A.D.A.M., Inc. Announces First Quarter 2008 Financial Results
Tuesday May 13, 7:30 am ET
biz.yahoo.com
License Revenues Increase 13%; Net Income Increases 17%
ATLANTA--(BUSINESS WIRE)--A.D.A.M., Inc. (Nasdaq: ADAM) today announced financial results for its first quarter ended March 31, 2008.
Kevin Noland, A.D.A.M.’s president and chief executive officer commented, “We made significant progress during the first quarter in expanding our sales, account management and customer service functions enabling A.D.A.M. to reach more customers and prospects with a higher degree of client service and support. These investments resulted in strong content license revenue growth of 13% while we maintained operating margins at 18% and Adjusted EBITDA margins at 28%. We believe that these expanded functions, along with a strong pipeline of new products and enhancements to Benergy 2G!, will lead to higher growth rates in 2009.”
First Quarter 2008 Financial Highlights
* License revenues for the first quarter ended March 31, 2008 were $6,429,000 as compared to $5,699,000 for the same period of 2007, an increase of 13%. The increase in revenues is primarily attributable to increased sales of the Company’s health content licenses and Benergy communications products.
* Total revenues for the first quarter ended March 31, 2008 were $7,123,000 as compared to $6,546,000 for the same period of 2007, an increase of 9%. The increase in revenues is primarily attributable to increased license sales.
* Operating income for the first quarter ended March 31, 2008 was $1,291,000 as compared to $1,151,000 for the same period of 2007. Operating income margin was 18% of revenues for the first quarters of 2008 and 2007.
* Net income for the first quarter ended March 31, 2008 was $547,000 or $0.05 per share on a fully diluted basis, as compared to $466,000 or $0.04 per share on a fully diluted basis, for the same period of 2007. Net income for the first quarter ended March 31, 2008 rose 17% compared to the same period in 2007.
* Adjusted EBITDA was $2,026,000 for the first quarter ended March 31, 2008 as compared to $1,851,000 for the same period of 2007, an increase of 9%. Adjusted EBITDA margin was 28% of revenues for the first quarters of 2008 and 2007.
“With the expansion of our sales and client support functions, we believe we are well positioned to capitalize on the large and growing market opportunities for both content and our Benergy 2G! communication system,” Mr. Noland continued. “Employers are seeking ways to automate more of their human resource functions and at the same time promote health and wellness initiatives. A.D.A.M. is uniquely positioned to help these organizations meet their business objectives and achieve a strong return on investment.” |
