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Arcadia Resources Announces Improved Fiscal 2011 Second Quarter Results
Date:11/9/2010

cy gross margins improved by 250 basis points compared to the first quarter, benefiting from our prime vendor agreement with H.D. Smith and our continued focus on reducing our drug cost. We made significant Pharmacy operational improvements that will streamline our enrollment process, increase efficiency and reduce costs.  We increased our active patient count by 6%, but more importantly we exited the second quarter with good momentum in our DailyMed business and entered our fiscal third quarter with a solid pipeline of enrollees.  Our announcement yesterday that we have started the launch our WellPoint program in Kansas continues that momentum."

"In our Services segment, we had another solid quarter with increased sales and continued improvement in the operating contribution.  We also continue to identify opportunities to reduce our SG&A expenses in all areas of our business," Richardson continued.

Fiscal 2011 Second-Quarter ResultsArcadia reported $25.8 million in revenue from continuing operations during the quarter, up slightly from $25.1 million during the same period a year ago.  The Company's gross margin from continuing operations was 27.3% during the second quarter, a decline of 1.3% from the same period a year ago.  The reduction in gross margin was driven by a shift in mix towards Pharmacy revenue, which has lower margins than the Company's Services segment.

Arcadia reduced its net loss from continuing operations to $3.1 million, or $0.02 per share, in the second quarter of fiscal 2011, compared to a net loss from continuing operations of $4.1 million, or $0.03 per share, in the same period in fiscal 2010.  The consolidated net loss, including discontinued operations, was $2.9 million, or $0.02, in the fiscal second quarter in 2011 compared to a net loss of $4.1 million, or $0.03 in the fiscal second quarter in 2010.

Segment highlights:

Pharmacy: Pharmacy segment revenues increased t
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SOURCE Arcadia Resources, Inc.
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