• Security and Care Team Coordination Top CIO Priority Lists in New Spok Survey Administered by CHIME

    SPRINGFIELD, VA – October 31, 2016 (BUSINESS WIRE)–Spok, Inc., a wholly owned subsidiary of Spok Holdings, Inc. (NASDAQ: SPOK) and the global leader in enterprise critical communications, today released the findings of a survey designed to identify the business goals and drivers behind mobile workflow investments in hospitals across the country. CHIME administered the survey to more than 100 CIOs, who responded to questions about their big-picture goals, the use-cases driving their mobile app selections, and which common workflows they are focused on improving.

    “CHIME CIO surveys are useful for CHIME Foundation member organizations looking for quality data on various HIT-related topics,” said Kevin Cleary, Vice President of CHIME Foundation and CHIME Education Foundation. Eighty-one percent of CIOs surveyed said that strengthening data security was their top business goal for the next 18 months. And when asked which workflows are top of mind to improve with better tools, 67 percent noted “care team coordination for treatment planning.”

    “Treatment planning involves coordinating the right people and information to make the best decisions quickly and effectively―it is at the core of patient care,” said Hemant Goel, president of Spok, Inc. “Giving a provider enough information with context for timely decision making is key. It is an important challenge to improve care quality with reduced reimbursements as the industry moves toward payment for outcomes instead of fee-for-service.” Many delays in treatment planning occur at the points when multiple caregivers need to connect or share information, and one way to facilitate these connections is with mobile technology.

    One popular intersection of these two primary goals, data security and care team coordination, is secure mobile communications. Sixty eight percent of survey respondents said that implementing secure text messaging is an active project, and 53 percent have an enterprise mobility management, or EMM, solution to further enhance patient data security on mobile devices.

    CIOs also identified physician adoption as both the top measure of success and the top challenge with these technologies. “Healthcare IT leaders are looking to achieve a delicate balance between meeting regulatory requirements for security and physician expectations to provide impactful improvements with easy to use technologies,” said Dr. Andrew Mellin, chief medical officer of Spok, Inc. “Adoption of new technology requires change management to be most effective. The organizations we’ve seen with the most successful secure text messaging rollouts first identify key clinical challenges and workflow frustrations for end users and then deploy the technology alongside process improvement and change management activities to demonstrate value to the provider, care team, and patient. For example, a well-designed messaging app for healthcare can integrate with hospital technologies such as the EHR and other ancillary systems to deliver critical results in a manner that allows the physician to address the result quickly and easily. There is an opportunity to improve physician adoption by highlighting these value-add distinctions that can save time and improve patient care.”

    Goel added that while there are lots of point solutions available, these single-solution technologies provide limited functionality to address bigger picture goals. “When we demonstrate our industry-leading critical communications platform, Spok Care Connect®, CIOs are immediately interested. They see an opportunity to address communications holistically from an enterprise perspective. Being able to securely connect data from systems such as nurse call, on-call schedules, and critical test results brings these leaders closer to their larger goal of improving care team coordination.”

    Goel will be attending the CHIME16 Fall CIO Forum Nov. 1 to 4 in Phoenix, Arizona and introducing the keynote speaker.

    For more detail about the factors CIO ranked most important for investment decisions, the drivers behind mobile app selections, and the topic they think will be most important three years from now, visit this resource page.

    About Spok
    Spok, Inc., a wholly owned subsidiary of Spok Holdings, Inc. (NASDAQ: SPOK), headquartered in Springfield, Va., is proud to be the global leader in critical communications for healthcare, government, public safety, and other industries. We deliver smart, reliable solutions to help protect the health, well-being, and safety of people around the globe. Our customers send over 100 million messages each month through their Spok® solutions, and they rely on Spok for workflow improvement, secure texting, paging services, contact center optimization, and public safety response. When communications matter, Spok delivers.

    Spok is a trademark of Spok Holdings, Inc. Spok Care Connect is a trademark of Spok, Inc.

    Contacts
    Spok, Inc.
    Jill Asby
    952.230.5363
    [email protected]

    Posted 10.31.2016

  • Iatric Systems Applauds Federal Appeals Court Decision Affirming Dismissal of Patent Lawsuit

    Ruling supports Iatric Systems’ right to continue selling products based on proven methods of proactively monitoring, identifying and alerting providers of potential privacy violations

    BOXFORD, MA – October 31, 2016 — Iatric Systems, Inc., applauds the decision of the United States Court of Appeals for the Federal Circuit to affirm a lower court’s dismissal of a patent infringement lawsuit filed against it.

    The federal court in Florida, where the lawsuit [8:14-CV-02685] was filed, dismissed the lawsuit, holding that the asserted patent is directed to concepts (namely, detecting fraud and misuse of protected health information) that are not protectable under the patent laws.

    “Iatric Systems has been proactively monitoring, identifying and alerting providers to potential privacy violations since at least as early as 2003, well before the patent in question entered the application process,” said Frank Fortner, President of Iatric Systems. “The lawsuit was dismissed prior to trial on these fundamental grounds, and we have achieved our goal of enhancing the prospects for a fair competitive environment.”

    About Iatric Systems
    Iatric Systems is a healthcare technology company dedicated to helping healthcare organizations enhance their IT investments. We do so with our diverse healthcare experience, an extensive partner network, and our proven capabilities in patient privacy, analytics, EHR optimization, and interoperability. For more than 25 years, Iatric Systems has delivered solutions to more than 1,300 healthcare organizations. For more information, contact [email protected] or visit iatric.com. Connect with Iatric Systems on Twitter, Facebook and LinkedIn.

    Iatric Systems Media Contact:
    Tony Katsulos
    Jetstream PR for Iatric Systems
    972.788.9456, ext. 301
    [email protected]

    Posted 10.31.2016

  • Healthcare IT Budget Growth Seen Outpacing Broader Industry: Harvey Nash/ KPMG CIO Survey Finds

    CIOs gain greater strategic role, but healthcare companies less likely to have digital business strategies; Survey shows skills gaps in data & analytics, project management, change management

    NEW YORK, NY – October 31, 2016 — Healthcare companies are more likely to increase information technology spending over the next 12 months than other industries as they aim to improve efficiency and business processes in the midst of significant skills shortages, the Harvey Nash/KPMG CIO survey found.

