Meditech revenue drops 3%, net income reaches $30M+ in Q2: 5 notes

Meditech posted $115.8 million in revenue for the second quarter of 2020, down 3 percent from the same time period last year.

Five things to know about the Westwood, Mass.-based EHR vendor's financial performance for the second quarter of 2020, which ended June 30.

1. Meditech's service revenue made up the majority of its second quarter revenue at $86.7 million, up 5 percent from $82.4 million in service revenue during the second quarter of 2019.

2. The company reported a 22.4 percent decrease in product revenue for the second quarter at $29.2 million, which it attributed primarily to implementation delays from the pandemic.

3. Meditech posted $32.9 million in net income for the second quarter compared to $16.3 million during the same time period last year. The company the net income increase was due "primarily to unrealized marketable securities gains," according to its earnings statement filed with the SEC.

4. The company posted a $99.7 million operating expense during the quarter, down 4.9 percent from $104.9 million during the second quarter of 2019. Meditech attributed the decrease to pandemic-related staff and cost reductions.

5. Meditech's total revenue for the first six months of 2020 increased to $258.6 million, up almost 10 percent from $235.3 million during the first half of 2019.

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