Including an 18% Increase in Revenues
DALLAS, May 6 /PRNewswire-FirstCall/ -- Claimsnet.com inc. (OTC Bulletin Board: CLAI), a leading provider of Internet-based business-to-business solutions for the healthcare industry, today reported its results for the first quarter of fiscal 2008, which ended March 31, 2008.
For the quarter ended March 31, 2008, the Company reported revenues of $490,000, an 18% increase from the $415,000 reported for the first quarter of 2007.
Expenses overall, comprised of cost of revenues and operating expenses, increased 19% compared with the first quarter of 2007. Cost of revenues for the first quarter of 2008 was $392,000 compared to $301,000 in the first quarter of 2007, a 30% increase. Selling, general and administrative expenses of $201,000 were reported for the first quarter of 2008, representing a 2% increase from the $198,000 reported in the first quarter of 2007.
The Company reported a gross profit of $98,000 for the first quarter of 2008, compared with a $114,000 gross profit in the first quarter of 2007. This is the nineteenth consecutive quarter in which the Company has reported a gross profit.
The loss from operations for the first quarter of 2008 was $103,000, compared to a loss of $84,000 reported in the first quarter of 2007. The net loss for the first quarter of 2008 was $132,000, or $0.00 per share, compared to $107,000, or $0.00 per share, in the first quarter of 2007.
"While we are pleased with the 18% growth in sales, our loss from operations increased compared to last year. This primarily resulted from extra efforts that were expended to upgrade our ASP server operations, providing updated hardware and software and increased capacity. Our expectation is that going forward we will benefit from this upgrade as our efforts in sales growth continue to increase our sales, and expenses again return to more normal levels. In connection with these efforts, the Company hired a new Vice President of Sales to focus on the payer industry and a sales representative to improve our penetration of the provider community. The results of these efforts seem promising, based on initial results in the first month. In addition, we have substantially completed the integration of the operations of Acceptius into our operations, and as a result we have further options in our sales efforts for paper conversion of claims and medical claims repricing opportunities. We believe these things taken together, along with continued cost controls, will move us towards profitability by the end of this calendar year," commented Don Crosbie, chief executive officer of Claimsnet.
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, Texas, 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.
Forward-Looking Statements - 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, continued use of the Internet, achieving the anticipated benefits
of capital expenditures, and achieving anticipated expense reductions.
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.
[Table to Follow]
CLAIMSNET.COM INC. AND SUBSIDIARIES
SUMMARY OPERATIONS STATEMENT INFORMATION
(In thousands except per share data)
REVENUES $ 490 $ 415
COST OF REVENUES $ 392 $ 301
GROSS PROFIT $ 98 $ 114
SELLING, GENERAL AND ADMINISTRATIVE $ 201 $ 198
LOSS FROM OPERATIONS $ (103) $ (84)
INTEREST EXPENSE $ (29) $ (23)
NET LOSS $ (132) $ (107)
NET LOSS PER COMMON SHARE -
BASIC $(0.00) $(0.00)
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING -
BASIC AND DILUTED 26,879 26,043
|SOURCE Claimsnet.com inc.|
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