    “Despite significant increases in IT spending in recent years, the maturity of IT investment in healthcare is still lagging versus other industries and healthcare companies know they need to catch up,” said Vince Vickers, KPMG LLP’s healthcare technology leader. “Healthcare organizations have significant operational cost pressures now more than ever, and there is an opportunity to close that gap quickly with disruptive technologies and analytic tools that open the door to the notion of the ‘creative CIO.’ The survey also revealed that the healthcare sector lagged industry averages in key technology skills.”
    The survey of 190 healthcare industry CIOs found that 52 percent were seeing increases in IT budgets in the next 12 months and 35 percent expected unchanged budgets, compared with 45 percent of budgets seeing increases and 33 percent remaining unchanged across all industries.

    Of the healthcare executives surveyed, 80 percent said they see a growing strategic role in their organization compared with 67 percent from all industries. Despite this more strategic role, only half of the respondents said they have a “clear digital business vision and strategy.” The survey found that 39 percent of respondents were currently working on a digital business strategy.
    “Healthcare organizations are continuously confronted with new regulatory challenges and evolving business models that are forcing them to change the way they think about leveraging technology toward the cloud and digital labor that can change how work is done,” Vickers said. “Some of these changes can remove costs through automation and provide greater insight into their business from data & analytic tools. All of this is putting more pressure on CIOs to quickly and effectively sort through the best new technologies and implement them to engage patients and deliver greater efficiency. So the CIO’s role is becoming much more creative, strategic and a key to transformation in healthcare.”

    Growth of the Cloud
    Cloud computing is gaining interest from healthcare organizations as a means to leapfrog to more modern technology, but some clinical software and electronic health record systems are not yet available and/or optimized for the cloud, Vickers said. Survey respondents found that the top three reasons for using the cloud were to “improve availability and resiliency” (45 percent), “best solution available” (35 percent) and to “improve agility and responsiveness” (34 percent). Challenges in cloud adoption were “data loss and privacy risks” (55 percent), “integration with existing architecture” (46 percent) and “legal and regulatory compliance issues” (42 percent), the survey said. However, “no industry has a greater opportunity than healthcare to leverage the cloud to transform its operations, reduce cost, and improve its customer satisfaction (patient care) than healthcare,” Vickers said.
    The Harvey Nash / KPMG CIO Survey also asked where organizations are struggling.


    Which functions do you feel suffer from a skills shortage?

    Healthcare All Industries
    Big data/analytics 45% 39%
    Project management 36% 32%
    Change management 30% 25%
    Security and resilience 29% 27%

    About the Survey
    The 2016 Harvey Nash/KPMG CIO Survey is the largest IT leadership survey in the world in terms of number of respondents. The survey of 3,352 CIOs and technology leaders was conducted between December 12, 2015 and April 10, 2016, across 82 countries.

    About KPMG LLP
    KPMG LLP, the audit, tax and advisory firm (kpmg.com/us), is the US member firm of KPMG International Cooperative (“KPMG International”). KPMG International’s member firms have 174,000 professionals, including more than 9,000 partners, in 155 countries.

    Contact
    Bill Borden
    KPMG LLP
    201.505.6351
    [email protected]

    Posted 10.31.2016

  • Vocera Acquires Extension Healthcare

    SAN JOSE, CA – October 27, 2016 (GLOBE NEWSWIRE) — Vocera Communications, Inc. (NYSE:VCRA), the leading healthcare communications company, today announced that it has acquired Extension Healthcare for approximately $55 million in an all-cash transaction. Based in Fort Wayne, Ind., Extension Healthcare is a leading provider of clinical, event-driven communication and workflow collaboration software for the hospital environment.

    The strengths of the two companies and their solutions will deepen interoperability of the Vocera Communication Platform with more than 120 clinical systems, including electronic health records (EHRs), physiologic monitors, enterprise clinical systems, and biomed devices such as ventilators. It will also extend the scalability of the enterprise-class platform and enable stronger person-to-person and system-to-person workflows within a single system from a single vendor. The addition of Extension Healthcare’s complementary software to the Vocera Communication Platform creates the most powerful and complete mobile communication and collaboration platform on the market.

    “This acquisition extends the power of Vocera’s software platform for hospitals and health systems seeking one partner for all of their care team collaboration, workflow and communication needs,” said Brent Lang, president and CEO of Vocera. “In addition to offering a powerful combination of technology, Vocera and Extension Healthcare share a mission to improve care delivery, efficiency and safety, while also improving the lives of patients, families and care teams around the world.”

    Todd Plesko, co-founder and CEO of Extension Healthcare said, “It’s inspiring to be part of healthcare’s next generation of technology that simplifies and improves care team collaboration. With our visions aligned and software platforms combined, this new endeavor will make a positive and lasting impact on healthcare delivery.”

    Founded in 2009, Extension Healthcare is known in the market for its clinical integration software solution Engage, which features an advanced clinical rules engine that unifies data from multiple sources simultaneously, enables prioritization of notifications, adds patient context, and sends messages to the right care team members on their mobile devices. The Engage platform allows clinicians to be away from the bedside while staying informed about their patients. As a result of faster care team response times and reduced noise, patients report higher satisfaction. Similarly, using information from location tracking systems, Engage helps reduce interruption fatigue and unnecessary alarms by detecting the presence of a nurse at the patient’s bedside.

    Selected by more than 230 healthcare customers, the Engage software platform has enabled multi-disciplinary care teams to improve response times, minimize interruption fatigue, and reduce patient falls, among other benefits. The intuitive technology offers widespread interoperability and will expand Vocera’s product portfolio, differentiate its competitive position, increase its customer base, and expand the company’s market reach.

    Vocera and Extension Healthcare have collaborated many times and share more than 40 hospital customers across the United States, including several medical centers within the Veterans Health Administration. The acquisition will enable Vocera to expand customer relationships and grow software revenue faster by providing highly relevant cross-selling opportunities. In addition, the complete solution will better position Vocera to win more large system-wide deals, according to Lang.

