Shares of Auxilio Inc. (AUXO) have gained an impressive 171% year-to-date compared to a mere 4.92% return of the S&P 500 during the same period.
Auxilio offers document and cybersecurity solutions exclusive to healthcare organizations with the aim of reducing costs, improving operational efficiency and mitigating risk. The Company's client base consists of over 700 hospitals and healthcare organizations.
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To meet the growing demand from healthcare customers for comprehensive IT security solutions that reduce risk and deliver long-term value, Auxilio has been making strategic acquisitions.
In July 2014, the Company acquired Delphiis, a professional security services and risk assessment SaaS tool, and in the following year, purchased Redspin, a technical security company focusing on penetration testing, HIPAA risk assessments and phishing.
Auxilio's recent acquisition was in January of 2017 when it purchased healthcare IT security solutions provider CynergisTek for up to $34.3 million.
The Company considers the acquisition a truly unique fit, and the transaction is expected to be substantially accretive to 2017 earnings per share (EPS).
Auxilio's net income for the year ended December 31, 2016 was $5.0 million or $0.60 per share on revenue of $60.2 million. This compared with a net income of $1.3 million or $0.16 per share and revenue of $61.3 million in 2015.
Auxilio ended the year 2016 with cash of $6.1 million and working capital of $5.8 million.
Last month, the Company won a five-year, $12.5 million contract with a 1,000-bed teaching hospital located in the Central United States.
Under the terms of the contract, Auxilio will deliver a next-generation Managed Print Service (MPS) program, otherwise known as Print-as-a-Service (PRaaS) that enables healthcare providers to strategically manage high-volume print environment.
The Company's shares underwent a 1-for-3 reverse stock split on January 13, 2017, and were uplisted to the NYSE MKT from the OTCQB on February 14th, 2017.
AUXO, which has traded in a range of $2.25 to $6.72 over the last 52 weeks, closed Monday's trading at $6.43, up 1.99%.
by RTT Staff Writer
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