Stonegate Capital Partners Initiates Coverage on CareView Communications

DALLAS, TX / ACCESSWIRE / March 8, 2016 / Stonegate Capital Partners initiates research coverage on CareView Communications (OTCQB: CRVW).

Company Description

CareView Communications, Inc. develops and markets a proprietary high-speed data network system that includes the CareView System® suite of integrated video monitoring, guest services, and related applications. The company’s products and applications can be deployed over any facility’s existing co-axial infrastructure, requiring no capital outlay from the client for installing the system. The network supports layers of interactive monitoring tools and solutions designed to reduce healthcare facility costs, improve patient safety, improve quality of care, streamline workflow and provide value-added services to healthcare customers. The CareView System addresses a large market opportunity consisting of hospitals, outpatient care facilities, nursing homes and adult living centers. CareView Communications began operations in September 2007 and is headquartered in Lewisville, TX.

Summary

With a disciplined growth strategy, unique patented technology, limited direct competition, and an established presence in a market with enormous growth potential, we believe that CareView is positioned for continuing sequential revenue growth.

– The company’s SitterView sitter management program dramatically reduces sitter costs by replacing 1:1 patient observation personnel with 10:1 virtual monitoring.

– The economics of CareView’s technology is compelling for hospitals – for the majority of contracts, the savings from the sitter management program alone more than pays for the entire CareView package.

– Using CareView’s comprehensive fall management and sitter management solutions, hospitals have reported reducing falls by approximately 50%-80%, while at the same time, reducing sitter costs by 50% or more.

– With a presence in eight of the top ten hospital companies in the U.S., CareView is well established in the market. As of 10/31/15, its products are installed in over 9,000 patient beds in 108 acute care facilities; however, with one million hospital beds in the U.S., the company has substantial room for growth.

– With its five issued patents and nine patents pending, CareView diligently protects its intellectual property from competitors and raises barriers to entry in its markets.

– CareView’s business model is based on providing its services for a monthly subscription fee with a relatively low cost of delivery. As more clients are added to the network, and as clients add more services, CareView should see margin expansion over its low fixed cost structure.

– CareView has limited direct competition in its markets. A few companies provide a portion of the services CareView offers, but none provides both clinical applications and entertainment, and all competitors require a capex commitment unlike the CareView System.

– The company continues to evolve in order to address the sizable telemedicine opportunity that is expected to be worth more than $34 billion by the end of 2020, with North America accounting for 40% of the market.

– CareView’s advanced technology, its penetration into the acute care hospital market, and its valuable and highly defensible patent portfolio position the company as an attractive acquisition candidate.

– The Company is still gaining traction with sales in its initial target market – hospitals. To demonstrate its potential value as it ramps installations across the U.S., we have designed a scenario analysis based on several assumptions of billable beds, pricing, and EBITDA margins in the year 2019 to help frame a per share price. Our analysis results in a base case range of $1.13 – $2.24. We note that this analysis does not include the potential of nursing homes and assisted living centers at this point, markets that when combined have approximately 5x as many beds as the hospital market alone.

The full report can be accessed by clicking the following link:

http://stonegateinc.com/reports/crvwmarch2016final.pdf

About Stonegate Capital Partners

Stonegate Capital Partners is a Dallas-based corporate advisory firm dedicated to serving the specialized needs of small-cap public companies. Since our inception, our mission has been to find innovative, undervalued public companies for our network of leading institutional investors who seek high quality investment opportunities.

SOURCE: Stonegate Capital Partners

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