Streamline Health reported disappointing results for the fourth quarter of 2006. They reported earnings of 0.03 per diluted share on revenues of 3.84 million. This was well below the revenue guidance they had given in the previous quarter.

Streamline did not meet its guidance due to delays in finalizing several significant contracts. However, the company stated one of these contracts was already closed in the first quarter and the others were near completion. The CEO also stated “that should the remaining agreements be completed as anticipated, we expect record first quarter revenues.”

While these statements have to be taken with a grain of salt, especially considering they just missed guidance, I think the stock price of STRM has found support and I would recommend holding until next quarter. Based on the previous guidance they gave Streamline should post good numbers if they are able finalize the remaining contracts. Also, if they complete the contracts I expect the stock price to quickly recover.

I am going to change my recommendation to hold until first quarter results are announced.

Disclosure: I currently own shares of STRM.