    Berkery Noyes served as the exclusive financial advisor to Extension Healthcare on the transaction.

    Vocera will host a conference call at 5 p.m. ET (2 p.m. PT) today, October 27, 2016, to discuss this transaction and the Company’s Q3 2016 results, which were issued in a separate press release today.

    Investors may access a free, live webcast of the call through the Investors section of the Company’s website at investors.vocera.com. The call also can be accessed by dialing 844-464-3152, or 508-637-5574 for international callers, and using the access code 81440273. A webcast replay of the call will be archived on the Vocera website.

    About Vocera
    Vocera Communications, Inc. offers the most robust clinical communications system in healthcare. Vocera delivers secure, integrated and intelligent communication solutions that enable care teams to collaborate more efficiently by delivering the right information, to the right person, on the right device, in the right location, at the right time. Vocera solutions provide hands-free voice communication, secure text messaging, patient engagement tools, and integrated clinical workflow with EHRs, nurse call systems and physiological monitors. These solutions help improve operational efficiency, quality of care, safety and satisfaction across the continuum of care. In addition to technology solutions, Vocera drives thought leadership and new standards in care to elevate patient, family, nurse and physician experiences via the company’s research collaborative, the Experience Innovation Network. Vocera is led by President and CEO Brent Lang and is headquartered in San Jose, California, with offices in San Francisco, Tennessee, Canada, India, United Arab Emirates and the United Kingdom. Robert J. Zollars is the Chairman of the Board. For more information, visit vocera.com and @VoceraComm on Twitter.

    The Vocera logo is a trademark of Vocera Communications, Inc. Vocera® is a trademark of Vocera Communications, Inc. registered in the United States and other jurisdictions. All other trademarks appearing in this release are the property of their respective owners.

    About Extension Healthcare
    Extension Healthcare’s Engage™ “one platform” approach improves clinical communication, collaboration, care coordination, and workflow with a specific focus on reducing unnecessary clinical interruptions and improving response to critical patient events. With what is traditionally accomplished using several vendors and platforms, Extension combines comprehensive alarm management with secure communications on a single platform. The Extension platform intelligently notifies clinicians about real-time patient events through context-driven notifications to smartphones and other common mobile communication devices. Designed for enabling situational awareness and timely information sharing across care teams inside and outside the hospital, Engage aggregates alarm, patient, and care team data from a variety of systems including physiologic monitors, nurse call and lab systems, electronic health records (EHRs), and location sensing technologies and sends relevant information to enhance the usefulness of alarm and alert notifications. Leveraging the common platform that is purpose built for extensive integration and data aggregation, the Engage Mobile secure texting solution helps to expedite care coordination in response to events. With proven integrations and interoperability selected by more than 230 customers, Extension Healthcare has become a leading solution for improving care quality and patient and caregiver experiences.

    Forward-Looking Statements
    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, the benefits that Vocera expects to receive from the Extension acquisition and are identified by the use of words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “intends,” “potential,” “continue” or the negative of such terms, or other comparable terminology. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including but not limited to: business and economic conditions; growth trends in the industry; an inability to introduce Extension Healthcare products into our customer base or failure to obtain customer acceptance; disruption in business relationships with key customers; failure to retain and motivate personnel; and other risks customary to achieving the benefits of acquisitions. These risks as well as other risks associated with our business are described in our annual report on Form 10-K for the fiscal year ended December 31, 2015, and our quarterly and other reports filed with the Securities and Exchange Commission. This press release speaks only as of its date. We assume no obligation to update the information in this press release, to revise any forward-looking statements or to update the reasons actual events or results could differ materially from those anticipated in forward-looking statements.

    INVESTOR CONTACT
Sue Dooley
Vocera
408.882.5971
[email protected]

MEDIA CONTACT
Tara Stultz 
Amendola Communications
440.225.9595 
[email protected]
    Posted 10.27.2016

  • Mark Costanza joins Nordic as chief client officer

    MADISON, WI – October 27, 2016 — Nordic is pleased to announce the hiring of Mark Costanza for the newly created position of chief client officer. He brings with him more than 25 years of healthcare and healthcare IT experience with a specialty in services and solution-based sales.

    Prior to joining Nordic, Costanza served as vice president/senior account delivery executive for Lumeris, a value-based care and population health managed services organization. He has also served in leadership roles with a focus on professional services/strategic business development at Siemens, CSC, McKesson, and Cerner.

    “Mark’s knowledge and approach make him a perfect fit for where we are headed right now,” Nordic CEO Bruce Cerullo said. “Nordic was founded with a focus on culture and building relationships, and Mark’s people-centric mentality and diverse experience will provide strong leadership to our client partnerships team as we continue to expand our service offerings.”

    About Nordic
    Based in Madison, Wis., Nordic is the nation’s largest independent EHR/IT consulting firm with deep expertise in Epic and other software and a trusted advisor to healthcare systems, connecting strategy through to IT execution. Nordic offers advisory services, implementation, optimization, data & analytics, managed services, population health, and affiliate extension solutions, including mergers and acquisitions. Renowned for excellence, Nordic helps clients improve the health of their patients and businesses while shaping the future of healthcare. In 2016 KLAS recognized Nordic as a top performer in Epic IT Advisory Services, Comprehensive Healthcare IT Advisory Services, and Optimization Services. In 2014 KLAS ranked Nordic the revenue cycle services Category Leader. Nordic has also enjoyed elite KLAS rankings in Epic Staffing and Implementation Support since Nordic’s inception.

    Additional Resources
    Video: CEO Bruce Cerullo and Chief Client Officer Mark Costanza
    Image: Mark Costanza head shot

    Posted 10.27.2016

  • Vocera Announces Third Quarter Revenue of $33.8 million & Raises FY’16 Revenue Guidance

    SAN JOSE, CA – October 27, 2016 (GLOBE NEWSWIRE) — Vocera Communications, Inc. (NYSE:VCRA), the leading healthcare communications company, today reported total revenue of $33.8 million, an increase of 28% compared to revenue of $26.5 million in the third quarter of 2015.

