Sales now filtering through from medical audit software agreements announced last year
Medical billing software developer Craneware expects to deliver revenue growth of around seven per cent for the six months to December 31, 2012.
The company, which has offices in Edinburgh and Livingston but sells all of its software products to the American healthcare market, said trading has “been positive” in the first half.
Craneware said first-half revenues are expected to be around $20.1 million (£12.7 million) and it expects adjusted earnings before tax, depreciation and operating costs to be up 15 per cent on the previous year to $4.65 million (£2.9 million).
In a market update posted today, Craneware said the performance “is in line with management’s expectations, delivering similar first half to second half expectation splits as those seen in the previous financial year”.
Chief executive Keith Neilson said: “The increased levels of sales activity discussed at the time of our final results in September 2012 have begun to contribute to revenue growth.
“Fiscal and regulatory pressures on US hospitals, including the recently announced expansion of the Medicare Recovery Audit Contractor Program, continue to drive interest in our suite of software solutions and we are confident in the ongoing strength of our position within this growing area of the US healthcare market.”
Craneware is expected to publish its interim results on February 26.
Last year Craneware reported strong sales and profit growth for the year to June 2012, with turnover up eight per cent to £25.8 million and adjusted pre-tax profits up 29 per cent to £7.05million.
Craneware's share price tumbled nearly 20 per cent in February 2012 after posting a 13 per cent drop in first-half pre-tax profits – despite a 13 per cent rise in revenues – after losing a third-party contract in January 2012.
The company went on to announce an agreement with a new multi-million dollar channel partner which will guarantee minimum payments of $7,500,000 (£4.72 million) from February 2012 to the end of June 2014.
Craneware also announced in last year's year-end results it had extended its market reach in the US healthcare market through two “significant” deals, one providing entry into the federal and state healthcare market and the other taking Craneware’s software into a non-competitive parallel market.
In August 2012 Craneware secured US federal agency certification for its software to allow electronic submission of medical records to auditors.
Craneware was founded in 1999 and currently employs around 220 people across its two Scottish offices and in four in the US.