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IMNET Systems, Inc. announces second quarter fiscal
year 1997 financial results
ATLANTA--(BUSINESS WIRE)--Jan. 22, 1997-- Imnet Systems Inc today announced second
quarter fiscal 1997 financial results.
Revenue for the quarter was $11.1 million, a 76% increase over second quarter fiscal 1996
revenue of $6.3 million. The revenue increase was comprised of a 60% increase in system sales
and a 189% increase in maintenance and professional services. The Company reported second
quarter earnings of $1.7 million or $0.17 per share, compared to earnings exclusive of
non-recurring charges in the second quarter of fiscal 1996 of $198,000 or $0.02 per share.
For the first six months of fiscal 1997, revenue was $20.8 million, up 93% from $10.8 million in
the prior year. Excluding non-recurring charges, the Company reported earnings of $3.1 million or
$0.31 per share for the first six months of fiscal 1997, compared to earnings of $454,000 or
$0.06 per share for the same period prior year.
The Company received a record $17.4 million in new orders in the second quarter of fiscal 1997.
The record order activity marks the fourth consecutive quarter in which the Company has posted
record new orders. The backlog of signed contracts for systems and services not yet delivered
was $34.0 million at the end of the second quarter of fiscal 1997, a 67% increase over the second
quarter fiscal 1996 backlog of $20.3 million. On a consecutive quarter basis, the backlog
increased $6.3 million, or 23%, from the first quarter fiscal 1997 backlog of $27.7 million.
IMNET Systems, Inc. develops and markets electronic healthcare information and document
management systems that capture, index, store and retrieve financial information, clinical
information and medical images resident on most storage media. IMNET's Electronic Information
Warehouse(TM), which supplies the missing link for the implementation of the Electronic Medical
Record, is a true enterprise-wide solution that integrates with software from most leading
Healthcare Information Systems providers. Note regarding Private Securities Litigation Reform
Act: Statements made by IMNET which are not historical facts, including projections, statements
of plans, objectives, expectations, or future economic performance, are forward looking
statements that involve risks and uncertainties and are subject to the safe harbor created by the
Private Securities Litigation Reform Act of 1995. IMNET's future financial performance could
differ significantly from that set forth herein, and from the expectations of management. Important
factors that could cause IMNET's financial performance to differ materially from past results and
from those expressed in any forward looking statements include, without limitation, its limited
operating history, lack of profitable operations, variability in quarterly operating results, customer
concentration, product acceptance, a long sales and delivery cycle, dependence on business
partners, ability to manage growth, emerging technological standards, and risks associated with
acquisitions. For further information on these and other risk factors, please refer to "Management's
Discussion and Analysis of Financial Condition and Results of Operations," and IMNET's Form
10-K for the year ended June 30, 1996, including the "Business-Risk Factors" section thereof. 0-
IMNET Systems Inc.
Unaudited Financial Highlights
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
Dec. 31, Dec. 31,
1996 1995 1996 1995
Revenue $ 11,110 $ 6,329 $ 20,769 $ 10,763
Net Income $ 1,694 $ 198(b) $ 3,090(a) $ 454(b)
Net Income
Per Share $ 0.17 $ 0.02(b) $ 0.31(a) $ 0.06(b)
Weighted Average
Outstanding
Shares and
shares
equivalent 9960 8,717 9,977 8,220
Note: On September 30, 1996, the Company issued 429,292 shares of
its Common Stock for all of the outstanding common stock of
Hunter International, Inc. The merger has been accounted for
as a pooling of interests and, as a result, the Company's
financial statements for all periods prior to the merger have
been restated to include the financial position and results
of Hunter International, Inc.
(a) Excludes a non-recurring charge of $750,000 ($0.08 per share)
related to acquisition costs associated with the Hunter
International, Inc. acquisition completed in the Company's first
quarter of fiscal 1997 ended Sept. 30, 1996.
(b) Excludes a non-recurring charge of $5,740,000 ($0.66 per
share and $0.70 per share for the three and six month periods
ended Dec. 31, 1996, respectively) related to in-process
research and development expenses associated with the
Company's acquisition of Evergreen Technologies, Inc. and
Quesix Software, Incorporated, completed during the second
quarter of fiscal 1996 ended Dec. 31, 1995.
IMNET Systems, Inc.
