EATONTOWN, N.J., March 26 /PRNewswire-FirstCall/ -- QMed, Inc. (Nasdaq: QMED) today announced financial results for the fiscal year and fourth quarter ending November 30, 2007. Revenue for the year decreased to $5,246,789 from $8,136,305 a year ago. Net loss for the year totaled $(11,252,361) or $(0.66) per share on a diluted basis, compared to a net loss of $(14,236,224) or $(0.85) on a diluted basis the previous year. Revenue for the three-month period ended November 30, 2007 decreased to $1,527,094 from $1,817,943. Net income for the quarter was $1,816,011 or $0.11 per share on a diluted basis, compared to net loss of $(5,311,278) or ($0.32) per share a year ago.
As previously reported, the Company has discontinued its Special Needs Plan activities within South Dakota and New Jersey. As of November 1, 2007, the Company's captive insurance entity ceased taking risk on the members enrolled in the South Dakota SNP Plan. Effective January 1, 2008, there were no members enrolled in the QMedCare SNP in New Jersey. In addition, the Company sold its medical equipment business in the fourth quarter resulting in a gain of sale of $216,952 or $.01 per share on a diluted basis. As a result, the activities of the SNPs and the equipment business have been reflected as discontinued operations and the financial statements have been restated for all prior periods presented. The loss from discontinued operations for the year ended was $(6,405,545) or $(0.38) per share on a diluted basis, compared to a loss of $(4,740,861) or $(0.28) on a diluted basis the previous year.
The net income reported within the fourth quarter of 2007 is primarily
attributable to the execution of a settlement agreement with DAKOTACARE
settling its liability for $750,000 in connection with its SNP activities
in South Dakota. This resulted in a non-cash reversal of approximately of
$7.4 million offset by the Company's cost of approximately $0.9 million for
exiting this business segment,
|SOURCE QMed, Inc.|
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