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BPO Management Services Announces Financial Results for Fourth Quarter and Full Year 2008
Date:4/1/2009

quarter, compared to a loss of $1.5 million in the fourth quarter last year. The net loss for the quarter was $13.6 million compared to a net loss of $2.5 million in the fourth quarter last year.

Mr. Dolan continued, "Demand for our services, technology and infrastructure, provided on a recurring revenue basis, remains consistently strong across all business segments, including our Healthcare segment which was created through the recent Healthaxis merger. We anticipate continuing business improvement in the first quarter as we expand our revenue base and ongoing Company-wide integration activities reduce SG&A expenses. Going forward we continue to expand our pipeline of new business opportunities, grow our recurring revenue content and relentlessly drive operating efficiencies through cross-organization integration activities. The integration of Healthaxis is well-advanced and should contribute strong top-line growth to accelerate our overall progress during the first quarter. As of December 31, 2008, approximately 80% of our revenues were derived from recurring revenue activities and we continue to focus on building out our backlog of future business to be delivered in the years. This growing base of recurring revenue business serves as the platform on which we will build future shareholder value, and management is confident that as capital/credit markets loosen we are well-positioned to accelerate growth and achieve positive cash flow from operations in fairly short order."

Mr. Dolan concluded, "We believe our revenue will grow approximately 35% on a sequential basis, compared to the $7.1 million reported for the fourth quarter and including the contribution of Healthaxis' healthcare claims processing business. We anticipate continued improvement in our gross profit margin and ongoing reductions in SG&A expenses, as a percent of revenue, as we more effectively leverage our fixed infrastructure across an increasing base o
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SOURCE BPO Management Services, Inc.
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