ROCHESTER, Mich., Aug. 07, 2018 (GLOBE NEWSWIRE) -- OptimizeRx Corp. (OTCQB:OPRX), a leading global provider of digital health messaging for the pharmaceutical industry, reported results for the second quarter ended June 30, 2018. Quarterly comparisons are to the same year-ago quarter.

Financial Highlights

-- Net revenue increased 78% to a record $5.1 million. -- Gross margin improved from 44.0% to 56.1%. -- Operating expense as a percentage of net revenue reduced from 57% to 51%. -- Net income of $281,000 or $0.02 per diluted share vs. a loss -- Raised $9 million in private placement

Operational Highlights

-- Up-listed to the Nasdaq Capital Market -- Signed new pharmaceutical manufacturer brands for distributing digital health messaging through OptimizeRx’s expanding network of EHR channel partners. -- Partnered with Patient Connect to deliver real-time digital heath messaging at point-of-care across Europe and provide a broader solution set for global brands.

Financial Summary Net revenue in the second quarter of 2018 increased 78% to a record $5.1 million versus $2.9 million in the same year-ago quarter. The increase was primarily due to growth in OptimizeRx’s two core products of financial and brand messaging, coupled with broader distribution through the company’s new channel partners. The launch of new pharmaceutical brands also contributed to the increase.

Gross margin improved to 56.1% in the second quarter of 2018 from 44.0% in the year-ago quarter. The improvement was due to favorable product mix and reduced revenue share cost. The company remains focused on improving margins, and maintains its gross margin target of at least 55% through the fourth quarter of 2018.

Operating expenses in the second quarter of 2018 were $2.6 million, up from $1.6 million in the same year-ago quarter. The increase was primarily due to additional expenses related to growth initiatives, including expanding the company’s executive and sales team. However, operating expense as a percentage of revenue decreased to 51% as compared to 57% in the same year-ago quarter.

Net income for the second quarter of 2018 was $281,000 or $0.02 per diluted share, as compared to a net loss of $362,000 or $(0.04) per share in the year-ago quarter. Profitability was primarily due to the increase in revenue and decrease in operating expense as a percentage of revenue. The company expects to continue to be profitable on a quarterly basis, although one-time expenses related to growth initiatives may result in quarterly fluctuations in profitability.

Cash and cash equivalents totaled $12.0 million at June 30, 2018, as compared to $5.1 million at December 31, 2017. The increase in cash was due to $9.0 million equity raise completed in May 2018. The company has continued to operate debt-free and expects to generate positive cashflow from operations for the remainder of 2018.

Management Commentary

“In Q2, we realized our seventh consecutive quarter of revenue growth and achieved profitability through adding new pharmaceutical brands, growing our digital health messaging revenue and expanding our distribution channels,” said OptimizeRx CEO, William Febbo.

“OptimizeRx continued to be the largest network of its kind, with promotional programs incorporated into more than 50% of the ambulatory market and with more healthcare providers at 'point-of-prescribe' than any other network. This broad market reach provides us a substantial competitive advantage as we continue to grow our core products and pharma customer base. We continue to believe our addressable market is worth well north of $500 million to a billion once the market fully adopts this channel.

“Revenue was up 78% from the year-ago quarter and up 24% sequentially, demonstrating how our low fixed-overhead model continues to support a highly-scalable financial opportunity. This was also evident in our expanding margins. In fact, at 56.1% for the quarter, we surpassed our previously announced gross margin goal of 55%, and we expect to again exceed this goal in the second half of the year.

“For the second half of 2018, we will remain focused on revenue generation from our core products and expanding our channel and partner networks both domestically and internationally. We see this driving continued gross margin improvement as we scale.

“We plan to use a portion of the proceeds from our recent $9.0 million raise to make additional sales and channel investments for expanding further into our core ambulatory market where we continue to demonstrate high ROI for pharma marketing spend. We also plan to further expand into the hospital market, a new channel for us that also represents a significant growth opportunity. In addition, we will increase investment in the underlying technology that powers our solutions and will invest in our data strategy.

