EATONTOWN, N.J., April 18 /PRNewswire-FirstCall/ -- QMed, Inc.
(Nasdaq Symbol: QMED) today announced financial results for the
first quarter ending February 29, 2008. Revenue for the three-month
period decreased to $751,788 from $1,728,676 in the prior year's
quarter. Net loss for the quarter was $(999,184) or $(0.06) per
share on a diluted basis, compared to net loss of $(1,057,776) or
$(0.06) per share on a diluted basis, for the same period a year
ago. Income from discontinued operations of our managed care
segment for the three-month period ended was $487,185 or $0.03 per
share on a diluted basis, compared to a loss of $(1,447,795) or
$(0.08) on a diluted basis the previous year. The income from
discontinued operations reported within the first quarter of 2008
is primarily attributable to a non-cash reversal of approximately
of $1.0 million related to the reduction in the Incurred But Not
Reported and Paid liability and the corresponding medical expense.
Subsequent to February 29, 2008, the Company received a $375,000
secured loan for working capital and under certain conditions can
receive an additional $375,000 as described in detail in the March
20, 2008 press release and in the notes to the Company's financial
statements. Given the continuing losses and the Company's current
cash position available for working capital, the financial
statements contain a disclosure about the Company's ability to
continue as a going concern. About QMed, Inc. QMed has developed
evidence-based clinical information management systems for use by
health plan customers. The QMed systems incorporate Disease
Management services to patients and decision support to physicians.
The Company's subsidiaries have specialized in serving high-risk
populations of Medicare beneficiaries. Except for historical
information contained herein, matters discussed in this news
release are forward-looking statements that involve risks and
uncertainties. They include but are not limited to those relating
to the timely implementation of programs, the impact of competitive
product introductions, acceptance and pricing, and those risks
detailed in the Company's filings with the Securities and Exchange
Commission (SEC). Actual results may differ materially from any
forward-looking statements due to these risks and uncertainties.
Contact: William Schmitt, QMed, Inc. - 732-544-5544 x1112 QMED,
INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
February 29, November 30, 2008 2007 ASSETS (unaudited) Current
assets Cash and cash equivalents $ 403,546 $ 1,196,030 Accounts
receivable, net of allowances for doubtful accounts of $75,100 and
$58,980, respectively 399,639 535,810 Prepaid professional fees
203,000 228,000 Prepaid expenses and other current assets 393,595
189,654 Assets related to discontinued operations 4,644,835
6,126,492 6,044,615 8,275,986 Property and equipment, net 632,239
717,229 Product software development costs, net 1,615,865 1,769,931
Acquired intangibles, net 379,773 421,224 Other assets 135,123
137,190 $ 8,807,615 $ 11,321,560 LIABILITIES AND STOCKHOLDERS'
EQUITY Current liabilities Accounts payable and accrued liabilities
$ 2,063,790 $ 1,607,840 Leases payable, current portion 26,700
41,116 Accrued salaries and commissions 191,025 245,888 Fees
reimbursable to health plans 20,050 12,900 Contract billings in
excess of revenues 197,380 197,380 Income taxes payable 11,353
12,786 Liabilities related to discontinued 1,964,443 3,952,421
operations 4,474,741 6,070,331 Leases payable -- long term 50,206
49,134 Accrued severance payable, long term 12,410 309,258
4,537,357 6,428,723 Commitments and Contingencies Stockholders'
equity Common stock $.001 par value; 40,000,000 shares authorized;
17,042,959 shares issued and 17,020,959 outstanding, respectively
17,043 17,043 Paid-in capital 54,935,081 54,558,476 Accumulated
deficit (50,606,241) (49,607,057) 4,345,883 4,968,462 Less treasury
stock at cost, 22,000 common shares (75,625) (75,625) Total
stockholders' equity 4,270,258 4,892,837 $ 8,807,615 $ 11,321,560
QMED, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (Unaudited) Restated For the For the Three Months Three
Months Ended Ended February 29, February 28, 2008 2007 Revenue $
751,788 $ 1,728,676 Cost of revenue 330,741 731,099 Gross profit
421,047 997,577 Selling, general and administrative expenses
1,844,056 2,224,207 Research and development expenses 60,203
427,795 Loss from continuing operations (1,483,212) (1,654,425)
Interest expense (7,660) (7,979) Interest income 6,264 100,902 Loss
from operations of joint venture - (18,146) Other (expense) income
(44) 1,975,400 (Loss) income before income tax provision and
discontinued operations (1,484,652) 395,752 Provision for income
taxes (1,717) (5,733) (Loss) income before discontinued operations
(1,486,369) 390,019 Discontinued Operations: Income (Loss) from
operations 487,185 (1,447,795) Net loss $ (999,184) $ (1,057,776)
Basic (loss) income per share Weighted average shares outstanding
17,020,959 16,892,163 Basic (loss) income per share -- continuing
operations $ (.09) $ .02 Basic income (loss) per share --
discontinued operations .03 (.08) Basic (loss) income per share $
(.06) $ (.06) Diluted (loss) income per share Weighted average
shares outstanding 17,020,959 17,997,358 Diluted (loss) income per
share -- continuing operations $ (.09) $ .02 Diluted income (loss)
per share -- discontinued operations .03 (.08) Diluted (loss)
income per share $ (.06) $ (.06) DATASOURCE: QMed, Inc. CONTACT:
William Schmitt of QMed, Inc., +1-732-544-5544 x1112 Web site:
http://www.qmedinc.com/
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