Healthcare technology is undergoing its own transformation thanks to innovative and strategic solutions through Social, Mobile, Analytics and Cloud (SMAC): The new model is transforming the healthcare industry radically and quickly, offering healthcare exchange solutions. It is a winning combination that provides a means to reach out to and interface with clients; it matches users’ needs and demands, as noted in a post by SMACdigest, a Q4 Systems Corp. Publication.
These days, many organizations have initiatives underway exploring one or more of the SMAC components. An integrated SMAC solution could make an impact and bring business value; this is important when companies opt for this model.
SMAC can and is influencing the healthcare landscape; through the new technologies, health IT providers, physicians, hospitals and small practices can collect and analyze meaningful data, when and where they want.
In the market for these technologies able to alter how health organizations interact with patients and one another to deliver care and manage health is Quadrant 4 Systems (QFOR), a global IT software company with 1000 associates that serves over 150 companies worldwide. The business concentrates on digital support for enterprises of any size (from small to Fortune 500 companies). Quadrant 4 Systems concentrates on providing health exchange platforms as well as SMAC solutions in several industries: Health Care, Finance, Media and Publishing, Retail and Manufacturing. The company provides clients with end-to-end solutions that include software, IT consulting, support for processes and tools. Their services include Cloud support, Business Intelligence tools as well as help for Business mobility and analytics.
This week, Quadrant 4 Systems announced that Sidoti & Company, LLC has initiated a research coverage with a buy rating. Sidoti is an independent equity research firm that specializes in researching small cap companies in a variety of sectors, from technology to automotive, to retail and healthcare.
As a post on MarketWatch website on Monday disclosed, Sidoti employs a proprietary matrix to rank companies according to five metrics: Earnings, Cash Flow, Balance Sheet, PEG Valuation and Governance. These components are categorized—i.e., are ranked on a 1 to 5 scale with five being the highest possible mark and one, obviously, the lowest. If a company is able to obtain a score over 18, then it is given a BUY rating. Scores of 17 or less earn companies a NEUTRAL rating.
BUY implies at least 25 percent upside over a 12-month period (from the date of coverage); NEUTRAL, instead, denotes a stock is not likely to provide similar gains.
A research on Quadrant 4 Systems released on March 7 revealed a score of 19 that equates to a BUY rating for the company. The good marks were earned thanks to a forecasted increase in revenue of 44.4 percent in 2014 and 40.0 percent in 2015, bringing revenues respectively to 54.1 millions and 75.8 millions. Operating margins were forecasted to improve to 13.7 percent and 22.8 percent in the next 2 years. Currently, according to Yahoo! Finance, the quarterly revenue growth is 40.0 percent and operating margins are at -0.18 percent.
Sidoti’s individual grades for the five parameters were as follows: Earnings = 5, Balance Sheet = 1, Cash Flow = 5, Corporate Governance = 3, PEG Valuation = 5.
The good report follows other favorable markings released in December 2013 by SeeThruEquity, LLC, a company based in New York City that also performs equity research. The company monitored Quadrant 4 since December of 2012. Ajay Tandon, co-founder of SeeThruEquity, LLC commented on the report mentioning that they had “established a price target of $5.25 per share based on a number of metrics including acquisition of SMAC related assets in the first quarter of 2013 [noting] the expansion of the core businesses to include its newly-launched HealthCare Exchange (QHIX), and continued execution by the company’s management team.”
RedChip, a small-cap research firm with offices in Orlando, San Francisco, and Seoul, has released similar positive forecasts. According to its review, QFOR’s healthcare exchange platform (QHIX) is estimated to reach $48 million in revenue by end of 2014; this is because the SMAC market is believed to be worth $5T by 2020 and the healthcare exchange market is projected at $2B-$6B.
Edited by
Cassandra Tucker
