BEAMTREE HOLDINGS LIMITED — Earnings Release 2020

Oct 29, 2019

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ASX Announcement PKS Holdings Limited (ASX:PKS)

Sydney, 30 October 2019

PKS update for quarter ending 30 September 2019

PKS Holdings Limited (ASX: PKS) is pleased to announce a positive business update for the quarter ending 30 September 2019.

Quarter Highlights:

• Total revenue for Q1 FY20 was up by 7.6% to $996k compared to Q1 FY19;

• Recurring revenue strongly up by 15.6% to $911k;

• Profitability, gross margin and positive cash flow was in line with budget expectations;

• The cash balance was $4.2 million;

• PKS Signed ACT Pathology for $700,000 for a 29-month agreement;

• Abbott Laboratories added 4 new licenses in the quarter bringing cumulative licensed customers to 22;

• Abbott Laboratories Channel Partner amendment commercially agreed, legal terms subject to contract;

• Product extension pilots for RippleDown continued in hospitals.

Growth & Strategic Objectives

• Modernise and Expand the Product Offering:

• The Internal Development team has been strengthened by an additional hire and focus has been turned to refining the user interface for customers;

• Development of modules to allow faster integration with the major Laboratory Information Systems.

• Grow Direct Sales:

• PKS has commenced its direct sales strategy by hiring a business development resource in Australia.

• During the quarter PKS executed a new Software License and Support Agreement with ACT Pathology. The new agreement commenced on 1 October 2019 is for a 17-month period with an option to extend for an additional 12 months. The value of new agreement is estimated to be $700,000, GST inclusive, over the 29-month period.

• Entry into the USA market:

• PKS has been in dialogue to agree the go-to-market strategy with Abbott Laboratories, its global Channel partner who sells RippleDown as a white label product called AlinIQ.

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• PKS will deploy technical staff to the USA to build out the pipeline opportunities and assist Abbott in its sales initiatives with clients from a technical support role.

• Grow Channel Partner Sales

• PKS channel partner Abbott added 4 licenses during the quarter, bringing the total licenses with Abbott to 22.

• Use cases for RippleDown have been extended beyond the interpretation and reporting of pathology results, with examples being prevention of adverse drug reactions, secondary fracture prevention, patient reminder services and sensible test ordering.

• Enhance value through complimentary acquisitions

• The board is actively supporting the executive team in assessing complimentary acquisitions which may offer product extension, revenue synergy opportunities and customer lists in hospitals where RippleDown is already used by some PKS customers.

Abbott Laboratories Channel Partner Agreement

PKS is pleased to advise that the extension of the channel partner contract with Abbott Laboratories is nearing conclusion. Commercial terms have been agreed to enhance and extend the contract and are currently being legally drafted. The board expects to inform the market of these terms once the contract has been finalised.

Product Extension Pilots

The trial in a hospital to develop an “early warning system” to detect deterioration of patients earlier, compared to the currently used system, is progressing well and an additional site will be added to this trial in the near future.

PKS has also initiated a pilot in the area of hospital billing system where RippleDown is used to find patient episodes that are underbilled. Data from this pilot looks promising. PKS is exploring these opportunities through a clinical partner.

Phillips, a channel partner for PKS, has commenced upgrading its Laboratory Information System (LIS) product, where it has a license with PKS to sell RippleDown as a value-added clinical support tool integrated into the Phillips LIS. Phillips has four active licensed customers using RippleDown. Its new product version is expected to be released in 1H 2020.

Board and Acquisitions

PKS announced during the quarter that Mr Brad Lancken had joined the board. Brad will be assisting the company with the review and project management of complimentary acquisitions.

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For further information please contact:

Ron van der Pluijm, CEO PKS Holdings Phone: 0427 498 615

Mike Hill, Chairman PKS Holdings Phone: 0421 056 691

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About PKS

PKS is an Australian Healthcare company that works with health organisations around the world to better capture, manage and leverage their human expertise to improve the performance of their business and deliver better patient outcomes.

PKS owns a Clinical Decision Support (CDS) system called RippleDown, which integrates patient data with a knowledge base, managed by clinical or financial domain experts, to deliver patientspecific reports, recommendation and alerts.

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