ATLANTA, May 20, 2008 (PRIME NEWSWIRE) -- MedAvant Healthcare Solutions (MedAvant) (Nasdaq:PILL), a leader in healthcare technology and transaction services, today announced results for the first quarter ended March 31, 2008.
Financial Highlights
First Quarter of 2008 compared with Fourth Quarter of 2007 * Net revenue for the first quarter ended March, 2008, was $8.5 million compared with net revenue in the fourth quarter 2007 of $12.8 million. The PPO division which was sold on February 1, 2008, represented $4.6 million of the fourth quarter 2007 revenue. * Operating loss was $1.1 million compared to $0.9 in the fourth Quarter, 2007. * Net loss was $5.4 million for the first quarter compared to $5.3 million for the fourth quarter, 2007. First Quarter of 2008 compared with First Quarter of 2007 * Net revenue for the first quarter ended March 31, 2008, was $8.5 million, compared with net revenue of $9.5 million for the first quarter ended March 31, 2007. * Operating loss for the first quarter was $1.1 million compared with an operating loss for the prior-year period of $6.4 million. * Net loss for the first quarter of 2008 was $5.4 million (including a loss from discontinued operations of $3.6 million), compared with a net loss of $22.2 million (including a $14.9 million loss from discontinued operations and a $5.0 million write-off of impaired assets) for the prior-year period. Net Revenue Breakout Laboratory Communications and EDI * EDI net revenue in the first quarter ended March 31, 2008, was $7.0 million compared to $6.6 million for the fourth quarter 2007 and $7.0 million for the first quarter of 2007. * Laboratory Communications net revenue in the first quarter ended March 31, 2008, was $1.5 million compared to $1.6 million for the fourth quarter 2007 and $2.5 million for the first quarter of 2007.
MedAvant will host a conference call to discuss the first quarter results on Wednesday, May 21, 2008, at 2:00 p.m. Eastern Time. The number to call for this interactive teleconference is 800.561.2731 and the passcode is 14182349. A replay of the conference call will be available through June 4, 2008, by dialing 888-286-8010 and entering the confirmation number 96952172.
The live broadcast of MedAvant's quarterly conference call will be available online at www.medavanthealth.com and www.earnings.com on May 21, 2008, shortly after the call and will be available for 30 days.
Summary of Financial Results
PROXYMED, INC. AND SUBSIDIARIES
Consolidated Statement of Operations
(unaudited)
(amounts in thousands except for share and per share data)
Three Months Ended
March 31,
------------------------
2008 2007
----------- -----------
Net revenues:
Transaction fees, cost containment services
and license fees $ 8,044 $ 7,601
Communication devices and other tangible
goods 455 1,939
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8,499 9,540
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Costs and expenses:
Cost of transaction fees, cost containment
services and license fees, excluding
depreciation and amortization 1,929 1,522
Cost of laboratory communication devices
and other tangible goods, excluding
depreciation and amortization 78 1,071
Selling, general and administrative
expenses 6,743 7,166
Depreciation and amortization 889 1,173
(Gain) loss on disposal of assets 3 3
Litigation settlements 6 --
Write-off of impaired assets -- 5,040
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9,648 15,975
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Operating loss (1,149) (6,435)
Interest expense, net 632 876
----------- -----------
Loss from continuing operations before
income taxes (1,781) (7,311)
Provision for income taxes -- --
----------- -----------
Loss from continuing operations, net (1,781) (7,311)
Loss from discontinued operations
(including loss on disposal of $2,349 in
2008) (3,646) (14,885)
----------- -----------
Net loss $ (5,427) $ (22,196)
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Basic and diluted weighted average shares
outstanding 13,782,915 13,210,188
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Basic and diluted loss per share $ (0.39) $ (1.68)
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Summary Balance Sheet (Unaudited)
( in $000's )
March 31, December 31,
2008 2007
----------- -----------
Current assets - continuing operations 6,742 7,244
Current assets - discontinued operations 0 8,631
Long-term assets - continuing operations 9,175 9,687
Long-term assets - discontinued operations 0 15,093
----------- -----------
Total assets $ 15,917 $ 40,655
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Current liabilities - continuing
operations 27,568 44,471
Current liabilities - discontinued
operations 0 2,216
Long-term liabilities - continuing
operations 726 953
Long-term liabilities - discontinued
operations 0 0
Stockholders' equity (12,377) (6,985)
----------- -----------
Total liabilities and stockholders' equity $ 15,917 $ 40,655
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Summary Statement of Cash Flows (Unaudited)
( in $000's )
Three Months Ended
March 31,
--------------------
2008 2007
--------- ---------
Net cash used in operating activities $ (11,425) $ (2,261)
Net cash used in investing activities 23,416 (471)
Net cash provided by (used in) financing
activities (13,109) 2,492
--------- ---------
Net increase/(decrease) in cash and cash
equivalents - continuing operations (1,118) (240)
Cash and cash equivalents at beginning of period 1,390 682
--------- ---------
Cash and cash equivalents at end of period $ 272 $ 442
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About MedAvant Healthcare Solutions
MedAvant is a national connectivity network that connects payers with providers in a real-time environment for the purpose of transparently messaging administrative, financial and clinical information in order to lower total administrative costs, improve payer, provider and member relationships, and to ultimately improve clinical outcomes.
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; MedAvant's ability to successfully develop, market, sell, cross-sell, install and upgrade its clinical and financial transaction services and applications to current and new physicians, payers, medical laboratories and pharmacies; the ability to compete effectively on price and support services; MedAvant's ability and that of its business associates to perform satisfactorily under the terms of its 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 revenues and income to fall short of anticipated levels; the availability of competitive products or services; the continued ability to protect the company's intellectual property rights, implementation of operating cost structures that align with revenue growth; uninsured losses; adverse results in legal disputes resulting in liabilities; unanticipated tax liabilities; 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.