MCIF - MC Informatics, Inc. Announces Record Annual Revenue
Results for 1999.
biz.yahoo.com
Text...
-------------------
Wednesday April 19, 6:29 pm Eastern Time
Company Press Release
SOURCE: MC Informatics, Inc.
MC Informatics, Inc. Announces Record Annual Revenue
Results
DENVER, April 19 /PRNewswire/ -- MC Informatics, Inc. (OTC Bulletin Board: MCIF - news), an application services provider (ASP)
for the healthcare industry, today reported that total 1999 revenues increased to $8.6 million, a 131 percent increase from 1998.
1999 Year-End Highlights
-- Total 1999 revenues increased 131 percent from 1998. Of this increase,
revenues from acquisitions accounted for 12 percent of the increase.
-- Fourth quarter revenues increased 35 percent from the fourth quarter
of 1998.
-- Completed the acquisition and integration of Medical Systems Solutions
and Inteck, Inc.
-- Added 11 new clients in the fourth quarter of 1999; total number of
clients at December 31, 1999, was approximately 48.
-- Web enabled over 40 MEDITECH clients and provided secure (encrypted)
inbound and outbound data transfers from outside entities.
Revenue for the 1999 fourth quarter totaled $1,904,596, up 35 percent from revenue reported in the comparable period in fiscal year
1998. Revenue for the year ended December 31, 1999, increased 131 percent to $8,570,347 over the same period of 1998.
The 1999 loss per share was $0.28 as compared with a $0.03 loss per share for 1998. The 1999 loss was primarily attributable to the
establishment of two new profit centers that incurred significant start-up expenses without realizing significant revenues and a
significant decrease in revenues in the fourth quarter of 1999, which the Company believes to be a direct result of year 2000 fears.
This decline in business during the fourth quarter of 1999 resulted in an unusual number of Company consultants not being billable
and/or being laid off, which further resulted in the Company's incurring significant costs associated with the severance of these
consultants.
In addition, during 1999, the Company relocated its corporate offices and opened or acquired three other offices. The Company also
incurred substantial increases in general and administrative expenses as a result of the merger with HealthDesk.
``We are pleased about MC Informatics' 1999 revenue results,' said Bill W. Childs, MC Informatics' chairman and chief executive
officer. ``The results reflect our growing customer base that stemmed from our dedication to quality services. Our clients have
provided us with optimistic feedback in support of IT services we have provided them.'
MC Informatics added 11 new clients during fourth quarter 1999 with a total of 48 clients for 1999. The clients engaged MC
Informatics for several different types of IT services including system installations, system implementations, system integrations,
business assessment studies, account management, business office consulting and Web enablement services.
``On a number of occasions (both in a MEDITECH/Non-MEDITECH environment) we have used MC Informatics to backfill specific
skill sets in order to meet critical project deadlines,' said Jim Knutson, St. Joseph Hospital Health System's technical lead
specialist. ``We have found their personnel to be highly trained and motivated, jumping into our fast-paced Client Server projects...
MC Informatics has proven to us that they have the best skilled professionals. The work that their people do has proven to be
outstanding. Their work ethic can be counted on. Their assistance and guidance has helped us meet our facility's information
services goals with an unsurpassed quality...'
Corporate Focal Points
``We believe that our accomplishments in 1999 helped us to become a leading healthcare IT consulting company,' said Childs. ``Now
that we are a business-to-business ASP, our Web-based solutions provide communication solutions to the healthcare industry. We
are currently providing ASP services to approximately 40 healthcare organizations with our Web-based technology solutions.'
-- ASP Announcement
Earlier this year, MC Informatics launched an ASP program that
capitalizes on the healthcare industry's movement to rely more heavily
on the Internet and Web-based technologies for more efficient and less
costly access to information. Through MC Informatics' ASP program,
hospitals, ambulatory clinics, physicians and payers experience several
benefits, including the opportunity to convert IT from a cost center to
a profit center, predictable costs for a high level of service, service
level guarantees, HIPAA-compliant systems and access to specialized
technical expertise on an as-needed basis at preferred rates.
-- Web-Based Family of Solutions
MC Informatics also recently launched its Web-based family of solutions
for the healthcare industry. These solutions benefit the healthcare
industry by validating all users and by using 128-bit encryption for
data passing through the Internet. The Internet-based solutions allow
all remote system users to access their organizations' information
systems securely through the Internet. In addition, they allow
information system vendors to securely access healthcare organizations'
information systems through the Internet. Columbia Hospital, Hudson,
New York, engaged MC Informatics to implement one of its Web- based
solutions. "It is very easy to install and to administer through its
simple interface," said Michael LaForge, hardware specialist for
Columbia Memorial Hospital. "We utilize the remote users feature for
our clinics and physician practices with Windows NT LANs. It acts as a
proxy server to allow multiple MEDITECH sessions through one dial-up
Internet connection. The autokey feature also provides us with
complete control of our physicians' remote connections...This product
is a must for any hospital that has MEDITECH and wishes to allow remote
access over low cost dial-up Internet connections."
-- Acquisitions
In 1999, MC Informatics acquired two information technology consulting
firms: Inteck, Inc., and Medical Systems Solutions, Inc. Inteck was a
17-year-old healthcare consulting firm with a nationwide client base.
Medical Systems Solutions provided encrypted, validated connections via
the Internet from healthcare software vendors to hospitals using those
vendors' software services.
"The acquisitions of Inteck and Medical Systems Solutions added an
array of talented staff to MC Informatics," said Childs. "Our clients
have benefited from the highly skilled professionals experienced in
acute care, managed care, clinical and group practice settings. As
always, MC Informatics' number one priority is providing quality
services to all of our clients."
About MC Informatics
MC Informatics, based in Irvine, Calif., is a leading provider of Web-based application services for the healthcare industry and serves
a national client base with hospital management, clinical, managed care and physician IT solutions. The company's focus is to help
healthcare organizations maximize the benefits of their information systems and enable technology to serve their strategic objectives.
As an ASP, MC Informatics provides complete operational support for all IT functions: Internet services, including ISP, e-mail, Web
hosting, Web-publishing, and business-to-business and business-to-consumer connectivity; distance learning programs; help desk;
network services; desktop services; secure HIPAA-compliant Internet access to application servers; EMR support; and other IT
services as required by each healthcare organization. For more information on the company, please visit www.mcinformatics.com .
This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, inherent
risks of maintaining contracts. In addition, the company is subject to risks associated with competitive products and pricing, product
demand and market acceptance, new product development, reliance on key alliances, fluctuations in operating results and other
risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
MC INFORMATICS, INC.
CONDENSED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Twelve Months
Ended December 31 Ended December 31
1999 1998 1999 1998
Revenues $1,904,596 $1,410,486 $8,570,347 $3,716,585
Direct Expenses 2,094,362 1,043,381 7,017,174 2,529,959
Gross Profit (189,766) 367,105 1,553,173 1,186,626
General & Administrative 1,767,190 459,743 4,740,553 1,309,601
Loss from Operations (1,956,956) (92,638) (3,187,380) (122,975)
Other Expense 54,035 27,185 206,040 30,985
Loss Before
Income Taxes (2,010,991) (119,823) (3,393,420) (153,960)
Provision for Income Taxes 400 3,800 1,600 3,800
Net Loss (2,011,391) (123,623) (3,395,020) (157,760)
Net Loss Per Share,
Basic and Diluted ($0.16) ($0.02) ($0.28) ($0.03)
Weighted Average Shares 15,469,291 5,645,230 13,657,737 5,645,230
SOURCE: MC Informatics, Inc. |
