The numbers are out..on Yahoo there is part of the 10-k filed Friday:
Three Months Ended December 31, 1997 and 1996
Net sales for the three months ended December 31, 1997 increased 20% to
$5,551,000 from $4,624,000 during the same period the previous year. The
increase in net sales resulted from an increase in revenues of 21% in
the medication dispensing systems business segment. Revenues in this
business segment increased primarily as a result of (a) increased sales
of disposable medication punch cards to existing customers who have
expanded their business through the acquisition of additional pharmacies
and (b) increases in the number of pharmacy management information
systems installed. Revenues for the clinical laboratory services segment
increased 18% in the three months ended December 31, 1997 compared to
same period the previous year. The increase in this segment resulted
primarily from an increase in the number of physicians serviced.
Cost of sales for the three months ended December 31, 1997 increased 27%
to $3,085,000 from $2,433,000 the same period the previous year. Cost of
sales as a percentage of sales increased to 56% for the three months
ended December 31, 1997 compared to 53% during the same period the
previous year. Cost of sales increased as a result of increased revenue.
The increase in cost of sales as a percentage of sales resulted from
increases in fixed costs, primarily personnel, in the medication
dispensing segment. Cost of sales as a percentage of sales for the
medication dispensing system segment was 55% compared to 48% the prior
year. Cost of sales as a percentage of sales for the clinical laboratory
services segment decreased to 57% from 61% the previous year. The
decrease in this segment resulted primarily from increased revenues
which did not require a corresponding increase in fixed operating costs.
Selling, general and administrative expenses increased 22% to $2,248,000
from $1,847,000 for the three months ended December 31, 1997 as compared
to the same period the previous year. The increase in SG&A expenses
resulted primarily from increases in personnel and selling related costs
in the medication dispensing business segment. In addition, the
acquisition of Cygnet Laboratories, Inc. in June 1997 resulted in the
addition of personnel necessary to sell and service the customers of
this business. SG&A expenses increased $290,000 in the medication
dispensing business segment, $151,000 in the clinical laboratory
segment. SG & A expenses in the holding company decreased $41,000.
Depreciation and amortization expense increased $44,000 to $387,000 for
the three months ended December 31, 1997 from $343,000 during the same
period the previous year. The increase resulted from depreciation and
amortization of assets acquired during the first nine months of fiscal
1998.
(12)
Interest expense (net of interest income) for the three months ended
December 31, 1997 decreased $17,000 to $248,000 from $265,000 during the
same period the previous year. The decrease resulted primarily from the
fact that the Company received approximately $46,000 in interest on a
Federal Income Tax refund.
The Company received an income tax refund of approximately $270,000
during the three months ended December 31, 1997 which resulted from an
amendment to its 1992 tax return. The refund is reflected in the
Statement of Operations for the three and nine months ended December 31,
1997.
Net loss from continuing operations and before extraordinary items for
the three months ended December 31, 1997 was $147,000 compared to a net
loss of $264,000 during the same period the previous year. The net loss
for the three months ended December 31, 1997 decreased from the prior
year primarily as a result of an income tax refund of $270,000.
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Not what I was hoping for but it may be enough to support current price range. Sales were flat Q to Q and Loss Before Tax-refund was actually $417,000(worse than last Quarter).
One problem not copied but very important is a dispute with their bank over a possible default on a loan agreement. MSYS disputes the claim and both sides have been meeting throughout December...This may be why we saw the steep decline in price during the past few weeks.
The complete filing is not on free-edgar yet.
***The big contract from the LifeServ webpage will be included in the next results, so I guess that is one positive looking forward.
I am curious what the company has to say about things going forward.
Dave B |
