As of Sept. 30, 2009, United American Healthcare reported cash, cash equivalents, short-term marketable securities and restricted marketable securities of $16.0 million, compared to $19.9 million as of June 30, 2009. The decrease in cash was primarily the result of the payment of approximately $3.3 million, in September 2009, in settlement of a lawsuit originally filed in 2005, as reported in the Company's fiscal 2009 fourth quarter results. The Company remains free of debt.
United American Healthcare continued to take actions to reduce expenses and conserve cash during the first quarter of fiscal 2010. The Company significantly reduced the number of employees to fit its lower level of operating activity. At Sept. 30, 2009, the total number of employees was reduced to 12 from 41 employees a year earlier, representing a year-over-year cost reduction of approximately $1.1 million. Management expects a further substantial decrease in the total number of employees by the expiration of the MA-SNP contract on December 31, 2009.
Due to the expiration of the TennCare contract and the pending expiration of the Medicare contract, the Company's Board of Directors and management team have been engaged in a review of a variety of long-term strategic alternatives. The review process continues to be guided by the goal of pursuing a strategic alternative that satisfies three primary objectives: providing significant revenues, providing immediate positive EBITDA and having long-term growth opportunities. During this review, all feasible options are being considered, including pursuing a joint venture or other strategic partnership, completing a strategic acquisition or merger, or liquidating the Company's assets. <
|SOURCE United American Healthcare Corporation|
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