Claimsnet.com Reports Fiscal Year 2005 Results
February 16 2006 - 5:29PM
PR Newswire (US)
Including a 21% Growth in Revenue for the Year and a 3% Growth in
Revenue for the 4th Quarter DALLAS, Feb. 16 /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 fiscal year
2005 and 4th quarter 2005, which ended December 31, 2005. For the
year ended December 31, 2005, the Company reported revenues of
$1,266,000, a 21% increase from the $1,046,000 reported for fiscal
2004. Cost of revenues were $778,000 compared to $663,000, a 17%
increase. Selling, general and administrative expenses of $723,000
were reported for 2005, representing a 35% reduction from the
$1,106,000 in fiscal 2004. The Company reported a gross profit of
$488,000 for the fiscal year of 2005, compared with a gross profit
in fiscal year 2004 of $383,000. The loss from operations for
fiscal 2005 was $235,000, a 67% decrease from the loss of $723,000,
reported in fiscal 2004. The net loss for fiscal year 2005 was
$279,000, or $.01 per share, compared to $657,000, or $.03 per
share, in the prior year, which included a $91,000 gain on the
settlement of liabilities. For the three months ended December 31,
2005, the Company reported revenues of $323,000, a 3% increase from
the revenues of $315,000 reported for the fourth quarter of fiscal
year 2004. Expenses for the quarter decreased from the year earlier
period. Cost of revenues increased 15% to $195,000 in 2005 from
$170,000 last year. Selling, general and administrative expenses of
$160,000 this year represented a 49% decrease from the $312,000
reported for the fourth quarter of 2004. The Company reported its
tenth consecutive quarterly gross profit in the fourth quarter of
2005 totaling $128,000, compared with a gross profit of $145,000 in
the fourth quarter of 2004. The fourth quarter loss from operations
was $32,000, a decrease of 81% from the loss of $167,000 reported
in the fourth quarter last year. The net loss for the quarter was
$44,000, or $.00 per share, as compared with a net loss of
$177,000, or $.01 per share, in the same quarter last year, a
reduction of 75%. "Our financial results for fiscal 2005 and the
fourth quarter of fiscal year 2005 reflect a continued focus on
expense control during a revenue growth year for the Company,"
commented Don Crosbie, chief executive officer of Claimsnet. "The
financial progress reflected in our improved operating results
related to both increased revenue and decreased expenses. Although
revenue growth slowed in the fourth quarter, we are fully focused
on a renewed strategy of revenue growth for the Company in fiscal
year 2006." 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) Year Ended December 31, 2005 2004 REVENUES
$1,266 $1,046 COST OF REVENUES $778 $663 GROSS PROFIT (LOSS) $488
$383 SELLING, GENERAL AND ADMINISTRATIVE $723 $1,106 LOSS FROM
OPERATIONS $(235) $(723) GAIN ON NEGOTIATED SETTLEMENTS OF
LIABILITIES $--- $91 OTHER INCOME (EXPENSE) $(44) $(25) NET LOSS
$(279) $(657) NET LOSS PER COMMON SHARE - BASIC AND DILUTED $(0.01)
$(0.03) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND
DILUTED 25,812 24,461 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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