Consolidated Balance Sheets
(Unaudited)
Dec. 31, June 30,
1996 1996
Assets
Current Assets:
Cash and cash equivalents $ 11,124,434 $ 16,894,711
Marketable securities 22,034,286 21,541,760
Trade accounts receivable, net 22,873,254 15,360,291
Note receivable from related party 409,627 2,910,876
Inventories 2,425,814 2,079,574
Prepaid expenses & other current assets 1,740,889 712,204
----------- -----------
Total current assets 60,608,304 59,499,416
Noncurrent trade accounts receivable 611,606 1,085,927
Notes receivable from officers 250,000 105,000
Property and equipment, net 3,607,098 3,329,331
Computer software development costs, net 2,078,737 1,212,875
Acquired technology, net 601,070 959,755
Goodwill and other intangibles, net 3,175,398 3,343,774
----------- -----------
$70,932,213 $69,536,078
Liabilities and Stockholders' Equity
Current Liabilities:
Current installments of obligations under
capital leases $ -- $ 404
Accounts payable 2,276,019 1,255,134
Accrued expenses 4,816,321 6,653,152
Deferred revenue 1,145,562 804,357
---------- ----------
Total current liabilities 8,237,902 8,713,047
Stockholders' equity:
Common stock, $.01 par value. Authorized
25,000,000 shares; 9,643,301 shares issued
and 9,605,664 shares outstanding at Dec. 31
1996 and 9,627,071 shares issued and 9,589,434
shares outstanding at June 30, 1996 96,433 96,271
Additional paid-in capital 80,926,252 80,795,841
Treasury stock, 37,637 shares, at cost (148,417) (148,417)
Accumulated deficit (18,179,957) (19,920,664)
----------- -----------
Total stockholders' equity 62,694,311 60,823,031
----------- -----------
$70,932,213 $69,536,078
Note: On Sept. 30, 1996, the Company issued 429,292 shares of its
Common Stock for all of the outstanding common stock of
Hunter International, Inc. The merger has been accounted for
as a pooling of interests and, as a result, the Company's
financial statements for all periods prior to the merger
have been restated to include the financial position and
results of Hunter International, Inc.
IMNET Systems, Inc.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Dec. 31,
1996 1995 Revenues: System sales $ 8,962,138 $ 5,584,816 Maintenance and
professional services 2,148,073 743,707
---------- ---------- Total revenues 11,110,211 6,328,523 Operating expenses: Cost of system
sales 2,447,088 1,357,550 Cost of maintenance
and professional
services 1,411,153 554,528 Sales and marketing 3,096,816 2,351,334 Research and
development 1,270,517 933,949 General and
administrative 1,588,218 1,426,770
---------- ---------- Total operating
expenses 9,813,792 6,624,131
----------- --------- Operating income (loss) 1,296,419 (295,608) Interest income 398,053
493,342
----------- --------- Income before income taxes 1,694,472 197,734 Income taxes -- --
---------- ---------
Net income $ 1,694,472 $ 197,734(b)
---------- --------- Net income per
common share $ 0.17 $ 0.02(b)
---------- --------- Weighted average
outstanding common
shares 9,959,934 8,717,077
Note: On Sept. 30, 1996, the Company issued 429,292 shares of its
Common Stock for all of the outstanding common stock of Hunter
International, Inc. The merger has been accounted for as a
pooling of interests and, as a result, the Company's financial
statements for all periods prior to the merger have been
restated to include the financial position and results of Hunter
International, Inc.
(a) Excludes a non-recurring charge of $750,000 ($0.08 per share)
related to acquisition costs associated with the Hunter
International, Inc. acquisition completed in the Company's
first quarter of fiscal 1997 ended Sept. 30, 1996.
(b) Excludes a non-recurring charge of $5,740,000 ($0.70 per
share) related to in-process research and development
expenses associated with the Company's acquisition of
Evergreen Technologies, Inc. and Quesix Software,
Incorporated, completed during the second quarter of fiscal
1996 ended Dec. 31, 1995.
Six Months Ended
Dec. 31,
1996 1995 Revenues: System sales $ 16,656,958 $ 9,352,491 Maintenance and
professional services 4,112,527 1,410,310
---------- ---------- Total revenues 20,769,485 10,762,801 Operating expenses: Cost of system
sales 4,540,579 1,988,585 Cost of maintenance
and professional
services 2,887,692 1,035,891 Sales and marketing 5,745,611 4,409,379 Research and
development 2,420,390 1,554,729 General and
administrative 2,975,223 2,231,438
---------- --------- Total operating
expenses 18,569,495 11,220,022
----------- --------- Operating income (loss) 2,199,990 (457,221) Interest income 890,262
911,106
----------- --------- Income before income taxes 3,090,252 453,885 Income taxes -- --
---------- ---------
Net income $ 3,090,252(a) $ 453,885(b)
---------- --------- Net income per
common share $ 0.31(a) $ 0.06(b)
---------- --------- Weighted average
outstanding common
shares 9,977,490 8,219,631
Note: On Sept. 30, 1996, the Company issued 429,292 shares of its
Common Stock for all of the outstanding common stock of
Hunter International, Inc. The merger has been accounted for
as a pooling of interests and, as a result, the Company's
financial statements for all periods prior to the merger have
been restated to include the financial position and results
of Hunter International, Inc.
(a) Excludes a non-recurring charge of $750,000 ($0.08 per
share) related to acquisition costs associated with the
Hunter International, Inc. acquisition completed in the
Company's first quarter of fiscal 1997 ended Sept. 30,
1996.
(b) Excludes a non-recurring charge of $5,740,000 ($0.70 per
share) related to in-process research and development
expenses associated with the Company's acquisition of
Evergreen Technologies, Inc. and Quesix Software,
Incorporated, completed during the second quarter of
fiscal 1996 ended Dec. 31, 1995.
CONTACT: IMNET Systems, Inc.
Raymond L. Brown, 770/521-5602 |
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