    “The third quarter of 2016 was an outstanding quarter for our business. The market demand for our products is expanding, as both new and existing customers seek solutions to address communication and collaboration challenges and improve patient safety and staff experience. Our success in the market is confirmation that the Vocera software platform is resonating with customers,” said Brent Lang, president and CEO of Vocera. “We are executing well as a company, and our sales, customer deployments, and product development efforts are on track for continued success.”

    Third quarter of 2016 financial highlights include:

    • Total revenue of $33.8 million, up 28% year-over-year
    • GAAP loss per share of $(0.04); non-GAAP earnings per share of $0.08
    • Adjusted EBITDA of $2.6 million
    • Deferred revenue of $41.8 million as of September 30, 2016
    • Cash, cash equivalents and short-term investments of $121.6 million; no debt

    Third Quarter 2016 Results
    Total revenue for the third quarter of 2016 was $33.8 million, compared to $26.5 million in the third quarter of 2015.

    (in thousands) Three months ended September 30,
    Product Revenue 2016 2015 % change
    Device $ 14,106 $ 10,448 35.0 %
    Software 5,197 3,696 40.6
    Total Product 19,303 14,144 36.5

     

    Service Revenue
    Maintenance and support 11,037 9,852 12.0
    Professional services and training 3,415 2,458 38.9
    Total service 14,452 12,310 17.4
    Maintenance and support $ 33,755 $ 26,454 27.6 %

     

    GAAP gross margin for the third quarter of 2016 was 63.6%, compared to 61.4% in the third quarter of 2015.

    Three months ended September 30,
    2016 2015
    Gross margin
    Product 68.7 % 62.9 %
    Service 56.7 59.6
    Total gross margin 63.6 % 61.4 %
    Non-GAAP gross margin
    Product 69.3 % 63.9 %
    Service 58.4 61.7
    Total non-GAAP gross margin 64.6 % 62.8 %

     

    GAAP net loss for the third quarter of 2016 was $(1.2) million, or $(0.04) per share, compared to $(4.5) million, or $(0.17) per share in the third quarter of 2015. Both Adjusted EBITDA and non-GAAP net income were positive in the third quarter of 2016.

    Three months ended September 30,
    (in thousands except per share amounts) 2016 2015
    Net loss $ (1,197) $ (4,464)
    Net loss per share $ (0.04) $ (0.17)
    Non-GAAP net income (loss) $ 2,143 $ (1,055)
    Non-GAAP net income (loss) per share $ 0.08 $ (0.04)
    Adjusted EBITDA $ 2,649 $ (449)

     

    Deferred revenue at September 30, 2016, was $41.8 million, compared to $34.1 million at September 30, 2015, and $39.6 million at December 31, 2015. Strong expense and working capital management resulted in cash, cash equivalents and short-term investments of $121.6 million at September 30, 2016, compared to $116.1 million at September 30, 2015, and $116.8 million at December 31, 2015. The Company continues to have a strong balance sheet with no debt.

    Full Year and Fourth Quarter 2016 Guidance
    Earlier today, the Company announced the acquisition of Extension Healthcare in a separate press release. As part of this acquisition, the Company will issue restricted stock units totaling approximately 300,000 shares of Vocera common stock to approximately 140 Extension Healthcare employees who will join Vocera. These restricted stock units will vest over three years after the closing. The Company’s guidance incorporates the estimated impact of the acquisition except for the amortization of acquired intangibles which will be determined as part of purchase accounting.

    The Company is raising full-year 2016 revenue guidance to between $126 million and $128 million and a GAAP loss per share between $(0.58) and $(0.51). The Company also raised full-year 2016 non-GAAP net income per share guidance to be between $0.01 and $0.07 and non-GAAP Adjusted EBITDA to be between $2.5 and $4.0 million.

    (in millions except per share amounts) Q4’16 FY’16
    Low High Low High
    Revenue $ 34.3 $ 36.3 $ 126.0 $ 128.0
    Loss per share $ (0.30) $ (0.23) $ (0.58) $ (0.51)
    Diluted non-GAAP net income (loss) per share $ (0.06) $ — $ 0.01 $ 0.07
    Adjusted EBITDA $ (0.8) $ 0.7 $ 2.5 $ 4.0

     

    Certain amounts in this release may not re-compute due to rounding. A reconciliation of non-GAAP to GAAP financial measures, and fourth quarter and full-year guidance, are included in the financial schedules, linked below.

    Link to third-quarter financial statements, guidance and reconciliation to GAAP: vocera.com/public/earnings/VCRA-Q3-16-Financials.pdf

    The restricted stock units described above to Extension Healthcare employees will be made from an inducement plan for the acquisition adopted by the Company’s Board of Directors without shareholder approval pursuant to the inducement exemption provided under the NYSE listing rules.

    Conference Call Information
    Vocera Communications will host a conference call at 5 p.m. ET (2 p.m. PT) today, October 27, 2016, to discuss the Company’s results.

    Investors may access a free, live webcast of the call through the Investors section of the Company’s website at investors.vocera.com.

    The call also can be accessed by dialing 844-464-3152, or 508-637-5574 for international callers, and using the access code 81440273.

    A webcast replay of the call will be archived on the Vocera website.

    Forward-Looking Statements
    Statements in this press release that are not strictly historical in nature are forward-looking statements within the meaning of the US federal securities laws, including statements regarding future events, such as our ability to continue execute on our business plans and strategies and our expected operating results for the fourth quarter and full year 2016. These forward-looking statements are based on limited information currently available to us and our management`s expectations, which are inherently subject to change and involve a number of risks and uncertainties. Actual events or results may differ materially from those in any forward-looking statement due to various factors, including but not limited to, our ability to achieve anticipated strategic or financial benefits from our acquisitions; changes in regulations in the US and other countries; the effects on government and commercial hospital customers of the federal budget and budgetary uncertainty; changes in healthcare insurance coverage and consumers’ utilization of healthcare and hospital services; our ability to achieve and maintain profitability; the demand for our various solutions in the healthcare and other markets; our lengthy and unpredictable sales cycle; our ability to offer high-quality services and support for our solutions; our ability to acquire the sole and limited source hardware and software components of our solutions; our ability to obtain the required capacity and product quality from our contract manufacturer; our ability to develop and introduce new solutions and features to existing solutions and to manage our growth; and the other factors described in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as well as our other filings with the Securities and Exchange Commission (SEC). Our filings with the SEC are available on the Investors section of the Company`s web site at www.vocera.com. The financial and other information contained in this press release should be read in conjunction with the financial statements and notes thereto included in our filings with the SEC. Our operating results for any historical period, including the third quarter of 2016, are not necessarily indicative of our operating results for any future periods. This press release speaks only as of its date. We assume no obligation to update the information in this press release, to revise any forward-looking statements, or to update the reasons actual events or results could differ materially from those anticipated in forward-looking statements.

