US-based healthcare solutions company CPSI has posted a net loss of $3.56m for the third quarter of this year (Q3 2023), compared with a profit of $2.16m for the same quarter of last year.

The company’s basic net loss for each common share was $0.24 in the quarter, against earnings of $0.15 to a share a year earlier.

Its adjusted EBITDA decreased by 27% from $13.35m to $9.72m over the three-month period.

CPSI’s total revenues for the three months to 30 September were $82.71m, down slightly from $82.82m a year earlier.

Revenue for the company’s Revenue Cycle Management (RCM) unit stood at $46.58m in the quarter, marginally lower than $46.87m in the prior-year period.

Its Electronic Health Record (EHR) unit revenue fell from $34.95m to $34.49m year-on-year.

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By GlobalData

CPSI recorded $3.1m in cash from operations in Q3 2023, while its total expenses rose by 12.9% year-on-year to $87.92m.

This increase was mainly driven by general and administrative expenses of $20.96m, which increased 59.5% from $13.16m in Q3 2022.

In addition, CPSI’s product development expenses increased by 22.4% from $7.99m to $9.78m.

The company’s operating loss for Q3 2023 was $5.21m, against an operating income of $4.94m a year earlier.

CPSI’s forecast for 2023 revenue is now in the range of $337-342m, compared with the previous outlook of $340-350m.

CPSI CEO Chris Fowler said: “Unfortunately, our third quarter results came in below our expectations, as we faced some continued external pressures and the ramifications of cost structure and budgeting missteps from earlier in the year.

“Our EHR business performed well with continued strength in existing customer retention, and we remain optimistic on the opportunity in RCM, despite facing a challenging environment, as hospitals will ultimately need to outsource operations and will look to us as the solution.”