ATLANTA, April 22, 2008 (PRIME NEWSWIRE) -- MedAvant Healthcare Solutions (MedAvant) (Nasdaq:PILL), a leader in healthcare technology and transaction services, today announced that it has been issued a going concern qualification from UHY LLP ("UHY"), the Company's independent registered public accounting firm. The going concern qualification was issued as part of UHY's audit opinion on the Company's 2007 consolidated financial statements and was based on the Company's declining revenues, recurring losses from operations and limitations on its access to capital.
The Company closely monitors its liquidity, capital resources and financial position on an ongoing basis, and has undertaken a variety of initiatives in an effort to improve its liquidity position. For example, during the second quarter of 2007, we reduced our headcount and during the second half of 2007, we experienced attrition in our workforce as not all vacated positions have been re-filled. The result is that we have further reduced our labor and payroll expenses; however, we do not believe that this additional reduction in workforce size has had a material adverse effect on our service levels. We continue to find ways to operate more efficiently.
Simultaneous with its expense management efforts, the Company has been continually evaluating and pursuing strategic transactions, such as the sale of our pharmacy transaction business that occurred on April 30, 2007. More recently, on February 1, 2008, we closed on the previously announced NPPN transaction. We continue to review all our strategic options.
This announcement is being made in compliance with Nasdaq Marketplace Rule 4350(b)(1)(B), which requires separate disclosure of receipt of an audit opinion that contains a going concern qualification.
About MedAvant Healthcare Solutions
MedAvant is focused on facilitating the exchange of healthcare information so that payers, providers, and patients benefit equally from the sharing of reliable and actionable health data. To enable these services, MedAvant operates PhoenixSM, a highly scalable platform that supports real-time connections between healthcare clients. For more information, visit http://www.medavanthealth.com. MedAvant is a trade name of ProxyMed, Inc.
The MedAvant Healthcare Solutions logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3540
Forward Looking Statement
Statements in this release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions. Actual results could differ materially from projected results because of factors such as:
-- The soundness of our business strategies relative to the perceived
market opportunities;
-- Our ability to successfully develop, market, sell, cross-sell,
install and upgrade our clinical and financial transaction
services and applications to current and new physicians, payers
and medical laboratories;
-- Our ability to compete effectively on price and support services;
-- Our ability and that of our business associates to perform
satisfactorily under the terms of our contractual obligations, and
to comply with various government rules regarding healthcare and
patient privacy;
-- Entry into markets with vigorous competition, market acceptance of
existing products and services, changes in licensing programs,
product price discounts, delays in product development and related
product release schedules, any of which may cause our revenues and
income to fall short of anticipated levels;
-- The availability of competitive products or services;
-- The continued ability to protect our intellectual property rights;
-- Implementation of operating cost structures that align with
revenue growth;
-- Uninsured losses;
-- Adverse results in legal disputes;
-- Unanticipated tax liabilities; and
-- The effects of a natural disaster or other catastrophic event
beyond our control that results in the destruction or disruption
of any of our critical business or information technology systems.
Any of these factors could cause the actual results to differ materially from the guidance given at this time. For further cautions about the risks of investing in MedAvant, we refer you to the documents MedAvant files from time to time with the Securities and Exchange Commission, including, without limitation, its most recently filed Annual Report on Form 10-K. MedAvant does not assume, and expressly disclaims, any obligation to update information contained in this document. Although this release may remain available on our website or elsewhere, its continued availability does not indicate that we are reaffirming or confirming any of the information contained herein.