    Use of Non-GAAP Financial Information
    This press release contains financial measures that are not calculated in accordance with US generally accepted accounting principles (GAAP). Our management evaluates the Company’s results and makes operating decisions using various GAAP and non-GAAP measures. In addition to our GAAP results, we also consider non-GAAP gross margin, non-GAAP gross margin for products and for services, non-GAAP net income/(loss), non-GAAP earnings/(loss) per diluted share and non-GAAP operating expense. We also present Adjusted EBITDA, a non-GAAP measure that we reconcile to net income/(loss). These non-GAAP measures should not be considered as a substitute for the corresponding financial measure derived in accordance with GAAP. We present the non-GAAP measures because we consider them to be important supplemental information for our investors for analyzing our performance, core operating results and trends. Investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP measures included with this press release.

    Our non-GAAP gross margins, non-GAAP net income/(loss), non-GAAP earnings/(loss) per diluted share, non-GAAP operating expense, and Adjusted EBITDA are exclusive of certain items to facilitate management’s review of the comparability of our core operating results on a period to period basis because such items are not related to our ongoing core operating results as viewed by management. We define our “core operating results” as those revenues recorded in a particular period and the expenses incurred within that period that directly drive operating income in that period. Management uses these non-GAAP financial measures in making operating decisions because, in addition to meaningful supplemental information regarding operating performance, the measures give us a better understanding of how we should invest in research and development, fund infrastructure growth and evaluate the effectiveness of marketing strategies. In calculating the above non-GAAP results, management specifically adjusted for the following excluded items:

    a) Stock-based compensation expense impact. We recognize equity plan-related compensation expenses, which represent the fair value of all share-based payments to employees, including grants of employee stock options and restricted stock units as non-GAAP adjustments in each period.

    b) Amortization of acquired intangibles. We acquired certain companies in 2010 and 2014 and we have just announced an acquisition in 2016, and booked, or expect to book intangible assets related to these acquisitions. The amortization of these acquired intangible assets is excluded from non-GAAP net income because it is not related to ongoing controllable management decisions and because it is non-cash in nature.

    c) Securities litigation. In August 2013, Vocera and other related parties were named as defendants in two purported securities class actions, alleging claims for allegedly misleading statements regarding our business and financial results. An agreement in principle to settle these matters has been agreed to by Vocera and lead plaintiff counsel in the third quarter of 2015 and the settlement, which called for payment of $9 million, was funded entirely and directly by our insurance carriers and paid during the three months ended September 30, 2016. Our projections of net income/(loss), and non-GAAP earnings/(loss) per diluted share for the full year and fourth quarter of 2016 do not give effect to any such future legal expenses because we do not regard them as reflective of the costs we incur to operate our business. For the same reason, our non-GAAP results exclude these securities litigation expenses.

    d) Acquisition related expenses. In addition to the amortization of acquired intangibles mentioned above, we also adjust for certain acquisition-related expenses that we may incur including (i) professional service fees and (ii) transition costs. Professional service fees include third party costs related to the acquisition, such as due diligence costs, accounting fees, legal fees, valuation services and commissions, if any. Transition costs include retention payments, transitional employee costs and earn-out payments treated as compensation expense. We consider such costs and adjustments as highly variable in amount and frequency, being significantly impacted by the timing and size of any acquisitions. By excluding acquisition-related costs and adjustments from our non-GAAP measures, management can better focus on the organic continuing operations of our baseline and acquired businesses.

    e) Restructuring costs. We exclude restructuring costs from non-GAAP measures because we do not regard these limited-term or one-time costs as reflective of normal costs we incur to operate our business. These are defined in US GAAP to include one-time employee termination benefits, contract termination costs, and other associated costs, with respect to exit or disposal activities.

    Management adjusts for the above items because management believes that, in general, these items possess one or more of the following characteristics: their magnitude and timing is largely outside of Vocera’s control; they are unrelated to the ongoing operation of the business in the ordinary course; they are unusual and we do not expect them to occur in the ordinary course of business; or they are non-operational, or non-cash expenses involving stock option grants.

    We believe that the presentation of these non-GAAP financial measures is warranted for several reasons:

    1) Such non-GAAP financial measures provide an additional analytical tool for understanding our financial performance by excluding the impact of items which may obscure trends in the core operating results of the business;

    2) These non-GAAP financial measures facilitate comparisons to the operating results of other companies commonly compared to us, which use similar financial measures to supplement their GAAP results, thus enhancing the perspective of investors who wish to utilize such comparisons in their analysis of our performance; and

    3) These non-GAAP financial measures are employed by our management in their own evaluation of performance and are utilized in financial and operational decision making processes, such as budget planning and forecasting.

    Set forth below are additional reasons why share-based compensation expense is excluded from our non-GAAP financial measures:

    i) While share-based compensation constitutes one of our ongoing and recurring expenses, it is not an expense that requires cash settlement by us. We therefore exclude these charges for purposes of evaluating core operating results. Thus, our non-GAAP measurements are presented exclusive of stock-based compensation expense to assist management and investors in evaluating our core operating results.

    ii) We present share-based payment compensation expense in our reconciliation of non-GAAP financial measures on a pre-tax basis because the exact tax differences related to the timing and deductibility of share-based compensation are dependent upon the trading price of our common stock and the timing and exercise by employees of their stock options. As a result of these timing and market uncertainties, the tax effect related to share-based compensation expense would be inconsistent in amount and frequency and is therefore excluded from our non-GAAP results.

