Imprivata (NYSE: IMPR), the healthcare IT security company, today announced preliminary results for three months ended September 30, 2015.

(Street sees Q3 loss per share of 20 cents on revenue of $31.4 million)

(1) Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization adjusted for foreign currency gains (losses), stock based-compensation, transaction costs associated with business acquisitions, shelf registration and offering costs and the impact of the fair value revaluation on our contingent liability.

(2) Non-GAAP net income (loss) and non-GAAP net income (loss) per share excludes amortization of purchased intangible assets, stock-based compensation, transaction costs associated with business acquisitions, shelf registration and offering costs and the impact of the fair value revaluation on our contingent liability.

(3) An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

“In the last few days of the third quarter, we unexpectedly saw some Imprivata OneSign deals get delayed, which led to lower than expected revenue growth,” said Omar Hussain, President and CEO of Imprivata. “Based upon our preliminary analysis, three factors contributed to the shortfall. First, we had a few large deals get delayed due to customer implementation schedules and available IT resources. Since these were not competitive losses, we remain confident that we will close the majority of these deals.”

“Second, in our non-healthcare segment, we saw a decline in product sales as several deals did not close. Our non-healthcare sales have decelerated faster than expected, and we now anticipate that non-healthcare sales will continue to be a smaller portion of our business. Lastly, sales to smaller hospitals were below our plan. Some of these potential customers are pushing out their purchases as they grapple with going live with ICD-10 and potential effects of mergers and acquisitions in this segment of the hospital market.”

“We are disappointed with our performance in the third quarter. While we expect some continued impact on growth from our non-healthcare business and purchases by small hospitals, we remain confident with our healthcare growth prospects. New customer growth in healthcare is on pace with expectations, and the overall pipeline for our healthcare products continues to increase, supporting our long-term growth targets.”

As the Company has not completed its quarter-end close and the review of its third quarter 2015 financial statements is not complete, the revenue expectations presented in this press release are preliminary, and, therefore, subject to final quarter-end closing adjustments and may change. The preliminary financial results presented in this release are based solely upon information available as of the date of this release, are not a comprehensive statement of our financial results or positions as of or for the third quarter of 2015, and have not been audited, reviewed, or compiled by our independent registered accounting firm. There will not be a conference call in conjunction with this press release.

The company will release its full third quarter 2015 results after the market close on November 2, 2015 and management will provide a complete discussion of the third quarter results as well as an update on our fourth quarter outlook on the Company’s quarterly earnings call on November 2, 2015 at 5:00 pm Eastern Time.