QMDC recent news seems very positive
QuadraMed Expects 2001 Profit and Forecasts 2002 Growth
Announces Product Development Initiatives
Board Also Approves Share Repurchase Plan
SAN RAFAEL, Calif.--(BW HealthWire)--June 12, 2001--Lawrence P. English, Chairman and CEO of QuadraMed Corporation (NASDAQ SmallCap: QMDC - news), today indicated that he expects the company to attain profitability by the end of 2001 and report between $135 million and $140 million in revenue for the full year, resulting in earnings of between $0.00 and $0.12 per share. For 2002, the company expects revenues to be between $145 million and $155 million, resulting in earnings of between $0.10 and $0.35 per share. Both earnings estimates include the amortization of intangibles. Because of the relatively low number of outstanding shares, a small variation in net income has a significant impact on the earnings per share calculation. The company had not previously announced estimates for either year.
English also stated that QuadraMed had approximately $49 million in cash and investments as of May 31st. In his presentation, Mr. English reviewed the actions taken in the year since becoming CEO, including rationalizing the company's overhead, realigning its operations, and selling non-strategic assets for cash, that led to QuadraMed's positive EBITDA (earnings before interest, taxes, depreciation, and amortization) in the first quarter of 2001.
``QuadraMed has undergone a decisive and rapid turnaround,'' said Mr. English, who concluded, ``With a strong cash position, we are now fully focused on profitable growth.''
Development Initiatives for Affinity and Coding Products
Mr. English also announced that QuadraMed was increasing its sales force and embarking on a product development strategy intended to add new clinical modules to its Affinity® product and to improve the overall performance of its Coding, Abstracting, and Compliance products. ``We have listened to our customers and they want a practical and affordable approach for delivering technology,'' said English.
``By creating more clinical functionality for our Affinity product, we will be able to address our customers' growing desire to use technology to improve the quality of the care they deliver and avoid medical errors. Further, because our products easily integrate with those of other vendors and existing hospital legacy systems, our customers can realize the benefits of our products quickly,'' remarked Mr. English.
As for QuadraMed's Coding, Abstracting, and Compliance products, which automate hospital reimbursement tasks, English stated, ``By developing a common platform for our book-based and logic tree Coding, Abstracting, and Compliance products, we will delivery regulatory releases faster with easier installation. With an installed base at over 1000 hospitals, we believe that our development efforts will increase our competitive position and facilitate cross-selling of other products.''
In conclusion CEO English stated, ``I am convinced that the development priorities outlined today will result in increased product sales and revenue. I am pleased that our hard work in getting to a strong cash position and operating profitability permit us to make these important product investments that will increase revenues.'' |