    As stated above, we present non-GAAP financial measures because we consider them to be important supplemental measures of performance. However, non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for our GAAP results. In the future, we expect to incur expenses similar to certain of the non-GAAP adjustments described above and expect to continue reporting non-GAAP financial measures excluding such items. Some of the limitations in relying on non-GAAP financial measures are:

    • Our stock options, restricted stock units, and stock purchase plans are important components of incentive compensation arrangements and will be reflected as expenses in our GAAP results for the foreseeable future; and
    • Other companies may calculate non-GAAP financial measures differently than us, limiting their usefulness as a comparative measure.

    Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between our non-GAAP and GAAP financial results is set forth in the financial tables referred to above, and linked to, this press release. Investors are advised to carefully review and consider this information strictly as a supplement to the GAAP results for the respective periods.

    About Vocera
    Vocera Communications, Inc. offers one of the most robust clinical communications systems in healthcare. Vocera delivers secure, integrated and intelligent communication solutions that enable care teams to collaborate more efficiently by delivering the right information, to the right person, on the right device, in the right location, at the right time. Vocera solutions provide hands-free voice communication, smartphone applications, secure text messaging, patient engagement tools, and integrated clinical workflow with EHRs, nurse call systems and physiological monitors. These solutions help improve operational efficiency, quality of care, safety and satisfaction across the continuum of care. In addition to technology solutions, Vocera drives thought leadership and new standards in care to elevate patient, family, nurse and physician experiences via the company’s research collaborative, the Experience Innovation Network. Vocera is led by President and CEO Brent Lang and is headquartered in San Jose, California, with offices in San Francisco, Tennessee, Canada, India, United Arab Emirates and the United Kingdom. Robert J. Zollars is the Chairman of the Board. For more information, visit www.vocera.com and @VoceraComm on Twitter.

    The Vocera logo is a trademark of Vocera Communications, Inc. Vocera® is a trademark of Vocera Communications, Inc. registered in the United States and other jurisdictions. All other trademarks appearing in this release are the property of their respective owners.

    Contacts Investors Sue Dooley Vocera Communications, Inc. 408.882.5971 [email protected] Media Tara Stultz Amendola Communications 440.225.9595 [email protected]

    Posted 10.27.2016

  • Inside CHIME: Cybersecurity Survey Shines Light on Top Concerns of CHIME, AEHIS Members

    Inside CHIME - header

    Weinstock 70x70 10.27.16 by Matthew Weinstock
    Director of Communications and Public Relations, CHIME

    CHIME and AEHIS share results of a new cybersecurity survey with a federal task force.

    As part of its ongoing effort to understand cybersecurity issues facing the industry, the Department of Health and Human Services Cybersecurity Task Force yesterday reviewed data from a new CHIME-AEHIS survey that assesses member concerns about security threats.

    The survey of nearly 200 CHIME and AEHIS members cited social engineering, data theft and internal threats as the most common cybersecurity threats facing their organizations. Malware and ransomware ranked as the top ways that cyber criminals are exploiting weaknesses. CHIME Vice President for Federal Affairs Mari Savickis presented the findings to the task force. Mandated by the Cybersecurity Information Sharing Act of 2015, the task force is charged with analyzing the unique challenges and barriers to cybersecurity in healthcare. It is also studying how other industries are protecting data.

    Survey findings also show that healthcare organizations need greater assistance from federal agencies to improve information sharing and threat assessments. Nearly 65 percent of respondents said that they were somewhat confident or not confident at all that federal legislators understand the importance of security enough to support key policy initiatives being advocated by healthcare organizations.

    Survey respondents said that the federal government should develop tools for providers of different sizes and level of resources. Smaller organizations with limited resources often have a different set of needs than large health systems. Respondents also called on lawmakers to adopt incentives that will encourage greater information sharing, including protecting organizations that voluntarily work to improve security across the delivery system from punitive government audits.

    The HHS task force is expected to deliver its report on cybersecurity in healthcare early next year. Click here for a copy of the survey data.

    More Inside CHIME Volume 1, No. 29:

    Posted 10.27.2016

  • Inside CHIME: Things to See at CHIME16

    Inside CHIME - header

    Weinstock 70x70 10.27.16 by Matthew Weinstock
    Director of Communications and Public Relations, CHIME

    From Foreigner to the Obama administration’s CIO, there are a lot of “don’t miss” moments scheduled for the CHIME16 Fall CIO Forum. Here are a few other items that should be on your radar.

    chime16-banner-with-sponsorsThe wait is almost over (as a native Clevelander – Go Tribe! – and a resident of Chicago for the past two decades – Go Cubs! – I know a thing or two about waiting). Thankfully, CHIME members don’t have to sit idle for 108 years, or even 68 years, anticipating our championship event. The CHIME16 Fall CIO Forum kicks off next week and it is shaping up to be one of the best – if not the best – in the 25-year-history of the fall classic.

    You know about the incredible lineup of speakers, track sessions, and, of course Foreigner, but there are few other events taking place that should be of interest. We can’t capture everything that’s on the agenda, so be sure to download the mobile guide from the App Store or Google Play, just search for CHIME16. Here are some items that you may want to keep on your radar:

