Claimsnet.com Reports Third Quarter 2005 Results Including a 13% Increase in Revenues
October 25 2005 - 2:32PM
PR Newswire (US)
DALLAS, Oct. 25 /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 third quarter of
fiscal 2005, which ended September 30, 2005. For the quarter ended
September 30, 2005, the Company reported revenues of $329,000, a
13% increase compared to the $291,000 reported for the third
quarter of 2004. Cost of revenues for the third quarter of 2005 was
$212,000 compared to $184,000 for the third quarter of fiscal 2004,
a 15% increase. There were no research and development expenses
incurred during the third quarter of 2005 or the third quarter of
2004. Selling, general and administrative expenses of $153,000 were
reported for the third quarter of 2005, representing a 41%
reduction from the $258,000 reported for the third quarter of 2004.
The Company reported a gross profit increase of 9%, or $117,000 for
the third quarter of 2005, compared with a $107,000 gross profit
for the third quarter of 2004. The loss from operations for the
third quarter of 2005 was $(36,000), a 76% decrease from the loss
of $(151,000) reported for the third quarter of 2004. The net loss
for the third quarter of 2005 was $(48,000), or $(.00) per share,
compared to net loss of ($156,000), or $(.01) per share, for the
third quarter of 2004. "While we are pleased by the increase in
revenue over last year, we have been focused on the reduction of
the operating loss and being able to report a 76% decline in the
operating loss is gratifying. We are thankful to each of our
employees who have worked to make this possible, as it has come
about because of an overall increase in the productivity of the
company, as overall expenses declined by 17% while revenue
increased 13% compared to the prior year. Now that the company is
close to operational breakeven, focus is again being placed on
revenue growth that leverages our technology and which is the key
to our success going forward," commented Don Crosbie, chief
executive officer of Claimsnet. 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 September 30, 2005 2004
REVENUES $ 329 $ 291 COST OF REVENUES $ 212 $ 184 GROSS PROFIT $
117 $ 107 RESEARCH AND DEVELOPMENT $ --- $ --- SELLING, GENERAL AND
ADMINISTRATIVE $ 153 $ 258 LOSS FROM OPERATIONS $ (36) $ (151)
INTEREST EXPENSE $ (12) $ (5) NET LOSS $ (48) $ (156) NET LOSS PER
COMMON SHARE - BASIC AND DILUTED $(0.00) $(0.01) WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING - BASIC AND DILUTED 25,976 25,014
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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