Claimsnet.com Reports Second Quarter 2005 Results Including a 45% Increase in Revenues
July 26 2005 - 7:13PM
PR Newswire (US)
Claimsnet.com Reports Second Quarter 2005 Results Including a 45%
Increase in Revenues DALLAS, July 26 /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 second
quarter of fiscal 2005, which ended June 30, 2005. For the quarter
ended June 30, 2005, the Company reported revenues of $326,000, a
45% increase compared to the $225,000 reported for the second
quarter of 2004. Cost of revenues for the second quarter of 2005
was $203,000 compared to $168,000 for the second quarter of fiscal
2004, a 21% increase. There were no research and development
expenses incurred during the second quarter of 2005 or the second
quarter of 2004. Selling, general and administrative expenses of
$208,000 were reported for the second quarter of 2005, representing
a 23% reduction from the $269,000 reported for the second quarter
of 2004. The Company reported a gross profit increase of 115%, or
$123,000 for the second quarter of 2005, compared with a $57,000
gross profit for the second quarter of 2004. The loss from
operations for the second quarter of 2005 was $(85,000), a 60%
decrease from the loss of $(212,000) reported for the second
quarter of 2004. The net loss for the second quarter of 2005 was
$(95,000), or $(.00) per share, compared to net loss of ($126,000),
which included a $91,000 gain on settlement of liability, or $(.01)
per share, for the second quarter of 2004. "We are pleased to
report a 45% increase in revenues while at the same time expenses
were reduced by 6%," commented Don Crosbie, chief executive officer
of Claimsnet. "Our enhanced operations group continues to perform
at high levels of customer installations and support, and we are
benefiting from the operating efficiencies our software systems and
tools provide." 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, 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) Quarter Ended June 30, 2005 2004 REVENUES
$326 $225 COST OF REVENUES $203 $168 GROSS PROFIT $123 $57 RESEARCH
AND DEVELOPMENT $--- $--- SELLING, GENERAL AND ADMINISTRATIVE $208
$269 LOSS FROM OPERATIONS $(85) $(212) GAIN ON NEGOTIATED
SETTLEMENTS OF LIABILITIES $--- $91 INTEREST EXPENSE $(10) $(5) NET
LOSS $(95) $(126) NET LOSS PER COMMON SHARE - BASIC AND DILUTED
$(0.00) $(0.01) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC
AND DILUTED 25,751 24,182 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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