HATBORO, Pa., Aug. 13 /PRNewswire-FirstCall/ -- InfoLogix, Inc. (Nasdaq: IFLG), a leading technology provider of enterprise mobility solutions for the healthcare and commercial industries, today announced financial results for the quarter ended June 30, 2009.
Second Quarter 2009 Financial Results
David T. Gulian, president and chief executive officer of InfoLogix, said: "We remain committed to our vision of becoming the leading provider of enterprise mobility solutions for the healthcare and commercial markets, by providing enhanced implementation and integration services, software systems and mobile managed services. Although some customers have postponed IT projects to conserve capital resources in the current economic environment, which resulted in lower revenue for us in the second quarter of 2009 compared to the same period in 2008, our net revenues for the second quarter of 2009 were up by almost 30% from last quarter."
Net revenues for the quarter ended June 30, 2009 were $24.4 million, down 7.2% from $26.3 million in last year's second quarter. The revenue decrease was a result of the overall macroeconomic environment's effect on our customers, which has led to the continued deferral of several significant projects to later in the third and fourth quarters of 2009.
Gross profit for the quarter ended June 30, 2009 was $4.6 million, or 18.8% of net revenues, compared to $7.3 million or 27.7% of net revenues in the second quarter of 2008. Lower gross margins in the comparable periods were the result of project delays in our consulting and professional services resulting in such higher margin services comprising less of the overall revenue mix, and an increase in large infrastructure projects that had lower gross margins.
Selling, general and administrative expenses were $7.7 million for the three months ended June 30, 2009, compared with $7.6 million for the three months ended June 30, 2008, an increase of $136 thousand, or 1.8%. The small increase in selling, general and administrative expenses was primarily attributable to higher salary expense as a result of more sales and pre-sales representatives, as well as higher administrative salaries and related employment benefits from the acquisitions made in the second quarter of 2008, each partially offset by continued cost reduction actions taken since the fourth quarter of 2008. Selling expenses were $2.9 million for the three months ended June 30, 2009, compared with $2.9 million for the three months ended June 30, 2008, which was an increase of $86 thousand, or 3.0%. General and administrative expenses were $4.8 million for the second quarter 2009, compared with $4.8 million for the second quarter of 2008, which was an increase of $51 thousand, or 1.1%.
Interest expense was $1.2 million for the three months ended June 30, 2009, compared to approximately $0.6 million for the three months ended June 30, 2008, an increase of approximately $0.6 million or 91.8%. The increase in interest expense is a result of significantly higher base and default rates charged on our revolving credit and term loan facilities and higher amounts outstanding under these facilities in the second quarter of 2009.
InfoLogix reported a net loss of $4.8 million, or $0.19 per basic and diluted share, for the quarter ended June 30, 2009, compared with a net loss of approximately $0.5 million, or $0.02 per basic and diluted share for the same period of 2008.
Liquidity and Capital Resources
At June 30, 2009 InfoLogix had cash of $3.5 million and total debt, including current and long term, of $25.2 million, as well as an accumulated stockholders' deficit of $1.0 million. David Gulian said: "In an effort to meet the challenges of the current economic environment, we continue to align our cost structure with our adjusted business model, and expect to realize the benefits of these changes in the coming quarters of 2009. We are in default of our credit agreement with our senior lender, but have recently entered into a forbearance agreement (a description of which is included in our Form 8-K filed with the Securities and Exchange Commission on August 5, 2009). If we fail to refinance our debt obligations, secure additional capital and improve our liquidity in the near term, our senior lender may choose to accelerate our debt obligations. As we do not have sufficient liquidity to meet those obligations, if the debt is accelerated, we may not be able to continue as a going concern. We are seeking to improve our liquidity and capital resources in the near term, which would allow us to focus even more on growing our core business. We are engaged in ongoing discussions with numerous parties regarding securing additional funding and refinancing our debt obligations, have received several indications of interest from equity investors, asset-based and other lenders, and strategic investors, and are making progress with several parties in discussing the details and establishing the terms of these proposed capital arrangements."
About InfoLogix, Inc.
InfoLogix is a leading provider of enterprise mobility solutions for the healthcare and commercial industries. InfoLogix uses the industry's most advanced technologies to increase the efficiency, accuracy, and transparency of complex business and clinical processes. With 19 issued patents, InfoLogix provides mobile managed solutions, on-demand software applications, mobile infrastructure products, and strategic consulting services to over 2,000 clients in North America including Kraft Foods, Merck and Company, General Electric, Kaiser Permanente, MultiCare Health System and Stanford School of Medicine. InfoLogix is a publicly-traded company (Nasdaq: IFLG).