“While investments in these growth initiatives may result in quarterly fluctuations in profitability, we expect them to drive further strong topline growth and margin expansion while sustaining our position as the market leader in our space.”

Conference Call

OptimizeRx management will host the presentation, followed by a question and answer period.

Date: Tuesday, August 7, 2018 Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time) Toll-free dial-in number: 1-888-220-8451 International dial-in number: 1-323-794-2590 Conference ID: 9709267

Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact CMA at 1-949-432-7566.

A replay of the call will be available after 7:30 p.m. Eastern time on the same day through August 28, 2018, as well as available for replay via the Investors section of the OptimizeRx website at www.optimizerx.com.

Toll-free replay number: 1-844-512-2921 International replay number: 1-412-317-6671 Replay ID: 9709267

About OptimizeRxOptimizeRx® (NASDAQ:OPRX) is one of the nation’s leading providers of digital health messaging via electronic health records (EHRs), providing a direct channel for pharma companies to communicate with healthcare providers. The company’s cloud-based solution supports patient adherence to medications by providing real-time access to financial assistance, prior authorization, education, and critical clinical information. The company’s network is comprised of leading EHR platforms like Allscripts, Amazing Charts and Quest, and provides more than half of the ambulatory patient market with access to these benefits within their workflow at the point-of-care. For more information, follow the company on Twitter, LinkedIn or visit www.optimizerx.com.

Important Cautions Regarding Forward Looking StatementsThis press release contains forward-looking statements within the definition of Section 27A of the Securities Act of 1933, as amended, and such as in section 21E of the Securities Act of 1934, as amended. These forward-looking statements should not be used to make an investment decision. The words 'estimate,' 'possible' and 'seeking' and similar expressions identify forward-looking statements, which speak only as to the date the statement was made. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted, or quantified. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, the effect of government regulation, competition and other material risks.

OPTIMIZERx CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETSAS OF JUNE 30, 2018 AND DECEMBER 31, 2017

June 30, December 31, 2018 2017 (unaudited) ------------- ------------- ASSETS Current Assets Cash and cash equivalents $ 12,003,864 $ 5,122,573 Accounts receivable 2,954,782 2,257,276 Accounts receivable – related party 2,555,931 1,173,614 Prepaid expenses 215,108 255,428 - ----------- - ----------- Total Current Assets 17,729,685 8,808,891 - ----------- - ----------- Property and equipment, net 152,898 167,305 - ----------- - ----------- Other Assets Patent rights, net 604,820 638,766 Web development and other intangible costs, net 152,381 143,730 Security deposit 5,049 5,049 - ----------- - ----------- Total Other Assets 762,250 787,545 - ----------- - ----------- TOTAL ASSETS $ 18,644,833 $ 9,763,741 - ----------- - ----------- LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable – trade $ 176,940 $ 457,289 Accrued expenses 828,540 953,947 Revenue share payable 994,142 1,177,136 Revenue share payable – related party - 447,670 Deferred revenue 845,153 507,160 - ----------- - ----------- Total Liabilities 2,844,775 3,543,202 - ----------- - ----------- Stockholders’ Equity Preferred stock, $0.001 par value, 10,000,000 shares authorized, no issued - - and outstanding at June 30, 2018 or December 31, 2017 Common stock, $0.001 par value, 166,666,667 shares authorized, 11,556,858 and 9,772,694 shares issued and outstanding at June 30, 2018 and December 11,557 9,773 31, 2017, respectively Stock warrants 1,286,424 1,286,424 Additional paid-in-capital 44,915,896 35,287,464 Accumulated deficit (30,413,819 ) (30,363,122 ) - ----------- - ----------- Total Stockholders’ Equity 15,800,058 6,220,539 - ----------- - ----------- TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,644,833 $ 9,763,741 - ----------- - -----------

