, all such statements are made as of the date of this release and Semler Scientific assumes no obligation
to update or revise these statements unless otherwise required by law.
S.A. Noonan Communications
SOURCE: Semler Scientific, Inc.