Global Med Technologies(R), Inc. Announces Record New System Sales for the Second Quarter of 2004
August 06 2004 - 6:49PM
PR Newswire (US)
Global Med Technologies(R), Inc. Announces Record New System Sales
for the Second Quarter of 2004 DENVER, Aug. 6
/PRNewswire-FirstCall/ -- Global Med Technologies(R), Inc.
(OTC:GLOB) (BULLETIN BOARD: GLOB) ("Global Med" or the "Company")
announced record sales of its blood bank software systems for the
three months ended June 30, 2004. The value of the non-GAAP
revenues for the second quarter was approximately $2.760 million.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040226/GLOBALMEDLOGO)
Global Med's Chairman and CEO, Michael I. Ruxin M.D., commenting on
the quarterly results, stated, "For the three months ended June 30,
2004, the Company posted its best sales quarter ever. If the
Company had recognized software license fee revenues on all of the
transactions completed and shipped in the quarter ended June 30,
2004, the Company's revenues would have been approximately $2.760
million. However, due to revenue recognition issues, the Company
had to defer a substantial portion of the new system sales. Revenue
recognition issues primarily associated with certain development
commitments and milestone billings on some of these contracts
prevented the Company from immediately recognizing all of the
revenues from these transactions and resulted in the deferral of
approximately $1.3 million of the $1.41 million in software license
fees. The Company believes that a majority of this revenue will be
recognized prior to the end of 2004, and all of the revenue
referenced above will be recognized within the next 15 months." Dr.
Ruxin continued, "In addition, Global Med has an impressive
pipeline of prospective business and potential recurring revenues.
The projected five-year value of products and services to be
provided under the contracts signed in the second quarter is
approximately $3.35 million." Although the $2.760 million is a
non-GAAP revenue number, the Company believes it is important to
provide it in addition to the GAAP-based revenue information
because it gives an indication of the significant backlog of
revenue that existed as of June 30, 2004 from the transactions that
occurred during the quarter. This background information related to
the deferral of software license fee revenues also helps to explain
the changes in the Company's cash, accounts receivable and deferred
revenue balances as of June 30, 2004 when compared with December
31, 2003. (In thousands $000s) December 31, 2003 June 30, 2004
Increase (Decrease) Cash $983 $880 ($103) Accounts receivable (net)
$286 $1,019 $733 Deferred revenue $1,389 $2,183 $794 The Company's
cash position decreased by $103 thousand during the six months
ended June 30, 2004. The Company's operations used $612 thousand
during this period. For the first quarter of 2004, the Company's
operations provided $6 thousand in cash flows. For the second
quarter, the Company's operations used $618 thousand. The use of
cash during the three months ended June 30, 2004 primarily resulted
from the timing of collections associated with accounts receivable.
Although the Company billed approximately $2.211 million in
accounts receivable during the quarter ended June 30, 2004, the
Company's cash collections from receivables for this period were
approximately $1.268 million. The difference between the billings
and cash collections is explained primarily by the timing of the
accounts receivable billings. Of the $2.211 million billed during
the quarter, approximately $1.164 million was billed in June.
Therefore, the Company did not collect a significant portion of the
receivable balances billed during the final month of the quarter.