OPTIMIZERx CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2018 AND 2017

For the Three Months Ended For the Six Months Ended June 30 June 30 -------------------------- --------------------------- 2018 2017 2018 2017 ------------ ----------- ------------ ------------ NET REVENUE Revenue $ 3,192,138 $ 2,252,222 $ 5,961,257 $ 3,652,540 Revenue – Related Party 1,907,336 613,601 3,250,453 1,365,356 - ---------- - --------- - ---------- - ---------- TOTAL NET REVENUE 5,099,474 2,865,823 9,211,710 5,017,896 REVENUE SHARE EXPENSE 2,236,751 1,605,534 4,244,842 2,987,267 - ---------- - --------- - ---------- - ---------- GROSS MARGIN 2,862,723 1,260,289 4,966,868 2,030,629 OPERATING EXPENSES 2,589,126 1,630,853 4,884,467 3,291,631 - ---------- - --------- - ---------- - ---------- INCOME (LOSS) FROM OPERATIONS 273,597 (370,564 ) 82,401 (1,261,002 ) - ---------- - --------- - ---------- - ---------- OTHER INCOME (EXPENSE) Interest income 6,912 9,063 8,929 16,819 Interest expense - - - - - ---------- - --------- - ---------- - ---------- TOTAL OTHER INCOME (EXPENSE) 6,912 9,063 8,929 16,819 - ---------- - --------- - ---------- - ---------- INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES 280,509 (361,501 ) 91,330 (1,244,183 ) PROVISION FOR INCOME TAXES - - - - - ---------- - --------- - ---------- - ---------- NET INCOME (LOSS) $ 280,509 $ (361,501 ) $ 91,330 $ (1,244,183 ) - ---------- - --------- - ---------- - ---------- WEIGHTED AVERGE NUMBER OF SHARES OUTSTANDING BASIC 10,979,086 9,861,257 10,373,326 9,883,648 - ---------- - --------- - ---------- - ---------- DILUTED 11,949,593 9,861,257 11,517,604 9,883,648 - ---------- - --------- - ---------- - ---------- NET INCOME (LOSS) PER SHARE BASIC $ 0.03 $ (0.04 ) $ 0.01 $ (0.13 ) - ---------- - --------- - ---------- - ---------- DILUTED $ 0.02 $ (0.04 ) $ 0.01 $ (0.13 ) - ---------- - --------- - ---------- - ----------

OPTIMIZERx CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)FOR THE SIX MONTHS ENDED JUNE 30, 2018 AND 2017

For the six months Ended June 30 ---------------------------- 2018 2017 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) for the period $ 91,330 $ (1,244,183 ) Adjustments to reconcile net income(loss) to net cash used in operating activities: Depreciation and amortization 108,946 141,945 Stock and options issued for services 1,013,822 291,874 Changes in: Accounts receivable (2,079,823 ) 638,602 Prepaid expenses 40,320 (866,333 ) Accounts payable (280,349 ) 534,743 Revenue share payable (183,664 ) (751,094 ) Accrued expenses (125,407 ) (91,981 ) Deferred revenue 195,966 650,331 - ---------- - ---------- NET CASH USED IN OPERATING ACTIVITIES (1,218,859 ) (696,096 ) - ---------- - ---------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (12,593 ) (24,599 ) Web development and other intangible costs (56,651 ) (81,350 ) - ---------- - ---------- NET CASH USED IN INVESTING ACTIVITIES (69,244 ) (105,949 ) - ---------- - ---------- CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from issuance of common stock for cash 8,169,394 - Repurchase of common stock and stock payable - (390,000 ) - ---------- - ---------- NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 8,169,394 (390,000 ) - ---------- - ---------- NET CHANGEIN CASH AND CASH EQUIVALENTS 6,881,291 (1,192,045 ) CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 5,122,573 7,034,647 - ---------- - ---------- CASH AND CASH EQUIVALENTS - END OF PERIOD $ 12,003,864 $ 5,842,602 - ---------- - ---------- SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest $ - $ - - ---------- - ---------- Cash paid for income taxes $ - $ - - ---------- - ---------- Non-cash issuance of shares to WPP $ 447,000 $ - - ---------- - ----------

OptimizeRx Contact:Doug Baker, CFOTel (248) 651-6568 x807dbaker@optimizerx.com

Investor Relations Contact:Ron Both, CMATel (949) 432-7557 Email contact