Clarus research on Nightingale Informatix
This morning, Nightingale announced that it has signed four EMR contracts with its VantageMed clients. In total, the deal includes seven licenses plus support and implementation services to the practices in Pennsylvania, Minnesota, New Jersey and South Carolina. Notably, these practices represent Nightingale’s first set of announced cross-sales into the acquired client base of 6,000. Having closed the VantageMed acquisition in April-07, we believe the potential exists for the Company to further crosssell its EMR solution into the acquired installed base.
Although financials were undisclosed, we expect the contract will contribute to the Company’s US-based revenues beginning in Q2 FY08 (ending September-30th). At this time, we are not
adjusting our estimates.
Nightingale will report its Q4/07 (ended March-31st) results on Monday July 30th BMO with a conference call following at 8:30AM EST. We are forecasting revenue of $3.8 million and an EPS FD loss of ($0.02). We apply a 2.5x EV/S multiple applied to our FY08e to get our target price of $1.10 per share. We maintain our SPECULATIVE BUY recommendation.
(disclosure – our Fund III holds warrants in NGH)