Craneware's positive vibes

The minor wobble that Craneware, the provider of revenue integrity software to the US healthcare market, experienced this time last year has been stabilised. Trading in H1 (the six months to December 31 2012) has been “positive” according to management and it expects to report revenue of $20.1m, vs $18.8m for the year ago period which was hit by a change in the spending priorities of its US healthcare customers (see here).  Adjusted EDITDA is up 15%. The c7% yoy revenue growth shows that Craneware is not back to the double digit growth levels it has previously achieved but that sales activity is climbing and performance is in line with expectations.  H2 last year saw progress (see here), which H1 this year has built on, aided by market drivers such as the expansion of the Medicare Recovery Audit Contactor Program in the US. Craneware’s management always errs heavily on the side of caution and that hasn’t change so the closing comment in today trading update to the effect that  “we are confident in the on-going strength of our position within this growing area” is quite a testament by its standards.