FRANKLIN, Tenn., Nov. 12 /PRNewswire/ -- Spheris, a leading global provider of clinical documentation technology and services, today announced results for the three and nine month periods ended September 30, 2008.
Financial Highlights--Third quarter of 2008
Net revenues for the third quarter of 2008 were $44.7 million compared with $48.9 million in the third quarter of 2007. The decrease in net revenues was due primarily to the impact of net lost business and lower average pricing.
Operating income for the third quarter of 2008 was $1.2 million, or 2.7% of net revenues, compared with operating income of $1.5 million, or 3.1% of net revenues, in the third quarter of 2007. The decrease in operating income was due to lower net revenues, accelerated technology investments to further develop and enhance our product and service offerings, as well as costs associated with the expansion of our global capacity. These costs were partially offset by operational cost savings from increased utilization of our global production workforce and speech recognition technologies, in addition to other cost savings initiatives.
The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, and other expense or income. Adjusted EBITDA for the third quarter of 2008 was $7.0 million, or 15.7% of net revenues, compared with $7.6 million, or 15.5% of net revenues, in the third quarter of 2007. The decrease in Adjusted EBITDA was due primarily to the impact of lower net revenues and the accelerated technology investments described above.
Adjusted EBITDA is a financial measure not computed in accordance with United States generally accepted accounting principles, or GAAP. Please refer to the "Supplemental Financial Information" and related note contained in this press release for further discussion and reconciliation of Adjusted EBITDA to GAAP financial measures.
Financial Highlights--First Nine months of 2
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