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Orion Health eyes return to profit in 2018

NZ NewswireNZ Newswire 22/05/2016
Ian McCrae, CEO of Orion Health. © Orion Health Ian McCrae, CEO of Orion Health.

Orion Health is targeting a return to profit in 2018 after posting a $54.4 million annual loss.

The health software developer lifted annual revenue 26 per cent as a weaker New Zealand dollar bolstered returns and a smaller tax expense helped narrow the loss from $60.8m a year earlier.

Orion aims to return to profit in 2018 after forgoing short-term earnings when it listed in 2014 to expand its global operations.

The company announced a series of new customers in recent months, including a deal in February to provide its Amadeus platform to Nasdaq-listed Cognizant Group which it saw as having the potential to triple the number of patients it reaches.

The software developer's operating cash outflow of $32.3m was smaller than last year while spending on research and development rose 26 per cent.

The company expects annual revenue growth of more than 20 per cent in the coming year and says its cash reserves are enough to fund its growth strategy. It expects to generate $8 million of annual savings from the restructure of its US business.

"We believe we have sufficient funds and facilities to execute our strategy until profit and positive cash flow is generated," chief executive Ian McCrae and chairman Andrew Ferrier said in the annual report.

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