    • CHCIO exam: If you are arriving in Phoenix early, it’s not too late to sign up for the CHCIO exam, Monday,
      Oct. 31, from 2:00-4:30 PM; and Tuesday, Nov. 1, from 9:00-11:30 AM. Click here for eligibility
      information and to register.
    • Giving back event: The charity event at this year’s fall forum will support UMOM, Arizona’s largest shelter
      for homeless families. Attendees will build electric guitars that will become part of UMOM’s teen
      assistance program. The charity event is Nov. 1, 2:00-4:30 PM in Sonoran A-D.
    • Foundation focus groups: These are a great opportunity to talk about trends impacting the industry with
      fellow CIOs and Foundation firm executives. Focus groups take place Wednesday and Thursday between
      1:30 – 5:00 PM.
    • CHIME Foundation representative focus group with CHIME leaders: CHIME President and CEO Russell
      Branzell and CHIME Foundation Board Chair Charles Christian invite Foundation firm representatives to
      share their thoughts and opinions on various CHIME initiatives, membership benefits and services. There are
      two opportunities to join – Wednesday and Thursday afternoons from 2:00 – 3:00 PM in Wildflower C.
      Please let the Foundation staff know if you are interested in attending.
    • Update your member profile: If you haven’t done so already, please log into the CHIME website and
      update your member profile. You can also stop by the membership booth in Phoenix. Anyone who updates
      their profile by Thursday, Nov. 3, will be entered into a raffle. We’ll announce winners during the
      keynote session on Nov. 4.
    • CHIME-KLAS cybersecurity survey: If you haven’t done so already, plan to take the CHIME-KLAS
      cybersecurity survey. You can stop by the KLAS kiosk located in the foyer outside the breakfast and lunch rooms
      for more information. This survey will help inform important research we are doing on cybersecurity
      across the industry.
    • Diversity receptions: The reception will take place on Thursday, Nov. 3, from 5:00 – 6:00 PM in
      Wildflower B. This event is new in 2016. The reception will provide an opportunity to mingle and
      exchange ideas for creating a diverse workforce across healthcare.

    We look forward to seeing you in Phoenix!

    More Inside CHIME Volume 1, No. 29:

    Posted 10.27.2016

  • Data Theft and Social Engineering Rank as Key Security Concerns for Health IT Leaders

    ANN ARBOR, MI, October 27, 2016 – A new survey of healthcare chief information and chief information security officers cited social engineering and data theft as the most common cybersecurity threats facing their organizations. Social engineering, which includes such tactics as phishing, spear phishing and baiting, deceive employees into inadvertently creating a vulnerability on their organization’s network. Cyber criminals can use a crack in a system’s defense to launch a number of different kinds of attacks on data and even medical devices.

    The survey of nearly 200 members of the College of Healthcare Information Management (CHIME) and the Association for Executives in Healthcare Information Security (AEHIS) listed malware and ransomware as the top ways that cyber criminals are exploiting weaknesses. CHIME and AEHIS presented the survey findings Oct. 26 to the Department of Health and Human Services Cybersecurity Task Force. Mandated by the Cybersecurity Information Sharing Act of 2015, the task force is charged with analyzing the unique challenges and barriers to cybersecurity in healthcare. It is also studying how other industries are protecting data.

    “The survey data is representative of what we are hearing from our colleagues across the industry. Cyber criminals are attacking us from nearly every angle,” said Marc Probst, chair of the CHIME board of trustees and CIO at Intermountain Healthcare. “We have to be extremely vigilant in educating our staff and our business partners on how to minimize the risk of an attack. We are only as safe as the weakest link along our networks.”

    Probst also noted that healthcare organizations need greater assistance from federal agencies to improve information sharing and threat assessments. Nearly 65 percent of respondents said that they were somewhat confident or not confident at all that federal legislators understand the importance of security enough to support key policy initiatives being advocated by healthcare organizations.

    Survey respondents said that the federal government should develop tools for providers of different sizes and level of resources. Smaller organizations with limited resources often have a different set of needs than large health systems. Respondents also called on lawmakers to adopt incentives that will encourage greater information sharing, including protecting organizations that voluntarily work to improve security across the delivery system from punitive government audits.

    “We are all in this together,” Probst said. “New payment and delivery models are creating a more connected healthcare system than ever before, but we need our partners in the federal government to understand the risks that are out there and to work with us on finding common sense solutions.”

    The HHS task force is expected to deliver its report on cybersecurity in healthcare early next year.

    About CHIME
    The College of Healthcare Information Management Executives (CHIME) is an executive organization dedicated to serving chief information officers and other senior healthcare IT leaders. With nearly 2,000 CIO members and over 150 healthcare IT vendors and professional services firms, CHIME provides a highly interactive, trusted environment enabling senior professional and industry leaders to collaborate; exchange best practices; address professional development needs; and advocate the effective use of information management to improve the health and healthcare in the communities they serve. For more information, please visit chimecentral.org.

    About AEHIS
    AEHIS is the only professional organization focused on supporting the healthcare industry’s security executive community. AEHIS provides professional development and educational resources on important healthcare security issues, as well as an environment where security leaders can communicate with, inform and educate one another. For more information, please visit aehis.org.

    Contact
    Matthew Weinstock
    Director of Communications and Public Relations, CHIME
    734.249.8917
    [email protected]

     

     

    Posted 10.27.2016

  • Orion Health’s Blog Lauded as a Top 50 Health IT Blog

    CDW Healthcare recognizes Orion Health’s thought leadership on prestigious 2016 list

    SCOTTSDALE, AZ – October 25, 2016 — CDW Healthcare has once again recognized the Orion Health™ blog as a Top 50 Health IT Blog in a 2016 list released earlier this month.

    To view the Top 50 Health IT Blogs 2016 list, click here:cdwcommunit.com/perspectives/top-50-blogs/top-50-health-blogs-2016

    “We are deeply honored to receive this recognition for the second year in a row and to be ranked among the best contributors to the health IT blogosphere,” said Wayne Oxenham, president of Orion Health, North America. “Orion Health is committed to creating educational and entertaining content that offers the health IT community high-quality thought leadership on a variety of topics, and our blog is proof of this commitment.”

    This is Orion Health’s second time on the four-year-old list, announced each year during National Health IT Week. According to CDW Healthcare, blogs on the list are produced by “thoughtful contributors who are consistently pushing the conversation forward, lending their expertise, asking hard questions, and introducing thought-provoking ideas on all things health IT.”

    Editors asked readers to nominate their favorite health IT blogs. This process added several new blogs to the list, as well as a mix of returning independent, media and vendor blogs.

    Orion Health blog posts are curated on the company’s Knowledge Hub, launched earlier this year, to share Orion Health’s thinking and vision in the form of insightful white papers, case studies, reports, webinars and blog posts. With a focus on enabling healthcare organizations to change healthcare for the better, topics include precision medicine, accountable care, interoperability, future-proofed solutions, patient engagement, the role of big data, and other important industry trends and issues. The overarching theme is that, in healthcare, anything is possible with the right vision and technology.

