PracticeXpert Revenues Increase 325% for the Third Quarter of 2004


LOS ANGELES, Nov. 22, 2004 (PRIMEZONE) -- PracticeXpert, Inc. (OTCBB:PXPT), today announced unaudited results for the third quarter of its fiscal year ended September 30, 2004.

Net revenues were $3,754,149 for the three month period ended September 30, 2004, reflecting an increase of 325% or $2,871,084, as compared to revenues of $883,065 for the three months ended September 30, 2003. Revenues in 2004 increased primarily as a result of new business and revenues from acquisitions completed since June, 2003. The net loss reported for the three months ended September 30, 2004 was $1,023,073, or a basic and fully diluted net loss per share of $0.01, compared to a net income of $1,090,306, or a basic net income per share of $0.11 and fully diluted net income per share of $0.02 for the three months ended September 30, 2003.

Commenting on the results, Michael Manahan, chief financial officer of PracticeXpert, stated, "Our results continue to demonstrate significant improvement in revenues and operations. Comparisons of net income between 2004 and 2003 are difficult as the net income in the 2003 quarter included an extraordinary gain of $3,433,069 related to discontinued operations. Also in analyzing the results in 2004, it is important to note that the net loss included depreciation and amortization of $624,063 primarily related to the amortization of client lists, and a one-time expense of $180,000 related to the acquisition of Cancer Care Network.

"Further, during the quarter it was discovered that the accounting treatment for certain consumable products related to one of the Company's contracts was not adequately matching expenses with revenues. As a result, approximately $240,000 of expenses were included in the third quarter, which should have been expensed in the second quarter. Also, approximately $140,000 of expenses were expensed in the third quarter representing consumable products on hand at the end of the quarter. Going forward, the Company is adopting a new method of accounting for these products, that will more accurately match revenues with expenses. This issue is more fully discussed in the Management Discussion and Analysis included in our 10QSB filing for the period ended September 30, 2004, which is available on our website at www.practicexpert.com, through the SEC, or by direct request to the Company."

Jonathan Doctor, CEO of PracticeXpert, Inc., stated, "If you add back the one time charges and the timing issues related to consumable purchases, we were approximately breakeven for the quarter. While the results for the quarter are an improvement, we are aggressively pursuing strategies that will allow us to reduce costs and consolidate operations across all of our divisions. Such back office functions as accounting, IT support, systems and network management and cash management are well along in the centralization process. Further, we have a number of initiatives relating to work flow improvement and more effective labor utilization under way. And we continue to look at ways to utilize our own technology, and other technology products, to improve our service while reducing our costs. We believe laying the foundation for best practices and optimal operating efficiencies now will assist in driving maximum cash flow from the companies we anticipate acquiring in the future."

About PracticeXpert, Inc.

PracticeXpert, Inc. is in the business of providing "turn-key" administrative services to, as well as developing and deploying systems, technologies and services designed to improve operational efficiencies, reduce billing errors and enhance cash flow for, medical practitioners. Our services revolve around our flagship Revenue Management System, PXpert(tm), and include medical billing and accounts receivable management, practice management, transcription, and consulting. Where applicable, PracticeXpert bundles its technology applications with its billing and other practice management services to provide a complete and integrated solution to its physician customers. To find out more about PracticeXpert, Inc. (OTCBB:PXPT), visit our website at www.practicexpert.com.

Note: Any statements released by PracticeXpert, Inc. that are forward- looking, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act. Editors and investors are cautioned that forward-looking statements invoke risk and uncertainties that may affect the Company's business prospects and performances. These include economic, competitive, governmental, technological and other factors discussed in the statements and in the Company's filings with the Securities and Exchange Commission.



                             -- table follows --

                              PRACTICEXPERT, INC.
                      CONSOLIDATED STATEMENTS OF OPERATION
               FOR THE THREE MONTH AND NINE MONTH PERIODS ENDED 
                        SEPTEMBER 30, 2004 AND 2003
                                (Unaudited)

              For the three month periods For the nine month periods
                 ended September 30,          ended September 30,
                  2004          2003          2004          2003
              ------------  ------------  ------------  ------------
 Net revenues:
  Medical 
   billings 
   and related 
   services   $  2,377,333  $    883,065  $  5,064,230  $  2,325,710
  Management 
   services      1,376,816            --     2,311,328            --
              ------------  ------------  ------------  ------------
   Total net 
    revenue      3,754,149       883,065     7,375,558     2,325,710

 Operating 
  expenses:
  Medical 
   billings 
   and related
   services      3,540,800     1,468,192     7,659,038     3,374,522
  Management 
   services      1,261,147            --     1,740,542            --
              ------------  ------------  ------------  ------------
   Total 
    operating
    expenses     4,801,947     1,468,192     9,399,580     3,374,522

              ------------  ------------  ------------  ------------
 Loss from 
  operations    (1,047,798)     (585,127)   (2,024,022)   (1,048,812)

 Non-operating
  Income
  (expense):
  Legal 
   settlement           --        52,326       (75,750)       52,326
  Gain on 
   settlement 
   of debts         85,488            --        70,988      (116,761)
  Gain (loss) 
   on 
   disposal 
   of asset             --            --        (1,706)       32,478
  Impairment 
   of 
   goodwill             --    (1,684,290)           --    (1,684,290)
  Interest 
   income              130           927           321         3,182
  Interest 
   expense         (46,987)      (22,236)     (206,555)      (69,468)
              ------------  ------------  ------------  ------------
   Total 
    non-
    operating
    income 
    (expense)       38,631    (1,653,273)     (212,702)   (1,782,533)

              ------------  ------------  ------------  ------------
 Loss from 
  continuing
  operations 
  before
  income 
  taxes and
  discontinued
  operations    (1,009,167)   (2,238,400)   (2,236,724)   (2,831,345)

 Income taxes           --        11,841         6,400        19,090
              ------------  ------------  ------------  ------------

 Loss from 
  continuing
  operations    (1,009,167)   (2,250,241)   (2,243,124)   (2,850,435)

 Operation 
  from
  subsidiary 
  to be
  disposed

  Loss from 
   operation
   to be 
   disposed, 
   net             (13,288)       (4,793)      (54,327)       (4,793)

 Discontinued 
  operations

  Gain on 
   disposal 
   of
   subsidiary,
   net                  --     3,433,069            --     3,433,069
              ------------  ------------  ------------  ------------

 Net income 
  (loss)        (1,022,455)    1,178,035    (2,297,451)      577,841

 Dividend 
  requirement 
  for preferred 
  stock               (618)      (87,729)      (63,740)     (296,356)
              ------------  ------------  ------------  ------------

 Net income 
  (loss)
  applicable 
  to common
  share-
  holders     $ (1,023,073) $  1,090,306  $ (2,361,191) $    281,485
              ============  ============  ============  ============

 Basic 
  weighted 
  average 
  number of 
  common 
  stock                                                 
  outstanding* 112,072,024     9,586,905    69,294,002     8,807,296
              ============  ============  ============  ============
                                                              
 Diluted 
  weighted 
  average 
  number of 
  common stock
  outstanding* 112,072,024    46,000,057    69,294,002    44,378,790
              ============  ============  ============  ============

 Basic net 
  income 
  (loss) 
  per share   $      (0.01) $       0.11  $      (0.03) $       0.03
              ============  ============  ============  ============
 Diluted net 
  income
  (loss) per 
  share       $      (0.01) $       0.02  $      (0.03) $       0.01
              ============  ============  ============  ============


            

Mot-clé


Coordonnées