Claimsnet.com Reports Third Quarter 2006 Results; Including a 16% Increase in Revenues
October 26 2006 - 2:54PM
PR Newswire (US)
DALLAS, Oct. 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 third quarter of 2006,
which ended September 30, 2006. For the quarter ended September 30,
2006, Claimsnet reported revenues of $381,000, a 16% increase
compared to the $329,000 reported for the third quarter of 2005.
Cost of revenues for the third quarter of 2006 was $239,000
compared to $212,000 for the third quarter of 2005, a 13% increase.
There were no research and development expenses incurred during the
third quarter of 2006 or the third quarter of 2005. Selling,
general and administrative expenses of $218,000 were reported for
the third quarter of 2006 compared to $153,000 reported for the
third quarter of 2005. Claimsnet reported a gross profit of
$142,000 for the third quarter of 2006, compared with a $117,000
gross profit for the third quarter of 2005. The loss from
operations for the third quarter of 2006 was $(76,000) compared to
$(36,000) reported for the third quarter of 2005. The net loss for
the third quarter of 2006 was $(93,000), or $(.00) per share,
compared to net loss of ($48,000), or $(.00) per share, for the
third quarter of 2005. "We are pleased to report a 16% increase in
our third quarter revenues," commented Don Crosbie, chief executive
officer of Claimsnet. "The increase in cost of sales during the
third quarter of 2006 was due to additional clearinghouse
relationships. Selling, general and administrative expenses also
increased, reflecting our expanded efforts in sales and marketing
as we seek to bring' best of breed' solutions to the healthcare
payer industry." 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 September 30, 2006
2005 REVENUES $ 381 $ 329 COST OF REVENUES $ 239 $ 212 GROSS PROFIT
$ 142 $ 117 RESEARCH AND DEVELOPMENT $ --- $ --- SELLING, GENERAL
AND ADMINISTRATIVE $ 218 $ 153 LOSS FROM OPERATIONS $ (76) $ (36)
INTEREST EXPENSE $ (17) $ (12) NET LOSS $ (93) $ (48) NET LOSS PER
COMMON SHARE - BASIC AND DILUTED $ (0.00) $ (0.00) WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING - BASIC AND DILUTED 25,977 25,976
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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