     

    About Orion Health
    Orion Health is a technology company that provides solutions that enable healthcare for over 100 million patients in more than 25 countries. Its open technology platform seamlessly integrates all forms of relevant data to deliver population health and precision medicine solutions across the entire health community. Orion Health makes healthcare information available anywhere by providing healthcare IT connectivity in every US state and in over 30 countries worldwide. With an inherent ability to interconnect a wide variety of healthcare information systems, Orion Health’s Amadeus, with the Rhapsody Integration Engine, facilitates data acquisition and aggregation within and among payer, provider and accountable care organizations, health information exchanges and governments. Employing more than 1,250 people globally and investing over 30 percent of total operating revenue year-to-date in research and development, the company is committed to continual innovation while cementing its position at the forefront of precision medicine. Please follow Orion Health’s news and developments at orionhealth.com and on LinkedIn, Facebook and Twitter.

    Media Contact
    Marcia Rhodes
    480.664.8412 ext. 15
    [email protected]

    Posted 10.25.2016

  • Health Catalyst Named One of Utah’s 100 Fastest Growing Companies For Second Year in a Row

    SALT LAKE CITY,UT – October 25, 2016 — Health Catalyst, a leader in healthcare data warehousing, analytics and outcomes improvement, was ranked the 17th fastest growing company in Utah by MountainWest Capital Network (MWCN) in the 22nd annual Utah 100 Awards.

    The annual list recognizes the 100 fastest growing Utah companies based on their revenue growth over the previous five years. Health Catalyst was also named to the list in 2015, the first year in which it was eligible.

    “We are honored to be named among Utah’s fastest growing companies, and we attribute our growth to our health system customers’ success in using Health Catalyst’s analytics platform to systemically improve clinical and financial outcomes,” said Health Catalyst CEO Dan Burton. “Enabling this clinical and financial improvement is central to our company’s mission.”

    The 100 fastest growing companies in Utah are selected from thousands of eligible applicants throughout the state and represent a cross-section from all industries.

    “It is clear Utah is one of the hottest places in the country to start or run a business,” said Paul Skeen, chairman of the MWCN Utah 100 committee. “We had a record number of companies vying for the 100 fastest growing companies in Utah this year — a true indicator of the business and economic success occurring in Utah. We recognize each company of the Utah 100 and congratulate them on their growth and success.”

    About Health Catalyst
    Health Catalyst is a mission-driven data warehousing, analytics and outcomes-improvement company that helps healthcare organizations of all sizes perform the clinical, financial, and operational reporting and analysis needed for population health and accountable care. Their proven enterprise data warehouse (EDW) and analytics platform helps improve quality, add efficiency and lower costs in support of more than 70 million patients for organizations ranging from the largest US health system to forward-thinking physician practices. For more information, visit www.healthcatalyst.com, and follow them on Twitter, LinkedIn and Facebook.

    About MountainWest Capital Network
    MountainWest Capital Network is Utah’s first and largest business networking organization devoted to supporting entrepreneurial success, and dedicated to the flow of financial, entrepreneurial and intellectual capital. For more information, visit www.mwcn.org, LIKE them on Facebook and follow them on Twitter @MWCN and LinkedIn.

    Media Contact
    Todd Stein
    Amendola Communications
    916.346.4213
    [email protected]

    Posted 10.25.2016

  • Orion Health Precision Medicine Platform Wins Coveted Fierce Innovation Award

    CIO-reviewed awards program recognizes innovation, quality of care, patient outcomes & more

    SCOTTSDALE, AZ – October 20, 2016 — FierceMarkets has recognized Orion Health™ with a prestigious industry award for its precision medicine platform, Amadeus, in the Fourth Annual Fierce Innovation Awards: Healthcare Edition.

    Amadeus is the foundation of Orion Health’s integrated, end-to-end population health management solution. Clinicians need only log in once to see the longitudinal patient record, perform analytics queries over huge data sets, and turn insights into clinical workflow—from individual care plans to customized healthcare pathways. Real-time data integration means that patient information is always up-to-date and notifications trigger actions at a specific moment in time, ensuring that patients are receiving optimal and timely care.

    Fierce Innovation Awards is a CIO-reviewed program from the publishers of FierceHealthcare, FierceHealthIT and FierceHealthPayer.

    The panel of judges included CIOs and clinical leaders from JFK Health System, Cook Children’s Health Care System, Duncan Regional Hospital, Beaufort Memorial Hospital, Independence Blue Cross, Tufts Health Plan and UnitedHealthcare, to name a few.

    Judges evaluated submissions based on care efficiency, competitive advantage, financial impact/value, market need, patient experience/satisfaction, quality of care, patient outcomes, and overall “fierceness” and innovation.

    “We are truly thrilled by this award,” said Wayne Oxenham, president of Orion Health, North America. “It’s gratifying to be recognized for the work that already means so much to so many of our customers, especially when the award selection was the result of a consensus of a large panel that included such distinguished CIOs.”

    About Orion Health
    Orion Health is a technology company that provides solutions that enable healthcare for over 100 million patients in more than 25 countries. Its open technology platform seamlessly integrates all forms of relevant data to deliver population health and precision medicine solutions across the entire health community. Orion Health makes healthcare information available anywhere by providing healthcare IT connectivity in every US state and in over 30 countries worldwide. With an inherent ability to interconnect a wide variety of healthcare information systems, Orion Health’s Amadeus, with the Rhapsody Integration Engine, facilitates data acquisition and aggregation within and among payer, provider and accountable care organizations, health information exchanges and governments. Employing more than 1,250 people globally and investing over 30 percent of total operating revenue year-to-date in research and development, the company is committed to continual innovation while cementing its position at the forefront of precision medicine. Please follow Orion Health’s news and developments at orionhealth.com and on LinkedIn, Facebook and Twitter.

    Media Contact
    Marcia Rhodes
    480.664.8412 ext. 15
    [email protected]

    Posted 10.20.2016
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