Global Med Technologies(R), Inc. Announces a 40% Increase in Revenues for the Third Quarter of 2004
October 28 2004 - 4:34PM
PR Newswire (US)
Global Med Technologies(R), Inc. Announces a 40% Increase in
Revenues for the Third Quarter of 2004 DENVER, Oct. 28
/PRNewswire-FirstCall/ -- Global Med Technologies(R), Inc.
(OTC:GLOB) (BULLETIN BOARD: GLOB) ("Global Med" or the "Company")
announced a 40% increase in revenues and an improvement in cash
flows from operations of $455 thousand for the three months ended
September 30, 2004 when compared with the comparable quarter in
2003. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040226/GLOBALMEDLOGO) The
Company's revenues for the three months ended September 30, 2004
increased $515 thousand to $1.794 million compared with $1.279
million for the comparable quarter in 2003. The Company's
operations provided $376 thousand in cash flows compared with cash
used from operations of $79 thousand for the periods ended
September 30, 2004 and 2003, respectively. The Company's sequential
revenue growth from the second to third quarters of 2004 was $334
thousand, or 22.8%. During the three months ended September 30,
2004, the Company generated sales backlog in the form of sold
software license and implementation fees with projected values of
approximately $1.43 million. Of the $1.43 million backlog, the
Company recognized into revenues approximately $340 thousand during
the three months ended September 30, 2004. The Company sales were
approximately $4.2 million in software license and implementation
fees for the nine months ended September 30, 2004. Of this amount,
approximately $3.37 million remained unrecognized as of September
30, 2004. The Company expects to recognize virtually all of the
remaining software license and implementation fees over a period of
approximately 12 months from September 30, 2004.** The Company's
accounts receivable increased $541 thousand, primarily as a result
of the increased sales activity during the nine months ended
September 30, 2004. During the second and third quarters of 2004,
the Company had its second consecutive quarter of customer billings
of more than $2 million. During the third quarter, the Company
billed out over $2.1 million in accounts receivable and collected
over $2.3 million in accounts receivable. From December 31, 2003 to
September 30, 2004, deferred revenue increased by $1.230 million.
The primary component of the increase relates to increases in
deferral of software license fees. For the nine months ended
September 30, 2004, the Company deferred $793 thousand in software
license fees related to transactions entered into during this
period. GAAP accounting required deferral of this revenue because
certain development or service commitments remained as of September
30, 2004 that were associated with this revenue. Global Med's
Chairman and CEO, Michael I. Ruxin M.D., commenting on the
quarterly results, stated, "For the three months ended September
30, 2004, the Company posted another extremely strong sales
quarter. Our revenues were up over 40% from the comparable quarter
in 2003 and up nearly 23% when compared with the prior quarter. The
Company's cash flows from operations were robust generating $376
thousand for the three months ended September 30, 2004. The Company
is well positioned going into the fourth quarter to continue to
have positive cash flows from operations. Management believes that
the Company is well positioned going into the fourth quarter of
2004 to have another quarter of sequential double-digit revenue
growth." (In thousands $000s) December 31, September 30, Increase
2003 2004 Cash $983 $1,224 $241 Accounts receivable (net) $286 $827
$541 Deferred revenue $1,389 $2,619 $1,230 The Company's cash
position increased by $241 thousand during the nine months ended
September 30, 2004. The Company's operations used $236 thousand
during this period. The use of cash during the nine months ended
September 30, 2004 resulted primarily from the timing of
collections associated with accounts receivable. (See further
discussion below.) During this same period, the Company raised net
cash proceeds of approximately $549 thousand from an equity
transaction. During the three months ended September 30, 2004, the
Company's operations provided $376 thousand in cash flows. The
Company believes that it will have positive cash flow from
operations for the final quarter of 2004. The following tables
provide certain details related to the Company's operations for the
three months ended September 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) September 30, September 30, 2004 2003
Revenues $1,794 $1,279 Operating expenses $1,298 $1,057 Loss from
operations $(91) $(318) Loss income $(99) $(468) Preferred
dividends, related party $(159) -- Net loss available to common
shareholders $(258) $(468) Net loss per share Basic and diluted
$(0.01) $0.02 Shares outstanding Basic 26,116 24,545 Diluted 26,116
24,545 Cash flows provided by (used in) operations $376 $(79)
Global Med Technologies, Inc. (OTC:GLOB) (BULLETIN BOARD: GLOB)
Selected Results Nine Months Ended In ($000s) except per share
information (Unaudited) September 30, September 30, 2004 2003
Revenues $4,607 $5,097 Operating expenses $3,582 $3,309 Loss from
operations $(746) $105 Net loss $(919) $(401) Preferred dividends,
related Party $(348) -- Net loss available to common Shareholders
$(1,267) $(401) Net loss per share basic and diluted $(0.05)
$(0.02) Shares outstanding Basic 25,433 24,470 Diluted 25,433
24,470 Cash flows (used in) provided by operations $(236) $95 The
Company's results for the nine months ended September 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 this period, 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. During the nine
months ended September 30, 2003, the Company recognized $300
thousand in revenues related to a termination contract with a
significant PeopleMed.com, Inc. customer. During the nine months
ended September 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 nine months ended September 30, 2003 would have been $3,937.
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 for this period. **Of the $1.430
million backlog noted above, approximately $250 thousand relates to
contracts that have anticipated implementation values, but the
implementation services fees for these contracts are billed as on
the basis of hours incurred. Of the $4.2 million value in backlog,
approximately $570 thousand relates to contracts that are billed on
an hourly basis for certain services. Therefore, this portion of
the backlog could vary materially from the estimates provided.
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 September 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.globalmedtech.com/
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