Orion Health rebounds, but US market still tough

Orion Health eked out 7 percent growth for the year ended March 31 in the middle of its shift to SaaS.

New Zealand-based health software company Orion Health increased operating revenue for the year ended March 31, from NZ$153 million to NZ$164 million, delivering growth in all regions except North America.

The company said North American trading was constrained by its efforts to shift from perpetual licensing to a software-as-a-service (SaaS) subscription model and delays in contract closures.

Orion Health CEO Ian McCrae

Increased levels of recurring revenue is a key focus of the new business model Orion presented to investors when it dual listed on the NZX and ASX in December. It has made progress with annualised recurring revenue reaching NZ$63 million, compared to NZ$44 million in 2014.

Net operating cash flow in the fourth quarter was NZ$0.8 million off cash receipts from customers of NZ$53 million.

Orion also outlined a series of software updates and releases, including its Amadeus Big Data Engine.

Of note, it said, were its Open Platform, powered by Amadeus, which integrates large volumes of claims, providers, and other health data.

"Our research indicates that this is one of the first population health big data solutions in the market, and the first with a major implementation," Orion said.

The company has also delivered a clinical workflow suite, Amadeus analytics, and a secure messaging and chat system called Allegro.

Orion raised NZ$125 million on listing, and still has NZ$95 million in cash and short-term deposits to help fund its change in strategy. It said it expects to make progress in North America in 2016.

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