MED E-MedSoft.com
Revenues Jump 194% in the Third Quarter of Fiscal 2000 for e-MedSoft.com
Company Reports Third Consecutive Quarter of Strong Revenue Growth and Completes
Net Funding of $7.1 Million to Fuel Continued Growth
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Feb. 8, 2000-- e-MedSoft.com.
(AMEX:MED - news) today announced its results from operations for the third quarter of
fiscal 2000, ended Dec. 31, 1999.
Revenues for the quarter jumped to $12,633,000, an increase of 194% when compared
with pro forma revenues of $4,298,000 for the quarter ended Dec. 31, 1998. Net loss for
the quarter was $2,190,000, or a loss of $0.04 per basic share. The net loss for the quarter
includes a non-cash expense of $850,000 for compensation paid to consultants and
employees through the issuance of warrants, options and shares.
Revenues for the nine months ended Dec. 31, 1999, increased 80% to $25,945,000 as
compared with pro forma revenues of $14,400,000 for the same period ended Dec. 31,
1998. Net loss for the nine-month period was $6,631,000, or a loss of $0.12 per basic
share.
The net loss for the nine-month period includes a one-time charge of $1,243,000 for the
amortization of deferred financing costs relating to the company's bridge financing of the
e-Net acquisition, and also includes a $1,103,000 non-cash expense for compensation paid
to consultants and employees through the issuance of warrants, options and shares.
Pro forma results from the quarter and nine-month periods ended Dec. 31, 1998, include
the results of operations of e-Net Technology, which had not yet been acquired by
e-Medsoft.com at that time.
During the quarter, the company also took additional steps to strengthen its balance sheet
and provide capital for expansion of the business. In total, the company raised
approximately $7.1 million in net proceeds from the sale of common stock.
Commenting on the results, Margaret Harris, e-MedSoft.com's chief financial officer, said:
``We not only achieved significant revenue growth in comparison to last year, but we have
now reported three consecutive quarters in which we have achieved strong revenue
increases on a quarter-to-quarter basis, having posted sales of $2.6 million in the last
quarter of fiscal 1999, and sales of $4.4 million, $8.8 million and $12.6 million, respectively,
in the first three quarters of fiscal 2000. In addition, at the end of the quarter, our backlog
of orders in process stood at $5 million.'
During the quarter, the company stepped up its investment to improve and enhance its
offering of Internet products and solutions. Research and development costs were
increased approximately 83% over the second quarter. Also, the company continued to
invest in its sales and marketing efforts to promote and sell its products and services. Sales
and marketing costs were increased approximately 122% over the sales and marketing
costs for the pro forma nine months ended Dec. 31, 1998.
Commenting on the quarter's results, John F. Andrews, president and chief executive
officer of e-MedSoft.com, stated: ``Obviously, I am very pleased with the substantial
increases in revenues that we were able to achieve in the third quarter, and the quarters
before that.
``This past quarter has also been significant because the company moved to the American
Stock Exchange and is now being tracked by some of the key industry experts, reflecting
our belief that e-MedSoft.com is the technology leader in the e-health arena.
``We have also taken steps to provide capital for the expansion of the business by raising
approximately $7.1 million. The company has a strong U.S. infrastructure that will continue
to grow as our products are enhanced and improved. Further, we have successfully
established operations in the U.K. and plan to expand further into Europe in the coming
year.
``Our strategic partnerships with numerous significant players in the health-care arena and
long-term contracts with customers will also help ensure that the company's growth rate
will continue, if not exceed, its incredible pace.'
Subsequent Events
On Jan. 6, 2000, the company announced that it had received approval from the American
Stock Exchange© (AMEX) for listing of the company's common stock on the AMEX. The
AMEX approval resulted in the company changing its stock symbol from ``MDTK' to
``MED', and it began trading on AMEX on Jan. 11, 2000.
On Jan. 27, 2000, Sutro & Co., one of the nation's oldest investment houses, and the first
investment bank to join e-MedSoft.com back in May 1999, initiated coverage on
e-MedSoft.com and recommended a ``buy' of the company's securities.
On Jan. 31, 2000, the company announced that Sun Microsystems Inc. (Nasdaq:SUNW -
news) had awarded e-MedSoft.com and its subsidiaries with top partnership honors in
connection with e-Med's overseas operations based in the United Kingdom.
On Feb. 2, 2000, the company announced that it had signed a seven-year contract with
University Cardiovascular Medical Group (UCMG) to provide its e-Med Practice
Management Services. The agreement encompasses project management, business and
systems analysis, software configuration services required and contract management
services.
Located on the campus of the University of California at Los Angeles (UCLA), UCMG
has established itself as one of the nation's foremost cardiology practices. The physicians
that make up UCMG are the leaders of clinical cardiology at UCLA, directing programs
which are among the largest and best of their kind.
