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Arcadia Resources Announces First Quarter Results
Date:8/13/2009

At the same time, we do see challenges in this segment, particularly in state-funded Medicaid programs, which are under severe budget pressures. Like others in the medical staffing industry, we experienced further declines in our medical staffing business during the first quarter, particularly in our travel nursing division. We expect to see some stabilization in this market over the next few quarters, although we do not expect any significant improvement in demand."

Commenting on the Pharmacy segment, Richardson said: "We continue to bring new payers and partners into the DailyMed program, and are also expanding the program organically with existing payers and partners. However, the fact that DailyMed represents a new and unique approach to managing medication compliance and health care costs makes it more difficult to project our sales in the Pharmacy segment versus our more traditional markets."

Arcadia said there are several key variables that will influence the timing of DailyMed revenue growth. These include the timing of new program roll-outs, the number of high-risk patients targeted and the rate of converting that targeted population into DailyMed enrollees.

"We currently expect that our second quarter DailyMed sales will grow in the range of 20% over the first quarter. Our revenue will accelerate starting later in the second quarter and into the third quarter as we ramp up our programs with WellPoint and others. Based on our current experience, we are projecting that our fiscal 2010 DailyMed sales will range between $25 and $35 million," Richardson said. "We should have better visibility after the second quarter as we expand our patient population and resulting data, and we look forward to updating our expectations at that time."

Arcadia said Pharmacy gross margins are a key operational focus area and it has already identified operational and purchasing improvements tha
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SOURCE Arcadia Resources, Inc.
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