Claimsnet.com Reports Third Quarter 2008 Results
October 30 2008 - 1:13PM
PR Newswire (US)
Including a 27% Increase in Revenues DALLAS, Oct. 30
/PRNewswire-FirstCall/ -- Claimsnet.com inc. (OTC:CLAI) (BULLETIN
BOARD: CLAI) , a leading provider of Internet-based claims
processing solutions for the healthcare industry, today reported
its results for the third quarter of 2008, which ended September
30, 2008. "We are pleased to report a 27% increase in our third
quarter revenues," commented Don Crosbie, chief executive officer
of Claimsnet. "The increase in overall costs during the third
quarter of 2008 was due to the addition of new clearinghouse
partners as well as customer support personnel. In addition, the
costs of our renewed sales effort, with the two new sales personnel
added in April 2008, is reflected in the higher costs when compared
to last year. However, this renewed sales effort has resulted in
new payer and provider contracts and continues to build a good
pipeline of opportunities. We anticipate that this renewed
investment in sales growth will positively impact the financial
results in the next several quarters both in sales and operating
results. For the quarter ended September 30, 2008, Claimsnet
reported revenues of $527,000, a 27% increase compared to the
$414,000 reported for the third quarter of 2007. Revenues for the
nine months ended September 30, 2008 were $1,545,000, a 25%
increase compared to the $1,240,000 reported for the nine months of
2007. Cost of revenues for the third quarter of 2008 was $408,000
compared to $274,000 for the third quarter of 2007, a 49% increase.
Cost of revenues for the nine months of 2008 was $1,218,000
compared to $846,000 for the nine months of 2007, a 44% increase.
Selling, general and administrative expenses of $245,000 were
reported for the third quarter of 2008 compared to $195,000
reported for the third quarter of 2007. Selling, general and
administrative expenses of $732,000 were reported for the nine
months of 2008 compared to $594,000 reported for the nine months of
2007. Claimsnet reported a gross profit of $119,000 for the third
quarter of 2008, compared with a gross profit of $140,000 for the
third quarter of 2007. Claimsnet reported a gross profit of
$327,000 for the nine months of 2008, compared with a gross profit
of $394,000 for the nine months of 2007. The loss from operations
for the third quarter of 2008 was $(126,000) compared to $(55,000)
reported for the third quarter of 2007. The loss from operations
for the nine months of 2008 was $(405,000) compared to $(200,000)
reported for the nine months of 2007. The net loss for the third
quarter of 2008 was $(151,000), or $(0.01) per share, compared to
net loss of ($81,000), or $(0.00) per share, for the third quarter
of 2007. The net loss for the nine months of 2008 was $(484,000),
or $(0.02) per share, compared to net loss of ($275,000), or
$(0.01) per share, for the nine months of 2007. 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) (unaudited) Quarter Ended Nine
Months Ended September 30, September 30, --------------------
-------------------- 2008 2007 2008 2007 ------- ------- -------
------- REVENUES $ 527 $ 414 $1,545 $1,240 COST OF REVENUES $ 408 $
274 $1,218 $ 846 GROSS PROFIT $ 119 $ 140 $ 327 $ 394 SELLING,
GENERAL AND ADMINISTRATIVE $ 245 $ 195 $ 732 $ 594 LOSS FROM
OPERATIONS $ (126) $ (55) $ (405) $ (200) INTEREST INCOME $ - $ 1 $
- $ 6 INTEREST EXPENSE $ (25) $ (27) $ (79) $ (81) NET LOSS $ (151)
$ (81) $ (484) $ (275) NET LOSS PER COMMON SHARE - BASIC AND
DILUTED $(0.01) $(0.00) $(0.02) $(0.01) WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING - BASIC AND DILUTED 29,247 26,051 28,160 26,048
DATASOURCE: Claimsnet.com inc. CONTACT: Don Crosbie of
Claimsnet.com inc., +1-972-458-1701, ext. 112, Web site:
http://www.claimsnet.com/
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