NEWS - MCIF
Tuesday May 30, 3:47 pm Eastern Time
Company Press Release
SOURCE: MC Informatics, Inc.
MC Informatics Reduces Losses by 56 Percent for First Quarter 2000
DENVER, May 30 /PRNewswire/ -- MC Informatics Inc. (OTC Bulletin Board: MCIF - news),
an application service provider (ASP) and Web-enablement company for the healthcare industry,
reported that it was able to reduce its net loss by 56 percent for the first quarter
ended March 31, 2000, as compared to the fourth quarter ended December 31, 1999.
This decrease was primarily a result of a comprehensive cost reduction program that MC Informatics
implemented in the fourth quarter of 1999. This reduction program was instituted when it became
evident that the healthcare information technology (IT) market had fallen off quite
significantly. Although the market is beginning to recover, MC Informatics is projecting a very slow
growth throughout the remainder of 2000.
2000 First Quarter Summary
-- Net loss for the first quarter ended March 31, 2000, was $890,108 as
compared to a net loss of $2,011,391 for the fourth quarter ended
December 31, 1999, a 56 percent improvement.
-- Revenues for the first quarter ended March 31, 2000, decreased 27
percent as compared to the fourth quarter ended December 31, 1999.
-- Added 13 new clients in the first quarter of 2000, of which 4 were
Web-enabled; total number of clients at March 31, 2000, was 35.
The net loss for the first quarter ended March 31, 2000, was primarily due to the establishment of a new ASP division that incurred
significant startup costs consisting principally of salary and travel expenses and to the reduction in MC Informatics' overall business
in the first quarter of 2000. This reduction in business during the first quarter of 2000 resulted in several consultants either not being
billable for a period of time or not being fully billable. The revenue decrease was partially offset by the healthcare market's increasing
acceptance of MC Informatics' NetSolutions suite of products.
``We believe the healthcare IT market is slowly coming back,'' said Bill W. Childs, MC Informatics' chairman and chief executive
officer. ``As healthcare organizations renew their investment in IT, they will require comprehensive solutions for their problems and will
continue to seek external support in the form of ASP, outsourcing and Web-enablement products from companies like MC
Informatics.''
Thirteen healthcare organizations have contracted with MC Informatics for information technology consulting services during the first
quarter of 2000. Four of these were for MC Informatics' Web-enablement product, NetSolutions, which has been receiving a very
broad welcome by the healthcare marketplace. Other successful services have been system installation, project management,
customized report writing for HIS systems, information system support and acquisition assessments.
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, 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 Ended Three Months Ended
March 31, 2000 December 31, 1999
Revenues $1,394,754 $1,904,596
Direct Expenses 1,453,534 2,094,362
Gross Profit (Loss) (58,780) (189,766)
General & Administrative Expenses 792,968 1,767,190
Loss from Operations (851,748) (1,956,956)
Interest Expense 36,530 54,035
Loss Before Provision for Income Taxes (888,278) (2,010,991)
Provision for Income Taxes 1,830 400
Net Loss (890,108) (2,011,391)
Net Loss Per Share, Basic and Diluted (0.06) ($0.16)
Weighted Average Number of Shares of
Common Stock, Basic and Diluted 15,584,016 15,469,291
SOURCE: MC Informatics, Inc. |