Conference Call
The company will be hosting an Earnings conference call on Wednesday, Feb. 9, 2000, at
1 p.m. (PST), or 4 p.m. (EST). To reserve a conference call line, contact Rana Thomas or
Jeff Yu at Magnum Financial Group LLC, 213/488-0443. A replay of the conference call
is available from Feb. 9, 2000, at 6 p.m. EST until Feb. 10, 2000, at 6 p.m. EST; call
800/633-8284 / 858/812-6440 reservation No. 14399412.
About e-MedSoft.com
e-MedSoft.com, with its core medical software product, is leading a transition in the
medical industry, as it is the first subscription-based health-care management system
available for delivery through the Internet. Users of the software are charged a small
up-front installation fee, and an ongoing subscription fee based on transaction volume. The
medical software is a complete health-care management system.
Through the Internet and its Java-based integrator which utilizes Sun Microsystems Inc.'s
Java technology, e-MedSoft.com's software facilitates communication across diverse
platforms and languages in unlimited capacity, allowing for the interlink of doctors,
hospitals, clinics, HMOs, insurance companies, financiers and government agencies.
The ease and low cost with which it can be implemented, its Internet-based ASP model
which reduces the need to build internal IT infrastructures and its ability to allow for the
exchange of information across diverse platforms and systems bode well for its
widespread adoption by the medical community.
e-MedSoft.com also operates the e-Net Technology group of companies, which includes
e-Net Systems Ltd. (formerly Relay Business Systems Ltd.), IFA Systems Ltd. and e-Net
Software. The e-Net group focuses on removing the complexity of Web-enabling business
processes by providing a complete range of Internet Managed Services and Information
Technology solutions, and by utilizing strategic partners Sun Microsystems, Oracle Corp.
and Cisco Systems Ltd.
e-MedSoft.com's products are built on the foundations of speed, ease of use, security,
scalability and resilience. For more information, see e-medsoft.com,
www.enetgroup.co.uk, internetstockmarket.com and
www.magnumfinancial.com.
Statements in this news release that relate to management's expectations, intentions or
beliefs concerning future plans, expectations, events and performance are ``forward
looking' within the meaning of the federal securities laws. These forward-looking
statements include assumptions, beliefs and opinions relating to the company's business and
growth strategy based upon management's interpretation and analysis of its own
contractual and legal rights, of management's ability to satisfy industry and consumer
needs with its technologies, of health-care industry trends, and of management's ability to
successfully develop, implement, market and/or sell its network transaction processing
services, software programs, clinical and financial transaction services, and e-commerce
systems to its clientele. Management's forward-looking statements further assume that the
company will be able to successfully develop and execute on its strategic relationships.
Many known and unknown risks, uncertainties and other factors, including general
economic conditions and risk factors detailed from time to time in news releases and the
company's filings with the Securities and Exchange Commission, may cause these
forward-looking statements to be incorrect in whole or in part. The company expressly
disclaims any intent or obligation to update any forward-looking statements. Actual results
or events could differ materially from those anticipated in the forward-looking statements
due to a variety of factors set out above, including, without limitation, acceptance by
customers of the company's products, changing technology, competition in the health-care
market, government regulation of health care, the company's limited operating history,
general economic conditions, availability of capital and other factors.
Note to Editors: Java and 100% Pure Java are trademarks of Sun Microsystems Inc. in
the United States and other countries. All other trademarks, tradenames, registered
trademarks or registered tradenames are the property of their respective holders.
E-MEDSOFT.COM
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Nine Months
Ended Ended
12/31/1999 12/31/1999
Net Sales $ 12,633,046 $ 25,944,826
Cost of Sales 9,868,282 20,276,340
Gross Profit 2,764,764 5,668,486
Operating Expenses:
Research and development 454,533 1,341,095
Sales and marketing 1,056,466 2,703,805
General and administrative 1,834,164 4,847,599
Non-cash compensation 850,021 1,103,337
Depreciation and amortization 397,646 1,104,153
Total Operating Expenses 4,592,830 11,099,989
Operating Income (Loss) (1,828,066) (5,431,503)
Other Income (Expense):
Interest expense, net (211,399) (1,713,766)
Other income (1,458) 1,439
Loss Before Income Taxes and
Extraordinary Income (2,040,923) (7,143,830)
Extraordinary Income 0 357,152
Loss Before Income Taxes (2,040,923) (6,786,678)
Tax Benefit (Expense) (157,924) 146,875
Minority Interest, net of tax 8,620 8,620
Net Loss $ (2,190,227) $ (6,631,183)
Basic and Diluted Loss Per Share $ (0.04) $ (0.12)
Weighted average number of basic and
diluted common shares outstanding 54,678,902 53,202,779
BALANCE SHEET HIGHLIGHTS
(Unaudited)
For the Period Ended
12/31/1999 03/31/1999
Current Assets $ 15,960,000 $ 6,735,976
Total Assets 32,695,418 17,462,908
Current Liabilities 16,887,397 8,378,191
Long-term Debt and Other 2,320,954 2,971,867
Shareholders' Equity $ 13,487,067 $ 6,112,850
--------------------------------------------------------------------------------
Contact:
Magnum Financial Group LLC, Los Angeles
Michael Manahan, 213/488-0443
mike@magnumfinancial.com |
