Claimsnet.com Reports Third Quarter 2003 Results; Including 35% Sequential Increase in Revenue
October 29 2003 - 10:33AM
PR Newswire (US)
Claimsnet.com Reports Third Quarter 2003 Results; Including 35%
Sequential Increase in Revenue DALLAS, Oct. 29
/PRNewswire-FirstCall/ -- Claimsnet.com inc. (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 and first nine months of fiscal year 2003,
which ended September 30, 2003. For the quarter ended September 30,
2003, the Company reported revenues of $230,000, a sequential
increase of 35% from the second quarter. Revenues reported for the
third quarter 2002 were $285,000, which included $229,000 generated
by client contracts that were assigned in an asset sale in
September 2002. Expenses decreased significantly from the prior
year. Cost of revenues was $115,000 compared to $446,000, a 74%
decrease. Research and development expenses were $10,000, down 81%
from the $54,000 reported in the third quarter 2002. Selling,
general and administrative expenses of $308,000 were reported for
the third quarter 2003, representing a 30% reduction from the
$441,000 reported in the third quarter 2002. The Company reported a
gross profit of $115,000 for the quarter compared to a gross loss
of $(161,000) reported in the third quarter 2002. The loss from
operations for the third quarter 2003 was $(203,000), a decrease of
69% compared to the $(656,000) loss from operations reported in the
third quarter 2002. The net loss for the third quarter 2003 was
$(239,000), or $(.01) per share, compared to a loss of $(22,000),
or $(.00) per share, reported in the third quarter 2002, which
included a $640,000 gain from sale of assets. "As a result of both
our refocused business model and our continued emphasis on expense
control, we were pleased to report a gross profit for the first
time in the Company's history," commented Don Crosbie, chief
executive officer of Claimsnet. "In this quarter we also benefited
from some of the previously announced contract signings, which
along with the cost controls, has led to a 60% operating loss
reduction from the second quarter." The Company received net
proceeds of $200,000 during the third quarter 2003 from the sale of
1,000,000 shares of newly issued common stock. These investors also
received warrants to acquire an additional 1,000,000 shares of
common stock at a price of $.20 per common share. Also during the
quarter, the Company issued 1,939,000 shares of common stock to
holders of 1,939 shares of preferred stock upon their election to
exercise conversion rights. 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. [Tables to Follow] CLAIMSNET.COM INC. AND SUBSIDIARIES
SUMMARY OPERATIONS STATEMENT INFORMATION (In thousands except per
share data) Quarter Ended September 30, 2003 2002 REVENUES $ 230 $
285 COST OF REVENUES $ 115 $ 446 GROSS PROFIT (LOSS) $ 115 $ (161)
RESEARCH AND DEVELOPMENT $ 10 $ 54 SELLING, GENERAL AND
ADMINISTRATIVE $ 308 $ 441 LOSS FROM OPERATIONS $ (203) $ (656)
GAIN (LOSS) ON SALE OF ASSETS $ (31) $ 640 NET LOSS $ (239) $ (22)
NET LOSS PER COMMON SHARE - BASIC AND DILUTED $ (0.01) $ (0.00)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED
20,537 12,707 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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