max90:
PILL
Looked at the last financial statement for PILL to get an idea where they were in their development plan. Chart shows they have had an explosion in price lately, and I would be somewhat worried that the price has gotten ahead of the development of the company. Considering that they have had explosive growth in revenues due to the acquistions over the last year or so, they are still incurring significant losses until such time as they can generate sales through their products. With a cash shortage you might find some dilution of the stock through additional stock sales.
For those interested in PILL and what is developing with the company, I extracted the following information from their 1997 year end financials. There is a lot more information in the financials that I have not included below.
PROXYMED INC /FT LAUDERDALE/ (PILL)
From inception until 1995, the Company's business was principally related to the dispensing of prescription drugs through a variety of methods of delivery, including retail and institutional pharmacies and its home infusion therapy subsidiary. In the first quarter of 1995, management decided to divest of the Company's retail pharmacy business, primarily due to the need for substantial additional capital required to achieve the economies of scale required for profitable
operations, and shifted the emphasis of the Company's business. As part of the retail pharmacy operations, the Company provided at no charge to its customers certain of its healthcare information
technology products and services, which were favorably received. Management also recognized a need for these products and services in the marketplace. Consequently, the Company elected to pursue the commercialization of its healthcare information technology products and services, and sold its retail pharmacy and home infusion operations to Eckerd Corporation ("Eckerd") and National Health Care Affiliates, Inc. ("NHCA"), respectively. The Company's sole remaining
prescription drug dispensing segment operation is ProxyCare, Inc. ("ProxyCare"), its institutional pharmacy subsidiary which dispenses prescription drugs to patients in long-term care facilities.
From mid-1995 through 1997, the Company embarked on its efforts to commercialize its healthcare technology products and services. Specifically, the Company enhanced its clinical EDI products into commercially feasible formats to encourage physician use and acceptance. Concurrently, the Company entered into numerous agreements to achieve connectivity to the nation's physicians and pharmacies between which clinical transactions can be transmitted through
ProxyNet, the Company's secure, proprietary online national healthcare information network. In addition, in 1997 the Company commenced a significant acquisition program to further its presence
in the healthcare information systems ("HCIS") industry and broaden its EDI offerings. Through its acquisitions of CMS, HCS, USHDI and PreScribe, the Company is developing a diverse set of offerings designed to meet the connectivity needs of physicians and other healthcare providers by providing "one-stop" shopping for clinical and financial EDI transactions.
The Company currently operates in three industry segments: healthcare EDI and software products and services, network integration services, and prescription drug dispensing.
REVENUES. Consolidated revenues for 1997 increased by $7,877,818, or 258%, to $10,931,969 from consolidated revenues of $3,054,151 in 1996. NET LOSS. As a result of the foregoing, the Company recorded a net loss of $18,517,122 in 1997, as compared to a net loss of $2,853,735 in 1996. The Company believes it is making progress in its acquisition strategy, strategic relationships and other plans to increase the usage of its healthcare information technology products and services to achieve requisite economies of scale. However, the Company anticipates that it will continue to incur operating losses until it generates substantial recurring revenues from these products and services. |
