What happened
Shares of iCoreConnect(NASDAQ: ICCT) were up more than 19% on Wednesday as of 2 p.m. ET after the healthcare cloud-based software and technology company announced product updates. The stock is up more than 195% so far this year and earlier in the day hit a high of $10.98 a share.
So what
iCore announced on Wednesday that it is coming out with a new version of its iCoreExchange encrypted email, compliant with privacy regulation under the Health Insurance Portability and Accountability Act (HIPAA), and referral network. The company said it was updating its user interface, adding Google Chrome notifications, a simpler two-factor authentication, and a better email platform. The newer product, iCoreExchange V6.0, is expected to be more efficient and more secure, the company said. iCore provides a number of systems to improve efficiency and billing for dental practices and healthcare systems.
Now what
iCore's shares have been booming since it switched from an over-the-counter stock to the NASDAQ on Aug. 28. At this point, the stock's surge may not be able to hold until the business shows improved financials. In the first quarter, the company reported revenue of $1.84 million, down 9% year over year, and a net loss of $1.69 million, compared to a loss of $1.54 in the prior-year period.
There is plenty of potential growth for iCore's business model, though. In recent years, the number of cyberattacks on healthcare systems has made safer HIPAA-compliant systems more valuable. In July, HCA Healthcare, the biggest health system in the U.S., said an individual had obtained more than 11 million unauthorized patient records. iCore's cloud-based backup systems are designed to keep healthcare practices functioning even during a cyberattack.
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