An anonymous director reports

DMD ANNOUNCES FINANCIAL RESULTS FOR SECOND QUARTER AND FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2015

DMD Digital Health Connections Group Inc. has filed its financial statements, and management discussion and analysis, reporting a net income of $4.9-million on revenues of $14.3-million for the six-month period ended June 30, 2015, compared with a net income of $900,000 on revenues of $10.2-million for the six-month period ended June 30, 2014, an improvement of $4-million.

For the three months ended June 30, 2015, the company reported a net income of $3.7-million on revenues of $6.9-million compared with a net income of $700,000 on revenues of $5.4-million for the three months ended June 30, 2014. The net income for the period includes a gain on extinguishment of debt of $3.1-million. In June, the company had previously announced an anticipated gain of approximately $3.2-million.

The company reported an operating income before net finance expense of $2.8-million for the six-month period ended June 30, 2015, compared with an operating income before net finance expense of $1.8-million for the six-month period ended June 30, 2014. The operating income before net finance expense for the three-month period ended June 30, 2015, remained stable at $1.1-million compared with the operating income before net finance expense for the quarter ended June 30, 2014. The company continued its increased investment in sales and marketing efforts through the expansion of the sales force, and increased promotional and advertising activities.

Revenue increased by $1.5-million for the quarter ended June 30, 2015, compared with the quarter ended June 30, 2014, while gross margin increased $900,000, from $2.4-million in 2014 to $3.8-million during the same period in 2015. In addition to having a larger client base and a wider health care segment penetration, the company has been able to change its product mix, whereby the company's higher margin products and services are increasing in relative importance.

Complete financial statements, and management discussion and analysis for the three-month and six-month periods ended June 30, 2015, are available on SEDAR.

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