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Craneware on the up after US hospital deal win

SOFTWARE firm Craneware has seen its share price rise 3% following the announcement of another multi-million dollar contract win.

The deal, with an unnamed hospital group in the United States, is predicted to be worth $3.8 million over the next seven years.

The customer operates facilities in several US states and has around $1.5 billion of operating expenses.

That money will soon be tracked by Craneware's Chargemaster package and other related pieces of software from its revenue cycle product suite.

Edinburgh-based Craneware, which employs around 200 people across Scotland and the US, said it had won the service agreement through a competitive tender and would be replacing an incumbent provider at the hospitals.

Chief executive Keith Neilson said: "We are delighted to have secured this competitive win, demonstrating the quality and strength of our offering in the corporate environment with our ability to deliver compelling levels of return on investment for organisations of all sizes across the US healthcare industry."

Earlier this month AIM-listed Craneware, which only sells its products into the US healthcare market, said it had secured one deal worth $3.8m across five years and a further one worth $3.1m across seven years.

In addition it had sold further products to an existing customer which it had signed a nine-year agreement with earlier in its financial year.

Craneware's pre-tax profits increased 7% from $4.5million to $4.8m for the six months to the end of December 2013 on revenue up 5% to $21.1m.

Shares closed at 512.5p.

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