InfoLogix makes forward-looking statements in this press release which represent our expectations or beliefs about future events and financial performance. Forward-looking statements are identifiable by words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements are subject to known and unknown risks and uncertainties, including the risks described in our Annual Report on Form 10-K for the period ended December 31, 2008 and other filings we make with the Securities and Exchange Commission. In addition, actual results could differ materially from those suggested by the forward-looking statements, and therefore you should not place undue reliance on the forward-looking statements. We do not make any commitment to revise or update any forward-looking statements to reflect events or circumstances occurring or existing after the date of any forward-looking statement is made.
INFOLOGIX, INC. CONSOLIDATED STATEMENT OF OPERATIONS FOR THE SECOND QUARTERS AND SIX MONTHS ENDED JUNE 30, 2009 AND 2008 (in thousands, except share and per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Net revenues $24,411 $26,347 $43,223 $50,134 Cost of revenues 19,833 19,059 34,510 36,641 Gross profit 4,578 7,288 8,713 13,493 Selling, general and administrative expenses 7,748 7,612 15,411 15,128 Operating loss (3,170) (324) (6,698) (1,635) Interest expense (1,189) (619) (2,334) (907) Interest income 5 32 15 79 Loss on extinguishment of debt (420) - (420) - Loss before income tax benefit (provision) (4,774) (911) (9,437) (2,463) Income tax benefit (provision) (7) 371 (14) 930 Net loss $(4,781) $(540) $(9,451) $(1,533) Loss per share - basic and diluted $(0.19) $(0.02) $(0.37) $(0.06) Weighted average shares outstanding - basic and diluted 25,685,196 25,193,700 25,644,173 25,056,071 INFOLOGIX, INC. Condensed Consolidated Balance Sheets (in thousands, except share amounts) June 30, December 31, 2009 2008 (Unaudited) ASSETS Currents assets: Cash and cash equivalents $3,518 $3,037 Accounts and other receivables (net of allowance for doubtful accounts in the amount of $572 and $352 as of June 30, 2009 and December 31, 2008, respectively) 17,123 22,610 Unbilled revenue 261 1,498 Inventory, net 2,272 1,775 Prepaid expenses and other current assets 1,651 1,228 Total current assets 24,825 30,148 Property and equipment, net 781 944 Intangible assets, net 8,215 8,709 Goodwill 10,971 10,540 Deferred financing costs 264 501 Total assets $45,056 $50,842 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $11,584 $11,389 Line of credit 9,012 9,000 Current portion of notes payable 11,552 12,077 Current portion of capital lease obligations 81 86 Sales tax payable 102 477 Accrued expenses 3,889 2,800 Accrued earn out payable 2,388 1,958 Other current liabilities 1,360 900 Deferred revenue 1,887 276 Total current liabilities 41,855 38,963 Notes payable, net of current maturities 4,346 4,215 Capital lease obligations, net of current maturities 155 186 Total liabilities 46,356 43,364 Commitments and Contingencies Stockholders' (deficiency) equity: Preferred stock, par value $.00001; authorized 10,000,000 shares; none issued or outstanding - - Common stock, par value $.00001; authorized 100,000,000 shares; issued and outstanding 25,759,135 shares and 25,602,267 shares at June 30, 2009 and December 31, 2008, respectively - - Additional paid in capital 26,439 25,766 Accumulated deficit (27,739) (18,288) Total stockholders' (deficiency) equity (1,300) 7,478 Total liabilities and stockholders' (deficiency) equity $45,056 $50,842 INFOLOGIX, INC. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) Six Months Ended June 30, 2009 2008 Operating activities: Net cash provided by (used in) operating activities $1,259 $(774) Investing activities: Acquisition of property, software and equipment (413) (1,339) Acquisitions, net of cash acquired - (2,975) Disposal of property and equipment - 27 Promissory notes issued - (200) Net cash used in investing activities (413) (4,487) Financing activities: Payments received from employee stock purchase plan 65 31 Proceeds from issuance of warrants 78 - Payment of deferred financing costs (90) (1,348) Issuance of Hercules note payable - 9,000 Issuance of Hercules line of credit - 7,500 Final repayment of Sovereign notes payable - (3,292) Final repayment of Sovereign line of credit - (9,334) Repayment of long-term debt and capital leases (430) (214) Net borrowings on line of credit 12 1,856 Net cash (used in) provided by financing activities (365) 4,199 Net change in cash and cash equivalents 481 (1,062) Cash and cash equivalents at beginning of period 3,037 6,101 Cash and cash equivalents at end of period $3,518 $5,039 Contact: John A. Roberts Chief Financial Officer 215-604-0691, x1102
|SOURCE InfoLogix, Inc.|
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