As of August 5, 2004, the Company had collected $2.025 million of
the $2.221 million billed during the second quarter. The Company
believes the remainder of the accounts receivable billings are
either fully collectible or covered by the Company's reserve for
bad debts. As of August 5, 2004, the Company's cash balance was
approximately $1.178 million, and the Company believes that for the
final two quarters of 2004, it will have positive cash flows from
operations. From December 31, 2003 to June 30, 2004, deferred
revenue increased by $794 thousand. The significant increase in
deferred revenue is primarily the result of the deferral of
revenues associated with transactions completed and invoiced during
the three months ended June 30, 2004. During this quarter, the
Company billed out approximately $599 thousand related to the
second quarter sales that were shipped and under contract. Of the
amount billed, approximately $483 thousand required deferral. The
primary component of the revenues deferred related to billings for
software license fees in the amount of $415 thousand. GAAP
accounting required deferral of this revenue because certain
development or service commitments remained as of June 30, 2004
that were associated with this revenue. The following tables
provide certain details related to the Company's operations for the
three months ended June 30, 2004 and 2003: Global Med Technologies,
Inc. (OTC:GLOB) (BULLETIN BOARD: GLOB) Selected Quarterly Results
Three Months Ended In (000s) except per share information
(Unaudited) June 30, 2004 June 30, 2003 Revenues $1,460 $2,291
Operating Expenses $1,184 $1,135 Income (loss) from operations
$(345) $586 Net (loss) income $(372) $413 Net income (loss) per
share Basic and diluted $(0.02) $0.02 Shares outstanding Basic
25,626 24,545 Diluted 25,626 25,326 Cash flows (used in) provided
by operations $(618) $90 Global Med Technologies, Inc. (OTC:GLOB)
(BULLETIN BOARD: GLOB) Selected Results Six Months Ended In ($000s)
except per share information (Unaudited) June 30, 2004 June 30,
2003 Revenues $2,813 $3,818 Operating Expenses $2,284 $2,252 Income
(loss) from Operations $(655) $423 Net income (loss) $(820) $67 Net
income (loss) per share basic and diluted $(0.04) $0.00 Shares
outstanding Basic 25,089 24,545 Diluted 25,089 26,151 Cash flows
(used in) provided by operations $(612) $174 The Company's results
for the three and six months ended June 30, 2003 were dramatically
increased by certain non-cash or non-recurring transactions that
occurred during these periods. Included in the Company's results
for the three and six months ended June 30, 2003, the Company
recognized $500 thousand in revenues associated with a settlement
agreement whereby a former marketing partner waived its right to
software development services that had been paid for in prior
years. For the three and six months ended June 30, 2003, the
Company recognized $150 thousand and $300 thousand, respectively,
in revenues related to a termination contract with a significant
PeopleMed.com, Inc. customer. During the three and six months ended
June 30, 2003, the Company recognized $360 thousand in revenues
associated with certain non-cash consideration (i.e., reductions in
liabilities owed to the customer) associated with the sale of
certain SafeTrace Tx(R)* products. Had these transactions been
excluded from the results for this period, the revenues for the
three and six months ended June 30, 2003 would have been $1.281
million and $2.808, respectively. The Company believes it is
important to provide this additional non-GAAP analysis because the
non-cash or non-recurring transactions do not provide a clear
comparison of the transaction-based activities during the periods.
About Global Med Technologies, Inc. Global Med Technologies(R),
Inc. is an international e-Health medical information technology
company providing information management software products and
services to the healthcare industry. Its Wyndgate Technologies(R)
division is a leading supplier of information management systems to
U.S. and international blood centers and hospital transfusion
centers. Current clients of Wyndgate's products and services manage
more than 3 million units of blood, or over 22% of the U.S. blood
supply, each year. For more information about Global Med's products
and services, please call 800-WYNDGATE or visit
http://www.globalmedtech.com/, http://www.peoplemed.com/ and
http://www.wyndgate.com/. Statements in this press release that are
not strictly historical are "forward-looking" statements within the
meaning of the Safe Harbor provisions of the federal securities
laws. Forward-looking statements involve risks and uncertainties,
including, but not limited to, continued acceptance of the
Company's products and services in the marketplace, regulatory and
competitive factors, new products and technological changes, the
Company's dependence upon third-party suppliers, and other risks
detailed from time to time in the Company's Form 10-K and other
regularly filed reports. The results of operations for the quarter
ended June 30, 2004 are not necessarily indicative of the results
that may be expected for any other future period. *Patent Pending
http://www.newscom.com/cgi-bin/prnh/20040226/GLOBALMEDLOGO
http://photoarchive.ap.org/ DATASOURCE: Global Med Technologies,
Inc. CONTACT: Thomas F. Marcinek, President and Chief Operating
Officer of Global Med Technologies, Inc., +1-916-404-8413 Web site:
http://www.wyndgate.com/ Web site: http://www.peoplemed.com/ Web
site: http://www.globalmedtech.com/
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