Claimsnet.com Reports First Quarter 2005 Results
April 22 2005 - 11:11AM
PR Newswire (US)
Claimsnet.com Reports First Quarter 2005 Results Including a 34%
Increase in Revenues, and the Smallest Loss in the History of the
Company DALLAS, April 22 /PRNewswire-FirstCall/ -- Claimsnet.com
inc. (OTC:CLAI) (BULLETIN BOARD: CLAI) , a leading provider of
Internet-based business-to- business solutions for the healthcare
industry, today reported its results for the first quarter of
fiscal 2005, which ended March 31, 2005. For the quarter ended
March 31, 2005, the Company reported revenues of $288,000, a 34%
increase from the $215,000 reported for the first quarter of 2004.
Expenses overall decreased 9% compared with the first quarter of
the prior fiscal year. Cost of revenues for the first quarter of
2005 was $168,000 compared to $140,000 in the first quarter of
fiscal 2004, a 20% increase. Selling, general and administrative
expenses of $202,000 were reported for the first quarter of 2005,
representing a 24% reduction from the $267,000 reported in the
first quarter of 2004. The Company reported a gross profit of
$120,000 for the first quarter of 2005, compared with a $75,000
gross profit in the first quarter of 2004. This is the seventh
consecutive quarter in which the Company has reported a gross
profit. The loss from operations for the first quarter of 2005 was
$(82,000), a 57% decrease from the loss of $(192,000) reported in
the first quarter of 2004. The net loss for the first quarter of
2005 was $(92,000), or $(.00) per share, compared to $(197,000), or
$(.01) per share, in the first quarter of 2004. "As a result of
both our refocused business model and our continued emphasis on
expense control, we were pleased to report the lowest net loss in
the Company's history," commented Don Crosbie, chief executive
officer of Claimsnet. "We continue to benefit from previously
announced contract signings, which along with continued cost
controls, has led to the improved operating results." In addition,
the Company announced that claims volumes from its direct customers
had increased 225% compared to the first quarter of 2004,
demonstrating again the effectiveness of its direct sales efforts.
Although sales were down sequentially from the $315,000 reported in
the 4th quarter 2004, this occurred due to several one time sales
items that did not repeat in the current quarter. Overall, business
is increasing, and the productivity of the Company and its software
ASP (Application Service Provider) model continues to improve.
Claimsnet.com inc. is a leading provider of Internet-based claim
processing solutions for the healthcare payer industry, including
distinctive, advanced ASP technology. Headquartered in Dallas,
Texas, Claimsnet offers systems that are distinguished by ease of
use, customer care, security and measurable cost advantages. More
information on Claimsnet can be found at the Company's web site at
http://www.claimsnet.com/ . Safe Harbor Statement Under the Private
Securities Litigation Act 1995 -- With the exception of historical
information, the matters discussed in this press release are
forward looking statements that involve a number of risks and
uncertainties. The actual future results of the Company could
differ significantly from those statements. Factors that could
cause or contribute to such differences include, but are not
limited to, maintaining access to external sources of capital,
regulatory actions, success of marketing strategies, actions of the
Company's competitors, dependence on suppliers and distribution
channels, and continued use of the Internet. Further information on
the Company's risk factors is contained in the Company's quarterly,
annual, and other periodic reports as filed with the Securities and
Exchange Commission. [Table to Follow] CLAIMSNET.COM INC. AND
SUBSIDIARIES SUMMARY OPERATIONS STATEMENT INFORMATION (In thousands
except per share data) (unaudited) Quarter Ended March 31, 2005
2004 REVENUES $ 288 $ 215 COST OF REVENUES $ 168 $ 140 GROSS PROFIT
$ 120 $ 75 RESEARCH AND DEVELOPMENT $ --- $ --- SELLING, GENERAL
AND ADMINISTRATIVE $ 202 $ 267 LOSS FROM OPERATIONS $ (82) $ (192)
INTEREST EXPENSE $ (10) $ (5) NET LOSS $ (92) $ (197) NET LOSS PER
COMMON SHARE - BASIC $(0.00) $(0.01) WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING - BASIC AND DILUTED 25,537 23,667 DATASOURCE:
Claimsnet.com inc. CONTACT: Don Crosbie of Claimsnet.com inc.,
+1-972-458-1701 Ext. 112, or Web site: http://www.claimsnet.com/
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