Claimsnet.com Reports Fiscal Year 2008 Results
03 March 2009 - 4:30AM
PR Newswire (US)
Including a 26% Growth in Revenue for the Year, and 31% Growth in
the Fourth Quarter DALLAS, March 2 /PRNewswire-FirstCall/ --
Claimsnet.com inc. (OTC Bulletin Board: CLAI), a leading provider
of Internet-based business-to-business solutions for the healthcare
industry, today reported its results for fiscal year 2008 and
fourth quarter of 2008, which ended December 31, 2008. For the year
ended December 31, 2008, the Company reported revenues of
$2,080,000, a 26% increase from the $1,648,000 reported for fiscal
2007. Cost of revenues for the 2008 fiscal year were $1,640,000
compared to $1,156,000 for the 2007 fiscal year, a 42% increase.
Selling, general and administrative expenses of $985,000 were
reported for 2008 compared to the $840,000 reported in fiscal 2007,
an increase of 17%. The Company reported a gross profit of $440,000
for fiscal year 2008, compared with a gross profit of $492,000 for
fiscal year 2007, representing an 11% decrease. The loss from
operations for fiscal 2008 was $545,000 compared to $348,000
reported in fiscal 2007. The net loss for fiscal year 2008 was
$650,000, or $0.02 per share, compared to $457,000, or $0.02 per
share, in the prior year. For the three months ended December 31,
2008, the Company reported revenues of $535,000 compared to
revenues of $408,000 reported for the three months ended December
31, 2007, an increase of 31%. Cost of revenues increased 36% to
$422,000 for the fourth quarter of 2008 from $310,000 for the
fourth quarter of 2007. Selling, general and administrative
expenses of $254,000 for the fourth quarter of 2008 increased from
the $252,000 reported for the fourth quarter of 2007, an increase
of 1%. The Company reported a quarterly gross profit in the fourth
quarter of 2008 totaling $113,000 compared with a gross profit of
$98,000 in the fourth quarter of 2007. The fourth quarter loss from
operations was $141,000 compared to the loss of $154,000 reported
in the fourth quarter of 2007. The net loss for the quarter was
$166,000, or $0.01 per share, as compared with a net loss of
$182,000, or $0.01 per share, in the same quarter of 2007. "Our
financial results for fiscal year 2008 reflect the focus of the
Company on revenue growth. While we are not yet satisfied with the
results of those efforts, we remain fully focused on this strategy
of revenue and margin growth for the Company with a goal of
reaching profitability in fiscal year 2009," commented Don Crosbie,
chief executive officer of Claimsnet. "Some of these efforts,
previously announced, included the hiring of two new sales people
in 2008. As a result of these hires and our increased focus on
expanding our product platform, we have secured new contracts with
both payers and providers and we have a good sales pipeline that
our sales team continues to cultivate. Claimsnet has also added
services to existing customers associated with transactions other
than medical claims. These services relate to, among other areas,
ERA (electronic remittance advice) transactions, additional edits
of paper claims, full paper claim processing and claim repricing
services. In fiscal year 2008, transaction volume increased by 63%
to a total of 10,000,000 transactions, compared to fiscal year
2005, the year in which we completed fund raising activities with
many significant investors. This growth is the result of
maintaining long term customer relationships, expanding our
customer base, offering additional services to all of our
customers, and adding new customers associated with the paper
conversion and claims repricing services purchased from Acceptius
earlier this year. Our total number of direct payer customers now
exceeds 65, along with a growing number of direct provider
connections. An added benefit to our customers is the more than 35
connections that have been developed with other claims
clearinghouses in our industry. These relationships allow more
transactions to be maintained in an electronic format, rather that
being printed to paper, and we expect to continue to add more of
these connections as we expand our business relationships."
Claimsnet.com inc. is a leading provider of Internet-based claim
processing solutions for the healthcare payer industry, including
distinctive, advanced ASP technology. Headquartered in Dallas,
Claimsnet offers systems that are distinguished by ease of use,
customer care, security and measurable cost advantages. More
information on Claimsnet and on the information set forth in this
release may be found at the Company's web site at
http://www.claimsnet.com/, as well as at the SEC's website at
http://www.sec.com/. Safe Harbor Statement Under the Private
Securities Litigation Act 1995 - With the exception of historical
information, the matters discussed in this press release are
forward looking statements that involve a number of risks and
uncertainties. The actual future results of the company could
differ significantly from those statements. Factors that could
cause or contribute to such differences include, but are not
limited to, risks related to our recent acquisition of
substantially all of the assets of Acceptius, Inc., maintaining
access to external sources of capital, regulatory actions, success
of marketing strategies, actions of Claimsnet's competitors,
dependence on business partners and distribution channels, and
continued use of the Internet. Further information on Claimsnet's
risk factors is contained in Claimsnet's quarterly, annual, and
other periodic reports as filed with the Securities and Exchange
Commission. [Table to Follow] CLAIMSNET.COM INC. AND SUBSIDIARIES
SUMMARY OPERATIONS STATEMENT INFORMATION (In thousands except per
share data) Year Ended December 31, ---------------- 2008 2007 ----
---- REVENUES $ 2,080 $ 1,648 COST OF REVENUES $ 1,640 $ 1,156
GROSS PROFIT (LOSS) $ 440 $ 492 SELLING, GENERAL AND ADMINISTRATIVE
$ 985 $ 840 LOSS FROM OPERATIONS $ (545) $ (348) OTHER INCOME
(EXPENSE) $ (105) $ (109) NET LOSS $ (650) $ (457) NET LOSS PER
COMMON SHARE - BASIC AND DILUTED $ (0.02) $ (0.02) WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING -BASIC AND DILUTED 28,574 26,050
DATASOURCE: Claimsnet.com inc. CONTACT: Don Crosbie of
Claimsnet.com inc., +1-972-458-1701, ext. 112, Web Site:
http://www.claimsnet.com/
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