Including a 26% Growth in Revenue for the Year, and 31% Growth in the Fourth Quarter
DALLAS, March 2 /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 fiscal year 2008 and fourth quarter of 2008, which ended December 31, 2008.
For the year ended December 31, 2008, the Company reported revenues of $2,080,000, a 26% increase from the $1,648,000 reported for fiscal 2007.
Cost of revenues for the 2008 fiscal year were $1,640,000 compared to $1,156,000 for the 2007 fiscal year, a 42% increase. Selling, general and administrative expenses of $985,000 were reported for 2008 compared to the $840,000 reported in fiscal 2007, an increase of 17%.
The Company reported a gross profit of $440,000 for fiscal year 2008, compared with a gross profit of $492,000 for fiscal year 2007, representing an 11% decrease. The loss from operations for fiscal 2008 was $545,000 compared to $348,000 reported in fiscal 2007. The net loss for fiscal year 2008 was $650,000, or $0.02 per share, compared to $457,000, or $0.02 per share, in the prior year.
For the three months ended December 31, 2008, the Company reported revenues of $535,000 compared to revenues of $408,000 reported for the three months ended December 31, 2007, an increase of 31%.
Cost of revenues increased 36% to $422,000 for the fourth quarter of 2008 from $310,000 for the fourth quarter of 2007. Selling, general and administrative expenses of $254,000 for the fourth quarter of 2008 increased from the $252,000 reported for the fourth quarter of 2007, an increase of 1%.
The Company reported a quarterly gross profit in the fourth quarter of 2008 totaling $113,000 compared with a gross profit of $98,000 in the fourth quarter of 2007. The fourth quarter loss from operations was $141,000 compared to the loss of $154,000 reported in the fourth quarter of 2007. The net loss for the quarter was $166,000, or $0.01 per share, as compared with a net loss of $182,000, or $0.01 per share, in the same quarter of 2007.
"Our financial results for fiscal year 2008 reflect the focus of the Company on revenue growth. While we are not yet satisfied with the results of those efforts, we remain fully focused on this strategy of revenue and margin growth for the Company with a goal of reaching profitability in fiscal year 2009," commented Don Crosbie, chief executive officer of Claimsnet.
"Some of these efforts, previously announced, included the hiring of two new sales people in 2008. As a result of these hires and our increased focus on expanding our product platform, we have secured new contracts with both payers and providers and we have a good sales pipeline that our sales team continues to cultivate.
Claimsnet has also added services to existing customers associated with transactions other than medical claims. These services relate to, among other areas, ERA (electronic remittance advice) transactions, additional edits of paper claims, full paper claim processing and claim repricing services.
In fiscal year 2008, transaction volume increased by 63% to a total of 10,000,000 transactions, compared to fiscal year 2005, the year in which we completed fund raising activities with many significant investors. This growth is the result of maintaining long term customer relationships, expanding our customer base, offering additional services to all of our customers, and adding new customers associated with the paper conversion and claims repricing services purchased from Acceptius earlier this year. Our total number of direct payer customers now exceeds 65, along with a growing number of direct provider connections.
An added benefit to our customers is the more than 35 connections that have been developed with other claims clearinghouses in our industry. These relationships allow more transactions to be maintained in an electronic format, rather that being printed to paper, and we expect to continue to add more of these connections as we expand our business relationships."
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, Claimsnet offers systems that are distinguished by ease of use, customer care, security and measurable cost advantages. More information on Claimsnet and on the information set forth in this release may be found at the Company's web site at http://www.claimsnet.com, as well as at the SEC's website at www.sec.com.
Safe Harbor Statement Under the Private Securities Litigation Act 1995 - 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, risks related to our recent acquisition of substantially all of the assets of Acceptius, Inc., maintaining access to external sources of capital, regulatory actions, success of marketing strategies, actions of Claimsnet's competitors, dependence on business partners and distribution channels, and continued use of the Internet. Further information on Claimsnet's risk factors is contained in Claimsnet'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) Year Ended December 31, ---------------- 2008 2007 ---- ---- REVENUES $ 2,080 $ 1,648 COST OF REVENUES $ 1,640 $ 1,156 GROSS PROFIT (LOSS) $ 440 $ 492 SELLING, GENERAL AND ADMINISTRATIVE $ 985 $ 840 LOSS FROM OPERATIONS $ (545) $ (348) OTHER INCOME (EXPENSE) $ (105) $ (109) NET LOSS $ (650) $ (457) NET LOSS PER COMMON SHARE - BASIC AND DILUTED $ (0.02) $ (0.02) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING -BASIC AND DILUTED 28,574 26,050
|SOURCE Claimsnet.com inc.|
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