AUXILIO Reports First Quarter 2012 Financial Results

AUXILIO, Inc. (OTCBB: AUXO), the nation’s pioneer and leading Managed Print Services (MPS) company for health care, announced its financial results for the quarter ended March 31, 2012.

“We delivered strong revenue growth of 40% in the first quarter of 2012, driven by the significant increase in contracts over the same quarter of last year,” stated Joseph J. Flynn, president and CEO of AUXILIO, Inc. “During the quarter, we began implementing our MPS program for Catholic Health East (CHE), a multi-institutional health system, which represents the largest contract signed in our history. As a result, our highly effective, risk-free MPS offering is now gaining awareness among large-scale health care systems across the country. In addition, given the number of recent consolidations of care organizations nationwide, we are well positioned to benefit as large, multi-hospital systems are looking to drive down costs and streamline operations.”

Financial Results

For the three months ended March 31, 2012, the company reported net revenue of $6.5 million, an increase of 40% when compared to $4.7 million in the same period of 2011. Gross profit for the first quarter of 2012 was $350,000, or 5.3% of sales, compared to $340,000, or 7% of sales in the first quarter of 2011. Operating expenses were $1.6 million for the first quarter of 2012, or 24% of sales, compared to $1.2 million, or 26% of sales, in the same quarter of 2011. Net loss for the quarter was $1.6 million, or $0.08 per share, compared to a net loss of $860,000, or $0.04 per share, in the first quarter of 2011.

Paul Anthony, CFO of AUXILIO, stated: “Our first quarter 2012 results demonstrate the momentum we are gaining as we continue to build our pipeline with multi-hospital health care systems. As expected, all accounts signed since the fourth quarter of 2010 moved toward profitability in the first quarter. This was offset by the increased costs related to the implementation of our new contract with CHE, which are reflected in our gross margin for the quarter. We expect to continue incurring upfront costs associated with bringing on board new contracts, which is symptomatic of a services business model. Additionally, we recently secured a $2 million line of credit with Avidbank that provides us with the flexibly to fund our accelerated growth.”

Conference Call Information

The company will host its first quarter 2012 financial results conference call today at 1:30 p.m. PDT / 4:30 p.m. ET, the details for which follow. To access the call in the U.S. please dial 1-877-941-2322 and for international calls dial 1-480-629-9667 approximately 10 minutes prior to the start of the conference. The conference ID is 4539412. The conference call will also be broadcast live over the Internet and available for replay for 15 days at www.auxilioinc.com. In addition, a replay of the call will be available via telephone for two business days, beginning two hours after the call. To listen to the replay, in the U.S., please dial 1-877-870-5176 and internationally, 1-858-384-5517. Enter access code 4539412.

About AUXILIO, Inc.

AUXILIO, Inc. is the pioneer of managed print services for the health care industry, working exclusively with hospitals and hospital systems throughout the United States. We are vendor independent and provide intelligent solutions, a risk free program and guaranteed savings. AUXILIO assumes all costs related to print business environments through customized, streamlined and seamless integration of services at predictable fixed rates that are unmatched in the industry. We work collaboratively to assist our health care-partners in the delivery of quality patient care. The service and solutions provided by our on-site Centers of Excellence professional print strategy consultants deliver unparalleled customer service across the industry. For more information about AUXILIO, visit www.auxilioinc.com.

Forward Looking Statements

This release contains certain forward-looking statements relating to the business of AUXILIO, Inc. that can be identified by the use of forward-looking terminology such as ``believes,'' ``expects,'' “anticipates,” “may” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product/services development, long and uncertain sales cycles, the ability to obtain or maintain patent or other proprietary intellectual property protection, market acceptance, future capital requirements, competition from other providers, the ability of our vendors to continue supplying the company with equipment, parts, supplies and services at comparable terms and prices and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our Form 10-K and Form 10-Q filings with the Securities and Exchange Commission, which are available at http://www.sec.gov. AUXILIO, Inc. is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.